Prime Minister of Sri Lanka: “Completely Crashed” State Economy

Ranil Wickerming, the prime minister of Sri Lanka, declared in front of the legislature last night (Wednesday) that the nation’s economy had “totally crumbled.” Millions of its residents are experiencing significant shortages of food, fuel, and energy, which is making the crisis-stricken nation’s position worse.

In his address to the legislature, Wickerming declared, “Our economy is in a full crash,” adding that the government has previously asked the International Monetary Fund (IMF) for assistance in an effort to stabilize the economy. The prime minister has cautioned the nation’s 22 million residents, saying that in addition to the shortages, he anticipates a “far more terrible situation.”

Due to a sharp decline in foreign exchange reserves and the lack of dollars in state coffers to cover imports of necessities like food and medicine, Sri Lanka is currently experiencing its greatest economic crisis in 70 years.

endless lines, disappearing rice off the shelves, and police encounters

The Sri Lankan government has recently adopted extreme measures in an effort to address the situation, such as granting a four-day workweek for the public sector exclusively to permit employees to produce their own crop. The problem, which has paralyzed the majority of the country’s sectors, is not being addressed by government action, nevertheless. Numerous large cities, notably the commercial center Colombo, have long lines of people waiting to buy petrol. With the army and police stationed on the streets, sometimes even violent conflicts break out.

In Sri Lanka, the frequency of trains has decreased, leading people to cram into carriages and even perch on their roofs in order to get to work. Due to gasoline shortages and increased food prices, patients are unable to travel to hospitals. In several of the nation’s stores, the rice has totally vanished from the shelves.

Police statistics show that eleven individuals have died in fuel lines alone in the past week.

Colombo, the capital of Sri Lanka, is home to a convoy of vehicles that are waiting for petrol.

A few days after his predecessor Mahinda Rajfaxa was forced to quit due to deadly rioting, Prime Minister Wickermasing was elected. In his speech on Wednesday, he singled out the previous administration as the only party to blame for the problem. Wickerming stated on Wednesday that “reviving a country with a completely devastated economy is not an easy endeavor, especially one that does not have much foreign exchange reserves.”

The country only has enough fuel for five days, Sri Lanka’s energy minister warned reporters last week.

Even India won’t be able to continue to support us.

Wickerming observed that Sri Lanka heavily relied on its neighboring India, borrowing $ 4 billion from it on lines of credit, to try and keep its head above water. However, Wickerming cautioned that this may not be enough. The prime minister noted that the next step would be to try to negotiate an agreement with the IMF, saying, “We have sought more support with loans from our Indian allies, but even India will not be able to sustain us on a continuing basis in this crisis.” “Our only choice is this. We had to go this way. Our objective is to negotiate a deal with the IMF so that we may obtain more financing “Added he.

In his statement, Wickermasing stated that Sri Lanka is in discussions with the US, the World Bank, and the Asian Development Bank to “accept short-term loans” until the country obtains IMF assistance. The prime minister said that a group from the US Treasury will travel to Sri Lanka the next week.

The prime minister also stated that Sri Lanka would seek assistance from its two “major lenders,” China and Japan. According to Wickersing, if the IMF gives its blessing, “the world will trust us again, helping us secure loan assistance and low interest rates when we turn to other countries in the world.”

By Editor

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