Sri Lankan President Ranil Wickremesinghe announced a strategic decision to defer debt payments until 2027, focusing on renegotiating repayment terms to extend until 2042. Speaking at the “Leslie Devendra Sinhavalokanaya” ceremony at the Bandaranaike Memorial International Conference Hall in Colombo, the President emphasized the importance of this decision in safeguarding the country’s economy from collapsing under the weight of debt burdens.
“While interest payments are required during this period, the principal debt will not need to be serviced,” President Wickremesinghe explained, as quoted by the President’s Media Division. “Our aim is to renegotiate repayment terms to extend until 2042. However, reliance on imports may necessitate further borrowing, prompting us to prioritize strategies for repayment.”
The President also noted the decision to restrict domestic borrowing, which will impact the availability of funds from institutions like the Employee Provident Fund. “This prompts considerations on whether to invest domestically or internationally, sparking discussions within the trade union movement,” he added.
President Wickremesinghe affirmed the government’s commitment to strengthening key institutions such as the People’s Bank, the Bank of Ceylon, and the National Savings Bank while maintaining government ownership. The government also aims to secure influence in limited and private banks to bolster the financial sector and drive economic growth.
“Acknowledging the plight of our citizens, we are mindful of the escalating poverty rate, which has surged from 15% in 2019 to 26% presently,” the President stated. “Addressing this challenge requires concerted efforts to provide livelihood opportunities and enhance access to education for all segments of society. We have agreed to reduce the poverty rate to 10% by 2032, as stipulated in the loan conditions set by the International Monetary Fund. Therefore, we must persist with this program.”
The event commemorated the 60th anniversary of Deshbandu Leslie Devendra’s career, highlighting his contributions to Sri Lanka.
