INSUBCONTINENT EXCLUSIVE:
Prime Minister Dinesh Gunawardena said that the government was able to reach a staff level agreement this morning to obtain an extended fund
facility of USD 2.9 billion dollars from the International Monetary Fund (IMF) that will operate for a period of four years.Speaking in
Board, the official bilateral level discussion will be followed.Various weaknesses and wrong policy decisions ultimately led to debt default
and pushed the country into a deep economic crisis and in order to recover from this crisis, similar deep and comprehensive economic reforms
party is in power.Full speech of Prime Minister Dinesh Gunawardena is as follows:Hon
Deputy Speaker,This morning, the government was able to reach an agreement at the staff level to obtain an extended fund facility of USD 2.9
billion from the International Monetary Fund, which will operate for a period of four years
restructuring programs following the staff -level agreement.After that, it is necessary to obtain the approval of the Executive Board of the
International Monetary Fund
Official Bilateral Level Discussion is scheduled to start next
At the same time, we are given opportunities to obtain loans from bilateral and multilateral development partners
way to go.In the future, we will have to make great sacrifices to find solutions to this economic crisis
For decades we have had a higher consumption comparative to what we had saved
As a result, our debt has increased greatly
The income of the country has decreased to a very low level due to various reasons
Because of this, we have not been able to invest more in important sectors like health, education and public transport
We have been consuming utilities such as petroleum and electricity at low prices in the country for a long time
As a result, a large trade deficit was created and exchange rates weakened
Public sector has been mismanaged for decades
As a result, those institutions suffered huge losses
It also created a huge tax burden on the public.Various weaknesses and wrong policy decisions ultimately led to debt default and plunged the
country into a deep economic crisis
To recover from this crisis, similar deep and comprehensive economic reforms have to be carried out
No matter who is in power, these reforms are necessary
Only then can sustainable and broad-based economic growth be achieved.In the past five months, the government has prepared programs that
Those programs have now received official approval
More challenging is the implementation of these difficult reforms
The government also knows that it is very difficult to carry out these reforms in a situation where the people are suffering economically
Therefore, the essential point is to understand why these reforms are necessary to save the country in the med-term and long-term and
thereafter to ultimately achieve higher development
I would also like to remind you that the President and our government are committed to put the bankrupt country back on the path of
development and to inherit a good future for our future generations.Finally, I would like to say that after reaching an agreement with the
International Monetary Fund, we will present further details to this Parliament
This article first appeared/also appeared in https://adaderana.lk
