seventy-three years old Ranil Wickremesinghewho was the prime minister of Sri Lanka Spoke to him four times till he lost to the current ruling in 2019 Padma Rao Sundarji For Times of India Online from Colombo, hours before the state of emergency was imposed in the country.
Question: Wickremesinghe, your economy is paralyzed. Thousands of angry Sri Lankans are protesting across the island nation over a severe shortage of food, fuel, electricity and medicines. They surrounded Rashtrapati Bhavan and demanded his resignation. How do you read such anger on the streets of Sri Lanka?
A: I haven’t seen scenes like this before. I have seen riots, I have seen fighting, I have seen strikes. It is different. It is an explosion of people’s anger and anguish against inflation, power shortage, gas shortage, petrol shortage. The whole system is collapsing. People could not wait any longer. When you have a 13-15-hour power cut, especially at night, it’s difficult. And all these are not only working class but also middle class areas (where the first protests took place). Both the groups took part in the demonstration. It began as a siege at the nearby junction, until they decided to march to Pangiriwate Road, where the President is residence. This is a significant development as the issue has been taken over by more people than political parties. They are sidelining the political parties. It appears to be a movement more like the “Arab Spring”.
Question: Sri Lanka does not have any foreign reserves to pay its huge external debt. The ruling coalition blames the previous government led by you. You will blame the present government. Everyone wondered, what is the reason for this severe debt crisis? Can’t Sri Lankan politicians come together to deal with this? President’s government Gotabaya Rajapakse reach the opposition?
A: Look, it’s not worth debating who is responsible. Everyone will keep pointing fingers at each other. Let’s look at the current crisis and find solutions. What is the crisis, what are the solutions, how do we solve it? Unfortunately, we Sri Lankans have a habit of trying not to deal with it, but to find the cause of the problem. It will not work. We are in serious financial crisis. Take International Monetary Fund Article IV Consultation (a preliminary survey conducted by a visiting team) International Monetary FundIt points towards reduction in taxes, non-availability of fertilisers. Therefore, the team put down the factors responsible for the crisis. Now how do we deal with it? Raising a finger will not work. We Sri Lankans should stop saying that this crisis is due to an endemic flaw in our system. The IMF has identified issues. Forget how they happened. Let us now see how to stabilize the situation, take the economy forward. The IMF said the crisis is due to balance of payments (BoP) issues and unstable credit. As you have rightly pointed out, this requires a joint effort of the opposition as well as the ruling party. The latter called an all-party meeting in which I attended, but its proposals are not enough. we were asked to argue Parliament Once ARTICLE IV CONSULTANCY Report submitted. But the ministry and the central bank refused to table it in Parliament. As a result of our intervention on the first day, it was released the very next day by the IMF itself. We also want a relief budget, not a development budget.
Question: The present government came to power in November 2019. One could easily argue that the pandemic (2020-2021) has crippled tourism, Sri Lanka’s main income generator. It could also project fuel shortages as a result of the Ukraine crisis. Would you buy those arguments?
A: The pandemic started only in November 2019 – the month when this government also reduced taxes. That is why we could not meet our target of having a surplus of the primary budget. Covid-19 affected everyone. But many countries have recovered, so you cannot hide behind Kovid-19. There is a severe shortage of foreign exchange in Sri Lanka. As the IMF says, it is a BOP and a debt crisis. And all this happened long before Ukraine – after the Ukraine crisis began, it raised fuel prices. But these crises were long overdue.
Question: Why is the Sri Lankan government hesitant to approach the IMF? Is this in any way connected with the tendency of the West to link all financial aid to alleged human rights violations by your armed forces at the end of the 30-year long Sri Lankan civil war?
