New Delhi: Troubled Sri LankaPrime Minister Ranil Wickremesinghe has warned that annual inflation could cross 40 per cent.
It comes amid severe shortages of foreign reserves, which have seen the island nation struggle to pay for fuel and other essential supplies, as the country grapples with its worst economic crisis in modern history.
A political leadership forced to resign under pressure from previous prime minister Mahinda Rajapaksa and his cabinet is facing the wrath of protesters.
The new government under Wickremesinghe has taken office, but the PM is yet to name a finance minister. This has created an unprecedented situation as to who will lead the country’s negotiations with global agencies such as the IMF for financial assistance.
Wickremesinghe said a new finance minister is likely to be appointed by Wednesday.
Wickremesinghe said the government will cut infrastructure spending while planning a two-year relief program to stabilize the economy. He said the interim budget would be presented within six weeks.
“With the interim budget, it is about cutting spending, cutting bone where possible and shifting it to welfare,” Wickremesinghe, who took office two weeks ago, said in an interview.
He also said that Sri Lanka would seek fertilizers and medicines from China, which is one of its biggest creditors.
India has sent billions of dollars in aid to Sri Lanka in the form of humanitarian aid, cooking gas, large quantities of fuel and medicinal supplies.
This includes $33 billion in credit line assistance, 40,000 metric tons of diesel, shipments of rice, milk powder and medicinal drugs. Apart from this, 40,000 metric tonnes of petrol and 400,000 metric tonnes of cooking gas also came from India.
(with agency input)
It comes amid severe shortages of foreign reserves, which have seen the island nation struggle to pay for fuel and other essential supplies, as the country grapples with its worst economic crisis in modern history.
A political leadership forced to resign under pressure from previous prime minister Mahinda Rajapaksa and his cabinet is facing the wrath of protesters.
The new government under Wickremesinghe has taken office, but the PM is yet to name a finance minister. This has created an unprecedented situation as to who will lead the country’s negotiations with global agencies such as the IMF for financial assistance.
Wickremesinghe said a new finance minister is likely to be appointed by Wednesday.
Wickremesinghe said the government will cut infrastructure spending while planning a two-year relief program to stabilize the economy. He said the interim budget would be presented within six weeks.
“With the interim budget, it is about cutting spending, cutting bone where possible and shifting it to welfare,” Wickremesinghe, who took office two weeks ago, said in an interview.
He also said that Sri Lanka would seek fertilizers and medicines from China, which is one of its biggest creditors.
India has sent billions of dollars in aid to Sri Lanka in the form of humanitarian aid, cooking gas, large quantities of fuel and medicinal supplies.
This includes $33 billion in credit line assistance, 40,000 metric tons of diesel, shipments of rice, milk powder and medicinal drugs. Apart from this, 40,000 metric tonnes of petrol and 400,000 metric tonnes of cooking gas also came from India.
(with agency input)