Colombo President Ranil Wickremesinghe said on Friday that Sri Lanka saved $8 billion in the last two years thanks to “effective economic management” and emphasized that the nation is now recovering from economic turmoil due to the restructuring of the debt.
Sri Lanka finalized debt restructuring agreements with bilateral lenders, including India and China, in Paris on June 26. Earlier, on June 12, the International Monetary Fund (IMF) disbursed the third tranche of $336 million of its $2.9 billion bailout package to Sri Lanka. Lanka.
In April 2022, the island nation declared its first sovereign default since gaining independence from Britain in 1948. The unprecedented financial crisis led President Ranil Wickremesinghe's predecessor, Gotabaya Rajapaksa, to resign from office in 2022 amid civil unrest. .
“Thanks to the 2022-2023 harvest, the country's production increased and tourism prospered. “As a result, we have achieved $8 billion in relief and paved the way for debt relief,” the president said Friday.
“When the economy collapses, it affects ordinary people the most. When it recovers, its benefits will reach another segment,” the President's Media Division (PMD) said in a statement quoting Wickremesinghe.
The president spoke at a ceremony held in Kurunegala, about 100 kilometers northeast of Colombo.
“Now our country has emerged from bankruptcy. We have a four-year plan to repay our loans, offering reduced charges and interest cuts that will generate $5 billion in savings. We are currently in negotiations with private contractors. As a result, approximately $3 billion has been withdrawn,” he stated.
“In total, $8 billion has been allocated for our use. In addition, we have been granted $2 billion on relaxed terms. This does not take into account funds expected from China or assistance from India. As a result, we have saved $8 billion in the last two years,” added Wickremesinghe, also finance minister.
On Tuesday, while making a special statement in Parliament, Wickremesinghe announced: “Sri Lanka's external debt now stands at $37 billion, which includes $10.6 billion in bilateral credit and $11.7 billion in multilateral credit. The commercial debt is 14.7 billion dollars, of which 12.5 billion dollars are sovereign bonds.”
In Kurunegala, the President presented symbolic deeds to 463 beneficiaries out of the 73,143 eligible in the district under the national program "Urumaya", the freehold land titling initiative.
Addressing the gathering, he noted that he assumed leadership during a period of government uncertainty. He highlighted that the nation is now recovering from economic turmoil thanks to "effective economic management," according to the PMD statement.
Wickremesinghe also recalled that before taking office, during President Gotabaya Rajapaksa's tenure, India provided $3.5 billion in favorable loan terms and Bangladesh also contributed $200 million. "Despite the economic challenges, we managed to repay $200 million," he said.
Wickremesinghe emphasized that true socialism lies in granting free land rights to the people, ruling out mere talk of socialism, according to the PMD statement.
Sri Lanka finalized debt restructuring agreements with bilateral lenders, including India and China, in Paris on June 26. Earlier, on June 12, the International Monetary Fund (IMF) disbursed the third tranche of $336 million of its $2.9 billion bailout package to Sri Lanka. Lanka.
In April 2022, the island nation declared its first sovereign default since gaining independence from Britain in 1948. The unprecedented financial crisis led President Ranil Wickremesinghe's predecessor, Gotabaya Rajapaksa, to resign from office in 2022 amid civil unrest. .
“Thanks to the 2022-2023 harvest, the country's production increased and tourism prospered. “As a result, we have achieved $8 billion in relief and paved the way for debt relief,” the president said Friday.
“When the economy collapses, it affects ordinary people the most. When it recovers, its benefits will reach another segment,” the President's Media Division (PMD) said in a statement quoting Wickremesinghe.
The president spoke at a ceremony held in Kurunegala, about 100 kilometers northeast of Colombo.
“Now our country has emerged from bankruptcy. We have a four-year plan to repay our loans, offering reduced charges and interest cuts that will generate $5 billion in savings. We are currently in negotiations with private contractors. As a result, approximately $3 billion has been withdrawn,” he stated.
“In total, $8 billion has been allocated for our use. In addition, we have been granted $2 billion on relaxed terms. This does not take into account funds expected from China or assistance from India. As a result, we have saved $8 billion in the last two years,” added Wickremesinghe, also finance minister.
On Tuesday, while making a special statement in Parliament, Wickremesinghe announced: “Sri Lanka's external debt now stands at $37 billion, which includes $10.6 billion in bilateral credit and $11.7 billion in multilateral credit. The commercial debt is 14.7 billion dollars, of which 12.5 billion dollars are sovereign bonds.”
In Kurunegala, the President presented symbolic deeds to 463 beneficiaries out of the 73,143 eligible in the district under the national program "Urumaya", the freehold land titling initiative.
Addressing the gathering, he noted that he assumed leadership during a period of government uncertainty. He highlighted that the nation is now recovering from economic turmoil thanks to "effective economic management," according to the PMD statement.
Wickremesinghe also recalled that before taking office, during President Gotabaya Rajapaksa's tenure, India provided $3.5 billion in favorable loan terms and Bangladesh also contributed $200 million. "Despite the economic challenges, we managed to repay $200 million," he said.
Wickremesinghe emphasized that true socialism lies in granting free land rights to the people, ruling out mere talk of socialism, according to the PMD statement.
