Colombo (Sri Lanka): The Prime Minister of crisis-hit Sri Lanka on Wednesday (June 22) said that he will discuss with the International Monetary Fund (IMF) and reach an agreement to get an additional credit facility. Addressing the Sri Lankan Parliament, PM Ranil Wickremesinghe said, “The only safe option before us now is to discuss with the International Monetary Fund. In fact, it is our only option. We should take this path.”
Wickremesinghe said his country’s debt-ridden economy has “collapsed” after months of shortages of food, fuel and electricity, and it cannot even buy imported oil. “The plan has already been prepared after consultations with the Central Bank, Treasury, concerned government officials, professionals and experts. I urge you to inform us about better solutions, if available. Indeed. In the U.S., if you have a practical and more favorable plan for the country, we call on you to pursue it,” the Sri Lankan PM said. The PM said that an IMF team had reached Sri Lanka on Monday. Appreciating the assistance provided, however, he said, the “financial assistance provided by India” is not a charitable donation and the island nation, which is facing severe economic crisis, should have a plan to repay these loans.
Sri Lanka is facing its worst economic crisis since independence in 1948, leading to severe shortages of essential commodities such as food, medicine, cooking gas and fuel in the island nation. The nearly bankrupt country, coupled with an acute foreign exchange crisis that resulted in foreign debt defaults, announced in April that it would raise foreign debt of about USD 7 billion for the year out of about USD 25 billion due by 2026. suspending repayment. The total external debt is US$51 billion. Since January this year, Indian credit lines have provided a lifeline to Sri Lanka amid growing public discontent over the deteriorating economic situation.
Wickremesinghe said a team of US Treasury Department representatives would also reach Sri Lanka next Monday. We intend to have an official level agreement with the IMF by the end of July. he also kept There is a plan to lift the island nation out of this crisis. The Sri Lankan PM also highlighted the debt restructuring plan with the IMF.
Elaborating further, PM Wickremesinghe said that in parallel with holding talks with the IMF, Sri Lanka will also hold a credit assistance conference with India, Japan and China – the main lending countries to Sri Lanka. “We are also currently in discussions with the World Bank, the Asian Development Bank, the United States, other Allies and Heads of State to secure interim short-term loans until we receive IMF support. After successful completion we will be able to lay the foundation to ensure economic stability. But it will by no means end. In fact, it will be the beginning of our journey. A new journey towards a stronger economy. Then we will get a new Sri Lankan We have to go ahead with our plans to strengthen and build the economy.” Wickremesinghe said.