As the island country of Sri Lanka searches for a way out of its greatest economic catastrophe, Sri Lanka’s new president stated that his administration is putting up a national policy framework for the next 25 years. This policy intends to reduce public debt and transform the nation into a competitive export economy.
In his address to the legislature, President Ranil Wickremesinghe stated that Sri Lanka needed long-term measures and a solid groundwork to prevent further economic catastrophes.
Wickremesinghe’s deposed predecessor, Gotabaya Rajapaksa, and his wealthy family have been under fire for years of mismanagement and corruption that have bankrupted the country and caused historically severe shortages of imports like gasoline, medication, and cooking gas.
Many continue to doubt Wickremesinghe and accuse him of trying to shield the former president and his family.
The COVID-19 pandemic’s effects on a tourism-dependent economy and economic mismanagement are the main causes of Sri Lanka’s biggest economic crisis since the country gained independence from Britain in 1948. The island government is still discussing a rescue plan with the International Monetary Fund.
Protesters upset over the shortages overthrew the Rajapaksa ruling family, ushering in a new administration after forcing the resignation of the last president, Gotabaya Rajapaksa, who fled to Singapore this month. Rajapaksa has been condemned for mismanaging his nation’s economy and committing war crimes while serving as defense minister during Sri Lanka’s civil war, which concluded in 2009.
Sri Lanka decided to halt debt repayment to international lenders in April. It has a $51 billion total foreign debt, of which $28 billion is due by 2027.
Wickremesinghe said that his administration had started talks with the IMF on a four-year rescue plan and had started putting the finishing touches on a debt restructuring plan. “Before presenting this proposal to the International Monetary Fund, we would communicate with the countries that provided loan support.” An agreement would then be reached through conversations with private creditors, he added.
With fewer power outages, fertilizers delivered in time for planting, and better cooking gas distribution, he said that the challenges had partially subsided. To prevent food shortages, the new government took safety precautions.
He said that they have been able to provide necessary medications and medical supplies to the hospitals. Schools have resumed operations. According to him, steps are being taken to remove the obstacles that the industrial and export sectors must overcome.
According to Wickremesinghe, the government wants to balance the primary budget by 2025 and reduce the public debt, which is presently 140% of GDP, to less than 100% by 2032.
Rajapaksa’s five-year tenure as president will finish in 2024, and Wickremesinghe was chosen to serve out the remaining two years last month. After angry demonstrators stormed Rajapaksa’s official mansion and took over numerous important government buildings, Rajapaksa left the country.
As a result of Wickremesinghe’s crackdown on demonstrations, several protest organizers got detained on suspicion of trespassing and endangering public property. As they dismantled protest camps that had developed in front of the president’s office, armed personnel battered and attacked the demonstrators.
Wickremesinghe, however, refuted claims that he was “hunting down” demonstrators.
Still speaking, he pledged to protect lawful demonstrators and announced the opening of a bureau to address any allegations of wrongdoing. According to him, people who broke the law unintentionally or at the behest of others would be treated “sympathetically,” but those who engaged in violence on purpose would face legal action.
“The coming elections need to include candidates from the younger generation.” One of the top priorities, in my opinion, is to draught a new constitution with fresh perspectives to provide room for the young.
By claiming that only an all-party administration could address the nation’s issues, he attempted to build goodwill among the political parties. All of the nation’s residents, he added, “want their representatives in Parliament to work together to build the country at this point.”
