Sri Lanka survived two challenging years of economic crisis; possibly due to India's support: President Ranil Wickremesinghe
- In Reports
- 06:58 PM, Jun 22, 2024
- Myind Staff
During the 31st All India Partners Meet in Colombo, held from June 20-22, President Ranil Wickremesinghe highlighted that Sri Lanka has endured two challenging years of economic crisis with the aid of financial support amounting to USD 3.5 billion from India.
He underscored his commitment to maintaining a robust partnership with New Delhi, citing discussions held during his recent visit to India for the swearing-in ceremony of the new government, where core areas of collaboration were deliberated.
"Having successfully navigated through two difficult years, I must acknowledge that this achievement was made possible by India's loan of USD 3.5 billion. All obligations will be duly met," Wickremesinghe affirmed.
Wickremesinghe highlighted that sustainable energy cooperation is a critical area of collaboration between Sri Lanka and India. During his recent visit to Delhi, he discussed with Prime Minister Modi the need to expedite their joint programmes. "We have identified key projects that will set a new course for our partnership. These include initiatives like the grid interconnection to transmit sustainable energy from Sri Lanka to India," he stated.
He elaborated on specific projects such as the Sampur solar power project, a Government to Government initiative, and the three-island project, slated for groundbreaking in July. Wickremesinghe also emphasised ongoing efforts to enhance land connectivity between Sri Lanka and India.
Wickremesinghe noted that significant discussions have been held to accelerate the Trincomalee Development Project, encompassing industrial investment zones and tourist areas. Plans are also progressing for the construction of a multi-product oil pipeline from Nagapattinam to Trincomalee, pending the final observation report.
He also referred to the directors meeting of the IMF, the global lender assisting Sri Lanka in navigating its economic crisis.
"We have successfully concluded the IMF board of directors meeting and are preparing to meet with our creditor nations, including the Paris Club, India, and others at the official creditors committee next week. Discussions with China and the Exim Bank of China are also ongoing," Wickremesinghe stated. "I am optimistic that we will soon transition from our current financial challenges into a new phase," he added.
In April 2022, Sri Lanka declared its first-ever sovereign default since gaining independence from Britain in 1948, precipitating the resignation of President Wickremesinghe’s predecessor, Gotabaya Rajapaksa, later that year.
In May, Foreign Minister Ali Sabry indicated that Sri Lanka is seeking a reduction of approximately USD 17 billion from its total debt burden as part of its ongoing debt restructuring efforts.
In March, the IMF announced a staff-level agreement with Sri Lanka, paving the way for the disbursement of USD 337 million from a USD 3 billion bailout approved in 2023. Two tranches of USD 330 million each were disbursed in March and December 2023. The IMF has commended Colombo for its macroeconomic policy reforms, noting that these measures are beginning to yield positive results.
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