New Delhi: In the middle of the financial crisis in the country, the Prime Minister of Sri Lanka assumed the amount to run the island nation for the next six months. Prime Minister of Sri Lanka – Ranil Wickremesinghe said that “the country will need $5 billion over the next six months to ensure basic living standards, and is renegotiating the terms of a yuan-denominated swap worth $1.5 billion with China so as to fund essential imports.”
“Only establishing economic stability is not enough, we have to restructure the entire economy,” said Ranil Wickremesinghe.
According to a media report, around 95 percent population of the country, or 22 million people suffering from its worst economic crisis in seven decades – with a shortage of foreign exchange stalling essential imports.
The central bank has estimated the economy will contract by 3.5% in 2022, Wickremesinghe said but added that he was confident growth could return with a strong reform package, debt restructuring, and international support.
On Tuesday, the cabinet approved a $55-million credit line from India’s Exim Bank to fund 150,000 tonnes of urea imports – a critical requirement as supplies have run out during the current cropping season.
The United Nations is set to make a worldwide public appeal for Sri Lanka on Wednesday, and has pledged $48 million for food, agriculture, and health, Wickremesinghe said.
Wickremesinghe, who is also finance minister, will unveil an interim budget next month that he said aims to slash government expenses and looks to increase annual welfare spending to $500 million from about $350 million.
(Vinayak)
