Sri Lanka Crisis: Sri Lanka's economy has collapsed, will have to talk to IMF for additional debt: PM Wickremesinghe
Sri Lankan Prime Minister Ranil Wickremesinghe while addressing Parliament has said that the country is facing the worst economic crisis since independence. There is a severe shortage of essential commodities like food, medicine, and cooking gas here. Financial assistance given by India is not a charitable donation. There should be a plan to repay these loans. He said that a loan of US $ 4 billion has been taken from India. We have requested India to give more loans, but that too will not be able to support us continuously like this. It also has its limits.
The IMF team reached Sri Lanka on Monday
It is necessary to revive the country's economy, Wickremesinghe said Sri Lanka is now facing a much more dire situation than a shortage of fuel, gas, electricity, and food. This can be solved only by reviving the economy of the country. To do this, first of all, the crisis of foreign exchange reserves has to be resolved. The only hope now is from the International Monetary Fund. Sri Lanka's total external debt is US$51 billion.
Indian Delegation to Sri Lanka Today A delegation of the Government of India led by Chief Economic Adviser V. Ananth Nageswaran will reach Sri Lanka on Thursday to assess the economic situation. It will assess the financial needs there. The delegation will stay there for about three hours. During this, he will also have talks with the Prime Minister and the President there. Amidst the poor economic condition of Sri Lanka now dependent on government aid for food, the citizens of Sri Lanka are facing many problems at once.
Miraj Madushanka, who once led a very good life, is among those who have forgotten the luxurious life and are now dependent on government assistance for two times' bread. There are innumerable families who are struggling to save lives amid the looming economic crisis. Families who never had to think about fuel or food, now worry about it all day.
The Sri Lankan Prime Minister also highlighted the debt restructuring plan with the IMF. "We will do our best to work with the teams at Lazard and Clifford Chance to complete the outline of this plan before the end of July," he said.
Taking into account this planned framework and the official level agreement, it is expected that the IMF's Executive Board will reach its final decision. Representatives for financial and legal advisory firms Lazard and Clifford Chance are now in Sri Lanka. Wickremesinghe said a debt repayment restructuring framework is being worked out to assist us in our debt restructuring efforts.