Report Wire - Sri Lanka’s financial woes to final one other 12 months; want to have a look at new sectors for restoration: Prez Wickremesinghe

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Sri Lanka’s financial woes to final one other 12 months; want to have a look at new sectors for restoration: Prez Wickremesinghe

3 min read
Sri Lanka’s economic woes to last another year; need to look at new sectors for recovery: Prez Wickremesinghe

President Ranil Wickremesinghe has stated that Sri Lanka’s financial woes would final for one more 12 months and it should assume exterior the field and have a look at new sectors like logistics and nuclear power to revive the bankrupt financial system.

Speaking at a two-day convention titled “Let’s reset Sri Lanka” held on Friday, Wickremesinghe stated that reforms within the nation additionally would want increased taxation.

“The next six months to one year I think till about July next year, we will have to go through a hard time,” he stated, including that for restoration Sri Lanka must have a look at new sectors akin to logistics and nuclear power. “One I believe in very much is logistics, if you see the growth of the Indian, Bangladeshi and Pakistani economies, logistics can have a big role to play here in Colombo, in Hambantota and Trincomalee. This is how we use our strategic position,” he stated, referring to the 2 main ports of the island nation.

Sri Lanka goes by its worst financial disaster since independence in 1948. The export business is badly hit by the gasoline shortage attributable to the foreign exchange disaster.

Tourism business, which was the spine of the Sri Lankan financial system, additionally acquired dented initially because of the COVID-19 pandemic and later owing to the financial turmoil.

Wickremesinghe, who was elected the president final month by Parliament, will serve the remaining time period of Gotabaya Rajapaksa, who fled the nation and resigned amidst the large anti-government protests.

Wickremesinghe, who has beforehand described Sri Lanka’s financial system as bankrupt, stated that financial reforms would require increased taxation.

“Even taxation on wealth, we have to resort to those measures, first for economic recovery and second for social stability,” he stated.

The president additionally stated the nation should think about moving into the nuclear power sector.

“More you have more energy you can sell to India, at the same time keep more renewable energy available. We have to think outside the box,” he stated.

Having declared a global debt default in April, Sri Lanka is at present negotiating with the International Monetary Fund for a doable bailout bundle.

However, the IMF programme has hit a snag within the type of restructuring of debt. Even the World Bank has refused to offer any assist till an in depth macroeconomic coverage is in place.

Referring to the continued IMF bailout try, Wickremesinghe stated the authorized and technical advisers on debt restructuring are transferring forward with the duty.

“First the foreign debt….and when you look at the official debt are we getting caught into the geopolitics of the region of Asia?,” he stated.

“It will be a period which we have not seen before, we have to look at both foreign debt and local debt, it is certainly going to be a difficult time. The first six months will be difficult,” he stated.

Wickremesinghe stated that over 6 million of the 21 million inhabitants of the nation are being malnourished.

More and extra are unemployed, he stated, including that extra funds are being put aside to assist them.

Wickremesinghe stated political stability was essential to set in movement the required reforms.

“So we have to look at the political, social and economic dimensions of the reform, the restructuring that we are going to implement. We’ve already seen the economic impact as a shortage of oil and inflation in this country. In fact, it came onto the political scene as a social scene”, Wickremesinghe stated, referring to the months-long avenue protests which culminated within the ouster of former President Rajapaksa.