A: The IMF doesn’t go into human rights. They are seeking a full recovery, and to continue with the programs we started earlier. Don’t know why, but more government officials than ministers seem to be against it and they have influenced ministers. When the IMF Article 4 Consultation Report first came out and noted that Sri Lanka’s long-term debt was not sustainable, our officials countered this by saying that the IMF is pessimistic and this is only a temporary issue. We have to go to the IMF – just go inside, don’t talk first and delay it further. Secondly, we have to convert the existing development budget into a relief budget for two years. And Sri Lanka should form a federation of countries like India, China, Japan, South Korea, EU, which will certainly help in financing in some form, subject to the approval of the IMF.
Question: But IMF will put other conditions. Put yourself in the shoes of your government. If you were the Prime Minister today, would you have approached the IMF to deal with this crisis?
A: If I were prime minister today, I wouldn’t be contacting the IMF. Why not ? There would be no distress for the simple reason, and therefore no reason to approach him.
Question: India has extended a Line of Credit of about 2.4 billion dollars to Sri Lanka. Fuel and supplies have started arriving in Colombo. Other countries will also provide assistance. But it takes time for concrete agreements to come to fruition. Sri Lankans need immediate help. When India provided air support to Sri Lanka during the civil war in the eighties, it created a controversy. But surely an airlift is the only way to get quick aid to Sri Lanka?
A: Air lifts are not controversial at all. But the Government of Sri Lanka must first contact the FAO to report our problem, then to provide immediate assistance to India and others. But our government has not made up its mind on this yet. People can’t wait much for fuel but the problem is we don’t have any foreign currency to pay for it. One or two ships are anchored outside Colombo port. But the $40 million required per ship is not available, and our petroleum cooperation is defaulting on some bills. Due to India’s line of credit (LoC) for fuel, the first ships should start arriving soon. They may not meet all our needs but they will meet the basic needs. India also made available another $1 billion for a line of credit. But all these will be over by the beginning of May. We have also requested the Chinese. But if given, we may get the Chinese grant till June. So what do we do after that? So we should first discuss with the IMF and come to an arrangement. Then, we will have to discuss with the ‘London Club’ of private creditors, and come to an arrangement. So all this can take a long time.
Q: Several years ago, you asked me to ’emphasize China’ in an interview. You said that all Indian journalists are obsessed with China. But since you mentioned China: Where is Sri Lanka’s friend China, when it is needed the most? Will they restructure your debt? Are his mega projects in Sri Lanka paying off?
A Chinese are here. Some projects have not started due to paucity of foreign exchange. Anyway, our debt to China is only a small part of our total official debt. The bulk of our debt consists of international sovereign bonds. As far as they are concerned, there is little that China or India or anyone can do. Sri Lanka will have to pay them.
Q: But of course China can restructure your debt, no matter how small?
A: Well, they said they don’t reschedule loans. But they will give us a billion dollars to pay a billion dollars.
Question: Sri Lanka is part of China’s Belt and Road Initiative (BRI). But the huge port city built by China in Colombo is lying vacant. hambantota The port built by China is hardly in use. The Mattala International Airport built by China was unusable for so long that your government used it to store paddy. Has Sri Lanka benefited from your relations with China?
A: I must say that the port of Hambantota has improved its performance. But these projects are also affected by the economic crisis. Where will investors come from? Similar is the case in Port City. Kovid-19 stopped the first round of investors, now the economic crisis is stopping investment. So far only one person has invested money there.
Question: You are one of the senior most leaders of the opposition in Colombo. Will you support the ruling government in its efforts to address this crisis or press for its resignation and fresh elections?
AI does not think that the environment is right for new elections. The economy has collapsed. The election will take 4-5 months. Meanwhile, the Sri Lankan Rupee (SLR) is likely to fall further towards 500, maybe 1000 per dollar. We can’t afford it. There is a shortage of all essential commodities. We have to sort out these issues, then we can demand elections.
Q: Not so long ago, it looked like you walked into the sunset. But you seem far behind in active politics. Will you run again whenever there are elections next, and whether as prime minister or presidential candidate?
