Colombo: The year's revised budget, which slashes spending and aims to help those who have been particularly affected by the country's economic collapse, will be presented by Sri Lanka's new government on Tuesday.
The budget will be presented to Parliament by the President and Finance Minister Ranil Wickremesinghe, who will call for a vote after discussion.
On a plan to help Sri Lanka out of its economic crisis, the government is in talks with a team from the International Monetary Fund that is currently in the country. The government is also getting ready to discuss renegotiating foreign loans that Sri Lanka cannot repay due to severe foreign exchange crunch.
On a plan to help Sri Lanka out of its economic crisis, the government is in talks with a team from the International Monetary Fund that is currently in the country. The government is also getting ready to discuss renegotiating foreign loans that Sri Lanka cannot repay due to severe foreign exchange crunch.
Because Sri Lanka's public debt is volatile, the IMF's executive board will require guarantees from Sri Lanka's creditors that debt stability will be restored before any bailout program can begin, the IMF said in a statement ahead of the visit.
Sri Lanka owes foreign creditors a total of more than $51 billion, of which $28 billion will have to be repaid by 2027.
The government is expected to reach a preliminary agreement by the time the IMF delegation's visit ends on Wednesday.
For months, Sri Lankans have experienced acute shortage of necessities like fuel, medicine and cooking gas. Even though the World Bank helped restore the supply of LPG, there remains a shortage of fuel, life-saving medicines and some food items.
After a quota system brought long fuel lines under control over the past few weeks, they are now re-emerging.
I felt things were getting better,” said Asanka Chandana, a vendor. “We faced severe difficulties for several weeks in May and June, but after the quota system was implemented, things started to improve. Looks like we're back where we just started with a lack.
According to Power and Energy Minister Kanchana Wijesekera, delivery errors, slow unloading times and fuel station payments for orders have led to long lines. He assured to solve the problem in a few days.
The new budget was announced amid a relatively calm atmosphere, after months of widespread protests that resulted in the ouster of Wickremesinghe's predecessor Gotabaya Rajapaksa and his family. The protesters claimed that Rajapaksa's political family was primarily to blame for the economic crisis through mismanagement and corruption.
After protesters surrounded his official residence, Rajapaksa left the country in July and announced his resignation. He is currently in Thailand.
According to party leaders, Rajapaksa has requested that Wickremesinghe provide him the security and facilities to which a former president is legally entitled, as he is expected to return from exile in early September.
Wickremesinghe, who was elected president in parliament thanks to votes from supporters of Rajapaksa, has since arrested oppressive protesters, their leaders and those who occupied the president's official residence and other important state buildings.
He also ordered the dismantling of the protest site in front of the President's office.
The United States and the European Union have expressed concerns about human rights due to the crackdown on and enforcement of tough anti-terrorism laws to detain a protest leader.
Additionally, Wickremesinghe has largely silenced those demanding his resignation, who feel he is merely an extension of Rajapaksa and defending his political future.
The president, the prime minister and four other government ministers all shared family backgrounds, before being forced to resign.
According to political analyst Jaydev Uyangoda, except for a new president, I do not see any significant change.
Because his party still has a majority in parliament, Rajapaksa's politics continues.
Wickremesinghe has made vain attempts to persuade opposition parties to cooperate with his administration in order to gain international respect.
According to Uyangoda, no opposition party appears ready to join Mr. Wickremesinghe's proposed all-party government for two reasons: they do not believe that Mr. Wickremesinghe has sufficient authority, and they disagree with the dominance of the Rajapaksa party.
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