Sri Lanka is not ready to emerge from the crisis, says PM

Sri Lanka is not ready to emerge from the crisis, says PM

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A school closed in Colombo, Sri Lanka, where so-called “non-essential” services were cut to maintain fuel reserves, on June 20.

Photo: AFP/VNA/CVN

We will face challenges in 2023 tooHe said: “It is the truth. It is the truth.” The United Nations estimates that about 80% of the population skip meals to cope with food shortages and rising prices.

Negotiations are underway with the International Monetary Fund (IMF) but the outcome depends on a plan to restructure Sri Lankan debt with its creditors by August, as outlined by the prime minister. “Now we are participating in the negotiations as a bankrupt country”, He said.

Because of the state of bankruptcy in which our country finds itself, we must offer them, separately, a plan for the viability of our debts. Only when (the IMF) is happy with this plan can we make a deal.”

Last week, the International Monetary Fund stressed that there is still work to be done to settle the country’s public finances and correct the budget deficit, before it can reach a financing agreement to solve the balance of payments crisis.

The International Monetary Fund has also called on the country to end corruption and dramatically raise taxes, while halting energy subsidies that have long drained the state budget.

The government announced in April that it could not repay its $51 billion foreign debt. For months, the country lived to the rhythm of daily blackouts, fuel and food rationing, and accelerating inflation.

The lack of foreign currency no longer allows us to import enough food, fuel and other essential products. Recently, the state lowered the minimum age for women from 23 to 21 to work abroad and earn much-needed dollars.

All government institutions “not necessary”Besides schools, orders have been issued to close until July 10 to limit travel and save energy. Among the most affected are the elderly population. “Think about how this situation affects our seniors.”The 73-year-old prime minister stressed. Poverty is widespread among themand their purchasing power.It’s down about 50%.”




AFP / VNA / CVN

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