Category: Sri Lanka

Categories
-Top News Asia News Sri Lanka

IMF funding will lay foundation for a strong economy: Lanka President

The President told Parliament that the government also aims to reduce the inflation rate to 4 per cent to 6 per cent and bring it to a single digit by mid-2023…reports Asian Lite News

Sri Lankan President Ranil Wickremesinghe told Parliament on Wednesday that the IMF Extended Fund Facility (EFF) will restore the island nation’s international recognition amid the worst-ever economic crisis, ensure the country is not bankrupt and help banks regain international trust.

The credit facility amounts to approximately $2.9 billion over four years, with the first tranche of $333 million to be received, reports Xinhua news agency.

He said that the receipt of the IMF Facility is a step towards building a better future for the youth and uplifting the country.

Additionally, the country is expecting about $7 billion more in rapid credit support from other parties, Wickremesinghe told the lawmakers.

The IMF EFF will create opportunities for low-interest credit, restore foreign investors’ confidence and lay the foundation for a strong new economy, he said.

“We are now starting a new journey. We must introduce many economic reforms throughout the process,” the President noted.

Photo taken on April 19, 2022 shows the IMF headquarters in Washington, D.C., the United States. (Photo by Ting Shen/Xinhua/IANS)

Some of these reforms have already been proposed and implemented through the interim budget of 2022 and the budget for 2023, Wickremesinghe said.

He added that the government aims to reduce the primary deficit to 2.3 per cent of gross domestic product (GDP) by 2025 and increase revenue to 14 per cent of the GDP by 2026.

Wickremesinghe noted the standard corporate income tax rate has been raised to 30 per cent, and sectoral tax holidays have been eliminated.

The pay-as-you-earn tax rate has been raised from 12 per cent to 15 per cent, and the tax exemption limit has been reduced from 300 million LKR to 80 million LKR, he said.

The President told Parliament that the government also aims to reduce the inflation rate to 4 per cent to 6 per cent and bring it to a single digit by mid-2023.

The government further plans to reduce the budget deficit and refrain from printing money.

“The forex market thresholds and guidelines will be relaxed while allowing market criteria to determine its activities. The Central Bank plans to purchase foreign currency to build up foreign reserves,” he said.

The President said that with regard to good governance, the IMF is preparing a report to assess the governance framework and corruption in Sri Lanka.

The government is drafting laws against corruption in line with UN conventions and will present a new Public Finance Management bill to introduce strong fiscal policies and laws regarding foreign loans.

The crisis-hit island nation had initially hoped to agree a new payment plan with China and India by the end of 2022.

Presently, Beijing’s lending to Sri Lanka stands at around $7 billion, while India is owed around $1 billion.

The Covid-19 pandemic, rising energy prices, populist tax cuts and inflation of more than 50 per cent has battered Sri Lanka.

A shortage of medicines, fuel and other essentials also pushed the cost of living to record highs, triggering violent nationwide protests which overthrew the Gotabaya Rajapaksa government in 2022.

As a result the country defaulted on its debts with international lenders last May for the first time in its history.

ALSO READ: Lanka bailout: IMF stresses anti-corruption, governance reforms

Categories
-Top News Asia News Sri Lanka

Lanka bailout: IMF stresses anti-corruption, governance reforms

People wait with empty gas cylinders in Maradana, the suburb of Colombo, Sri Lanka, on May 20, 2022. (Photo by Ajith Perera/Xinhua/IANS)

On Monday night, the IMF approved the 48-month extended arrangement under the Extended Fund Facility (EFF) of $2.9 billion….reports Asian Lite News

After Sri Lanka secured the $2.9 billion International Monetary Fund (IMF) bailout, the global lender emphasised on the importance of anti-corruption and governance reforms to obtain the package amid the ongoing economic crisis in the island nation.

On Monday night, the IMF approved the 48-month extended arrangement under the Extended Fund Facility (EFF) of $2.9 billion.

