• Expects IMF to wrap up work today on the 2nd review

Amidst the appreciating spree of the Sri Lankan Rupee, the President of the country Ranil Wickremasinghe anticipates the Sri Lankan Rupee (LKR) to reach 280 levels by June, leading to a decrease in the prices of goods. We anticipate the rupee will continue to strengthen next year as well.

Further, Wickremesinghe highlighted that if Sri Lanka continues to rely on borrowing to address the imbalance between imports and exports, the nation will inevitably confront another economic crisis within a decade. Additionally, he underscored his vision to establish economic stability and expedite the transformation of Sri Lanka into an export-oriented economy.

“We are looking forward to talking to the International Monetary Fund and wrapping up our work soon. In 2022, Sri Lanka was labelled as a bankrupt country. Because of this, international financial institutions and banks stopped providing us with support and loans. Our first priority is to lift this ban. Therefore, we need to reaffirm that we are a country that pays its debts.”

He added that the on-going discussions are reaching their last phase, and we anticipate wrapping them up by tomorrow. Following that, our objective is to proceed with negotiations involving the countries that have provided loans to us. This process is being overseen by France, Japan, and India, who are chairing the discussions involving all the countries that have officially lent money to us.

“The local staff and the International Monetary Fund (IMF) are anticipated to reach a staff-level agreement this weekend after concluding their discussions. Concurrently, discussions with China are on-going, and discussions with private creditors are underway. The Secretary to the Ministry of Finance and the Governor of the Central Bank are scheduled to return to Europe to engage in discussions with these groups.”

Following the declaration of our bankruptcy-free status, a joint meeting of the World Bank and the IMF is planned for April. Subsequently, the relevant agreement is expected to be signed shortly thereafter.

The President said that a new law is set to be introduced to Parliament in April, alongside another legislation aimed at improving financial governance within the Government. These measures are designed to propel the nation’s economy forward.

President Ranil Wickremesinghe made these remarks during his attendance at the inauguration ceremony of Bodhigara and Golden Fence, constructed near the historic Mangedara Tempita Viharaya in Kegalle yesterday (20).

The President also noted that negotiations concerning certifying Sri Lanka as a debt-paying country are anticipated to conclude by June and July. He further emphasised that the foreign aid lost due to the country being labelled as bankrupt will be retrieved and returned to the nation.

“Over the past year, we have played a crucial role in rescuing the country from economic troubles. If these challenges persist, we may endure another two or three years of hardship. However, as an initial step, we have now reached the final stage of the Government’s programme aimed at steering the country away from bankruptcy. Achieving this required numerous steps, but we’ve successfully executed them in a remarkably short timeframe.”

Additionally, the President highlighted that the country’s economy will receive a boost as the national currency strengthens with the renewed engagement of foreign banks and companies that had previously refrained from conducting business with Sri Lanka.