• Says no political leader can fix crisis
• Expresses hope of receiving $ 2.9 b IMF assistance by end of Q1

By Charumini de Silva

Cabinet Co-Spokesman and Minister Bandula Gunawardena yesterday said the country is struggling to push the foreign reserves over $ 2 billion, amidst the ongoing economic crisis.

Noting that the worker remittances have increased by 68.8% in January compared to the same period a year earlier, he said it was important to take measures to boost the foreign inflows into the economy.

“During the period of 2015 and 2016, we wasted over $ 4 billion to stabilise the exchange rate. Today, we are all putting up with those pathetic fiscal policies,” he said. 

He reiterated that no political leader will be able to provide a solution to the dire economic strait and that the only way Sri Lanka could survive is by boosting the foreign exchange inflows.

“The only way to overcome the dearth of foreign reserves is by improving foreign exchange earning sectors, minimising the foreign currency outflows, reducing the burden on the balance of payments and expanding foreign assets. There is no other political solution Sri Lanka has at this juncture,” Gunawardena explained.

He also said that there is a coal shipment waiting to be unloaded, but with no sufficient foreign exchange, the Government is paying demurrage and retaining the vessel till funds are arranged.

“This is the bitter truth we are facing today,” he added.

The anticipation of the $ 2.9 billion bailout package from the International Monetary Fund (IMF) remains the only solution and hope for Sri Lanka to overcome the ongoing economic crisis.

“All parties engaged in the restricting negotiations are working tirelessly to ensure that the financial assistance from the IMF will be successful by the end of the first quarter,” the Cabinet Co-Spokesman expressed hope.

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