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“We
expect to discuss debt restructuring with the relevant parties
and complete the process quickly and obtain the funds.,” he
said.
The future of the economic recovery plan drafted by former
liberal President Ranil Wickremesinghe was called into question
after Dissanayake, a Marxist, won the presidential election on
Saturday.
During the campaign, Dissanayake said that he will renegotiate
the bailout agreement with the IMF agreed by Wickremesinghe. He
said he wants to make austerity measures more bearable for the
poor.
Sri Lanka declared bankruptcy in 2022 and suspended repayments
on some $83 billion in domestic and foreign loans.
That followed a severe foreign exchange crisis that led to a
severe shortage of essentials such as food, medicine, fuel and
cooking gas, and extended power outages.
Wickremesinghe, however, had warned that any move to alter the
basics of the agreement could delay a fourth tranche of nearly
$3 billion from the IMF package, which is crucial for economic
stability. Days before the election Wickremesinghe's
administration also agreed in principle to restructure Sri
Lanka's foreign debt.
Despite the election pledges, Dissanayake has shown signs that
he may continue with the IMF agreement without much changes by
retaining the governor of the Central Bank and the secretary to
the ministry of finance who were at the forefront of
implementing the reform program.
Sri Lanka's economic upheaval led to a political crisis that
forced then-President Gotabaya Rajapaksa to resign in 2022.
Parliament then elected the then-Prime Minister Wickremesinghe
to replace him.
The economy was stabilized, inflation dropped, local currency
strengthened and foreign reserves increased under Wickremesinghe.
Nonetheless, he lost the election in what is seen as the
people's rejection of the old guard who they hold responsible
for the economic crisis.
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