Lanka needs USD 5 bn to survive – PM

Sri Lanka needs a total of USD 5 billion to survive without collapsing and this may be a difficult task and the public should brace for hard times in the next three weeks Prime Minister Ranil Wickremesinghe told Parliament yesterday making a special statement.

He said to bail out the country to some extent the re-implement of the tax structure that was in place prior to the tax cuts introduced in late 2019 was needed. Due to providing tax relief, government coffers suffered a huge loss of Rs 650 billion.’

“Sri Lanka currently utilizes multilateral donations, local funds and the Indian credit line to meet these expenses.”

PM Wickremesinghe said the government is focusing on restoring the economic stability in Sri Lanka but this aspect alone will not be sufficient to bail out the country from the current economic crisis.

Outlining the major monthly expenses, the premier said: “USD 500 million is monthly required to import fuel while Sri Lanka needs USD 250 million to purchase LP gas for the next six months to meet local requirements. The annual fertilizer importation bill requires USD 600 million.”

The PM also said that due to several global factors there is a sharp increase in global commodities.