Sri Lanka Crisis: “Government’s priority should seek financial assistance from India and China, rather than securing a majority in parliament,” said former Prime Minister Ranil Wickremesinghe.

Colombo, May 2: Former Sri Lankan Prime Minister Ranil Wickremesinghe said political leaders from many countries, including India and China, to get the debt-stricken island nation out of the worst economic crisis, rather than worrying about securing a labor force. A majority of parliaments said they should focus on seeking financial assistance.

President Wickremesinghe addressed the United National Party (UNP) Jatika Sebakasanga Maya Mayday Ceremony on Sunday at the New City Hall in Colombo, and the government led by President Gotabaya Rajapaksa prioritizes the resolution of the ongoing economic crisis. And a must-have item. Inflation rate in Sri Lanka rises from 18.7% in March to 29.8% in April 2022..

“We should be careful to prevent the collapse of the banking system. We should do so. We saw the banking sector collapse in Greece and the same thing happened in Indonesia in 1998. The governments are India, China and Japan. “We should ask South Korea for help.” Having 113 members in parliament is no longer the solution to the current problem. The country is facing an unprecedented proportion of economic crisis, “he said on the island. I was told by the newspaper that I said it.

Sri Lanka has been on the verge of unprecedented economic turmoil since its independence from the United Kingdom in 1948. Part of the cause of the crisis is a lack of foreign currency, which means that we cannot afford to pay for staple food and fuel imports. It leads to serious shortages and very high prices. Months of power outages and a serious shortage of food, fuel and medicines have sparked widespread protests calling for the government to resign. India Offers An Additional US $ 500 Million After China’s Modest Response to Sri Lanka’s Request..

“The national economy has almost collapsed. Agriculture is dying without fertilizer. Fishermen do not have diesel. Many have lost their jobs. Companies are shrinking at the expense of workers. Some have already been closed. Thousands of jobs could be increased and lost. “

“Medium-sized businesses have collapsed and small businesses are facing the same predicament. The value of money deposited in banks has been lost by about 50%. The value of EPF and ETF savings is about 50 per person. There are protests and demonstrations all over the country. People are asking the government to return home. The government has lost the mission it received in the 2019 and 2020 elections. “

Instead of prioritizing the resolution of the current economic crisis, the former Prime Minister said the government was divided between President Gotabaya and his brother and should resign.

“By gathering 113 seats in Congress, we can’t solve the general problem, but we can solve it. To do that, we need to raise the income tax. We need to raise fuel and electricity prices. The US dollar, which was 185 rupees, is likely to reach 400 rupees. Therefore, government costs must be reduced. In the meantime, the government should talk with the international community to secure aid. “

Sri Lanka needs at least US $ 4 billion to survive growing economic hardships and is discussing financial support with international organizations such as the World Bank and countries like China and Japan.

The country has run out of foreign currency to import the terribly needed necessities.

Last month, the Sri Lankan government announced that it would temporarily default to US $ 35.5 billion in external debt as the Pandemic-Ukrainian war made it impossible to pay foreign creditors. Sri Lanka is seeking relief from the International Monetary Fund, which can take up to three months to arrive.

Central bank governor Nandaral Weerashinge said earlier this week that a staff-level agreement with the IMF could be reached within the next two months. The Treasury has also noticed that registered importers are applying to use the US $ 1 billion Indian credit line facility at the Ministry’s Indian Line of Credit Adjustment Unit (ICFCU). India has agreed to extend an additional US $ 500 million credit line to help Sri Lanka import fuel. New Delhi has also already agreed to postpone the US $ 1.5 billion import payments that Sri Lanka needs to pay to the Asian Clearing Union.

(This is an edited and auto-generated story from the Syndicated News Feed. LatestLY staff may not have changed or edited the content body) Sri Lanka Crisis: “Government’s priority should seek financial assistance from India and China, rather than securing a majority in parliament,” said former Prime Minister Ranil Wickremesinghe.

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