Sri Lanka Economic crisis: Sri Lanka is facing the biggest economic crisis in the country so far. The bankrupt country now has only financial assistance from the IMF as its last hope.
The economy of Sri Lanka has completely collapsed. Regarding this, Prime Minister Ranil Wickremesinghe said in Parliament on Wednesday that a new agreement with the International Monetary Fund (IMF) is the only way for Sri Lanka. Wickremesinghe said that we are facing a much more serious situation than a shortage of fuel, gas, electricity and food.
Economic crisis deepens in Sri Lanka
Sri Lankan officials held talks with the Washington-based lender for a deal for new funds for the nation amid the economic crisis. Sri Lanka needs $6 billion in the coming months to increase its reserves, pay import bills and stabilize its currency.
Sri Lanka dependent on IMF
Wickremesinghe said Sri Lanka has completed preliminary discussions with the IMF and exchanged views on public finance, debt stability, the banking sector and social security. He said that we are hoping to have an official level agreement with the IMF by the end of July.
Sri Lanka contacting friendly countries
The officials also plan to hold a credit aid conference with friendly nations including India, Japan and China for further assistance. Sri Lanka has failed to avert the worst economic crisis in its independent history. Continued shortages of food, fuel and essential commodities threaten to intensify protests and could further disrupt political stability.