Skip to content 
Search

Latest Stories

'No point in economic reforms when we don't have an economy: Sri Lankan President Wickremesinghe

In mid-April, Sri Lanka declared its international debt default due to the forex crisis.

'No point in economic reforms when we don't have an economy: Sri Lankan President Wickremesinghe

President Ranil Wickremesinghe has acknowledged that there was no point in economic reforms in Sri Lanka because the cash-starved island nation didn't have an economy, as he made a strong pitch for a new economic model.

Sri Lanka is going through its worst economic crisis since its independence in 1948, triggered by a severe paucity of foreign exchange reserves.


In mid-April, Sri Lanka declared its international debt default due to the forex crisis.

Addressing the inaugural session of the Sri Lanka Economic Summit 2022 on Monday, Wickremesinghe said the country's beleaguered economy cannot be set right through outdated economic systems.

As Sri Lanka's economy went into a perpetual tailspin in recent times, Wickremesinghe acknowledged that economic reforms were not the antidote for the current malaise.

“What is the plan for reform? Frankly, I have no plan for it. What reforms when we don’t have an economy,” the Daily Lanka Mirror newspaper quoted Wickremesinghe as saying.

"What we want to do is to build a new economy," he explained.

The current economy is not worth reforming because it is so fragile that it will crumble again, the report quoted him as saying.

“Our trade balance is not in our favour. So are we going to rebuild the same structure and come down again much faster? Therefore I thought it's not worth reforming it," Wickremesinghe said.

Bolstering the foreign exchange reserves would be the key reform goal for our government, Wickremesinghe said, adding that developing Sri Lanka as a logistics centre was also the need of the hour.

Colombo seeks to secure the release of a $2.9 billion rescue package from the IMF, which was announced in September.

For this to happen, Sri Lanka must restructure its debt.

“We are now having discussions with our bilateral creditors, including India with whom we had very successful talks. We have also started talks with China," Wickremesinghe said.

He said the development of Colombo Harbour’s west terminal with India’s Adani group was a pragmatic move.

“If you want to get going you have to give the East terminal out. We have given the first choice to Japan, if they don’t we will ask others to come” he added.

The Sri Lankan government in May appointed international legal and debt advisors for debt restructuring after the country declared its international debt default for the first time in history.

Sri Lanka is nearly bankrupt and has suspended repaying its $51 billion foreign debt, of which it must repay $28 billion by 2027.

Sri Lanka, a country of 22 million people, plunged into financial and political turmoil earlier this year as it faced a shortage of foreign currencies.

Due to this, the island nation has been unable to afford key imports, including fuel, fertilisers and medicines, leading to serpentine queues.

(PTI)

More For You

Air India flight crash
Air India's Boeing 787-8 aircraft, operating flight AI-171 to London Gatwick, crashed into a medical hostel complex shortly after take-off from Ahmedabad on June 12.
Getty Images

Air India crash probe finds fuel to engines was cut off before impact

Highlights

 
     
  • Fuel to both engines of the Air India flight was cut off seconds before the crash
  •  
  • A pilot was heard questioning the other over the cut-off; both denied initiating it.
  •  
  • The Dreamliner crashed shortly after take-off from Ahmedabad, killing 260 people.
  •  
  • Investigators are focusing on fuel switch movement; full analysis may take months.

FUEL control switches to both engines of the Air India flight that crashed shortly after takeoff were moved from the "run" to the "cutoff" position seconds before the crash, according to a preliminary investigation report released early Saturday.

Keep ReadingShow less
Chinese vessel tracked in Bay of Bengal after disabling identification system

The Indian Navy and Coast Guard have consistently reported Chinese research vessel presence. (Representational image: Getty Images)

Chinese vessel tracked in Bay of Bengal after disabling identification system

A Chinese research vessel was detected operating in the Bay of Bengal near Indian waters while attempting to conceal its presence by disabling its Automatic Identification System (AIS), according to a report by The Economic Times, citing French maritime intelligence firm Unseenlabs.

The French company conducted a 16-day satellite-based survey tracking ships through radio frequency emissions. It monitored 1,897 vessels, with 9.6 per cent showing no AIS activity, indicating attempts to avoid detection. The survey raised concerns amid increased Chinese activity in the region.

Keep ReadingShow less
Asian-inspired garden earns
five awards at Hampton Court

(From left) Malcolm Anderson (RHS, head of sustainability) Clare Matterson (RHS director general), Lorraine Bishton (Subaru UK and Ireland, managing director) Andrew Ball (director, Big Fish Landscapes) Mike McMahon and Jewlsy Mathews with the medals

Asian-inspired garden earns five awards at Hampton Court

BRITISH Asians are being encouraged to take up gardening by a couple who have won a record five medals at the Royal Horticultural Society’s Hampton Court Palace Garden Festival.

“It’s a contemporary reimagining of a traditional walled garden, highlighting the British and Irish rainforests,” said Jewlsy Mathews, who was born in Britain of parents from Kerala, a southern Indian state known for its lush vegetation.

Keep ReadingShow less
uk weather

Amber heat health alerts have been issued across several regions of England

iStock

England faces widespread heat alerts and hosepipe bans amid rising temperatures

Highlights:

  • Amber heat health alerts in place for large parts of England
  • Hosepipe bans announced in Yorkshire, Kent and Sussex
  • Temperatures could reach 33°C over the weekend
  • Health risks rise, especially for elderly and vulnerable groups

Heat warnings in effect as UK braces for another hot weekend

Amber heat health alerts have been issued across several regions of England, with temperatures expected to climb to 33°C in some areas over the weekend. The UK Health Security Agency (UKHSA) activated the warning at 12 pm on Friday, with it set to remain in place until 9 am on Monday.

The alerts cover the East Midlands, West Midlands, south-east, south-west, East of England, and London. Additional yellow alerts were issued for the north-east, north-west, and Yorkshire and the Humber, starting from midday Friday.

Keep ReadingShow less
Essex ladybird invasion

One of the largest gatherings was filmed on a beach at Point Clear

Dee-anne Markiewicz / SWNS

Swarms of ladybirds invade Essex coastline amid soaring temperatures

Highlights:

  • Ladybird swarms reported across Essex and Suffolk coastal towns
  • Hot weather likely driving the sudden surge in population
  • Sightings include Point Clear, Shoebury, Clacton and Felixstowe
  • Similar outbreaks occurred in 1976 during another hot UK summer

Sudden surge in ladybird numbers across the southeast

Millions of ladybirds have been spotted swarming towns and villages along the Essex coast, with similar sightings stretching into Suffolk. Residents have reported unusually high numbers of the red and black-spotted insects, particularly near coastal areas, with the recent hot weather believed to be a major contributing factor.

One of the largest gatherings was filmed on a beach at Point Clear, a village near St Osyth in Essex, where the insects could be seen piling on top of each other on driftwood and plants.

Keep ReadingShow less