Deviating from present path of recovery could lead to another economic collapse – President

In a special statement to Parliament today (13), President Ranil Wickremesinghe emphasized the critical role of the government’s program, backed by assistance from the International Monetary Fund (IMF) and debt restructuring, in rebuilding the collapsed Sri Lankan economy. The President warned that deviating from this path could lead to another economic collapse, urging caution against the allure of political fairy tales.

President Wickremesinghe highlighted the success achieved through the proper handling of two fundamental factors: securing the support of the IMF and implementing debt restructuring. He asserted that by continuing this program, Sri Lanka has the potential to evolve into a developed nation.

The President announced that the approval of the second tranche of the IMF would result in the World Bank (WB) providing Sri Lanka with US $150 million for deposit insurance. This injection of funds is expected to significantly fortify the Sri Lankan financial sector.

Acknowledging the challenges posed by various taxes, including the Value Added Tax (VAT), President Wickremesinghe clarified that these decisions were made not out of choice but as necessary steps for the country’s future. He assured that as the economy strengthens, the government will implement measures to bring relief to the people.