Debt restructuring program is the only option for economic recovery, says Sri Lankan President

Colombo: Sri Lankan President Ranil Wickremesinghe said the country is well aware that its economy has collapsed and a debt restructuring programme is the only way to recover. He said Sri Lanka's only option is to seek support from the IMF, the global lender.

Speaking to trade union representatives on Friday, he said that he knows the difficulties faced by the country. "We witnessed a drop in the number of employments. Inflation has especially increased the cost of living. Hence, people's lifestyle is changing." He added that the facilities Sri Lankans enjoyed earlier, like health and education, are diminishing due to the dire economic situation.

The President said talking about the root causes of these issues is useless because they have already happened. "These are the repercussions of this economic collapse. The only option we have now is to seek the support of the International Monetary Fund (IMF). Otherwise, we cannot recover."

Speaking about the debt restructuring programme, he said the government is currently carrying it out and has already completed negotiations with Japan. Sri Lanka has obtained loans from China and India as well, reported ANI.

The President also said he is expecting the country's economy to improve after the first quarter of 2023. He is also anticipating better economic progress in 2024. Strengthening the private sector along with continuing public sector development programmes is important to provide relief to people. Wickremesinghe thinks the export market in the island nation will slow down due to the economic slowdown in the US and Europe. He said the country needs to develop its tourism industry.