President Ranil Wickremesinghe of Sri Lanka has taken a firm stance against the spread of misinformation about the country's debt restructuring efforts and related matters. In a special statement delivered in Parliament, the President highlighted that false propaganda is being propagated by various individuals, both within and outside the legislative body, for political gain, despite the government's pursuit of policies aimed at the nation's betterment.
Sri Lanka has achieved a significant milestone among middle-income countries by successfully navigating the debt restructuring process, a notable accomplishment that the President described as "good news for the nation." The article provides a comprehensive overview of the agreements reached with the country's official creditors, including the Paris Club, Japan, France, and the Exim Bank of China.
The key highlights of the debt restructuring agreements include:
- A grace period until 2028 for repaying the principal loan
- Significant reductions in interest rates, with the new rate set at 2.1% or lower
- An 8-year extension of the repayment period, with the debt now expected to be fully settled by 2043
- Flexibility to gradually increase principal loan repayments, allowing Sri Lanka to defer loan servicing costs and retain a debt service of USD 5 billion
The President emphasized that the government's strategic approach has enabled these successful outcomes, despite the challenges posed by the country's complex debt landscape and the prevailing geopolitical trends. He also addressed the myths and misinformation circulating in society, such as claims about the total foreign debt being much higher than the actual figure of USD 37 billion.
The article delves into the President's criticism of certain political groups and individuals who have been spreading false narratives about the debt restructuring process, often for their own political gain. He highlighted the importance of uniting all parliamentarians, transcending political affiliations, to advance the country's collective interests and continue the government's program without any reversal, regardless of future changes in leadership.
The President also addressed the benefits expected from the successful debt restructuring, including the reopening of opportunities for bilateral foreign loans, the resumption of halted development projects, and the potential for accelerated economic growth. He urged all members of the legislative assembly to prioritize the nation's welfare over political agendas, emphasizing that his decisions have been solely driven by the country's best interests, rather than political power or popularity.
