Sri Lanka's Stability Hinges on IMF Support, Says President Wickremesinghe

Sri Lankan President Ranil Wickremesinghe on Thursday told lawmakers that there was no alternative path to economic recovery for the island nation other than the IMF-prescribed reform plans.Sri Lanka has been facing the worst economic crisis, leading to a sharp rise in the prices of essential commodities, including fuel, since its independence from the British in 1948.President Wickremesinghes address to Parliament came on the second anniversary of the public uprising against President Gotabaya Rajapaksas government over handling the unprecedented economic crisis in the country.On May 9, 2022, Prime Minister Mahinda Rajapaksa was forced to resign following anti-government protests.

Sri Lankan President Ranil Wickremesinghe on Thursday told lawmakers that there was no ''alternative path'' to economic recovery for the island nation other than the IMF-prescribed reform plans.

Sri Lanka has been facing the worst economic crisis, leading to a sharp rise in the prices of essential commodities, including fuel, since its independence from the British in 1948.

President Wickremesinghe's address to Parliament came on the second anniversary of the public uprising against President Gotabaya Rajapaksa's government over handling the unprecedented economic crisis in the country.

On May 9, 2022, Prime Minister Mahinda Rajapaksa was forced to resign following anti-government protests. Ranil Wickremesinghe replaced him as prime minister. Two months later, Wickremesinghe replaced Gotabaya Rajapaksa as the President to serve the balance term until the end of 2024.

Wickremesinghe succeeded him as the president and began to steer the bankrupt economy.

"When I assumed leadership, our nation was in crisis, the economy was severely contracted with inflation soaring to 70 per cent," Wickremesinghe, also the finance minister, told Parliament.

The president said the budget deficit had surged to over 10-12 per cent, resulting in an increase of interest rate to 30 per cent.

He added that there were insufficient funds to import food and essential goods even for a week and the ''majority of the population found themselves on the streets with some enduring lengthy queues for necessities".

He said under the IMF bailout of USD 2.9 billion, the government implemented economic discipline.

He said he anticipated a growth of 3 per cent this year.

He said the interest rates had also decreased substantially to as low as 10-13 per cent.

"I reiterate once more there exists no alternative path to reconstructing our economy. No other programme rivals the efficiency of the one currently in place, nor does any other plan offer a viable alternative,'' he said.

Separately, the Election Commission of Sri Lanka said on Thursday the island nation will hold a presidential election between September 17 and October 16.

Although the two main opposition leaders and several others had already announced their candidature for the presidential poll, Wickremesinghe has not announced his intention to seek a second term.

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