Economy: UNP leader sounds dire warning

UNP leader Ranil Wickremesinghe on Saturday said that the country would face bigger problems starting in the coming weeks if the government did not re-streamline its financial strategies immediately.

Speaking at a seminar organised by bankers in Colombo, the UNP leader said that the government would have to rethink its strategies to revive the economy as Sri Lanka was not qualified for the International Monetary Fund (IMF) Rapid Financial Initiative and the Indian credit line was coming to an end next month.

“A Sri Lankan delegation, led by the Finance Ministry, requested for rapid financial initiative assistance from the IMF and the latter had stated that Sri Lanka was not qualified for such a package. The Indian credit line will be over next month. On top of that the supply of fertiliser also faces uncertainty. Around 30 percent of fertiliser comes from Russia, and Sri Lanka is going to face an issue even during the next harvesting season. We are going to have a food shortage,” he said.

“The value of funds held in fixed deposits and value of funds held by EPF and ETF funds will decline by at least 59 percent. A person who is 30 years old may be able to escape this situation. Yet, how could a person who is about to retire manage the situation,” he queried.

“We warned of this economic crisis in 2020. We also said that Sri Lanka should go to the IMF in 2021. This did not happen. Therefore, we have to rethink our strategies to revive the economy and begin a new programme for survival,” the UNP leader said.

Wickremesinghe said Sri Lanka would face a bigger problem next month as the Indian credit facility given for fuel and the $ 1 billion loan scheme for essential commodities would end by the first week of May. There could be a severe food shortage in Sri Lanka in the future as the government was not able to provide the fertiliser needed for the Yala season yet.  The public, including the youth had taken to the streets, demanding the immediate resignation of the government; they said Parliament had failed to provide a proper solution. The people’s call for a radical change had to be heeded, he said.