Sri Lanka PM Ranil stresses on making policy decisions based on export-oriented economy

In the latest development, Sri Lankan Prime Minister Ranil Wickremesinghe has highlighted the need to make policy decisions based on an export-oriented economy. He has said that these policies will help the export industry tackle the current economic crisis faced by the island nation, according to ANI. Ranil Wickremesinghe made the remarks during his meeting with the heads of banks on May 26. 

In the meeting, Ranil Wickremesinghe said that around 70 countries currently face difficulties in the global crisis and stressed that Sri Lanka is ranked first among them. He emphasised that they have to face many challenges in the future, which include both domestic and international. Ranil Wickremesinghe said that the island nation has a little window wherein they need to introduce appropriate policies which can lower the effect on the economy. Sri Lankan Prime Minister Ranil Wickremesinghe held a meeting with the Governor of the Central Bank and several local and foreign bankers. During the meeting, they discussed measures that need to be taken to address the economic issues faced by the nation until the island nation signs an agreement with the International Monetary Fund (IMF).

Sri Lanka economic crisis

It is to note here that Sri Lanka has been facing an economic crisis with shortages of food, fuel and other essential services. In addition to this, the island nation is also facing soaring price and power cuts. All this triggered massive protests in the country which eventually led to the resignation of Mahinda Rajapaksa from the Prime Ministerial post and the appointment of Ranil Wickremesinghe as the new PM. The Sri Lankan PM also took oath as the new Minister of Finance, Economic Stability and National Policies on Wednesday, May 25, ANI cited Colombo Page report. Recently, Sri Lanka defaulted on its foreign debt amounting to about $51 billion due to the shortage of foreign exchange. Meanwhile, PM Ranil Wickremesinghe on May 19, announced that all the new Sri Lankan ministers will forego their salaries, in a bid to ease public expenditure. 

World Bank denies plans to offer funds 

In the latest development, the World Bank on May 24 announced that it has no plans to offer funds or fresh loan commitments to Sri Lanka unless the island nation's economy sets up an effective macroeconomic policy framework. The World Bank made the statement in response to reports that the global lender was mulling helping Sri Lanka overcome its financial woes with a bridge loan or additional loan obligations. The World Bank in the statement said, "We are concerned for the people of Sri Lanka and are working in coordination with the IMF and other development partners in advising on appropriate policies to restore economic stability and broad-based growth. Until an adequate macroeconomic policy framework is in place, the World Bank does not plan to offer new financing to Sri Lanka." 

(With Inputs from ANI)

Image: ANI