US$ 8bn debt relief paves way for Sri Lanka to pursue new economic direction: Prez

• Stresses importance of protecting banking system to safeguard economy
• Says foreign investment essential for banks to thrive

As Sri Lanka secures US$ 8 billion in debt relief, President Ranil Wickremesinghe announced that the island nation is now free to pursue a new economic direction.

To achieve positive growth, the necessary legal framework has been submitted to parliament to create an export-oriented economy, he said, emphasising that Sri Lanka’s economic challenges have stemmed from an import-oriented approach.

“We need to progress from this point forward, and the banking system plays a crucial role here. How do we secure funding? Foreign investment is essential for the banks to thrive. We have not yet achieved this objective,” the President stated at the National Bankers’ Association forum on Friday.

While stressing the importance of protecting the banking system to safeguard the economy, he noted that more needs to be done to ensure banks can prosper. Wickremesinghe went on to caution that a collapse of the banking system would lead to an economic collapse, a risk Sri Lanka cannot afford at this juncture. 

He acknowledged that while the fractured economic system has been repaired, the broken political system remains unresolved.

“Sri Lanka must choose wisely and advance with the programme the country truly needs, avoiding the lure of unrealistic ideals,” he said. “It’s crucial to grasp the truth and take decisive action. The decisions we make today will shape our future.”

“As we rebuild the nation’s economy, we must also reform our political system. This entails cultivating individuals who can shoulder responsibility and progress, and who bravely speak the truth without fear. Without this foundation, our country lacks a viable future,” he stressed.