INSUBCONTINENT EXCLUSIVE:
If Sri Lanka continues to rely on borrowing to address the imbalance between imports and exports, the nation will inevitably confront
another economic crisis within a decade, says President Ranil Wickremesinghe.He also underscored his vision to establish economic stability
and expedite the transformation of Sri Lanka into an export-oriented economy.The President said that a new law is planned to be introduced
to parliament in April, alongside another legislation aimed at improving financial governance within the government
inauguration ceremony of Bodhigara and Golden Fence, constructed near the historic Mangedara Tempita Viharaya in Kegalle today (March
20).The President also noted that negotiations concerning certifying Sri Lanka as a debt-paying country are anticipated to conclude by June
He further emphasized that the foreign aid lost due to the country being labelled as bankrupt will be retrieved and returned to the
renewed engagement of foreign banks and companies that had previously refrained from conducting business with Sri Lanka.Reflecting on how
all citizens were impacted during the previous economic crisis, the President also stressed that the benefits of the growing economy are
meant for everyone, not just a select few.The President, who visited the historic Mangedara Tempita Viharaya in Kegalle, unveiled a
commemorative plaque, inaugurating the new Bodhigara and golden fence, and offered flowers at the Bodhiya.This new Bodhigara and golden
fence were erected following guidance from Ven
Sri Jananandabhidana Nayaka Thero, the Viharadhipathi of the Mangedara Tampita Viharaya and Chief Sanghanayaka of Kegalu Maha Disawa.The
President also granted commemorative gifts upon Jagath Sumitra Karunaratne and Mallika Karunaratne.Addressing the gathering President Ranil
Wickremesinghe further said:We are looking forward to talking to the International Monetary Fund and wrapping up our work soon
In 2022, Sri Lanka was labelled as a bankrupt country
Because of this, international financial institutions and banks stopped providing us with support and loans
Our first priority is to lift this ban
Therefore, we need to reaffirm that we are a country that pays its debts.Over the past year, we have played a crucial role in rescuing the
country from economic troubles
If these challenges persist, we may endure another two or three years of hardship
reaching their last phase, and we anticipate wrapping them up by tomorrow
Following that, our objective is to proceed with negotiations involving the countries that have provided loans to us
This process is being overseen by France, Japan, and India, who are chairing the discussions involving all the countries that have
officially lent money to us.The local staff and the International Monetary Fund (IMF) are anticipated to reach a staff-level agreement this
weekend after concluding their discussions
Concurrently, discussions with China are on-going, and discussions with private creditors are underway
The Secretary to the Ministry of Finance and the Governor of the Central Bank are scheduled to return to Europe to engage in discussions
with these groups.Following the declaration of our bankruptcy-free status, a joint meeting of the World Bank and the IMF is planned for
Subsequently, the relevant agreement is expected to be signed shortly thereafter.I aim to complete all these tasks by June and July,
especially considering the upcoming presidential and parliamentary elections
Once completed, we will demonstrate to the world that we are capable of repaying our debts, which will lead to the return of aid money that
business with us, but once these activities are concluded, they will resume business with us
Consequently, our available funds are expected to increase.We have passed a challenging period and had to make tough decisions to overcome
rupees by June, leading to a decrease in the prices of goods
We anticipate the rupee will continue to strengthen next year as well.Moreover, salaries of the government employees have increased by Rs
10,000 before the Sinhala Tamil New Year
number of beneficiary families increasing from 800, 000 to 2,400,000.Considering these factors, the relief provided to the people as a
bankrupt country is three times greater than what was provided during a stable economy
Additionally, the funds that were not used for decentralized budgeting over the past two years will be released, contributing to the
not solve all our problems because we are currently reliant on imports, leading to a trade imbalance where exports are lower than imports
This gap is often bridged through foreign loans, which sets us up for another economic crisis in about a decade.To prevent such a scenario,
I plan to hold discussions with the World Bank, the Asian Development Bank, and the International Monetary Fund to initiate a program aimed
at swiftly transitioning the country towards an export-oriented economy
As a fundamental step, we have introduced the agricultural modernization program, which will require another 6 to 7 years to achieve
success.It is worth mentioning that the proposed law aims to foster economic stability and transition the country into an export-based
I plan to present this law to Parliament by April
Additionally, another law focused on financial governance within the government will be introduced, enabling us to sustain economic
activities effectively.The previous economic challenges impacted everyone in the country
Therefore, the benefits of the developing economy should not be limited to a select few but should extend to all citizens.--PMD