“We emphasize the importance of anti-corruption and governance reforms as a central pillar of the EFF-supported program-they are indispensable to ensure the hard-won gains from the reforms benefit the Sri Lankan people,” Peter Breuer, Senior Mission Chief for Sri Lanka, and Masahiro Nozaki, Mission Chief for Sri Lanka, Asia and Pacific Department, said in a joint statement.

They stated that the authorities have committed to fundamentally improve public financial management and strengthen the anti-corruption legal framework in line with the UN Convention against Corruption.

In addition, the IMF is conducting an in-depth governance diagnostic exercise, which will assess corruption and governance vulnerabilities in Sri Lanka and provide prioritized and sequenced recommendations.

“Sri Lanka will be the first country in Asia to undergo a governance diagnostic exercise by the IMF. We look forward to further engagement and collaboration with stakeholders and civil society organizations on this critical reform area,” the senior IMF officials announced.

Pakistan signs trade deal with Russia amid war–how will the IMF react?

Suffered by severe shortages of essential items like food, fuel medicine for over a year, Sri Lanka is to receive an initial disbursement of about $330 million from the IMF-EFF arrangement, which is expected to catalyse new external financing including from the Asian Development Bank and the World Bank.

However, the IMF reform program is built on strong policy measures and priorities including an ambitious revenue-based fiscal consolidation, accompanied by stronger social safety nets; fiscal institutional reforms and cost-recovery based energy pricing to ensure the state’s ability to support all its essential expenditures; restoration of public debt sustainability, including through a debt restructuring to ensure stable financing of the government’s operations; a multi-pronged strategy to restore price stability and rebuild reserves under greater exchange rate flexibility in order to alleviate the burden of inflation, particularly on the poor; to foster an environment of investment and growth and to ensure Sri Lanka’s ability to purchase essential goods from abroad; policies to safeguard financial sector stability to ensure that the financial sector can play its key role in supporting economic growth; and structural reforms to address corruption vulnerabilities and enhance growth.

“Commendably, Sri Lanka has already started implementing these challenging policy actions. It is now essential to continue the reform momentum under strong ownership by the authorities and the Sri Lankan people more broadly,” the IMF stated.

The lender further said that the economic impact of the reforms on the poor and vulnerable needs to be mitigated with appropriate measures.

“In this regard, we welcome the authorities’ firm commitment to strengthen social safety nets, including through a minimum spending floor, well-targeted spending through a new Social Registry, and establishment of objective eligibility criteria. Tax reforms under the program are designed to be progressive, that is, ensuring greater contributions from high-income earners,” it stated.

Sri Lanka’s public debt, at 128 per cent of GDP as of end-2022, is unsustainable.

The country is in arrears to all its external creditors.

The IMF Board approval of assistance to Sri Lanka required assurances from official bilateral creditors — India, China and Japan — that they would provide debt relief and financing to restore debt sustainability consistent with the program, as well as an assessment that the authorities are making good faith efforts to reach a collaborative agreement with private creditors.

“It is now important for the Sri Lankan authorities and creditors to closely coordinate and make swift progress towards a debt treatment that restores debt sustainability under the EFF-supported program,” the IMF concluded.

When the country was hit with skyrocketing inflation and dollar crunch from early 2022, India, Sri Lanka’s closest neighbour, came to rescue with nearly $4 billion financial assistance in a way of credit lines.

India has also provided multiple assistance and essential items like medicine, food and fuel.

It was one of the first countries to agree to Sri Lanka’s debt structuring programme, a condition to receive the IMF bailout.

ALSO READ: SPECIAL: Talibanization of PoJK intensifies under Pakistani jackboot

Categories
-Top News Asia News Sri Lanka

‘LKR to appreciate once we enter IMF deal’

Wickremesinghe said once Sri Lanka receives the IMF funds, it can start restructuring external debt, adding that the LKR will trade between 185 to 200 against a dollar….reports Asian Lite News

The Sri Lankan rupee (LKR) will gradually appreciate against the US dollar once the country enters into an International Monetary Fund (IMF) agreement, President Ranil Wickremesinghe said.

