Sri Lanka is expected to resume growth before the end of the year.

 President: Sri Lanka is expected to resume growth before the end of the year.

 

COLOMBO: President Ranil Wickremesinghe told parliament on Wednesday that Sri Lanka's economy is likely to start growing again by the end of this year and that the administration intends to rescue the nation from its economic catastrophe by 2026. Since its separation from Britain in 1948, the 22 million-person island in the Indian Ocean has experienced its worst economic crisis, forcing it to default on loans and request a $2.9 billion bailout from the International Monetary Fund (IMF).

 

"From a bad economy, we are now transitioning to a good one. We are capable of achieving economic growth by the end of 2023 "In a special policy statement to parliament, President Wickremesinghe made a declaration. The foreign reserves, which had decreased to zero, have now been increased to $500 million.

According to the most recent central bank data, Sri Lanka's official reserves hit $2.1 billion at the end of January, which is the highest level in about a year.

The $1.5 billion swap from China People's Bank is among the reserves, but Sri Lanka has yet to be able to use it because the island nation needs three months' worth of reserves. In order to complete an IMF program, Wickremesinghe continued, Sri Lanka is also coordinating with China, its largest bilateral lender, to secure finance guarantees in support of a debt restructuring.

 

"With China, we are having direct conversations. All parties have responded favorably to us. We are currently attempting to harmonize China's strategy with those of other nations."

 

The country's other two major lenders, Japan and India, have already voiced their support. If people were willing to put up with high direct taxes for an additional six months, according to Wickremesinghe, the government could revive the economy. He predicted last month that the GDP, which shrank by 11% in 2017, could contract for the entire year by 3.5% or 4.0%.

 

According to police spokesman Nihal Thalduwa, detectives "recorded a three-hour long testimony from the former president, Gotabaya Rajapaksa, about the cash seized at the president's house" on Monday.

 

Last November, a Colombo judge gave police permission to interview people about the cash hoard. Without providing any other information, Thalduwa stated that the interrogation was part of an ongoing inquiry. Rajapaksa is a member of an influential political family that has ruled Sri Lankan politics for many years.

After campaigning on "vistas of prosperity and splendor," he easily won the 2019 election. However, as the country's situation deepened, his popularity plummeted.

 

After he left the nation, protesters camped outside his home, splashing about in the pool and ambling through the lovely grounds until authorities told them to go.

 

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