Cabinet sub-committee headed by Prez appointed to ensure economic recovery

The government this week decided to appoint a Cabinet sub-committee chaired by President Ranil Wickremesinghe on economic growth and recovery.

“Immediate decisions should be taken with regard to the steps to be taken with escalated priority for economic revival, recovery,​​ and growth in the wake of the current economic crisis,” said the Department of Government of Information providing a rationale for the appointment of the sub-committee.

The sub-committee, for which the Cabinet approval was granted this week, consists of six members, including the President and the Prime Minister.

Sri Lanka is facing its worst economic meltdown since its independence defaulted on its debt in May for the first time in its history.

On September 1 the International Monetary Fund (IMF) announced a staff-level agreement with Sri Lanka for 48-month​​, US $ 2.9 billion Extended Fund Facility.

However, disbursement of any IMF money is contingent upon Sri Lanka carrying out major economic reforms and securing a relief deal with its creditors.

Sri Lanka’s inflation is running at over 65 percent and food inflation has soared over 90 percent. The economy is projected to shrink by about 8 percent this year.