President Wickremesinghe Urges Support for Economic Bill Amidst Crisis

Sri Lanka's President Ranil Wickremesinghe called on political parties to support an urgent economic transformation bill in Parliament. As Sri Lanka struggles with a severe financial crisis and efforts to sustain its bankrupt economy, Wickremesinghe emphasized the need to follow through on their IMF agreement and dismissed opposition demands for revisions.

Sri Lanka's President Ranil Wickremesinghe urged all political parties on Sunday to back an urgent economic transformation bill in Parliament, aimed at helping the crisis-hit island nation sustain its deteriorating economy.

During his address in Colombo, Wickremesinghe stressed the importance of adhering to Sri Lanka's agreement with the International Monetary Fund (IMF). 'We can't renege now; we must proceed with cooperation from our friendly countries,' the president remarked, rejecting suggestions from opposition parties to revise the IMF deal and challenging them to present an alternative economic plan.

Highlighting the severity of the economic situation, Wickremesinghe, who also serves as Minister of Finance, pointed out that Sri Lanka's debt had soared to USD 83 billion by the end of 2023. Since declaring its first-ever sovereign default in April 2022, the island nation has been navigating serious financial turmoil, leading to the resignation of former President Gotabaya Rajapaksa.

Foreign Minister Ali Sabry revealed that Sri Lanka seeks to reduce its debt by approximately USD 17 billion amidst ongoing restructuring efforts. The IMF announced a staff-level agreement in March, opening access to USD 337 million from a USD 3 billion bailout package. The IMF commended Colombo's macroeconomic reforms, noting their positive impact. Wickremesinghe detailed that the economic transformation bill intends to cut the debt burden from 128% of GDP in 2022 to 13% of GDP by 2032, aiming to pivot Sri Lanka from an import-oriented to an export-oriented economy.

Opposition parties have criticized the bill as a strategy for Wickremesinghe's potential re-election bid later this year, although he has yet to confirm his candidacy.

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