Colombo: Prime Minister Ranili Wickremesinghe Told Parliament that on Tuesday Sri Lanka Will organize donor conferences of friendly countries like India, China and Japan Once an employee-level agreement is reached with the IMF on a bailout package, as the economic-stricken island nation seeks to form an aid union.
Addressing Parliament on the government’s roadmap to deal with the economic crisis, Wickremesinghe also said that India had to limit line of credit to Sri Lanka due to recent global crises, including the current Ukraine-Russia war.
“Once we get the employee-level agreement, we will organize a donor-aid conference, bringing together friendly countries like India, China and Japan. We hope to create a system where we can get credit support. A common agreement through,” he said.
He said that among the problems the country is facing today, the primary issue is fuel crisis.
“At the same time, we are also facing the problem of availability of food. In terms of fuel and food, our country was facing this crisis at some point. Fuel was scarce. Food prices went up,” he said. added.
“Due to the recent global crises, this situation has become more dire and the ones we were in the frying pan fell into the oven… This situation is not unique to us. It affects other countries as well. India and Indonesia is also affected. By this global crisis. Therefore, India has had to limit the line of credit that they have given to us,” he said.
India’s unprecedented economic, financial and humanitarian assistance to the people of Sri Lanka exceeds USD 3.5 billion in 2022. India has also provided three credit lines of over USD 1.5 billion and foreign exchange assistance of about USD 2 billion. Indian High Commission here.
The Government of India and the people of India have supplied medicines to several healthcare establishments in different parts of Sri Lanka and distributed kerosene among Sri Lankan fishermen.
Wickremesinghe said that by March 2022, the total debt burden on Sri Lanka increased to Rs 21.6 lakh crore.
The Prime Minister said that the total debt burden of the government at the end of 2021 was Rs 17.5 trillion and by March 2022 it increased to Rs 21.6 trillion.
He said Sri Lanka would present a debt restructuring program by August to the IMF to secure a bailout package.
Sri Lanka is going through the worst economic crisis since independence from Britain in 1948, and needs to get at least USD 4 billion to deal with the acute shortage in foreign exchange reserves.
The country, with an acute foreign exchange crisis that resulted in external debt defaults, announced in April that it would suspend foreign debt repayments of about USD 7 billion for the year, out of about USD 25 billion due by 2026. doing.
Sri Lanka’s total external debt is $51 billion.
Sri Lanka’s economy has almost come to a standstill after the foreign exchange reserves to import fuel have been exhausted.
Sri Lankans are in long queues for fuel and cooking gas as the government is unable to find dollars for imports.
Since January this year, Indian credit lines have provided a lifeline to Sri Lanka amid growing public discontent over the deteriorating economic situation.
The development assistance provided by India is more than USD 5 billion, with grants of over USD 600 million.
Addressing Parliament on the government’s roadmap to deal with the economic crisis, Wickremesinghe also said that India had to limit line of credit to Sri Lanka due to recent global crises, including the current Ukraine-Russia war.
“Once we get the employee-level agreement, we will organize a donor-aid conference, bringing together friendly countries like India, China and Japan. We hope to create a system where we can get credit support. A common agreement through,” he said.
He said that among the problems the country is facing today, the primary issue is fuel crisis.
“At the same time, we are also facing the problem of availability of food. In terms of fuel and food, our country was facing this crisis at some point. Fuel was scarce. Food prices went up,” he said. added.
“Due to the recent global crises, this situation has become more dire and the ones we were in the frying pan fell into the oven… This situation is not unique to us. It affects other countries as well. India and Indonesia is also affected. By this global crisis. Therefore, India has had to limit the line of credit that they have given to us,” he said.
India’s unprecedented economic, financial and humanitarian assistance to the people of Sri Lanka exceeds USD 3.5 billion in 2022. India has also provided three credit lines of over USD 1.5 billion and foreign exchange assistance of about USD 2 billion. Indian High Commission here.
The Government of India and the people of India have supplied medicines to several healthcare establishments in different parts of Sri Lanka and distributed kerosene among Sri Lankan fishermen.
Wickremesinghe said that by March 2022, the total debt burden on Sri Lanka increased to Rs 21.6 lakh crore.
The Prime Minister said that the total debt burden of the government at the end of 2021 was Rs 17.5 trillion and by March 2022 it increased to Rs 21.6 trillion.
He said Sri Lanka would present a debt restructuring program by August to the IMF to secure a bailout package.
Sri Lanka is going through the worst economic crisis since independence from Britain in 1948, and needs to get at least USD 4 billion to deal with the acute shortage in foreign exchange reserves.
The country, with an acute foreign exchange crisis that resulted in external debt defaults, announced in April that it would suspend foreign debt repayments of about USD 7 billion for the year, out of about USD 25 billion due by 2026. doing.
Sri Lanka’s total external debt is $51 billion.
Sri Lanka’s economy has almost come to a standstill after the foreign exchange reserves to import fuel have been exhausted.
Sri Lankans are in long queues for fuel and cooking gas as the government is unable to find dollars for imports.
Since January this year, Indian credit lines have provided a lifeline to Sri Lanka amid growing public discontent over the deteriorating economic situation.
The development assistance provided by India is more than USD 5 billion, with grants of over USD 600 million.