Sri Lanka’s economy has “completely collapsed” and an agreement with international monetary funds is the only way to the resurrection, Prime Minister Ranil Wickremesinghe told parliament on Wednesday.
Sri Lanka’s economy has “completely collapsed” and an agreement with international monetary funds is the only way to the resurrection, Prime Minister Ranil Wickremesinghe told parliament on Wednesday.
“We now face a far more serious situation beyond lack of fuel, gas, electricity, and food,” said Wickremesinghe, added that the South Asian country could not buy imported fuel, even for cash, because of the heavy debt owned by the company Oil. “We now see signs of the possibility of falling down.”
Gloom analysis came when the authorities held talks with a lending based in Washington for an agreement for new funds to a bankrupt country. Sri Lanka needs $ 6 billion in the coming months to support her reserves, pay balloon import bills and stabilize her currency.
Sri Lanka has ended the initial discussion with the IMF, and exchanged ideas about public finances, debt sustainability, banking sector and social security, said Wickremesinghe. “We intend to enter into an official level agreement with the IMF at the end of July,” he added.
The authorities also plan to hold a credit assistance conference with friendly countries, including India, Japan and China, for further assistance.
Sri Lanka has failed to stop the worst economic crisis faced in its independent history. Lack of food, fuel, and essential inherent risk of intensifying protests and can hamper further political stability.
On Tuesday, Hamilton Reserve Bank Ltd., which has more than $ 250 million from 5,875% of Sri Lanka international bonds that are due on July 25, filed a lawsuit at the New York Federal Court who sought full payment and interest after the country failed Pay last month.