Categories: Economy

Sri Lanka President warns that the economic stress will continue for at least another year

<p>
<strong>Sri Lanka’s President Ranil Wickremesinghe has said that the country's economic crisis would continue for at least one more year. He also said that Sri Lanka will have to focus on new sectors including logistics and nuclear energy.</strong></p>
<p>
“More you have more energy you can sell to India, at the same time keep more renewable energy available. We have to think outside the box,” he said.</p>
<p>
Addressing a two-day conference titled, “Let’s reset Sri Lanka”, Wickremesinghe said that immediate reforms were needed but that would also mean raising taxation.</p>
<p>
“The next six months to one year I think till about July next year, we will have to go through a hard time,” he said.</p>
<p>
For Wickremesinghe and his team the most critical challenge is to revive the country's bankrupt economy. </p>
<p>
Sri Lanka is currently talking to the International Monetary Fund (IMF) for a bailout package. However due to the political crisis leading to the fleeing of former president Gotabaya Rajapaksa, negotiations were stalled. The delay would only aggravate the economic crisis in the island nation, home to 22 million.</p>
<p>
Sri Lanka’s central bank has already set a warning saying the bankrupt country’s economy could contract by more than 6 per cent this year amid intense political and social turmoil. Nandalal Weerasinghe, the country’s central bank boss in an interview earlier said that Colombo must have a stable political administration for negotiations with the IMF.</p>
<p>
Hit by shortage of food and fuel, Sri Lanka’s economy contracted 1.6 per cent in the March quarter.</p>
<p>
<strong>Also read: <a href="https://www.indianarrative.com/economy-news/sri-lanka-s-economic-crisis-won-t-end-anytime-soon-despite-talks-with-imf-187749.html">Sri Lanka's economic crisis won’t end anytime soon despite talks with IMF</a></strong></p>

IN Bureau

Recent Posts

India and Kyrgyzstan’s BIT comes into force, strengthen economic ties

The new Bilateral Investment Treaty (BIT) between India and the Kyrgyz Republic comes into force…

1 hour ago

EAM Jaishankar meets Foreign Ministers of Kazakhstan, Turkmenistan and Tajikistan in Delhi

External Affairs Minister S Jaishankar met the Foreign Ministers of Kazakhstan, Turkmenistan and Tajikistan on…

3 hours ago

“India’s maritime prowess soars, global collaborations give thrust to Make in India”: Union Minister Sarbananda Sonowal

The Union Minister of Ports, Shipping & Waterways (MoPSW), Sarbananda Sonowal, attended the MoU signing…

4 hours ago

Over 30 countries to convene in Russia for ‘Digitalisation of Industrial Russia’ Conference

Nizhny Novgorod is set to host the anniversary edition of the "Digitalisation of Industrial Russia"…

4 hours ago

Musk’s Starlink will be given 3rd satcom services licence after Airtel and Jio: Scindia

Minister for Communications Jyotiraditya Scindia on Thursday said Elon Musk's Starlink will be the third…

7 hours ago

Gilgit-Baltistan turmoil deepens amid Land Law backlash

Gilgit-Baltistan is witnessing a deepening political and human rights crisis that observers warn may mirror…

7 hours ago