Prime Minister Ranil Wickremesinghe made a special statement in Parliament today regarding the measures being taken by the government to help address the growing economic crisis in Sri Lanka.
The Prime Minister said the first step out of this crisis, which has seen the country’s economy fall to the bottom, is to conclude discussions with the International Monetary Fund (IMF) and obtain a fresh credit facility from the organization.
Ranil Wickremesinghe said that he has requested that the IMF hold discussions with all political parties in the country.
He urged the Opposition parties to halt their boycott of Parliament and help the Government implement vital pieces of legislation.
The Prime Minister said once the economy is stabilized the public can choose new representatives and give a fresh mandate to a new Government.
Ranil Wickremesinghe also called upon all citizens to come forward if they have a better plan and urged them to present it so that it can be studied and implemented.
Following are 13 key points outlined by the Prime Minister on the Government’s plan:
- The Cabinet has reverted to the pre-2019 tax structure and was targeting a primary surplus by 2025.
- An interim budget would be presented in August 2022, before a fresh budget for 2023 will be presented in November this year.
- Discussions with the IMF team on taxation and revenue concluded and they presented a report on the matter. The discussions with the main IMF team commenced and ideas on various sectors such as public finance, debt sustainability, stability of the banking sector, and the social security network were exchanged.
- The Government was hoping to finalize an agreement with the IMF by the end of July, but the most important factor would be a debt restructuring plan which they hope to finalize a framework by July.
- Representatives of the financial and legal advisory firms Lazard and Clifford Chance are now in Sri Lanka to assist in debt restructuring efforts. The framework for debt repayment restructuring is being formulated.
- A plan has been formulated by the Treasury officials, Central Bank officials, independent professionals, and experts to build a foundation to stabilize the economy and implement an immediate program to increase export revenue.
- Representatives from the U.S. Department of the Treasury will arrive in the country on Monday to further assist the Government. The arrival of these teams has been made possible by the initial work carried out by the Government.
- Talks are underway with India, Japan, and China to form a credit aid conference which would be led by these three nations. However, relations with many countries that have been damaged must be addressed.
- Discussions are underway with the World Bank, Asian Development Bank, the United States, other friendly nations, and heads of state to secure interim short-term loans till Sri Lanka receives IMF support.
- Fertilizer had been obtained for the upcoming harvest, while rice will be imported from India to help control the price while ensuring adequate supply for the public.
- The Prime Minister thanked both the SJB and NPP for their efforts to set up agricultural farms and extended the Government’s full assistance in this matter.
- Former Speaker Karu Jayasuriya has presented his proposal on the new Parliamentary committee systems and would circulate them to the Party Leaders.
- Through a World Bank loan of $70 million, a total of 100,000 MT of LPG Gas, amounting to 7 million gas cylinders, will be imported to the country to eliminate the gas shortage in the country. (NewsWire)