Sri Lanka’s new prime minister accepts “Today the country runs out of oil” because there is no money to import. Prepare to print more banknotes to pay salaries Aiming to sell the national airline to raise money for the state
It’s been two months since the Sri Lanka crisis started in March, but the situation has worsened. Latest today (17 May 65) Prime Minister Ranil Wickremesinghe, the new leader of Sri Lanka, announced that Domestic oil stocks will only be available for today. This is because the government does not have enough foreign currency to import more oil. And within the next few months will be one of the most difficult times in Sri Lankan life.
Mr. Ranil made a statement broadcasting on television stations across the country that Sri Lanka urgently needs a new $75 million (approximately 2,600 million baht) foreign currency. to be able to import essential goods from abroad
so that the mechanisms in the country can still continue The government will give Sri Lanka the central bank. “Print more money in the system” to pay for government officials’ salaries and other expenses It acknowledged that the printing of more money would worsen the Sri Lankan currency. At a time when Sri Lanka is rushing to buy dollars to pay for crude and fuel oil. to stock gasoline left over for only one day
At the same time, the new government has plans toSale of the national airline of Sri Lanka. or Sri Lankan Airlines to try to maintain fiscal stability. After the airline suffered a heavy loss of Rs 45 billion (almost 4,500 million baht) in the last fiscal year.
“This loss should not be burdened by the poorest. who have never even been on a plane.” Mr Ranil said
Sri Lanka is also expected to be declared a state “default on payment” (Default) It’s official this week too. This is because on Wednesday, May 18, it will be the end of the 30-day grace period for payment of interest on a number of dollar bonds. which is expected that the government will not be able to find the money to pay in time and eventually fell into a default status
Sri Lanka is facing its worst economic crisis in 74 years since its independence from Britain in 1948, when inflation hit record highs. and foreign reserves are limited which is not enough to pay the debt this year including paying for the import of fuel, food and medicine
Sri Lanka has been signaling a major economic crisis since March, and the situation has intensified in recent weeks. Last week alone, violent protests left nine people dead, more than 300 wounded and more than 400 arrested. The government, including Prime Minister Mahindra Rajapaksa, the current president’s brother. has announced the resignation of the committee
Sri Lanka is currently in the process of negotiating a loan from several parties. From the International Monetary Fund (IMF), World Bank (World Bank), Asian Development Bank (ADB) to China and India. But there is no clear progress. While initially reported that “India” sent 4 hundred thousand tons of oil to help last Sunday. to help alleviate the situation for Sri Lanka under the credit line between India and Sri Lanka.