SriLankan Airlines to be privatized
To print currencies to pay for the govt. servants- road to inflation
Formation of a National Council with all MPs to chalk out a common goal to resolve problems.
COLOMBO : In his maiden address to the nation since assuming office, Prime Minister Ranil Wickremesinghe’s told people to tighten their belts and walk through a path of challenges during the coming months.
Explaining that the country is facing enormous financial difficulties,he recalled that Sri Lanka’s foreign exchange reserves were USD 7.5 billion in November 2019, which has been brought down to one million US dollars.
“The next couple of months will be the most difficult ones of our lives. We must prepare ourselves to make some sacrifices and face the challenges of this period.”
“I have no desire to hide the truth and to lie to the public. Although these facts are unpleasant and terrifying, this is the true situation. For a short period, our future will be even more difficult than the tough times that we have passed.”
“We will face considerable challenges and adversity. However, this period will not be long. In the coming months, our foreign allies will assist us. They have already pledged their support. Therefore, we will have to patiently bear the next couple of months. However, we can overcome this situation. Doing so will require taking a new path.”
He said the Ministry of finance is finding it difficult to raise USD 5 million required to import LP gas.
“At the moment, we only have petrol stocks for a single day,” he said, adding that due to the diesel shipment that arrived yesterday, the shortage of diesel will be resolved to some extent.
He stated that under the Indian credit line, two more diesel shipments are due to arrive on the 18th May and 1st June. In addition, two petrol shipments are expected on 18th and 29th May.
The PM said that for over 40 days three ships with crude oil and furnace oil have been anchored within the maritime zone of Sri Lanka. We are working to obtain dollars in the open market to pay for these shipments, he said.
The prime minister said that currently a quarter of electricity is generated through oil and that therefore, there is a possibility that the daily power outages could increase to 15 hours a day.
“However, we have already obtained money to avert this crisis. We must also immediately obtain USD 20 million to provide gas to consumers,” he said. The PM said the situation of kerosene and furnace oil is even more urgent.
He said they will also work towards making a payment for the gas shipment that arrived on Tuesday. Therefore, the public will have some respite from the gas shortage, he said.
Regarding the shortage of medicines, he said payments have not been made for four months to suppliers of medicine, medical equipment, and food for patients while the payment owed to them amounts to SLR 34 billion.
In addition, payments have not been made for four months for medicine imported by the State Pharmaceuticals Corporation. As a result, pharmaceutical companies are taking steps to blacklist the SPC, he said.
The PM said they have planned to present a new alternative budget to the development budget proposed for 2022. Intend to present it as a concessionary budget.
He further proposed to privatise Sri Lankan Airlines which is incurring extensive losses. The loss for the year 2020-2021 alone amounts to SLR 45 billion. By 31st March 2021, the total loss was at 372 billion.
“In the short term we will have to face an even more difficult time period.” There is a possibility that inflation will increase further, he warned.
“Against my own wishes, I am compelled to permit printing money in order to pay state-sector employees and to pay for essential goods and services. However, we must remember that printing money leads to the depreciation of the rupee.”
Under the current circumstances, even the Petroleum Corporation and the Electricity Board are unable to obtain rupees, he revealed.
“I thank the opposition leader and the leaders of the political parties who replied to the letters that I sent them informing them of the current situation.”
“We must immediately establish a national council or political body with the participation of all political parties to find solutions for the present crisis. This will enable us to discuss with all parties and to arrive at decisions for short-, medium-, and long-term action plans that will enable us to rebuild our nation within a specified time frame.”
“We will build a nation without queues for kerosene, gas, and fuel; a nation free of power outages, a nation with plentiful resources where agriculture can freely flourish; a nation where the future of the youth is secure; a nation where people’s labour need not be wasted in queues and in struggles; a nation where everyone can lead their lives freely with three square meals a day.”
