President Ranil Wickremesinghe emphasised the positive outcomes Sri Lanka has witnessed through its engagement with the International Monetary Fund (IMF) programme, highlighting the tangible benefits such as a stabilised currency leading to reduced prices of imported goods and gas, as well as favourable interest rates benefiting businesses.

However, he stressed the imperative of completing debt restructuring and continuing on a reform trajectory to ensure sustained growth.

This is per media reports, which added moving beyond mere stability, Wickremesinghe underscored the necessity of charting a sustainable path forward.

Addressing the pressing issue of debt repayment, he emphasised the need to bolster state revenues and foreign reserves while optimising available resources even if central to this effort is the ongoing process of debt restructuring, with negotiations underway with various official creditors including the Paris Club, the Official Creditors Committee, and China Exim Bank, alongside discussions involving bond holders and advisory support from firms like Lazard and Clifford Chance LLP.

The overarching goal of debt restructuring is to reduce the country’s loan payments relative to its gross domestic product, maintaining fiscal prudence with annual gross financial requirements and foreign debt servicing targets.

Wickremesinghe stressed the importance of meeting these benchmarks to avert potential economic setbacks.

Looking ahead, Wickremesinghe outlined the need for Sri Lanka to repay existing loans while seeking opportunities for new ones, alongside initiatives to boost exports and modernise agriculture. However, he cautioned against fiscal irresponsibility, citing past instances where imprudent spending had led to economic instability and hardships for the populace.

Acknowledging public demands for salary increases, Wickremesinghe affirmed the government’s commitment to fiscal discipline, deferring such increments until the following year to ensure economic sustainability.

He emphasised the importance of staying the course to avoid reverting to past pitfalls and avoiding potential disaster.

Fibre2Fashion News Desk (DR)

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