Mid 2024 will be a turning point for Sri Lanka’s economy, says Ranil

22 March 2024 04:24 am - 22 - {{hitsCtrl.values.hits}}

A A A

Mid this year will be the turning point for Sri Lanka’s economy, according to President Ranil Wickremesinghe, as from then on the island nation will have opportunities for further progress.

“Looking ahead, we have opportunities for further progress after June,” Wickremesinghe said this week.
He added the rupee, which has been strengthening, is expected to reach Rs.280 against US$ by June, leading to a decrease in the prices of goods.

While noting that ongoing hardships will continue for another three years, Sri Lanka reaching the final stage of the government’s programme aimed at steering the country away from bankruptcy, is a key achievement, he said.

“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,” said Wickremesinghe addressing the inauguration ceremony of Bodhigara and Golden Fence.

The local staff and the International Monetary Fund (IMF) are anticipated to reach a staff-level agreement this weekend after concluding discussions on the second review under the Extended Fund Facility (EFF). Discussions with China are on-going, and discussions with private creditors are underway. The Treasury Secretary and Central Bank Governor 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,” said Wickremesinghe.

“I aim to complete all these tasks by June and July, especially considering the upcoming presidential and parliamentary elections. It’s crucial to finish these activities before the elections. Once completed, we will demonstrate to the world that we are capable of repaying our debts, which will lead to the return of aid money that we haven’t received yet and an increase in the country’s dollar reserves,” he said.

As many banks and companies are hesitant to engage in business with Sri Lanka at present, Wickremesinghe expressed confidence in these groups resuming activities once the listed activities are concluded. Consequently, available funds are expected to increase.

“Considering these factors, the relief provided to the people as a bankrupt country is three times greater than what was provided during a stable economy. These efforts ultimately benefit the country’s economy,” he said.

Wickremesinghe went on to caution that stabilising the economy alone will not solve all problems since Sri Lanka is currently reliant on imports. The gap is often bridged through foreign loans, which sets us up for another economic crisis in about a decade.

“To prevent such a scenario, I plan to hold discussions with the World Bank, the Asian Development Bank, and the International Monetary Fund to initiate a programme aimed at swiftly transitioning the country towards an export-oriented economy,” he said.

Order Gifts and Flowers to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Grocery, Kids Toys, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,Astrology, Courier/Delivery, Medicine Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka

Comments - 22

Nimal Friday, 22 March 2024 08:30 AM

The third quarter will be even better with a lot of radical changes on the cards.

@nobody not understanding the situation Saturday, 23 March 2024 03:11 PM

@nobody-SL got into the 2022 crisis as They had exhausted the Forex received from citizens remittance working overseas and some exports to pay up debts accumulated over the years. Revenue collected is lower than high expenses had eroded the financial system. Since 2022, some outstanding loans were paid but lots more NOT paid as current government has made a deal for payments to be postponed. Governments coming in over the years keep on taking new loans from China, IMF, ADB etc to settle immediate colossal expenses and pay previous loans. That’s why these 2 years the forex has been gathering but still insufficient. Once Loan payments which are on hold till next year are paid, the Forex collection currently in the CB will be wiped out as the current collection is insufficient to sustain the debts and yearly expenses. Most people like you are not aware how these morons having been running SL over the years and voting them in year after year for freebies.

NAGA Friday, 22 March 2024 08:49 AM

MID OF THE YEAR, MAY BE SOUTHWEST MONSOON.

DOT Friday, 22 March 2024 08:53 AM

Yeee, just 2 more months to suffer !

Jude Friday, 22 March 2024 08:55 AM

We're Not progressing, there's no economic stability, SL economy is an Illusion. Last 2-3 we're only borrowing from IMF world Bank and ADB. SL import anything and everything however most people have money to Buy only the essential food items. Purchasing power Have dropped considerably. Imports have slow down and the demand for dollars have reduced thus making Rupee appreciating. That's the Illusion part, the country economy has not improved. In 2-3 years SL gov't have to pay back some of the loans, then we're back to square one!! Yeah then high dollar (Coz Rupee is depreciating) Balance of payment issues then Bankruptcy again one option or keep restructuring of Debt.

nobody Friday, 22 March 2024 06:00 PM

Do you even bother to read financial news or you hate Ranil so much you dont like to appreciate the good he is doing? 1) what IMF, ADB, WB given is less than couple of billions... that is not enough even to run the country for a year... 2) the whole purpose of debt restructure is to get all parties to agree on a payment plan that SL can handle.. not to pay everything outstanding in 2-3 years... 3) lot of people (Ranil haters) have been banging the drum of Rupee depreciating.. some said by now it will be 400.. but it never happened. i suppose your buddies JVP has a brilliant plan to make money...

Suhada malli Friday, 22 March 2024 09:05 AM

Dear President Wickramasinghe You correctly mentioned the country needs a 25 year plan (2048). However even after 2 years we only see bits and pieces but not a comprehensive long term plan. This will be yours (and our) failure. Difficult era, turning point etc if we keep repeating every 6 months at the end of a few years we will do a full circle and be back where we began. And we have to hold you accountable. Even if you loose the election if you publicly share a 25 year journey for the country (which many idiots will not understand) at least you will be remembered as a statesman who had a vison for the country. Hire a team of experts and get a plan done where each of the 30 ministries will have a lot of work to do every year for the next 24 years.

Tilak Friday, 22 March 2024 09:24 AM

History will remember RW as an elder statesman. He has taken some very politically unpopular and harsh decisions, but which have been warranted in the extreme circumstances. I do not see any individual who would have had the courage to do the difficult but right thing in the circumstances. The time horizon he set out initially have proved to be realistic, so it is good that he sets expectations right. One timing that he did not get right is in relation to the debt restructure. The reasons for the delay may be justified, but many were led to believe that it would have been wrapped up much earlier.

dinudu Friday, 22 March 2024 09:56 AM

transforming the country to an exported oriented country will not solve the economic problems since our exporters stash away the export dollar earnings overseas

Amarab Friday, 22 March 2024 10:00 AM

Quote "leading to a decrease in the prices of goods.". So that means you are anticipating MORE IMPORTS than exports. So this going to widen the balance of payment.

Lies before Elections. Debts still Outstanding Friday, 22 March 2024 10:36 AM

Stop buttering the public with your lies. Once you start paying the colossal debts the Rajapakse’s and all other previous regimes have taken, your foreign reserves will be wiped out and the rupee will free fall again. Till today, you have no guts to bring these monsters to judiciary because they have arranged a package not to meddle in their affairs and you enjoy the perks as a dummy president.

nobody Friday, 22 March 2024 06:08 PM

Do you understand what debt restructuring mean? let me enlighten you.. from wikipedia "Debt restructuring is a process that allows a private or public company or a sovereign entity facing cash flow problems and financial distress to reduce and renegotiate its delinquent debts to improve or restore liquidity so that it can continue its operations" now how on earth can foreign reserve wipe out? seems dummy people like you is the reason SL in this mess..

Jayantha Friday, 22 March 2024 11:29 AM

Lol. Same guy who opened a Volkswagen factory in Sri Lanka few years ago.

@Nobody needs to be Somebody to understand Logic Saturday, 23 March 2024 09:48 PM

@Nobody-yes in reality debt restructuring is to get in funds to carry on the economy. But this government has made arrangements to start paying all outstanding loans only from in next year onwards. So currently they are accumulating the foreign money received from SL workers remittance and some exports. Looks like you are with government and not aware expenses are still too high and revenue collection is low. So when they start paying the loans from next year, guess from where they will get from? Be somebody to understand that eventually they will start drawing up the reserves to pay the loans and borrow again for day to day expenses plus the interest on all loans taken. Therefore people like you who have been voting them in will continue the mess till your children and their children ending up paying for these and future loans to sustain the existence of SL and it’s citizens.

