Sri Lanka is now cornered from other countries in the world due to some wrong decisions taken by the government in the past and countries like Japan who had a goodwill towards Sri Lanka has now shows their reluctance to help us due to sudden rejection of some projects Prime Minister Ranil Wickremesinghe said.
Prime Minister Ranil Wickremesinghe pointed out that those decisions has taken on recommendation of some individuals and requested the Parliamentary Finance Committee to conduct an inquiry into those who made such recommendations.
The Prime Minister pointed out that the Sri Lankan economy is projected to be contracted by -4 percent of GDP in 2022, but the International Monetary Fund estimates that it will be around -6 percent, according to the Prime Minister.
Speaking further Prime Minister Wickremasinghe said,
“The country began to fall so low in 2019 with the change in the tax system that we implemented. The country lost between 600 and 800 billion. We have to go back to where the country was in 2019. Start where you fell. The tax system needs to be restructured. We can recover only if the government receives a proper amount of revenue.
Unlimited money printing …
In the past, unlimited money was printed. From 2020 to March 2022, the amount printed was 2.6 trillion. Until the country’s financial situation improves, another trillion rupees will have to be printed. In the face of the modern crisis, the stimulus needed to revive the country’s economy cannot be provided. But we will only have to maintain this situation for a short time.
Banks and finance companies must be protected if we are to re-emerge in this situation. We look forward to identifying areas of severe economic hardship and providing credit relief.
Petroleum Corporation, Electricity Board owe trillion to Bank of Ceylon and People’s Bank. SriLankan owes $ 680 million
Can’t bear the burden of debt …
Banks can no longer bear the debt burden of state institutions in our country. They have to manage it within them. We are in discussions with the IMF. We need economic stability ahead of the end of 2023. Our goal is to reach a certain level of economic stimulus by 2024 through financial stimulus.
The macroeconomic plan should be carried forward even if the ruling party factions change. It is also important to maintain maximum performance. We must make the most of our foreign relations.
Today, Sri Lanka has become a marginalized country in the world due to certain wrongdoings. This situation must change. We are currently in discussions with ambassadors of various countries and international organizations. Most of them agree to support this country.
The world is asking for humanitarian aid …
On the 9th, the United Nations will make an open appeal to the whole world to provide humanitarian assistance to Sri Lanka. They have agreed to provide Rs. 48 million for food, agriculture and health. India, China and Japan are here to help us. Relations with these countries are broken. A few months ago, a $ 1.5 billion exchange loan was obtained from China. But there is a condition with that loan. That loan can be used only if the foreign reserves are sufficient for three months. Even when these loans were given, the special reserves were not sufficient for three months. Our officials swindled China and took that money.
We have requested that these conditions be changed. Japan is a friendly country. But they are not in a good mood today. Stopped on the way without giving any reason for suspending certain projects. The 3 billion projects given by Japan were stopped for no reason.
I request the Parliamentary Finanace Committee to conduct an inquiry into this matter. India offered to help. At this difficult time, old friendships are needed again.
