ECONOMYNEXT – Sri Lanka has seen good results under the International Monetary Fund program, but the country has to complete debt restructuring and continue on a reform path to ensure strong growth, President Ranil Wickremesinghe said.
“A lot of good results (sadaneeya) are coming from the IMF program,” Wickremesinghe said. “An appreciating rupee has brought down prices of gas etc. The falling interest rates are benefiting businesses.”
Wickremesinghe said the government cannot give a salary increase to state workers this year although many had requested it. “In the past by being irresponsible in this regard we destroyed our economy and people’s livelihoods. We can consider an increment only next year, that is the truth.”
“Going beyond stability now we have to go on a sustainably path.”
“We are not paying all debt now we have to start paying. For that we need to increase state revenues and our foreign reserves. We have to optimise our resources.”
“We have to do debt restructuring. We are drafting MoUs with official creditors including the Paris Club, the official creditors committee (OCC), and China Exim Bank separately.
“Bond holders and Lazard are joining these discussions. We hope to finish by the end of this year.”
Wickremesinghe said Sri Lanka needed to pay back its loans, and get new loans. “Then we have to boost exports and modernize agriculture.” (Colombo/May9/2024)