Sri Lanka Is Bankrupt Says Prime Minister Ranil Wickremesinghe

“We are now participating in the negotiations as a bankrupt country. Therefore, we have to deal with a more difficult and complex situation than the previous negotiations,” Wickremesinghe told parliament. “Due to the state of bankruptcy our country is in, we have to submit a debt sustainability plan to the (IMF) separately,” he added. “Only when they are satisfied with this plan can we come to an agreement at the staff level. This is not a simple process.” Sri Lanka is in the midst of its worst economic crisis in seven decades after its foreign exchange reserves fell to record lows, with dollars running out to pay for key imports such as food, medicine and fuel. President Gotabaya Rajapaksa tweeted on Wednesday that he had asked Russian President Vladimir Putin for help and asked for “an offer of credit support for fuel imports”. In several major cities, including Sri Lanka’s commercial capital Colombo, hundreds continue to wait in line for hours to buy fuel, sometimes clashing with police and the military as they wait. Schools have been suspended and fuel has been limited to essential services. On Sunday, Sri Lanka’s Energy Minister Kanchana Wijesekera said the country has less than a day’s worth of fuel left. “In terms of fuel and food, our country was going to face this crisis at some point. Fuel was scarce. Food prices went up,” he said, adding that international crises such as Russia’s war in Ukraine have made matters worse. . “Due to the recent global crises, this situation has become more acute and we who were in the frying pan have fallen into the oven,” Wijesekera said. On Tuesday, Prime Minister Wickremesinghe said he hoped a report on debt restructuring and sustainability would be submitted to the IMF by August. Once there is an agreement, a comprehensive loan assistance program will be prepared for a period of four years, Wickremesinghe said. His speech in parliament was interrupted by opposition lawmakers chanting “Gota go Home” — a reference to the president, who was in attendance. Rajapaksa was seen walking out of the building amid cheers. For months, large numbers of Sri Lankans have called for Rajapaksa’s resignation over allegations of mismanagement. Wickremesinghe said that by the end of this year, inflation will rise to 60%. “This will be a difficult and bitter journey,” Wickremesinghe said. “But we can take relief at the end of this journey. Progress can be made.” The British government said on Tuesday that it is now advising against all but essential travel to Sri Lanka due to the impact of the economic crisis. CNN’s Jessie Yeung contributed reporting.

title: “Sri Lanka Is Bankrupt Says Prime Minister Ranil Wickremesinghe " ShowToc: true date: “2022-12-21” author: “Mindy Jarvie”

“We are now participating in the negotiations as a bankrupt country. Therefore, we have to deal with a more difficult and complex situation than the previous negotiations,” Wickremesinghe told parliament. “Due to the state of bankruptcy our country is in, we have to submit a debt sustainability plan to the (IMF) separately,” he added. “Only when they are satisfied with this plan can we come to an agreement at the staff level. This is not a simple process.” Sri Lanka is in the midst of its worst economic crisis in seven decades after its foreign exchange reserves fell to record lows, with dollars running out to pay for key imports such as food, medicine and fuel. President Gotabaya Rajapaksa tweeted on Wednesday that he had asked Russian President Vladimir Putin for help and asked for “an offer of credit support for fuel imports”. In several major cities, including Sri Lanka’s commercial capital Colombo, hundreds continue to wait in line for hours to buy fuel, sometimes clashing with police and the military as they wait. Schools have been suspended and fuel has been limited to essential services. On Sunday, Sri Lanka’s Energy Minister Kanchana Wijesekera said the country has less than a day’s worth of fuel left. “In terms of fuel and food, our country was going to face this crisis at some point. Fuel was scarce. Food prices went up,” he said, adding that international crises such as Russia’s war in Ukraine have made matters worse. . “Due to the recent global crises, this situation has become more acute and we who were in the frying pan have fallen into the oven,” Wijesekera said. On Tuesday, Prime Minister Wickremesinghe said he hoped a report on debt restructuring and sustainability would be submitted to the IMF by August. Once there is an agreement, a comprehensive loan assistance program will be prepared for a period of four years, Wickremesinghe said. His speech in parliament was interrupted by opposition lawmakers chanting “Gota go Home” — a reference to the president, who was in attendance. Rajapaksa was seen walking out of the building amid cheers. For months, large numbers of Sri Lankans have called for Rajapaksa’s resignation over allegations of mismanagement. Wickremesinghe said that by the end of this year, inflation will rise to 60%. “This will be a difficult and bitter journey,” Wickremesinghe said. “But we can take relief at the end of this journey. Progress can be made.” The British government said on Tuesday that it is now advising against all but essential travel to Sri Lanka due to the impact of the economic crisis. CNN’s Jessie Yeung contributed reporting.