Lanka’s economy has collapsed, IMF only hope: Wickremesinghe

Colombo, June 22

Sri Lanka’s economy has “completely collapsed” and it is facing a far more serious situation beyond the mere shortages of fuel, gas, electricity and food, Prime Minister Ranil Wickremesinghe warned on Wednesday, underscoring the urgency of arriving at an early agreement with the IMF to obtain an additional credit facility.

Indian credit line not charity

We have taken loans amounting to $4 billion under the Indian credit line. Even their assistance has its limits. We must have a plan to repay these loans. These are not charitable donations. —Ranil Wickremesinghe, Sri Lanka PM

Sri Lanka has been facing its worst economic crisis since independence. Giving an update to Parliament on the government’s measures taken so far, Wickremesinghe, also the Finance Minister, said it was no easy task to revive the country that was dangerously low on foreign reserves.

For Sri Lanka, the PM said, the only safe option was to hold discussions with the International Monetary Fund. “In fact, this is our only option. We must take this path. Our aim is to hold discussions with the IMF and arrive at an agreement to obtain an additional credit facility.”