The IMF is set to approve a $2.9 billion bailout package for the country on Monday, according to Central Bank of Sri Lanka’s Governor Nandalal Weerasinghe.

Wickremesinghe said once Sri Lanka receives the IMF funds, it can start restructuring external debt, adding that the LKR will trade between 185 to 200 against a dollar.

He said Sri Lanka hopes to receive up to 10 years to repay the debt it has incurred, adding that the crisis-hit island nation will stabilise the economy and have a budget surplus by 2026.

Sri Lanka started the related negotiations with the international lender in 2022 after the South Asian country was hit by the worst-ever economic crisis since it gained independence in 1948.

ALSO READ: Lanka secures $2.9bn IMF bailout

Categories
-Top News Asia News Sri Lanka

Lanka secures $2.9bn IMF bailout

Photo taken on April 19, 2022 shows the IMF headquarters in Washington, D.C., the United States. (Photo by Ting Shen/Xinhua/IANS)

The development was confirmed to the media by State Minister of Finance Shehan Semasinghe late Monday night…reports Asian Lite News

As Sri Lanka is still undergoing its worst ever economic crisis since independence in 1948, the island nation has finally secured a $2.9 billion bailout from the International Monetary Fund (IMF), which comes as a lifeline for the country that has billions of dollars in loans.

The development was confirmed to the media by State Minister of Finance Shehan Semasinghe late Monday night, the Daily Mirror reported.

Without providing any further details, Semasinghe said that President Ranil Wickremesinghe will make a special announcement on Tuesday.

In response to the deal, the President’s Media Division said that Wickremesinghe expressed his gratitude for the support of the IMF and other international partners.

“The IMF Executive Board approved Sri Lanka’s programme under the Extended Fund Facility (EFF) that will enable Sri Lanka to access up to $7 billion in funding. The President had committed to full transparency in all discussions with financial institutions and creditors, and to achieve sustainable levels of debt through prudent fiscal management and an ambitious reform agenda.

“The IMF programme is critical to achieving this vision and will help to improve Sri Lanka’s standing in international capital markets, making it an attractive country for investors, talent, and tourists,” it said.

Earlier this month, the IMF had said Sri Lanka had secured financing assurances from all its major creditors, including China and India, which paved the way for the bailout, reports the BBC.

The crisis-hit island nation had initially hoped to agree a new payment plan with China and India by the end of 2022.

Presently, Beijing’s lending to Sri Lanka stands at around $7 billion, while India is owed around $1 billion.

Speaking to the BBC on Monday, Foreign minister Ali Sabry said the government will raise funds by restructuring state-owned enterprises and privatising the national airline.

“We have lived beyond our means. Whether we like it or not, these difficult measures which may be very unpopular need to be taken.

“Luckily, most (people) other than politically-motivated unions have understood that. I know they are not happy, but they also understand we have no choice,” Sabry told the BBC.

The Covid-19 pandemic, rising energy prices, populist tax cuts and inflation of more than 50 per cent has battered Sri Lanka.

A shortage of medicines, fuel and other essentials also pushed the cost of living to record highs, triggering violent nationwide protests which overthrew the Gotabaya Rajapaksa government in 2022.

As a result the country defaulted on its debts with international lenders last May for the first time in its history.

ALSO READ: SPECIAL: Talibanization of PoJK intensifies under Pakistani jackboot

Categories
-Top News Asia News Sri Lanka

Lanka’s debt burden continues to soar

The government was responsible for an additional 5.62 per cent of the guaranteed debt held by state-owned businesses, bringing the total to 125.7 per cent of GDP….reports Asian Lite News

The Sri Lankan government’s debt has risen to 115.2 per cent of Gross Domestic Product (GDP) by the end of 2022 from 104.5 per cent a year earlier, according to the latest national account estimates by the island’s statistics office, reported The Island.

A report in an English daily in Sri Lanka read that the gross debt of Sri Lanka’s central bank was roughly 4.66 per cent of GDP. Moreover, the central bank used special drawing privileges that required interest payments. Nonetheless, as long as domestic credit is mild and forex issues are not re-started under flexible inflation targeting, the central bank maintains government rupee Treasury bills that can be sold for dollars to rebuild reserves and service the external debt.

