Ranil assures govt. on track to ease economic hardships of people, businesses

• Says cannot continue to live with difficulties and challenges
• Asserts IMF is the only solution for SL’s current problems
• Says CB instructed to look at the possibility of extending debt relief to ease hardships of businesses

Living and operating businesses in the current economic environment in Sri Lanka is becoming increasingly daunting for the people, but President Ranil Wickremesinghe this week gave assurance that the government is on track to bring in the much-awaited relief.

Pointing out that the country cannot continue to thread along the path it currently is in for long, the President gave assurance that no leaf is left unturned in addressing the difficult economic conditions of the country.

“This is the hardest work we have to do. We cannot live like this forever. Even if we live with hardships, we must move forward quickly. 

“The current inflation is a problem that every business has to face. If we continue with these decisions, we can reduce inflation. Bank interest can be reduced. If decisions cannot be made, inflation will increase,” said Wickremesinghe.

The President shared his comments while addressing the Prathibha Abisheka Women Entrepreneur Awards 2022 hosted by the Women’s Chamber of Industry and Commerce (WCIC) held earlier this week.

While assuring that the government is currently working to secure IMF assistance as soon as possible, he shared that countries that have given loans have already stated their willingness to extend assistance. 

Japan and the Paris Club, two of the three major creditors, have expressed their willingness to assist Sri Lanka and talks have begun with India and China. 

Following discussions with China Exim Bank recently, the government is debating on how to restructure the debt. The Chinese side has agreed to move quickly, he said.

Meanwhile, India’s Foreign Minister will be arriving in Sri Lanka next week, which will help the restructuring discussions, he said.

While providing an update on the measures taken towards obtaining relief from the IMF, Wickremesinghe went on to state that the hard decisions taken so far to rectify the current situation are unavoidable, but measures will be explored to make it easier for the people.

One such measure that is being considered is the extension of the moratorium for businesses.

The President said the Central Bank has been instructed to look at the possibility of providing moratoria so that businesses can manage to stay afloat amidst the ongoing challenges.

Businesses across diverse sectors have repeatedly requested the government to extend the moratoria that were offered when the Covid-19 pandemic struck. The facility which provided some breathing space expired on 31 December 2022.

While acknowledging the challenges faced by businesses, Wickremesinghe said the situation of the banks must also be looked into as they too are pressed. He stressed while moratoria will help businesses, efforts must be taken to ensure the financial stability of banks.

The President reiterated that the only solution is in expediting efforts that will bring in the IMF facility, which once bagged will help get further assistance from lenders and agencies such as the World Bank, Asian Development Bank, and the United Nations Development Programme.

“The government will receive US$ 2.5 billion from the IMF. After that, we can get nearly US$ 5 billion from the World Bank and the Asian Development Bank. The total will be US$ 7.5 billion. Adding the US$ 3 billion from the restructuring of unprofitable government agencies can add up to US$ 10 billion, which will enable the economy to recover and take the country out of this suffering,” he said.