Sri Lankan President Ranil Wickremesinghe has navigated a tumultuous path since taking office in the midst of the country’s worst economic crisis. Facing bankruptcy and social unrest, he has implemented a series of austerity measures designed to stabilize the nation’s finances and restructure its massive debt.
In a candid interview with Firstpost Managing Editor Palki Sharma, President Wickremesinghe outlined his vision and the challenges he has faced. He emphasized the need for stability, law and order, and economic reform to address the dire situation inherited upon assuming the presidency.
A key element of his strategy has been to negotiate with the International Monetary Fund (IMF) and various creditor nations to secure financial assistance. He reported significant progress in these negotiations, stating that agreements have been reached with the IMF, the official creditors committee, and private bank bondholders.
However, the implementation of these austerity measures has come at a social cost, triggering significant debate. Critics argue that the reforms have disproportionately burdened ordinary citizens, pointing to increased taxes, including higher VAT rates, and rising electricity bills. This has resulted in public discontent and frustration.
President Wickremesinghe acknowledged the difficulties faced by the public, stating that the necessary steps, while painful, were unavoidable. He stressed that the country could no longer rely on borrowing or printing money, and needed to generate its own revenue. To mitigate the impact, the government has increased social welfare awards and government salaries.
The upcoming elections are casting a long shadow over the president’s efforts. Public sentiment remains a critical factor in his ability to maintain support. He acknowledged the challenges but expressed confidence that he could bridge the gap by 2025, restoring people’s sense of normalcy.
Addressing criticisms regarding the handling of protests and the use of force, President Wickremesinghe affirmed his commitment to completing the economic reforms and achieving sustainability. He highlighted the need for an export-oriented economy as the path to a brighter future.
While the road to economic recovery is fraught with challenges, President Wickremesinghe is determined to see his vision through. He is navigating a delicate balancing act between necessary economic reforms and the social consequences they entail, hoping to gain the public’s trust and confidence in the long-term benefits of his vision.
