COLOMBO: Sri Lankan President Ranil Wickremesinghe has stressed the importance of legalizing agreements with the IMF to ensure there is no repeat of decisions being reversed after agreeing with the global lender, he said, leaving it trapped in debt. Represents the "last chance" for economic recovery for the country. ,
Wickremesinghe's comments come barely three weeks after the International Monetary Fund (IMF) said it had reached a staff-level agreement with Sri Lanka for the next phase, which will allow it to move beyond the nearly US$3 billion bailout approved in 2023. This will enable it to reach US$ 337 million. Island nation.
Two tranches of US$330 million were released in March and December 2020, while the global lender praised Colombo for macroeconomic policy reforms, which it said were "beginning to bear fruit."
Wickremesinghe, who is also Finance Minister, highlighted the country's "history of overturning decisions on IMF programs after agreeing to them" and stressed that this represented the country's last opportunity for economic recovery.
President Wickremesinghe also underlined the importance of legalizing the agreement with the IMF to ensure that its benefits accrue to the people of Sri Lanka.Wickremesinghe made the comments while addressing a meeting with lawyers in Kandy, about 120 kilometers north-east of Colombo, on Sunday. He also expressed plans to introduce a new legal framework towards modernization in various sectors.
He sought the support of the legal community for these initiatives and stressed the importance of their participation in taking these efforts forward, the President's Media Division quoted him as saying.
He highlighted the country's history of reversing decisions after agreeing to IMF programs and stressed that this – IMF support – represents the country's last opportunity for economic recovery.
In March, Transport Minister Bandula Gunawardena had expressed similar sentiments.“16 previous agreements with the IMF were violated. The country went bankrupt only after violating the agreements. Even after bankruptcy, if we violate the agreement again, the country will not survive. There will be no option left but to kill each other. Therefore, no matter how much you may dislike it, the Sri Lankan government should take the country on the path of debt restructuring and in accordance with the IMF agreement,” Gunawardena said.
Wickremesinghe and Gunawardena were probably referring to the fact that in April 2022, Sri Lanka declared sovereign default for the first time since gaining independence from Britain in 1948 and the unprecedented financial crisis led to the resignation of then President Gotabaya Rajapaksa.
Wickremesingh stressed the importance of modernizing the legal system to effectively implement the government's program aimed at promoting rapid economic growth in the country, a statement from the Presidential Media Division on Monday said.The President stressed the collective responsibility of all citizens towards the country and the need to take important decisions to deal with the economic challenges.
Wickremesinghe stressed the importance of deciding whether to continue with the current economic system or strengthen the country's economy by prioritizing a competitive export-driven approach. President Wickremesinghe stressed the importance of avoiding future economic crises through strategic economic policies and initiatives.
Earlier in the month, on 2 April, the World Bank's bi-annual report said that Sri Lanka's bankrupt economy was on a recovery path; It projected a moderate growth of 2.2 percent in 2024, and said, an estimated 25.9 percent of Sri Lankans were living below the poverty line in 2023, an increase for the fourth consecutive year.
"Sri Lanka's economy is on the path to recovery, but continued efforts are important to mitigate the impact of the economic crisis on the poor and vulnerable, as well as continuing the path of strong and credible structural reforms," the report said ."
Wickremesinghe's comments come barely three weeks after the International Monetary Fund (IMF) said it had reached a staff-level agreement with Sri Lanka for the next phase, which will allow it to move beyond the nearly US$3 billion bailout approved in 2023. This will enable it to reach US$ 337 million. Island nation.
Two tranches of US$330 million were released in March and December 2020, while the global lender praised Colombo for macroeconomic policy reforms, which it said were "beginning to bear fruit."
Wickremesinghe, who is also Finance Minister, highlighted the country's "history of overturning decisions on IMF programs after agreeing to them" and stressed that this represented the country's last opportunity for economic recovery.
President Wickremesinghe also underlined the importance of legalizing the agreement with the IMF to ensure that its benefits accrue to the people of Sri Lanka.Wickremesinghe made the comments while addressing a meeting with lawyers in Kandy, about 120 kilometers north-east of Colombo, on Sunday. He also expressed plans to introduce a new legal framework towards modernization in various sectors.
He sought the support of the legal community for these initiatives and stressed the importance of their participation in taking these efforts forward, the President's Media Division quoted him as saying.
He highlighted the country's history of reversing decisions after agreeing to IMF programs and stressed that this – IMF support – represents the country's last opportunity for economic recovery.
In March, Transport Minister Bandula Gunawardena had expressed similar sentiments.“16 previous agreements with the IMF were violated. The country went bankrupt only after violating the agreements. Even after bankruptcy, if we violate the agreement again, the country will not survive. There will be no option left but to kill each other. Therefore, no matter how much you may dislike it, the Sri Lankan government should take the country on the path of debt restructuring and in accordance with the IMF agreement,” Gunawardena said.
Wickremesinghe and Gunawardena were probably referring to the fact that in April 2022, Sri Lanka declared sovereign default for the first time since gaining independence from Britain in 1948 and the unprecedented financial crisis led to the resignation of then President Gotabaya Rajapaksa.
Wickremesingh stressed the importance of modernizing the legal system to effectively implement the government's program aimed at promoting rapid economic growth in the country, a statement from the Presidential Media Division on Monday said.The President stressed the collective responsibility of all citizens towards the country and the need to take important decisions to deal with the economic challenges.
Wickremesinghe stressed the importance of deciding whether to continue with the current economic system or strengthen the country's economy by prioritizing a competitive export-driven approach. President Wickremesinghe stressed the importance of avoiding future economic crises through strategic economic policies and initiatives.
Earlier in the month, on 2 April, the World Bank's bi-annual report said that Sri Lanka's bankrupt economy was on a recovery path; It projected a moderate growth of 2.2 percent in 2024, and said, an estimated 25.9 percent of Sri Lankans were living below the poverty line in 2023, an increase for the fourth consecutive year.
"Sri Lanka's economy is on the path to recovery, but continued efforts are important to mitigate the impact of the economic crisis on the poor and vulnerable, as well as continuing the path of strong and credible structural reforms," the report said ."
