President warns renegotiating IMF deal could result in loss of benefits for SL

• Asks who will renegotiate; Sunil Handunneththi or Harsha de Silva?
• Says construction and development sector plays crucial role in SL’s progress
• Says working to address issues in construction industry including PAYE tax
• Construction sector to benefit from resumption of suspended projects with domestic and foreign funding

President Ranil Wickremesinghe

President Ranil Wickremesinghe this week cautioned that renegotiating with the International Monetary Fund (IMF), as suggested by some Presidential candidates, could lead to the loss of economic gains and trigger another collapse of Sri Lanka’s economy.

The President made these remarks during a meeting with professionals from the development and construction sector at the Water’s Edge Hotel in Battaramulla.

The event, organised under the theme “Constructing the Nation’s Tomorrow,” featured a keynote address by Prof. Sirimal Abeyratne.

In his speech, President Wickremesinghe stressed the necessity of a stable economy for national progress. He emphasised that the Government has already secured all possible concessions by reaching agreements with the IMF, the Asian Development Bank, the World Bank, the Exim Bank of China, and 17 other countries, making further Government intervention unnecessary.

President Wickremesinghe also highlighted the critical role of the construction and development sector in the country’s economic recovery. Although the sector faced significant challenges due to the suspension of foreign-funded projects during the recent economic crisis, the Government has taken steps to ease the burden on construction personnel by providing bank concessions and settling payments owed to contractors.

Looking ahead, President Wickremesinghe announced the launch of large-scale hotel development projects in Galle, Kandy, Colombo, and Trincomalee, alongside the establishment of new investment zones in Bingiriya, Jaffna, and Hambantota. 

He also updated the professionals on ongoing initiatives under the Megapolis Development Plan, which aims to transform Colombo, Galle, and Kandy into major urban centres.

President Wickremesinghe’s remarks reflect his administration’s focus on maintaining economic stability and leveraging the construction sector as a driving force for national growth.

“Moving forward, the construction and development sector has a vital role to play. Although the sector was hit hard, especially with the collapse of foreign-funded projects, we have taken steps to alleviate the burden, such as preventing banks from closing in on you and clearing backlog payments.”

“As we revive existing projects and attract new foreign and local investments, there will be plenty of opportunities for construction. We’re looking at high-rise hotel developments in Galle, Kandy, Colombo, and Trincomalee, and new zones in Bingiriya, Jaffna, and Hambantota. Additionally, the Megapolis Plan will involve significant construction in Colombo, Galle, and Kandy.”

“There’s also a lot of underutilised Government land that will be opened up for development. It’s up to you to find investors and make the most of these opportunities. Rest assured, there will be ample work for everyone, whether in the State or private sector, and we are addressing concerns like the PAYE tax. Together, we must consider how these efforts align with the broader economy and the future of your sector.”