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Tuesday, 17 May 2022 02:46 - - {{hitsCtrl.values.hits}}
Prime Minister Ranil Wickremesinghe making the televised address to the nation last evening.
Revealing the precarious state of the economy and the country’s finance, newly appointed Prime Minister Ranil Wickremesinghe yesterday urged that immediate steps must be taken to establish a national assembly or political body with the participation of all political parties to find solutions for the crisis.
In an address to the nation last evening, Wickremesinghe who was sworn in as Prime Minister on Thursday, emphasised that this goal and dedication is not to save an individual, a family, or a party but to save all the people of this country and the future of the younger generation.
“I will undertake this task willingly risking my life if needed and will overcome the challenges facing us. I will fulfil my duty towards our nation. That is my promise to you,” Wickremesinghe said.
The Prime Minister noted that the establishment of an all-party assembly is needed immediately as it would enable discussion with all parties and to arrive at decisions for short, medium, and long-term action plans that will enable to rebuild the nation within a specified time frame.
The Prime Minister said at present, the Sri Lankan economy is extremely precarious and said that although the former Government’s budget projected a revenue of Rs. 2.3 trillion, Rs. 1.6 trillion is the realistic projection of this year’s revenue.
He said the estimated Government expenditure for this year is Rs. 3.3 trillion. However, due to the increase in interest rates and additional expenditure of the former Government, the total Government expenditure is Rs. 4 trillion. The budget deficit for the year is Rs.2.4 trillion. This amount equals 13% of the GDP.
The Prime Minister said that although the approved debt ceiling is Rs. 3200 billion, by the second week of May, we had spent Rs. 1950 billion leaving a remainder of Rs. 1250 billion. “Yesterday, a Cabinet decision was made to present a proposal to Parliament to increase the approved limit for issuing treasury bills from Rs. 3000 billion to Rs. 4000 billion,” he said.
The Prime Minister added that in November 2019, the country’s foreign exchange reserves were at $ 7.5 billion.” However, today, it is a challenge for the treasury to find $ 1 million. The Ministry of finance is finding it difficult to raise the $ 5 million required to import gas.”
Wickremesinghe said that to ease the queues, we must obtain approximately $ 75 million within the next couple of days.
“At the moment, we only have petrol stocks for a single day. Due to the diesel shipment that arrived yesterday, the lack of diesel will be resolved to some extent. Under the Indian credit line, two more diesel shipments are due to arrive on the 18 May and 1 June. In addition, two petrol shipments are expected on 18 and 29 May. For over 40 days three ships with crude oil and furnace oil have been anchored within the maritime zone of Sri Lanka. We are working to obtain dollars in the open market to pay for this shipment,” he said.
He added that while the country is facing the possibility of as much as 15-hour power outages, the situation has been averted with money found for this purpose.
He added that there was an immediate need to obtain $ 20 million to provide gas to consumers. “The situation of kerosene and furnace oil is even more urgent. At present, the Central Bank, local state and private banks, and foreign banks functioning in Sri Lanka are all facing a dollar shortage. As you are already aware, we possess a very low number of US dollars. Nevertheless, we succeeded in bringing in a diesel shipment yesterday despite these adverse circumstances with Indian assistance. Therefore, you can obtain that diesel from today onwards. We will also work towards making a payment for the gas shipment that arrived on Tuesday. Therefore, you will have some respite from the gas shortage.”
Another grave concern, the Prime Minister said, is the lack of medicine. “There is a severe shortage of a number of medicines including medicine required for heart disease as well as surgical equipment. Payments have not been made for four months to suppliers of medicine, medical equipment, and food for patients. The payment owed to them amounts to Rs. 34 billion,” he said.
The Prime Minister said that the Government plans to present a new alternative budget to the development budget proposed for 2022.
“In the short term we will have to face an even more difficult time period. There is a possibility that inflation will increase further,” he said.
Wickremesinghe also said a concessionary Budget will be presented as an alternative to the development budget proposed for 2022.
The Premier said that even against his own wishes, he is compelled to permit printing money in order to pay state-sector employees and to pay for essential goods and services. “The next couple of months will be the most difficult ones of our lives. We must prepare ourselves to make some sacrifices and face the challenges of this period.”
The Prime Minister added that he has no desire to hide the truth and to lie to the public. “Although these facts are unpleasant and terrifying, this is the true situation. For a short period, our future will be even more difficult than the tough times that we have passed. We will face considerable challenges and adversity. However, this period will not be long. In the coming months, our foreign allies will assist us. They have already pledged their support. Therefore, we will have to patiently bear the next couple of months. However, we can overcome this situation. Doing so will require taking a new path,” he added.
He also thanked the opposition leader and the leaders of the political parties who replied to the letters that I sent them informing them of the current situation.
“I am undertaking a dangerous challenge. In the Caucasian Chalk Circle, Grusha crossed the broken rope bridge carrying a child that was not her own. This is an even more difficult undertaking. The precipice is deep, and its bottom cannot be seen. The bridge is made of thin glass and there is no handrail. I am wearing shoes with sharp nails that cannot be removed. My task is to safely take the child to the other side. I am accepting this challenge for our nation. My goal and dedication is not to save an individual, a family or a party. My objective is to save all the people of this country and the future of our younger generation. I will undertake this task willingly risking my life if needed and will overcome the challenges facing us. I ask you to extend your support to me in this endeavour,” he added.
