Colombo, 17 May 2022 (TDI): After the appointment of the new government to the island nation of Sri Lanka, the worst economic crisis awaits them with the Budget Deficit: of SLR 2.4 Trillion.
The newly elected Prime Minister of the Democratic Socialist Republic of Sri Lanka, Ranil Wickremesinghe stated that the following several months will be the most challenging for the people of Sri Lanka.
1. The next couple of months will be the most difficult ones of our lives. I have no desire to hide the truth and to lie to the public. Although these facts are unpleasant and terrifying, this is the true situation. #SriLankaEconomicCrisis
— Ranil Wickremesinghe (@RW_UNP) May 16, 2022
He stated that there is no wish to deny the facts or deceive the public at large. Although these realities are unpleasant and frightening, they are accurate.
Ranil Wickremesinghe addressed his public and assured them that he will carry out his responsibilities to his country.
The Financial Crisis
He explained the financial crisis earlier and asked the people of Sri Lanka to be confident in them. He said that there is plenty to be done as well as undone.
The government is prioritizing issues, and the public can be confident that they will be resolved as soon as possible. Addressing the details of the crisis he said that by the second week of May, the agreed debt ceiling of SLR 3200 billion had been reduced to SLR 1950 billion.
The Foreign Reserves were at USD 7.5 billion in November 2019. Presently, though, the Treasury is having difficulty finding $1 million.
Another problem he addressed was the fuel stock, the government requires around USD 75 million to relieve the congestion and they have enough gasoline for only one day.
The electricity crisis is going to hit Sri Lanka badly because oil accounts for a quarter of all electricity generated, and power shutdowns may climb to 15 hours a day.
The state urgently needs USD 20 million to deliver gas to users. The administration is working on making a payment for the gas cargo, which is due to arrive on Tuesday.
Medicine and surgical equipment are in short supply. Payments of SLR 34 billion are due to suppliers of medicine, medical equipment, and patient meals over the next four months. The government is looking at possible solutions to these shortages.
Lastly, Prime Minister Ranil Wickremesinghe reaffirmed that the government and the public will jointly confront significant obstacles and hurdles.
This, however, will not last long. The international allies will aid Sri Lanka in the coming months. They have already expressed their willingness to help.