President Ranil Wickremesinghe has expressed confidence that Sri Lanka would overcome its bankruptcy status by September this year.
According to the President’s Media Division (PMD), the President also called for collective efforts to support the government’s initiatives, particularly, domestic debt optimization.
The President made the request while addressing the Annual General Meeting (AGM) of the Sri Lanka Institute of Directors (SLID).
Meanwhile, President Ranil Wickremesinghe also urged business leaders to educate their employees on this crucial step aimed to ensure that individuals and industries comprehend the significance of domestic debt optimization.
During meetings held yesterday (29) at the Presidential Secretariat, President Ranil Wickremesinghe addressed members of the Chambers, business leaders and unions regarding Domestic Debt Optimization (DDO).
He said by engaging in widespread explanations, stakeholders can grasp the nuances of the restructuring and gauge its influence on their livelihoods.
President Wickremesinghe noted that the foremost effect of this restructuring endeavour is the anticipated reduction in interest rates, providing a glimmer of hope for individuals burdened by financial obligations. While the exact timeline remains uncertain, experts predict a noticeable decline in interest rates within a matter of months.
The President said, “I think best is for you all to go out and explain what this debt restructuring means to you all and to the workforce. I think that’s what you all should do and if you can keep that momentum in the next few days, it will be very helpful. This is about the best that we can achieve. With this comes the fact that our interest rates will come down. It’s a matter of months before it comes down. Secondly, the development assistance will start, which will be a boost to a part of the construction sector.”
Moreover, the President said as part of this restructuring, an injection of development assistance is on the horizon, poised to breathe new life into the construction sector. This infusion of support has the potential to stimulate growth, create employment opportunities, and invigorate the overall economy.
During the meeting with trade union representatives, President Ranil Wickremesinghe emphasized the importance of implementing the Domestic Debt Optimization program. He warned that failure to do so could lead to a potential increase in interest rates for loans obtained by small businesses. The President also expressed concerns about the possibility of the dollar’s resurgence, given the strengthening of the rupee. He emphasized that domestic debt optimization must be conducted simultaneously with foreign debt optimization to mitigate this risk.
President Wickremesinghe assured the trade union representatives that the law guarantees the continuation of the 9% annual interest provided to beneficiaries under the Employees’ Provident Fund. He urged them not to harbour any doubts regarding future benefits. (NewsWire)
