28.6 C
Port Louis
Thursday, March 28, 2024

Download The App:

Read in French

spot_img

Sri Lanka Is ‘Bankrupt’: PM Ranil Wickremesinghe

Must Read

Prime Minister Ranil Wickremesinghe said on Tuesday that Sri Lanka is ‘bankrupt’. The country is reeling under its worst financial crisis in decades with most people struggling to buy food, medicine and fuel.

Wickremesinghe informed lawmakers that that current negotiations with the International Monetary Fund (IMF) to revive the country’s “collapsed” economy are “difficult”. This is because Sri Lanka has entered the talks as a bankrupt country rather than a developing one.

“We are now participating in the negotiations as a bankrupt country. Therefore, we have to face a more difficult and complicated situation than previous negotiations,” Wickremesinghe informed the parliament.

“Due to the state of bankruptcy our country is in, we have to submit a plan on our debt sustainability to (the IMF) separately,” he added. “Only when they are satisfied with that plan can we reach an agreement at the staff level. This is not a straightforward process.”

Sri Lanka running out of dollars to pay for essential imports including food, medicine and fuel as its foreign exchange reserves have dropped to a record low. Schools have been shut and fuel is only being supplied for essential services.

The country’s major cities including Colombo hundreds are in queue to buy fuel, occasionally clashing with law enforcement and the Army.

According to the CNN, Sri Lanka’s energy minister, Kanchana Wijesekera on Sunday, said the country had less than a day’s worth of fuel left.

“In terms of fuel and food, our country was going to have to face this crisis at some point in time. Fuel was scarce. Food prices went up,” he said, adding international crises like Russia’s war in Ukraine have made things worse.

“Due to the recent global crises, this situation has become more acute and we who were in the frying pan fell into the oven,” Wijesekera said.

Speaking in the parliament, Prime Minister Wickremesinghe said that inflation will rise to 60% by the end of the year and added that he hoped that a report on debt restructuring and sustainability would be submitted to the IMF by August. Once an agreement is reached, a comprehensive loan assistance program would be readied for a period of four years.

“This will be a difficult and bitter journey,” Wickremesinghe said. “But we can get relief at the end of this journey. Progress can be made.”

- Advertisement -spot_img

More Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisement -spot_img

Latest Articles