A: I was really wondering if I should retire. But there is no food, no electricity. I am trying to build a consensus among all the parties on these important issues. If the government was running the country properly, I would have nothing to do except retire. Now, events are keeping me here. what can i do?
Question: Wickremesinghe, your economy is paralyzed. Thousands of angry Sri Lankans are protesting across the island nation over a severe shortage of food, fuel, electricity and medicines. They surrounded Rashtrapati Bhavan and demanded his resignation. How do you read such anger on the streets of Sri Lanka?
A: I haven’t seen scenes like this before. I have seen riots, I have seen fighting, I have seen strikes. It is different. It is an explosion of people’s anger and anguish against inflation, power shortage, gas shortage, petrol shortage. The whole system is collapsing. People could not wait any longer. When you have a 13-15-hour power cut, especially at night, it’s difficult. And all these are not only working class but also middle class areas (where the first protests took place). Both the groups took part in the demonstration. It began as a siege at the nearby junction, until they decided to march to Pangiriwate Road, where the President is residence. This is a significant development as the issue has been taken over by more people than political parties. They are sidelining the political parties. It appears to be a movement more like the “Arab Spring”.
Question: Sri Lanka does not have any foreign reserves to pay its huge external debt. The ruling coalition blames the previous government led by you. You will blame the present government. Everyone wondered, what is the reason for this severe debt crisis? Can’t Sri Lankan politicians come together to deal with this? President’s government Gotabaya Rajapakse reach the opposition?
A: Look, it’s not worth debating who is responsible. Everyone will keep pointing fingers at each other. Let’s look at the current crisis and find solutions. What is the crisis, what are the solutions, how do we solve it? Unfortunately, we Sri Lankans have a habit of trying not to deal with it, but to find the cause of the problem. It will not work. We are in serious financial crisis. Take International Monetary Fund Article IV Consultation (a preliminary survey conducted by a visiting team) International Monetary FundIt points towards reduction in taxes, non-availability of fertilisers. Therefore, the team put down the factors responsible for the crisis. Now how do we deal with it? Raising a finger will not work. We Sri Lankans should stop saying that this crisis is due to an endemic flaw in our system. The IMF has identified issues. Forget how they happened. Let us now see how to stabilize the situation, take the economy forward. The IMF said the crisis is due to balance of payments (BoP) issues and unstable credit. As you have rightly pointed out, this requires a joint effort of the opposition as well as the ruling party. The latter called an all-party meeting in which I attended, but its proposals are not enough. we were asked to argue Parliament Once ARTICLE IV CONSULTANCY Report submitted. But the ministry and the central bank refused to table it in Parliament. As a result of our intervention on the first day, it was released the very next day by the IMF itself. We also want a relief budget, not a development budget.
Question: The present government came to power in November 2019. One could easily argue that the pandemic (2020-2021) has crippled tourism, Sri Lanka’s main income generator. It could also project fuel shortages as a result of the Ukraine crisis. Would you buy those arguments?
A: The pandemic started only in November 2019 – the month when this government also reduced taxes. That is why we could not meet our target of having a surplus of the primary budget. Covid-19 affected everyone. But many countries have recovered, so you cannot hide behind Kovid-19. There is a severe shortage of foreign exchange in Sri Lanka. As the IMF says, it is a BOP and a debt crisis. And all this happened long before Ukraine – after the Ukraine crisis began, it raised fuel prices. But these crises were long overdue.
Question: Why is the Sri Lankan government hesitant to approach the IMF? Is this in any way connected with the tendency of the West to link all financial aid to alleged human rights violations by your armed forces at the end of the 30-year long Sri Lankan civil war?
A: The IMF doesn’t go into human rights. They are seeking a full recovery, and to continue with the programs we started earlier. Don’t know why, but more government officials than ministers seem to be against it and they have influenced ministers. When the IMF Article 4 Consultation Report first came out and noted that Sri Lanka’s long-term debt was not sustainable, our officials countered this by saying that the IMF is pessimistic and this is only a temporary issue. We have to go to the IMF – just go inside, don’t talk first and delay it further. Secondly, we have to convert the existing development budget into a relief budget for two years. And Sri Lanka should form a federation of countries like India, China, Japan, South Korea, EU, which will certainly help in financing in some form, subject to the approval of the IMF.