In addition, the government was responsible for an additional 5.62 per cent of the guaranteed debt held by state-owned businesses, bringing the total to 125.7 per cent of GDP.

In a classic Latin American style “inflationary blow off,” Sri Lanka’s nominal GDP surged from 16.8 trillion rupees in 2021 to 24.1 trillion rupees in 2022, increasing nominal tax receipts and lowering the rupee debt to GDP ratio, The Island reported.

Despite additional debt being borrowed to cover deficits, as a result of High Inflation and Financial Repression (IFR), central government rupee debt decreased from 66 per cent in 2021 to 55 per cent in 2022.

Since there is no deadline for domestic debt restructuring under the International Monitory Fund (IMF) debt resolution framework, Sri Lanka’s domestic interest rates are now hovering between 20 and 30 per cent.

Surprisingly, domestic creditors are likely to continue providing the government with funding as “senior creditors” despite the possibility of default. Notwithstanding the rupee’s decline and the suspension of the majority of fresh disbursements, the central government’s foreign debt increased from 39 per cent to 61 per cent of GDP, according to The Island.

The World Bank and Asian Development Bank (ADB), two additional so-called senior creditors whose debt is not restructured, have reallocated approved financing to support urgent and humanitarian needs in 2022.

Grants were given by the US, Japan, numerous European nations, China, and India that won’t add to the debt.

Sri Lanka’s rupee strengthened in March 2022 as domestic credit and consumption were moderated, but it dropped back as a result of an ad hoc peg when central bank purchases looked to have exceeded the excess dollars generated by credit developments, The Island reported. (ANI)

ALSO READ: IMF to approve $2.9 bn bailout package for Lanka

Categories
-Top News Asia News Sri Lanka

IMF to approve $2.9 bn bailout package for Lanka

Governor of the Central Bank of Sri Lanka (CBSL) Nandalal Weerasinghe attends a press conference on monetary policy review in Colombo, Sri Lanka, Jan. 25, 2023.(Photo by Gayan Sameera/Xinhua/IANS)

Sri Lanka started the related negotiations with the international lender in 2022 after the South Asian country was hit by a severe economic crisis….reports Asian Lite News

Sri Lankan central bank governor Nandalal Weerasinghe told media on Sunday that the country’s “dollar crisis” is over, as the IMF is set to approve a $2.9 billion bailout package for the country on Monday.

He said Sri Lanka will hence have adequate foreign reserves for imports for essential sectors, adding that the IMF package will boost investor sentiment and enhance the country’s access to more foreign funds and investments, Xinhua news agency reported.

The IMF package will include budgetary support to Sri Lanka’s government, which is a new element in IMF lending, he added.

Sri Lanka started the related negotiations with the international lender in 2022 after the South Asian country was hit by a severe economic crisis.

ALSO READ: Indian housing project transforms lives in Lanka

Categories
-Top News India News Sri Lanka

Indian housing project transforms lives in Lanka

The Indian Housing Project in Sri Lanka was launched in 2010 and construction of housing units is still on….reports Asian Lite News

On March 11, High Commissioner of India Gopal Baglay and Sri Lanka’s Minister of Water Supply and Estate Infrastructure Development Jeevan Thondaman exchanged diplomatic notes, paving the way for a three-fold increase in the unit cost of a house under Phase-3 of the Indian Housing Project (IHP) in Sri Lanka.

According to the Indian High Commission, this step would now enable expeditious completion of Phase-3 of IHP, under which 4,000 houses are being constructed through grant assistance by Government of India (GOI) in plantation areas of Sri Lanka, spread across seven Districts in Central, Uva and Southern Provinces.

WHAT IS THE INDIAN HOUSING PROJECT?

In June 2010, the Indian government announced that it would construct 50,000 houses in Sri Lanka at an outlay of 33 billion LKR in three phases. This was part of its rehabilitation support to Sri Lanka following damage and destruction during decades of conflict in the country’s Northern and Eastern Provinces. A fourth phase was added to the project in 2017.

