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It will take a decade for economy to bounce back: Ranil

7 March 2021 07:57 pm - 17     - {{hitsCtrl.values.hits}}

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If the present economic crisis continues, the people of Sri Lanka will have to forego one meal a day while it will lose everything it gained after the introduction of the open economy, former Prime Minister Ranil Wickremesinghe said today.

Speaking during a meeting with some youth in Borella, Mr. Wickremesinghe said it will take a decade for the Sri Lankan economy to bounce back.

“The businesses lay off their staff as they have begun running at a loss. This will continue in 2022 as well. It will take a decade for the economy to bounce back. Households are already suffering. We during our government laid a good foundation. We improved health services.

I am sad as the programme, which we launched during our regime to pay the debts and to revive the economy has ended up in shambles. I am worried as the country might lose what it gained after the introduction of the open economy after 1977.

No one including the media is talking about this issue. They are afraid to talk as it had given a recommendation about the present government to the people. Even the media institutions are suffering today as they are not getting advertisements, they are running at a loss no one could deny it. One will have to forego one meal a day if the present crisis continues,” Mr. Wickremesinghe said.

“Sri Lanka’s foreign reserves have gone down to $4.5 billion while its foreign debt services for this year will also be the same amount. This is the first crisis. The previous government was able to increase the foreign reserves from $7.5 billion to $8 billion. We managed to generate revenue that was sufficient to meet day-to-day state expenditure, and we had funds to settle debt service to some extent.

The present regime gave high tax concessions to large scale companies. State revenue was lost as a result. The government had started printing money. The total amount printed up to now is three times higher than the amount which the previous Mahinda Rajapaksa government and our government printed. This has resulted in an increase in prices. This is only a beginning. One might see stars by the end of the year,” he added.

“The Government had asked for $2 billion from India and China. It is not clear whether it could get that amount. It will be not sufficient to meet the expenditure even if we get a portion of it. During our regime, we asked for certification from the IMF that we are capable of stabilising the economy. The present regime should also do it. It should go to IMF or look at another alternative of obtaining a certification from some other source. China is an option in this regard. The other issue is development coming to a standstill. There are a few projects which our government approved in 2019. However, some investors have called off some of these projects. One investor informed me that he had already invested in East Africa while another informed me that he had invested in Bangladesh.(Yohan Perera)

 

  Comments - 17

  • RoaringCreek Sunday, 07 March 2021 08:06 PM

    Wishful thinking!

    Leo Sunday, 07 March 2021 08:11 PM

    The Open economy continued from 1977 to 2005. In 2005 our per capita was only $1000. So what did we gain from open economy?

    Jiff Sunday, 07 March 2021 08:13 PM

    We easily lost $3 billion because of the collapse of the tourism sector after covid. As usual fooling the mudukku voters of his.

    Lara Sunday, 07 March 2021 08:15 PM

    How he manages to lie convincingly always amazed me. The economy was growing at 2% when these guys finished the job. I wonder what economy he is talking about.

    Roshan samarathunga Sunday, 07 March 2021 08:19 PM

    Can you please ask him shut his mouth stay at home wear a face mask last 50 years destructive to poor SriLanka for your own benefit. Let young generations to decide future of Sri Lanka

    dickie bird Sunday, 07 March 2021 09:40 PM

    Forecast by looking into an Elephant size Crystal Ball??

    Peacemaker Sunday, 07 March 2021 09:51 PM

    While he’s a failed politician, he’s telling the truth

    Muraly Sunday, 07 March 2021 11:30 PM

    I and my family having only two meals from January 2021. Breakfast and Dinner only.

    silva Sunday, 07 March 2021 11:48 PM

    Why won't you retire now with your pack of lies.

    SarangaDS Sunday, 07 March 2021 11:57 PM

    And who exactly contributed to this situation? And the Central Bank bond scam?

    Da silva Monday, 08 March 2021 12:11 AM

    I really don't like him because of his 2 side politics. But this statements is 100% true. I saw last year this will come to us by end of 2021. We are living beyond our means. Can't go for ever. God bless motherland.

    Vadivelu Yogaratnam Monday, 08 March 2021 12:34 AM

    Time for u to go home rest in peace, your time is up let Sajith take your place.

    Ram Monday, 08 March 2021 01:48 AM

    You are right RW. You have to take part responsibility for this downfall. The Bank Robbery is one. Fighting with MS and you being dropped from Security Council meetings. Your failure to highlight it resulting in many lapses in security, all this contributed. So take part of the blame

    Leo Monday, 08 March 2021 08:48 AM

    How many decades will it take to see you gone?

    Bouncy economy - what goes up must come down! Monday, 08 March 2021 02:41 PM

    A decade is 10 years. The economy will bounce back in 7 years if you can quickly get out of politics and retire. BTW stay out of politics and let the next generation take its place in parliament.

    Rohana Monday, 08 March 2021 02:50 PM

    I wonder if the numbskulls who have commented here think that this govt has done so wonders for the economy? Cabraal is clueless. He has destroyed what was left of the economy after his ten years of incompetence. He is even trying to influence the stock market

    Senaka Monday, 08 March 2021 07:53 PM

    GDP is not considered as a typical growth in a country anymore. It's the inequality is most important in measuring wellbeing of the people. Inequality is widening since we adopt free economic principles since 1977.


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