In bad times, ordinary people suffer; in good times, benefits reach another segment: President

By Sanath Nanayakkare

Sri Lanka has emerged from bankruptcy as it has been able to agree upon a debt repayment plan with international bondholders, which would have a cumulative financial outcome of USD 8 billion as savings for the country, President Ranil Wickremesinghe said last week.

He made these remarks at a ceremony where freehold land rights (title deeds) were distributed among a group of people in Kurunegala District through ‘Urumaya’ program.

During his speech he noted that when the economy collapses, the ordinary people suffer and when the country is on a growth path, the benefits of that go to another segment.

Speaking further the President said:

“The Interest cuts reached through the negotiations would yield USD 5 billion as savings while approximately another USD 3 billion has been withdrawn. Thus in total, USD 8 billion has been allocated for our use. Additionally, we have been granted USD 2 billion under relaxed terms. This does not account for funds expected from China or assistance from India. As a result, we have saved USD 8 billion over the past two years,” the President said.

“During President Gotabaya Rajapaksa’s tenure, India provided USD 3.5 billion on favourable loan terms. Bangladesh also contributed USD 200 million. Despite economic challenges, we managed to repay USD 200 million. These achievements were made possible as a result of the tough economic decisions I had to make amid a lot of discontent. Raising VAT wasn’t easy, but it was necessary to stabilize the economy.

Thanks to the harvest in 2022-2023, the country’s production increased, and tourism thrived. With these achievements and the fiscal discipline in line with the IMF programme, we have been able to achieve debt relief accounting for USD 8 billion. . When the economy collapses, it affects ordinary people the most. When it recovers, its benefits reach another segment. We launched the “Urumaya” freehold land deeds program to benefit the ordinary people. Today, these individuals have full ownership rights to the land they’ve lived on for generations. This is indeed a record set by the government which is akin to a socialist policy driven project,” he said.

from The Island https://ift.tt/Fxc9Rgj