Sri Lanka: Old economic model no longer viable, IMF proposals must be implemented

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Old economic model no longer viable, IMF proposals must be implemented – President

Friday, August 5, 2022, 10:22 p.m. SL time, ColomboPage News Desk, Sri Lanka.



August 5, Colombo: President Ranil Wickremesinghe says the old economic model can no longer be implemented, adding that innovative thinking is needed while paying attention to global changes.

Delivering the guest address at a conference today (05), Mr Wickramasinghe said the proposals of the International Monetary Fund (IMF) must be implemented to recover from the economic crisis the country is facing. faced, whether they are good or bad, and regardless of who likes them or not.

The conference was organized by the Advocata Institute under the theme “LET’S RESET SRI LANKA” and it will be held today and tomorrow at the Lotus Hall of the Bandaranaike International Conference Hall.

“I don’t think there is any other way out…whether we like it or not, we have to deal with the IMF,” Wickremesinghe said.

He said the entire parliament should agree with the IMF’s proposals and if any party opposes it, they should present an alternative.

President Wickremesinghe said many difficulties will have to be faced in the next six months.

“First, we need to reach an agreement with the International Monetary Fund. The second most important is to obtain a durable loan. It would be helpful if anyone has any suggestions on getting this loan. Of course, I think we should listen to these proposals and Parliament can take a decision on these proposals. Changes in governments and public policies are a fundamental problem that we have to face in negotiations with the International Monetary Fund. We will certainly face difficulties in the next 6 months.

The president said the country should focus on external debt first and refrain from getting caught up in the geopolitics of the Asian region.

“The International Monetary Fund also recognizes the need to pay attention to those affected by the economic crisis. The country should first focus on external debt. Also, we must move without being caught up in the geopolitics of the Asian region.

“We have a huge debt to pay. An export-oriented economy, the renewable energy sector, the use of atomic energy must be considered outside the traditional framework. The future of the country cannot be rearranged without developing the country’s economy. At present, the first task that Sri Lanka should accomplish is to stabilize the Sri Lankan economy,” he said.

The head of state said the gap between the “haves” and the “have nots” has widened lately. School education has been disrupted due to Covid and the fuel crisis. It should be restored soon.

President Wickremesinghe expressed the view that economic stability must first be established while ensuring social stability afterwards.

The modernization of the agriculture and fisheries sector, the use of new technologies in production, the mitigation of climate change, the problems faced by women, the housing needs of the population, poverty in the areas rural areas should be given special attention.

President Wickremesinghe added that trade relations must also be established with Asian countries with large growing markets. “We need to create a competitive economy with high wages and high production capacity. We must build trade relations with Asian countries with large growing markets. The current global economic situation is not favorable to any country,” he said.

Dr. Veerathai Santiprubhop, the former head of Bank of Thailand, also commented here and pointed out that there is no financial crisis in Sri Lanka as shown by international media.

To recover from the Thai economic crisis, measures such as the privatization of public institutions, the protection of the most vulnerable people, institutional reforms, strengthening the credibility of the banking sector, including economic experts in the cabinet, the Relationships with the International Monetary Fund, changing necessary laws, and seeking help from foreign experts were taken, said Dr. Santiprubhop.

United National Party Chairperson, MP Vajira Abeywardena, Samagi MPs Jana Balawegaya, Dr. Harsha de Silva, Kabir Hashim, Mayantha Dissanayake and President of the Institute of Lawyers, Mr. Murtaza Jafferjee were present.



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