Close to 46,000 houses were built in different parts of Sri Lanka under the first two phases of the Indian Housing Project (IHP). The Third Phase, which is currently underway, involves the construction of 4,000 more houses. The Fourth Phase for the construction of 10,000 houses in plantation areas will also commence soon.

The Pilot Project (First Phase) to construct 1,000 houses for beneficiaries in Sri Lanka’s Northern Province was launched in November 2010; it was completed in July 2012. A Memorandum of Understanding (MOU) was signed with the Government of Sri Lanka on the modalities of implementation of the remaining 49,000 houses under the project.

The Second Phase, launched on the birth anniversary of Mahatma Gandhi on October 2, 2012, envisaged construction of 45,000 houses in the Northern and Eastern Provinces. This was completed in December 2018.

According to the Indian High Commission in Sri Lanka, some key features of this second phase of IHP were:

An innovative owner-driven model was adopted to implement the second phase. The Indian government arranged technical support and financial assistance for the owner-beneficiaries to undertake the construction or repair of their houses themselves.

Financial assistance of LKR 550,000 per beneficiary (LKR 250,000 in case of repair cases) was released in stages, and transferred directly to the bank accounts of the beneficiaries by the High Commission of India.

The Third Phase of the Indian Housing Project involves construction of 4,000 houses for estate workers in the Central and Uva Provinces through an innovative community-driven approach. A Letter of Exchange with the Government of Sri Lanka for this phase was signed in April 2016 and work began in October 2016.

In the Third Phase, considering the difficulties in the terrain and accessibility of materials and other logistics, LKR 950,000 is disbursed per beneficiary. Over 2,000 houses are complete in the Third Phase and the construction of the remaining houses is currently underway.

In May 2017, during his visit to Sri Lanka, Indian Prime Minister Narendra Modi announced an additional 10,000 houses for the estate workers. The agreement formalized in August 2018 as part of IHP’s Fourth Phase entails an additional commitment of LKR 11 billion.

Preparatory work for these additional houses is currently underway and the construction of these houses is expected to start soon. This makes the total number of houses being built in the plantation areas 14,000.

SIGNIFICANCE

According to the Indian High Commission, the exchange of diplomatic notes regarding the increase in unit costs of a house takes place at an important juncture, when the Indian-Origin Tamil (IOT) community who are concentrated in the plantation areas marks 200 years of their arrival to Sri Lanka.

“This also coincides with 100 years of establishment of Assistant High Commission of India in Kandy, which has been instrumental in implementing several people-centric grant schemes by GOI for the IOT community cutting across areas such as education, health, vocational training, livelihood development and several others, in addition to housing,” the High Commission added.

These milestones shall be commemorated by the Governments of India and Sri Lanka through several joint initiatives along with the establishment of 75 years of diplomatic relations between the two neighbours. (India News Network)

ALSO READ: China to tap Lanka’s fuel market

Categories
-Top News Asia News Sri Lanka

China to tap Lanka’s fuel market

China to enter SL's fuel market.

The move will mark the entrance of second private outside fuel supplier after India’s Lanka IOC…reports SUSITHA FERNANDO

China expressed its plans to enter Sri Lanka’s fuel market by investing on importing, storage, distribution and supply fuel to the Indian Ocean island nation which went through a severe fuel crisis.

A group of representatives from China’s Sinopec Group met President Ranil Wickremesinghe on Monday and confirmed their readiness to fulfil the country’s energy requirements.

During the discussion, Wickremesinghe said the government has taken a principled decision to expand the distribution of fuel which is expected to commence shortly, President’s Media Division (PMD) said.

During Monday’s discussion Sinopec, China’s largest supplier of oil and petrochemical products has informed Sri Lanka that it was ready to fully finance the construction of a refinery in Hambantota, island’s southern-most point- where there is a China-run port.

They also presented their proposal to President Wickremesinghe, who said that Sri Lanka expects rapid development following the programme with the International Monetary Fund from which a $2.9 billion bailout package is expected.

