New govt will have to up State revenue to 15% of GDP by 2028 – Ranil

Former President and United National Party leader Ranil Wickremesinghe stated yesterday that the incoming government will encounter the challenge of increasing government revenue to 15 percent of the Gross Domestic Product by 2028, coinciding with the commencement of Sri Lanka’s foreign debt repayments.

The former president, making a statement from the New Democratic Front’s office on Flower Road, Colombo 7, yesterday, stated that achieving a target of one percent economic growth annually is essential to reach that objective. “The next Parliament requires a seasoned team that will not run away from their responsibilities,” he said.

The former President stated that the team that collaborated with him to rescue the country from the economic crisis will contest the General Election. He further emphasised that for Parliament, which possesses authority over public finances, to be strong, this team must achieve victory.

He stated that he assumed the Presidency during a period when the country was unable to meet its financial obligations and was subsequently declared bankruptcy. “My main goal at that time was to achieve debt sustainability and eliminate the state of bankruptcy. To accomplish this, over the course of two years, I negotiated an agreement with the International Monetary Fund, the eighteen nations that had extended loans to us, and private bondholders.

“We reached a consensus on establishing debt sustainability, followed by the process of extricating our country from bankruptcy. All necessary procedures were finalised, and the endorsement from private bondholders was obtained during the first week of September this year. “We are now able to engage in business with international banks and obtain foreign assistance as a result of the procedures we have implemented. The issue of bankruptcy has been resolved, as we have attained debt sustainability. I collaborated with the previous Parliament to facilitate the removal of the bankruptcy status. “I would like to express my thanks to all the Members of that Parliament and also to my officials who worked with that Parliament.”

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