Three more years of Sri Lankan bankruptcy: President
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Sri Lanka's president attempts to negotiate deals to get his country out of bankruptcy and eliminate debt.
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Ranil Wickremesinghe during an interview with the Associated Press in Colombo, Sri Lanka, Saturday, June 11, 2022 (AP)
After months of food, fuel, and medicine shortages, Sri Lanka’s president, Ranil Wickremesinghe, took office at the peak of insecurity and the country's bankruptcy.
The Sri Lankan president has recently affirmed that his country will remain bankrupt for at least 3 more years as he continues to work to resolve his country’s unprecedented economic crisis.
Wickremesinghe has been following up on negotiations with international creditors following Sri Lanka’s foreign debt crisis, to clear the way for an IMF bailout.
He addressed his parliament while urging support for immense economic reforms, stating that he believes that following this strategic plan will help Sri Lanka rise out of bankruptcy by the year 2026.
He added that introducing new tax policies is a widely unpopular move, and proceeds to remind them that his ultimate goal is not to chase after popularity, but rather to rebuild the nation from its crisis.
Demonstrators from all over the country marched to Colombo demanding the president's resignation after months of protests over the so-called mismanagement of the country's economic crisis.
Although last month, Sri Lanka’s economy had contracted up to 11 percent when Sri Lanka’s foreign exchange reserves dried up leaving traders totally unable to import vital goods to boost their economy, Wickremesinghe assured this Wednesday that the state’s economy would return to grow by the end of the year 2023.
After the rampant inflation alongside tax increases and no subsidies for fuel and electricity took place, the crisis hit harder than ever, which led Wickremesinghe’s policies to expand on the matter.
IMF discussions to eliminate massive debt
As such, the president has announced that his county has reached the final stage of IMF discussions in order to secure a preliminary $2.9 billion bailout, which has delayed protracted debt and will restructure valid negotiations with major creditors such as China.
Wickremesinghe also highlighted his country's direct discussions with China concerning its outstanding debt, and has assured that he received “positive responses from all parties”, which will inevitably lead to a final agreement.