Wickremesinghe also expressed his desire to promote and attract foreign businesses to operate within the country in the future, the PMD said.

The move will mark the entrance of second private outside fuel supplier after India’s Lanka IOC which runs an island wide distribution network with more than 200 retail outlets.

The state-run Ceylon Petroleum Corporatoin controls about 80 per cent of the fuel market.

ALSO READ: China warns Philippines against military ties with US

Categories
-Top News Asia News Sri Lanka

Lanka announces new date for local polls

Sri Lankan,india flag.

The regional election officials were told that they are to gazette April 25 as the election day…reports Asian Lite News

Sri Lanka’s Election Commission announced on Tuesday that April 25 is the suitable date to hold local council elections.

The commission also informed regional election officials that the local elections cannot be held on March 9 as scheduled due to unexpected and unavoidable reasons, Xinhua news agency reported.

The regional election officials were told that they are to gazette April 25 as the election day.

Regional election officials published gazettes earlier this year, announcing that local elections would be held on March 9. However, the elections were delayed after the government said there were inadequate funds.

Sri Lanka holds elections for local government bodies once every four years, and the postponed local elections were originally scheduled to be held in 2022.

Meanwhile, the International Monetary Fund (IMF) has said that Sri Lanka has received financial assurances from all major bilateral creditors, Sri Lanka-based Daily Mirror reported. The IMF board will hold a meeting on March 20 for the consideration of approval for the State Level Agreement for financing under an Extended Fund Facility.

In a statement, IMF noted that the financial assurances from creditors paves the way for consideration of approval of the state-level agreement reached on September 1, as per the Daily Mirror report. It further stated the arrangement will support the authorities program of ambitious reforms and will help Sri Lanka emerge from the current crisis.

“Sri Lanka has now received financing assurances from all major bilateral creditors. This paves the way for consideration by the IMF’s Board on March 20 the approval of the Staff Level Agreement reached on September 1, 2022 for financing under an Extended Fund Facility. Approval by the Board would also catalyze financing from other creditors, including the World Bank and the Asian Development Bank,” IMF said in a statement.

According to the Daily Mirror report, IMF further stated, “The arrangement will support the authorities’ program of ambitious reforms, that they have already embarked upon, which will help Sri Lanka emerge from its current crisis and set it on a trajectory of strong and inclusive growth.”

IMF Managing Director Kristalina Georgieva welcomed the progress made by Sri Lankan authorities in taking decisive policy actions and obtaining financial assurances from major creditors, including India, China and the Paris Club.

Kristalina Georgieva tweeted, “I welcome the progress made by Sri Lankan authorities in taking decisive policy actions & obtaining financing assurances from all their major creditors, incl. China, India & the Paris Club. Look forward to presenting the IMF-supported program to our Exec. Board on March 20.” (ANI)

ALSO READ: China agrees to back Lanka’s debt restructuring

Categories
-Top News Asia News Sri Lanka

Ranil welcomes financial assurances from creditors

Lanka President stressed that any violation of the agreement with the IMF could result in discontinuation of Sri Lanka’s collaboration with all financial institutions…reports Asian Lite News

Sri Lankan President Ranil Wickremesinghe on Tuesday welcomed obtaining financial assurances from India, China and the Paris Club. In a series of tweets, Wickremesinghe spoke about obtaining assurances from Sri Lanka’s bilateral creditors and the importance of IMF funds for the island nation.

Ranil Wickremesinghe said that he spoke with IMF Managing Director Kristalina Georgieva and US Secretary of the Treasury Janet Yellen. He further stated that he and Sri Lanka’s Central Bank Governor signed the agreement and sent it to IMF. He noted that a response from IMF is expected this month followed by funds from World Bank and Asian Development Bank. Taking to his official Twitter handle, Wickremesinghe stated, “I spoke with IMF MD Kristalina Georgieva & US Sec of the Treasury Janet Yellen. Letter of assurance from Exim Bank of China was received. I, together with the Governor of CB, signed the agreement & sent it to IMF–a response is expected this month, followed by funds from WB & ADB.”

