05/08/2022, 09:46 Sri Lanka’s hardships to persist till end of year, says President Ranil 

Wickremesinghe - The Hindu

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Sri Lanka’s hardships to persist till end of year, says

President Ranil Wickremesinghe
Meera Srinivasan
COLOMBO AUGUST 04, 2022 07:32 IST
UPDATED:
AUGUST 04, 2022 10:05 IST

‘India has given us a breath of life,’ says Sri Lankan President in inaugural
parliament address

Sri Lanka is in great danger and citizens’ hardships will persist till the end of the year,
President Ranil Wickremesinghe told Parliament on Wednesday, while yet again seeking
support from opposition parties that are reluctant to join his government.

“We are in great danger. The country could extricate and be secured from that danger only if
we all face this challenge together as one people. It is vital that the honourable members of
this Parliament as well as the entire populace contribute with their own strength towards
the effort of nation building,” he said, in his first address to the House since being elected
President on July 20.

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05/08/2022, 09:46 Sri Lanka’s hardships to persist till end of year, says President Ranil Wickremesinghe - The Hindu

The six-time Premier rose to the country’s highest office amid an unprecedented economic
crisis that set off political turbulence, as mass protests ousted the Rajapaksas, the former
ruling clan, although their party still holds a majority in the legislature. While some in Sri
Lanka see the senior politician’s recent election as reason for hope, others accuse him of
“protecting” the discredited Rajapaksas, and stifling dissent by targeting critics.

IMF talks
Outlining his plans, including a 25-year national economic policy, President
Wickremesinghe said he expects to conclude the staff level negotiations with the
International Monetary Fund (IMF) “expeditiously and successfully”.

Colombo is counting on an Extended Fund Facility from the IMF, but the international
lending institution has made its support contingent on “adequate financing assurances
from Sri Lanka’s creditors that debt sustainability will be restored”.

Mr. Wickremesinghe said the government has “commenced” finalising its debt restructure
plan in collaboration with Lazard and Clifford Chance, international financial and legal
experts that Colombo hired for the purpose, after opting for a pre-emptive default on its
$51 billion foreign debt in April. “We would submit this plan to the International Monetary
Fund in the near future and negotiate with the countries who provided loan assistance.
Subsequently, negotiations with private creditors would also begin to arrive at a
consensus,” Mr. Wickremesinghe said, even as economists in Sri Lanka warn that the
process of negotiating a debt restructure is complex and likely long-drawn.

Also Read | Sri Lanka’s hardships to persist till end of year, says President
Ranil Wickremesinghe

Meanwhile, pointing to a “shrinking” middle class and widening income disparity in the
island nation, Mr. Wickremesinghe underscored the need for initiatives targeting

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05/08/2022, 09:46 Sri Lanka’s hardships to persist till end of year, says President Ranil Wickremesinghe - The Hindu

vulnerable communities, but did not mention any specific economic relief programme that
his government might implement in that regard.

As Sri Lanka awaits an IMF programme, which could take months to be finalised, the
government has sought bridge financing support including from India, which has already
extended nearly $4 billion assistance this year, and China. Although Beijing’s assistance,
totalling $2.8 billion, during the pandemic years was critical for Sri Lanka, it is yet to
respond to Colombo’s request for further assistance, apart from a $74 million grant
announced in May.
Also Read | Willing to work with India to help Sri Lanka, says China 

Help highlighted
President Wickremesinghe made a “special mention” of the assistance provided by India, in
Sri Lanka’s efforts towards economic revitalisation. “The Government of India under the
leadership of Prime Minister Narendra Modi, has given us a breath of life. On behalf of my
people and that of my own, I convey our gratitude to Prime Minister Modi, the Government
and people of India,” he told the House.

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