Sri Lanka has signed agreements with 18 countries and three organizations concerning its debt restructuring, as of now, President Ranil Wickremesinghe revealed.
President Wickremesinghe pointed out that moving forward, there is still work to be done according to these agreements.
“Our initial negotiations were with the International Monetary Fund, where we reached an agreement. Next, we needed to negotiate with China and other countries. China was waiting to see if we would offer any special terms to other countries, and similarly, other countries were watching to see our approach toward China. After these complex negotiations, we finally reached a consensus. Concurrently, the authority for everyone to act on behalf of the International Monetary Fund has expired. We have signed agreements with 18 countries and three organizations,” he said.
The President further said that next year, Sri Lanka must generate an income of Rs. 5 trillion and work accordingly.
“This agreement can be compromised when political promises are made to provide services for free or to reduce taxes. If this happens, alternative funding sources must be found. For example, if VAT is reduced, income tax may need to be increased,” he explained.
President Wickremesinghe noted that the target of raising Rs. 5 trillion remains fixed, but the methods to achieve this target can be adjusted, adding “We must remain committed to this goal.”
President Ranil Wickremesinghe made the remarks while addressing a meeting of legal professionals’ on Sunday (Aug 25). (Newswire)