SEOUL: Minister of Foreign Affairs Ali Sabry has spoken on Sri Lanka’s debt restructuring process, stating that encouraging signs have been seen thus far, although Sri Lanka is not ‘completely out of the woods’.
In an interview with Channel News Asia (CNA), the Minister said “there is a glimmer of hope for us, but we are not out of the woods” when inquired as to where Sri Lanka’s optimism pertaining to economic recovery is coming from, despite the Asian Development Bank (ADB) predicting that things will get worse later this year, before seeing gradual improvement in 2024.
Sabry, who is currently attending the ADB annual meeting in Incheon, South Korea, noted that there are several factors contributing towards this ‘optimism’, including the stabilisation of the US Dollar, the increase of inbound tourists and the fact that inflation too, is relatively under control as opposed to the rates recorded in 2022.
looking for alternatives for the short term.
He explained, however, that measures are underway to establish a steady source of renewable energy within the country by 2030, as there is a very good catchment for both wind and solar power with Sri Lanka being an island.
He noted, however, that nearly 35% of the island’s electricity generation is powered by coal, and thus, the government is currently looking for alternate suppliers.
Meanwhile, Foreign Affairs Minister Ali Sabry also addressed recent concerns as to whether China’s latest investment would give the country a naval advantage to use Sri Lanka as a military hub, asserting that the matter was “completely out of the question”.
“We will not let anyone use Sri Lanka as a military hub or port for anyone that is very, very clear”, he said, adding that the investment was solely a commercial arrangement.