Question: But IMF will put other conditions. Put yourself in the shoes of your government. If you were the Prime Minister today, would you have approached the IMF to deal with this crisis?
A: If I were prime minister today, I wouldn’t be contacting the IMF. Why not ? There would be no distress for the simple reason, and therefore no reason to approach him.
Question: India has extended a Line of Credit of about 2.4 billion dollars to Sri Lanka. Fuel and supplies have started arriving in Colombo. Other countries will also provide assistance. But it takes time for concrete agreements to come to fruition. Sri Lankans need immediate help. When India provided air support to Sri Lanka during the civil war in the eighties, it created a controversy. But surely an airlift is the only way to get quick aid to Sri Lanka?
A: Air lifts are not controversial at all. But the Government of Sri Lanka must first contact the FAO to report our problem, then to provide immediate assistance to India and others. But our government has not made up its mind on this yet. People can’t wait much for fuel but the problem is we don’t have any foreign currency to pay for it. One or two ships are anchored outside Colombo port. But the $40 million required per ship is not available, and our petroleum cooperation is defaulting on some bills. Due to India’s line of credit (LoC) for fuel, the first ships should start arriving soon. They may not meet all our needs but they will meet the basic needs. India also made available another $1 billion for a line of credit. But all these will be over by the beginning of May. We have also requested the Chinese. But if given, we may get the Chinese grant till June. So what do we do after that? So we should first discuss with the IMF and come to an arrangement. Then, we will have to discuss with the ‘London Club’ of private creditors, and come to an arrangement. So all this can take a long time.
Q: Several years ago, you asked me to ’emphasize China’ in an interview. You said that all Indian journalists are obsessed with China. But since you mentioned China: Where is Sri Lanka’s friend China, when it is needed the most? Will they restructure your debt? Are his mega projects in Sri Lanka paying off?
A Chinese are here. Some projects have not started due to paucity of foreign exchange. Anyway, our debt to China is only a small part of our total official debt. The bulk of our debt consists of international sovereign bonds. As far as they are concerned, there is little that China or India or anyone can do. Sri Lanka will have to pay them.
Q: But of course China can restructure your debt, no matter how small?
A: Well, they said they don’t reschedule loans. But they will give us a billion dollars to pay a billion dollars.
Question: Sri Lanka is part of China’s Belt and Road Initiative (BRI). But the huge port city built by China in Colombo is lying vacant. hambantota The port built by China is hardly in use. The Mattala International Airport built by China was unusable for so long that your government used it to store paddy. Has Sri Lanka benefited from your relations with China?
A: I must say that the port of Hambantota has improved its performance. But these projects are also affected by the economic crisis. Where will investors come from? Similar is the case in Port City. Kovid-19 stopped the first round of investors, now the economic crisis is stopping investment. So far only one person has invested money there.
Question: You are one of the senior most leaders of the opposition in Colombo. Will you support the ruling government in its efforts to address this crisis or press for its resignation and fresh elections?
AI does not think that the environment is right for new elections. The economy has collapsed. The election will take 4-5 months. Meanwhile, the Sri Lankan Rupee (SLR) is likely to fall further towards 500, maybe 1000 per dollar. We can’t afford it. There is a shortage of all essential commodities. We have to sort out these issues, then we can demand elections.
Q: Not so long ago, it looked like you walked into the sunset. But you seem far behind in active politics. Will you run again whenever there are elections next, and whether as prime minister or presidential candidate?
A: I was really wondering if I should retire. But there is no food, no electricity. I am trying to build a consensus among all the parties on these important issues. If the government was running the country properly, I would have nothing to do except retire. Now, events are keeping me here. what can i do?