President Wickremesinghe Unveils Sri Lanka’s Economic Recovery efforts in Parliament

President Ranil Wickremesinghe arrived in parliament this morning to brief lawmakers on Sri Lanka’s economic recuperation efforts.

In his discourse to the assembly, the President highlighted the tangible benefits the populace is experiencing owing to the rigorous actions undertaken by the administration to rejuvenate the economy.

“A strategic economic blueprint was crafted in collaboration with the IMF. The execution of this blueprint is gradually restoring normalcy, easing the burdens and mitigating the struggles faced by the citizens,” he stated.

Wickremesinghe also pointed out that after experiencing a downturn over six successive quarters, the nation’s economy started to rebound in the third quarter of 2023. He mentioned predictions by global financial bodies estimating Sri Lanka’s economic growth to be between 2% and 3% for the upcoming year.

Furthermore, the President disclosed a noteworthy surge in state revenues, exceeding 50% in 2023 compared to the previous year. “Last year, we realized a surplus in the primary account, enabling the settlement of all pending dues to contractors who have provided services over the last 3-4 years,” he elaborated.

He also shed light on the significant drop in inflation, which fell from 70% in September 2022 to 5.9% in February 2024, thanks to the effective macroeconomic demand management by the Central Bank alongside the government. This decrease in inflation has provided relief to small and medium-sized enterprises (SMEs) and the general consumer base.

The President further announced a substantial increase in usable foreign exchange reserves from less than USD 20 million in mid-April 2022 to over USD 3 billion currently. He noted that the lifting of import restrictions, with the exception of private motor vehicles, marks a significant economic milestone.

On the topic of debt restructuring, he conveyed that fruitful negotiations would lower the annual external debt payment from 9.5% to 4% of GDP. He emphasized that if the economic growth trends of 2022 and 2023 continue, government revenue would remain robust, ensuring that debt servicing remains manageable for the nation.