Sri Lanka Prime Minister: The economy is on the verge of collapse completely

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Sri Lanka Prime Minister: The economy is on the verge of collapse completely

2022-06-24 00:37:18 7 ℃

【Text/Observer Net Jufeng】

Prime Minister Sri Lanka said that the country's debt was full of debt and the economy had come to a completely collapsed cliff.

According to the "Wall Street Journal" reported on June 22, in the past few months, Sri Lankans have gone through dual -digit inflation, intermittent power outage, and serious shortage of food and drugs.

Sri Lanka Prime Minister Ranil Wickremesinghe said that the bailout of the National Currency Monetary Fund (IMF) is the only choice to avoid economic disasters in Sri Lanka.

Sri Lanka Prime Minister Renier Wickermaxinha

"In addition to petroleum and natural gas, electricity, and food shortages, we face much more seriously," said Victormazima, a Treasury Secretary, said, "Our economy is facing a complete collapse."

Foreign exchange reserves are exhausted, and the import of goods cannot be guaranteed. The Indian ocean island country is in the pain of the worst economic crisis in the history of the country.

With the Federal Reserve's interest rate hike, many emerging market economies with debt are facing huge pressure, bond yields have risen, and currencies in some countries have fallen to the lowest point for many years.

Sri Lanka had a debt default in history last month. The IMF delegation arrived on Monday (June 20) to discuss the possibility of assistance. This week, the Sri Lanka has ordered the school to suspend classes and unnecessary government services for two weeks to save fuel.

Sri Lanka geographical location

In recent weeks, the inflation rate of food in the country has soared to 57.4%; in addition, it has twice the time to queue up. In front of gas stations across Sri Lanka, they often see the vehicle teams that lined up for a few kilometers.

Violent demonstrations in Sri Lanka's nationwide, which led to the steps of former Prime Minister Mahinda Rajapaksa on May 9.

Sri Lanka's head of state, President Gotabhaya Rajapaksa, said that the new crown epidemic and Russia and Ukraine have seriously injured the tourism industry and pushed the price of commodity to make the country's financial situation deteriorate.

The key to ensuring the aid agreement with the IMF is to reorganize foreign debt as soon as possible. Victor Minda said that financial services and law firms are helping to formulate debt restructuring frameworks in Sri Lanka. In addition, a senior delegation from India and the US Treasury team will arrive in the next few days.

Victor Minda said Sri Lanka intends to reach a formal agreement with the IMF by the end of next month.

"If we get the approval of IMF, the world will trust us again," he said. "This will help us get loan assistance and low -interest loans from other countries."

Victor Minda said that Sri Lanka is difficult to import fuel because the country's Ceylon Petroleum has $ 700 million in debt, and this situation is not sustainable. It is also "unsustainable "of. Neighbors India provided US $ 4 billion in financial assistance to Sri Lanka during the crisis.

According to the current Prime Minister, Sri Lanka will also organize a credit assistance meeting led by India, Japan and China to seek more financial assistance and discuss with the World Bank, Asian Development Bank and the United States Previously, get temporary short -term loans.

According to the Ministry of Foreign Affairs of China, the Republic of Sri Lanka Democratic Socialist Republic is an island country on the Indian Ocean south of the South Asia. The northwest is across the Paque Strait and India; the area is 65,610 square kilometers, the population is 21.92 million (2020), and the capital Colombo.

Sri Lanka is mainly based on planting economy. The main crops are tea, rubber, coconut and rice. The industrial foundation is weak, mainly agricultural products and clothing processing. Since 2008, affected by the international financial crisis, Sri Lanka reserves have been reduced in large quantities. Tea, rubber and other major export goods and short -term foreign investment have declined. After the military conflict of Sri Lanka, the Sri Lanka took a series of active response measures. At present, the macroeconomic economy has gradually recovered, but it still faces difficulties such as foreign debt burden and slow exports.