Sri Lankan Prime Minister Ranil Wickremesinghe told parliament on Wednesday that the financial aid given by India is not a charitable donation and the country, which is facing severe economic crisis, should have a plan to repay these loans. Sri Lanka is facing the worst economic crisis since independence in 1948, which has created a severe shortage of essential commodities such as food, medicine, cooking gas and fuel in the island nation.
Wickremesinghe said, even India will not be able to give help continuously
He said that we have taken a loan of US $ 4 billion under the Indian Line of Credit. We have requested for more credit support from our Indian counterparts. But India will also not be able to support us continuously like this. Even their help has its limits. On the other hand, we should also have a plan to repay these debts. These are not charitable donations.
He announced that a team of high-ranking officials of the Reserve Bank of India (RBI) is scheduled to reach Colombo on Thursday to assess the local economic conditions. Wickremesinghe said Sri Lanka was now facing a much more dire situation than just lack of fuel, gas, electricity and food. Our economy has completely collapsed. This is the most serious issue facing us today. These issues can only be resolved by reviving the Sri Lankan economy. To do this, he said, we must first address the foreign reserves crisis we are facing. He said reviving a country with a completely collapsed economy is no easy task, especially one where it is dangerously low on foreign reserves.
He said the only safe option for Sri Lanka now is to hold discussions with the International Monetary Fund. In fact, it is our only option. We should take this path. We aim to discuss with the IMF and reach an agreement to get an additional credit facility.
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