FredSnR Friday, 22 March 2024 11:43 AM

If you can achieve what you say that is good, from bankruptcy to being able to pay our creditors, hope that will not be by selling off our assets at fire sale prices or other arrangements which would be favourable to our creditors but not to us because that will do even more harm Without assets we will be turned into permanent slavery.Have to be by revenue earning measures and thrift hard work and patriotism like South Korea did as I recall

Sokrates Friday, 22 March 2024 01:04 PM

Ranil's statement is purely an election campaign. Only because the central bank constantly manipulates the foreign exchange rates downwards on Ranil's orders does the inflation rate fall. Imports that are paid for with central bank dollars are correspondingly cheaper. This is deadly for the economy. However, this economic manipulation is only possible in the short term and only because the LKR cannot be traded freely on the world market. As an example, when Germany still consisted of 2 states, there were 2 currencies. The Federal Republic had the D-Mark and the GDR had the MDM. The exchange rate was set by the GDR at 1 to 1. On the black market the exchange rate was 1 to 10. After the collapse of the GDR until the introduction of the D-Mark, the exchange rate was 1 to 20. This should be a warning to Ranil and the central bank.

Malaka Manchanayake Friday, 22 March 2024 01:19 PM

More money would be spent to get votes. Certain economic variables would be manipulated to show a rosier picture of the economy clise to the election with the help of Mr. Nandalal's CBSL and finance ministry. But you and the Rajapakses will no longer be able to mislead and cheat the people.

VJ Friday, 22 March 2024 06:57 PM

He is predicting the victory of NPP in the next presidential elections.

Dasa P Saturday, 23 March 2024 02:08 AM

How many years of my life time have I heard this kind of stories from this sly fox? Soon people of Sri Lanka will shut down this Foxavagon factory full of shit.

sam silva2 Saturday, 23 March 2024 06:52 AM

mr. bean the turning point will be for you. already tilting. elections will wipe u out of power and pohottuwas and u will be in jail by the end of year. should be incarcerated for life for the damage u have done to the country. how do u say of progresss when u havent paid back the foreign debt!!!

Sambo Saturday, 23 March 2024 08:10 AM

The turning point will be once this government is kicked out lock,stock and barrel. 6 months more.

Siripala Appuhamy Saturday, 23 March 2024 05:47 PM

Big Pin Kaalakanniya is talking again!

Add comment
Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Mid 2024 will be a turning point for Sri Lanka’s economy, says Ranil

Comments - 22

Add comment

RECOMMENDED

‘Spike in blast fishing’ poses renewed threats to Sri Lanka’s marine ecosystems

UDA owned land in Thalawathugoda; UDA Minister Prasanna Ranatunga under the spotlight for forceful occupation of reserved land

Loss-making SMIB faces political pressure in recovering loans

Baltimore Bridge Collapse: MV Dali, SL authorities anchored in mystery?

Has Sri Lanka become a potential hub for the illegal wildlife trade?

Spotlight on Moragahakanda Development Project Moragolla villagers lose livelihoods and down to one meal a day

Ambitious Sri Lankan jobseekers ‘trafficked into Ukraine war zones’

Most Viewed in News

SL on alert on possible genocide allegations by Canada

Businessman claims Rs.50 Mn from Gota, Mahinda, Basil

Racing event tragedy leaves seven dead including eight-year-old child

Uma Oya Development Project inaugurated

Gota fires back at Cardinal, rebuts allegations

Ranil Wickremesinghe caravan moves on despite barking dogs

MIRROR CRICKET

Sahan Arachchige to lead Sri Lanka ‘A’

Is Chamari Athapaththu Sri Lanka’s greatest cricketer ever?

Athapaththu back atop ICC Women’s ODI Batting Rankings

Chamari Athapaththu sets big goal for T20 World Cup

TODAY'S HEADLINES

Sri Lanka to establish new energy sector regulator

Cabinet nod to transfer China-built Mattala airport’s management to Indian, Russian joint venture

Sajith never attends dinners hosted by Ranil Wickremesinghe

One soldier dead, nine injured in road crash

Sahan Arachchige to lead Sri Lanka ‘A’

Dates confirmed for 78th Bradby Shield

SLAS appoints independent committee for investigation

Pakistan lose key players for last two T20Is against New Zealand