Sri Lankan PM says says economy has collapsed, will hold talks with IMF for additional credit - South Asia Time

Sri Lankan PM says says economy has collapsed, will hold talks with IMF for additional credit

 June 22, 2022  

Colombo: Sri Lanka’s economy has “completely collapsed” and an agreement with the International Monetary Fund is the only path to revival, Prime Minister Ranil Wickremesinghe told the parliament on Wednesday.

“We are now facing a far more serious situation beyond mere shortages of fuel, gas, electricity and food,” Wickremesinghe said, adding that the South Asian nation is unable to purchase imported fuel, even for cash, due to heavy debts owed by its petroleum corporation. “We are now seeing signs of a possible fall to rock bottom.”

The gloomy analysis comes as authorities hold talks with the Washington-based lender for an agreement for fresh funds to the bankrupt nation. Sri Lanka needs $6 billion in coming months to prop up its reserves, pay for ballooning import bills and stabilize its currency. Read more at Hindustan Times