Sri Lanka is "bankrupt", leaving millions to

Sri Lanka is “bankrupt”, leaving millions to

On Tuesday (July 5th), Prime Minister Ranil Wickremesinghe said Sri Lanka was “bankrupt”, saying the country was suffering from the worst financial crisis in decades, leaving millions struggling to buy food, medicine and fuel.

Thus, Ranil Wickremesinghe told lawmakers that negotiations with the International Monetary Fund (IMF) to revive the country’s “collapsed” economy are “difficult” as the 22-million-nation South Asian nation entered into talks as a country. bankrupt, and not as a developing country.

In his opinion, “We are now participating in negotiations as a bankrupt country. Therefore, we have to face a more difficult and complicated situation than in the previous negotiations, “Wickremesinghe told parliament.

“Because of the state of bankruptcy in our country, we have to present separately (IMF) a plan on the sustainability of our debt,” he added.

“Only when they are satisfied with this plan will we be able to reach an agreement at staff level. This is not a simple process. “

Sri Lanka is currently in the midst of its worst financial crisis in seven decades, after its foreign exchange reserves collapsed to a record high and dollars were depleted to pay for essential imports, including food, medicine and combustible.

Schools have been suspended and people are fighting for fuel

Schools were suspended and fuel was limited to essential services. In several large cities, including the commercial capital, Colombo, hundreds of people continue to queue for hours to buy fuel, sometimes confronting police and the army while waiting.

Specifically, on Sunday, the Minister of Energy of Sri Lanka, Kanchana Wijesekera, declared that the country still has fuel for less than a day.

In his statements, “In terms of fuel and food, our country would face this crisis at some point. Fuel was scarce.

Food prices have risen, “he said, adding that international crises, such as Russia’s war in Ukraine, have worsened the situation.

“Due to the recent global crises, this situation has become more acute,” Wijesekera said.

In the political-financial context, Prime Minister Wickremesinghe said he hoped that an IMF report on debt restructuring and sustainability would be presented by August.

Once there is an agreement, a comprehensive four-year loan assistance program will be prepared, Wickremesinghe said.

Doctors and bankers are protesting against the “impossible situation

So his speech in parliament was interrupted by opposition lawmakers chanting “Gota go Home” – a reference to President Gotabaya Rajapaksa, who was present.

For months, a large number of Sri Lankans have demanded the resignation of Rajapaksa, accused of mismanagement.

Wickremesinghe said that by the end of this year, inflation will reach 60%.

“This is going to be a difficult and bitter journey,” Wickremesinghe said. “But we can get relief at the end of this journey. Progress can be made. “

The British government said on Tuesday that it now recommends no travel to Sri Lanka, except for essential ones, due to the impact of the economic crisis.