Wickremesinghe’s remarks comes after International Monetary Fund (IMF) announced that Sri Lanka has received financial assurances from all major creditors and will hold a meeting on March 20 for the consideration of approval for the state level agreement for financing under an Extended Facility.

He stressed that any violation of the agreement with the IMF could result in discontinuation of Sri Lanka’s collaboration with all financial institutions. He stated that Sri Lanka needs IMF to lead agreed debt sustainability discussions with creditors.

Wickremesinghe tweeted, “Any violation of the agreement with IMF could result in SL’s collaboration with all financial institutions being discontinued. Annual payments of approximately Rs.6-7b of loans are due until 2029; thus, SL needs IMF to lead agreed debt sustainability discussions with creditors.”

Pakistan signs trade deal with Russia amid war–how will the IMF react?

Highlighting the importance of the IMF agreement, Wickremesinghe tweeted, “The agreement with the IMF is a crucial step in restoring our economy. It’s not a question of whether we should or shouldn’t go for it, but simply that we must.”

In a tweet, he said, “I’ve been heading discussions with IMF since mid-22 concerning SL’s BoP, fiscal & foreign exchange crisis. We negotiated a staff-level agreement with IMF by September 22, & worked with India, China & The Paris Club to obtain their assurances last January.”

In a tweet, Sri Lankan President called on influential groups, political parties, voluntary organisations, trade unions, professionals and all the people to support country’s economic reforms to move forward. He further stated, “If you disrupt the ongoing progress, the consequences will be dire, as unrest could lead to unprecedented woes.”

Wickremesinghe expressed gratitude to military and police for upholding peace by maintaining public order. He tweeted, “LKR is appreciating. If country faced a state of anarchy on July 9, we’d be in dire straits. I’m grateful to military & police for upholding peace–by maintaining public order,we’ve come so far to having fuel, power, & $ in reserves–we can’t allow sinister forces to destabilise SL.”

He called on opposition to join him in stabilising the country’s economy. Wickremesinghe said that he will table the IMF agreement in parliament upon approval. He thanked the country’s National Assembly and President committees for their reports and

Wickremesinghe tweeted, “I invite the opposition to join me in stabilising the economy. GDP should be evaluated by June. We can then accordingly decide on holding General and Presidential Elections. I will table the IMF agreement in parliament upon approval & house can approve or offer an alternative.”

He further stated, “I will submit a new draft on the Government’s way forward and road map. After Parliament reaches an agreement, I will present long-and mid-term plans. I thank the National Assembly and Parliament committees for their reports. We were able to complete the work within eight months.”

IMF Managing Director Kristalina Georgieva welcomed the progress made by Sri Lankan authorities in taking decisive policy actions and obtaining financial assurances from major creditors, including India, China and the Paris Club.

Kristalina Georgieva tweeted, “I welcome the progress made by Sri Lankan authorities in taking decisive policy actions & obtaining financing assurances from all their major creditors, incl. China, India & the Paris Club. Look forward to presenting the IMF-supported program to our Exec. Board on March 20.”

On Tuesday, Deputy Ambassador of the Chinese Embassy in Colombo Hu Wei presented the Exim Bank of China’s financial assurance letter to Secretary of the Ministry of Finance Mahinda Siriwardena at the Presidential Secretariat.

Sri Lankan President’s Media Division tweeted, “The Deputy Ambassador of the Chinese Embassy in Colombo Hu Wei officially presented the financial assurance letter issued by the Exim Bank of #China to the Secretary of the Ministry of Finance Mahinda Siriwardena at the Presidential Secretariat today (07).”

It further said, “Mr. Hu Wei revealed that large-scale companies are looking forward to visiting Sri Lanka in the near future to explore new #investment opportunities.”

Earlier in January, External Affairs Minister S Jaishankar said that India extended financing assurance to International Monetary Fund (IMF) to clear the way for Sri Lanka to move forward with an expectation of strengthening the island nation’s position and ensuring that all bilateral creditors are dealt with, equally. (ANI)

ALSO READ: