Reply To:
Name - Reply Comment
Last Updated : 2024-04-27 00:40:00
Sri Lanka expects to conclude the discussions with its creditors-both official and private-and reach a debt relief deal by the first review of the International Monetary Fund (IMF) programme that received Executive Board approval early last week.
“We hope to conclude the discussions and arrive at a comprehensive restructuring agreement with the creditors by the time the first review under the EFF in six months takes place,” President Ranil Wickremesinghe told a discussion organised by the professional body of the country’s chartered accountants, CA Sri Lanka yesterday.
The discussion themed ‘Economic Dialogue-IMF and Beyond’ was the first public discussion President Wickremesinghe took part in after the approval of Sri Lanka’s IMF programme.
Sri Lanka has already held two meetings with its official creditors, which include China, India and Parsi Club nations including Japan, and their financing assurances helped the country to unlock the US$ 3 billion IMF bailout package.
The country yesterday initiated discussions with its commercial creditors and investors with Central Bank Governor Dr.Nandalal Weerasinghe and the Treasury Secretary Mahinda Siriwardana outlining the key objectives of the IMF programme and the next steps towards creditor engagement via a virtual presentation.
As at end of 2022, Sri Lanka had US$ 41.4 billion foreign debt, which fell under international law and US$ 42.1 billion of domestic debt, which fell under local law.
Following fiscal adjustments and debt treatment, Sri Lanka is expected to reduce public debt below 95 percent of GDP by 2032.
Sri Lanka’s debt-to-GDP ratio is projected to have reached 128 percent of GDP in 2022, due to exchange rate depreciation, the fiscal deficit, and negative real GDP growth.
Meanwhile, President Wickremesinghe said his target is not merely to stabilise the country’s economy, but to ensure its growth. Sri Lanka’s economy contracted 7.8 percent in 2022, and is expected to contract by about 3 percent this year. A positive growth is expected only in 2024.
“What we are seeking is to stabilise the economy by 2026; to come back virtually to the same ratios we had in 2019.
At the same time, in the next two years, we will be laying ground work for a highly competitive social market economy,” he said.
He noted that trade liberalisation, rationalisation of the remaining para tariffs and bilateral free trade pacts and entering into regional trade agreements are high on his government’s agenda to achieve this goal.
He also stressed that growth-enhancing structural reforms and creating an export-oriented economy were the key to achieve economic prosperity for Sri Lanka.“If we don’t do growth enhancing structural reforms, next time it will be a far more violent uprising. We must boldly go ahead with these structural reforms. This is the last chance,” he said.
Sri Lanka has raised tax rates, introduced cost-reflective utility tariffs, rationalised expenditure and is also in the process of restructuring some state-owned enterprises-both profitable and non-profitable ones.
However, some of these measures have been vehemently opposed by trade unions and certain professional groups.
“Sri Lanka is today at the cross roads between seizing the opportunity for growth, to fix our longstanding institutions and structural problems to become a prosperous society or denying our problems, rejecting change and stagnating as a lower middle-income country,” Wickremesinghe said.
Amaran Friday, 31 March 2023 07:49 AM
Humble Request to Hon President - Although there may be many expenditure that needs to be priotised, I have a humble request to you - please kindly COMPLETE THE FLY OVER AT THE SLAVE ISLAND TRAIN STATION. The half completed Fly-Over that has been halted for a long time gives a very ugly appearance. Many people use this road and the partially completed structure has become a monument.
Karalasingam Sivalingam Friday, 31 March 2023 08:55 AM
All SriLankans should cooperate with the government to get back to 2019 economic status.
Jude Friday, 31 March 2023 10:05 AM
Only relief you can provide is leaving Lankan politics for good!! Yeah!! YOU owe that much for all Lankans, yeah!!
Jaya Friday, 31 March 2023 10:51 AM
The forum was fantastic, but realistically can the president do, since half of his cabinet deck do not understand neither has any clue to take this chalange.
Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.
Reply To:
Name - Reply Comment
US authorities are currently reviewing the manifest of every cargo aboard MV
On March 26, a couple arriving from Thailand was arrested with 88 live animal
According to villagers from Naula-Moragolla out of 105 families 80 can afford
Is the situation in Sri Lanka so grim that locals harbour hope that they coul
8 hours ago
26 Apr 2024