President Ranil Wickramesinghe announced that in 2022, 9.2% of Sri Lanka’s gross domestic product (GDP) was allocated to foreign debt payments. However, he expressed optimism that between 2027 and 2032, the country will be able to maintain debt payments at less than 4.5% of GDP.
After officially declaring Sri Lanka’s inability to repay its loans, all international transactions and development projects funded by foreign aid were suspended. President Wickremesinghe emphasized that with the successful restructuring of the debt, these projects can now resume.
The President highlighted that reaching an agreement with bilateral creditors has restored international trust in Sri Lanka. He noted that the international community, which previously refused to accept the country’s letters of credit, is now willing to offer assurances about Sri Lanka’s reliability.
President Wickramesinghe announced that the Prime Minister will present the agreements made with Sri Lanka’s creditors to Parliament for approval during a special session on July 2nd. He urged all parliamentary representatives who love the country to support these agreements.
In his special statement, the President expressed gratitude to all parties, including ministers and officials, for their dedication to leading the country towards progress. He also thanked the majority of the population for their patience during difficult times.
President Wickramesinghe acknowledged that a few individuals are attempting to hinder the country’s progress but warned that they will one day feel ashamed in front of their children for betraying the nation.
He concluded by stating that relief was provided to the people when the economic situation allowed, and assured that by continuing on the right path, existing difficulties can be reduced. He emphasized that strikes and threats will not solve problems, but a strong economy will.
The President also mentioned that he accepted the challenge of recovering the country unconditionally, despite various conditions posed by some individuals, and affirmed that international support is attainable.