Sri Lankan leader appeals for patience amid economic crisis

8/2/2023 19:25

        Sri Lanka's president on Wednesday appealed for patience amid the country's worst economic crisis but promised brighter times ahead.
        
        President Ranil Wickremesinghe said in a policy speech after inaugurating a new parliamentary session that he had been forced to make unpopular decisions to salvage the country's finances, including by implementing measures such as higher taxes.
        
        "Inflation rises during an economic crisis. The price of goods increases. Employment is at risk. Businesses collapse. Taxes increase. It is difficult for all sections of the society to survive. However, if we endure this hardship for another five to six months, we can reach a solution," Wickremesinghe said.
        
        He added that government employees would receive additional pay in the third and fourth quarters of the year and that the private sector would also be granted concessions. Wickremesinghe said that "if we continue in this manner ... the public would become prosperous, with income sources increasing. The interest rate can be reduced. In another three years, present incomes can be increased by 75%."
        
        Sri Lanka is effectively bankrupt and has suspended repayment of nearly $7 billion in foreign debt due this year pending the outcome of talks with the International Monetary Fund for a bailout package.