Sri Lanka Prime Minister Ranil Wickremesinghe delivered his first address to the nation on Monday and laid out the economic reality facing the country.
“The next couple of months will be the most difficult ones of our lives. We must prepare ourselves to make some sacrifices and face the challenges of this period,” the newly appointed PM said in his address, highlighting the hurdles facing Sri Lanka in the months to come.
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Here are some of the key takeaways from his speech.
1. Commenting on the state of the economy, Wickremesinghe said that the country’s budget deficit stood at a dangerous 13% of GDP, adding that the former government’s revenue estimate of SLR 2.3 trillion was wrong: the revised projection for this year is SRL 1.6 trillion, Wickremesinghe said.
2. Sri Lanka has a day’s worth of petrol stocks left, the PM said, adding that two shipments of petrol and diesel each using Indian credit lines could help the country get some relief for the next few days.
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3. Wickremesinghe added that Sri Lanka needed to secure at least $75 million in foreign exchange within the next few days to pay for essential imports such as fuel and medicine to keep the country running.
4. In light of the lack of diminishing oil stocks, which accounts for about a quarter of Sri Lanka’s electricity production, the PM said daily power outages could reach 15 hours in the coming days. He added that the country needed to secure $20 million to provide gas to consumers.
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5. Wickremesinghe further said that Sri Lanka had run out of money to pay the 1.4 million civil servants in the payroll of the administration.
6. However, the PM said that money would be printed in limited capacities to pay government salaries and pay for essentials. He warned of a rise in short term inflation too.
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7. Wickremesinghe also proposed the privatisation of Sri Lankan Airlines, which has racked up SLR 375 billion in debt.
8. Finally, he proposed to set up a national council consisting of all political parties to work together to find a solution to the country’s economic woes.