June 30 (EUROPA PRESS) –
The President of Sri Lanka, Ranil Wickremesinghe, has called for the collaboration of investors, economic leaders and the population to get out of the enormous economic crisis that the country has been going through since it declared bankruptcy in May last year.
The Sri Lankan president has conveyed his wish that the new debt restructuring plan announced on Thursday by the Government take effect after the summer and Sri Lanka can emerge from the default situation and its current debt crisis, estimated at 83,000 million dollars (79,200 million euros), half domestic, according to the Sri Lankan news portal NewsCutter.
The plan excludes banks -although financial institutions began a five-day “vacation” on Thursday to facilitate the government’s efforts- but it does affect loans in dollars and pension funds with the objective, according to the president of “optimize the national debt,” in remarks to the annual meeting of the country’s Institute of Economic Directors.
Wickremesinghe hopes that this plan will have an effect in a matter of months in the reduction of interest rates with the consequent benefit for indebted individuals. In addition, in relation to the stoppage of the banks, the president hopes that the initial restructuring process “will be solved while the markets remain closed for these five days.”
“Customers will see the security of their deposits guaranteed and their interests will not be affected,” he assured.
Likewise, the Sri Lankan president hopes that this plan will be accompanied by an injection of international development aid to stimulate the economy in the form of job opportunities. This same week, the World Bank declared its commitment to collaborate with the country in a “phased approach” after granting a loan of 700 million dollars (644 million euros).
This plan is pending debate in the Sri Lankan Parliament, which hopes to hold its first session on this next Saturday, adds the national news portal NewsFirst.
The economic crisis that is plaguing the country reached its climax in July of last year, with the outbreak of a popular revolt that swept away the government of Gotabaya Rajapaksa amid unaffordable rises in fuel prices, lack of access to basic necessities, power cuts and record levels of inflation.
