Dominica continues to be at high risk of debt distress. However, hurricane Maria in September 2017 caused severe social hardship and deterioration of fiscal and external balances, weakening sustainability. In addition, Dominica's debt carrying capacity as measured by the three-year CPIA average declined. Thus, setting public and publicly guaranteed total and external debt on a declining path would require prudent and efficient fiscal policies that safeguard fiscal space for social relief and reconstruction investment. A fiscal consolidation plan is needed after recovery takes hold to sustain reconstruction investment. Donor grant mobilization is key to minimize the debt burden. Main risks to the debt sustainability outlook include sudden stop in citizenship-by-investment (CBI) program revenues, financial instability from weakened balance sheets, and recurrent natural disasters.