Sri Lanka is facing the worst economic decline in its history. To deal with this situation, now the government there is hoping for help from India and China.
Sri Lanka has preferred to seek aid from its neighbors rather than from global financial institutions. The Sri Lankan government has been unable to control inflation in the past few months and has faced criticism from across the country. Sri Lanka printed a lot of currency in an attempt to maintain a low-interest rate amid a growing budget deficit. All this was happening when there were reports of rapid depreciation of foreign exchange in the country.
The import of some items was also stopped due to shrinking foreign exchange reserves. According to a Sri Lankan newspaper, the country's main opposition coalition, Samaji Jana Balavegaya, said on November 29 last year that Sri Lanka's foreign exchange reserves "have reached their historic low of US$1.2 billion at the moment."
Meanwhile, it has been learned that Sri Lanka's central bank 'The Central Bank of Sri Lanka' has sold more than half of the gold reserves kept with it. 'The Sunday Times' in a report on January 8 has written that 54.1% percent of the gold reserve has been used to strengthen the foreign exchange reserves.
Sri Lankan leaders are blaming Covid for these situations, but critics are blaming the government for this. The government of President Gotabaya Rajapaksa is ready to do anything amidst dwindling foreign exchange reserves, wildly rising prices, and the prospect of a shortage of food items.
Hope for help from China and India
Sri Lanka made a lot of efforts to get financial aid from the International Monetary Fund. But the IMF ignored his demand because the current government of the country did not intend to implement the agenda of economic reform according to the agency.
However, Sri Lanka has not ruled out the possibility of receiving foreign aid in any other form. Like in the past, this time too Sri Lanka has appealed for help from each other's rival countries India and China in the region.
Sri Lanka's Finance Minister Basil Rajapaksa had extended the line of credit for the purchase of food grains, medicines, and other essentials during his 'very important' visit to India in December last year, Tamil newspaper Veerkesari reported.
Recently, Chinese Foreign Minister Wang Yi was on a visit to Colombo on January 8 and 9. A statement issued by the Sri Lankan presidential office said, "In his meeting with Foreign Minister Wang Yi, President Rajapaksa called for debt restructuring (change in the terms of old loans) and credit on goods imported from China. of."
The Daily Mirror wrote in its report on January 5 that the President of Sri Lanka is considering forming a cabinet-level committee to negotiate with friendly countries before the payment of the foreign debt in the year 2022. The purpose of this conversation is to try to get financial help from these friendly countries.
International Monetary Fund denial?
In his weekly column in the Sri Lankan newspaper Daily FT on December 13, 2021, former deputy governor of the Central Bank of Sri Lanka, WA Wijewardena, pointed out that several prominent and independent economists of the country have repeatedly appealed to the government to seek the help of the International Monetary Fund. is off.
However, there is little chance that the Sri Lankan government will seek help from the International Monetary Fund. The Daily Mirror newspaper wrote on January 4 that a consensus could not be reached on this issue in the cabinet meeting held on January 3.
Central Bank of Sri Lanka Governor Ajit Nivard Cabral has repeatedly reiterated that Sri Lanka will not seek the help of the IMF. On November 25, 2021, he said in a press conference that the IMF's help would come with conditions and that the agency would pursue its agenda of economic recovery.
News website Economicnext quoted Governor Ajit Nivard Cabral as saying, "This could lead to a devaluation of the Sri Lankan currency. Interest rates could rise and government jobs could be reduced. Our view is that for the time being, we need to follow that reform agenda." Not needed."
But on January 5, the newspaper Daily FT wrote in its editorial that "the condition of the country's economy was like never before. The conditions of the IMF cannot be worse than the crisis the public is facing at the moment. "
'No language will be imposed on any state', the government made it clear in Parliament amid the NEP controversy.
Union Minister of State for Education Sukanta Majumdar on Wednesday told Parliament that the three languages to be learned by school-going children under the National Education Policy (NEP) will
Jailer Twitter Review: Rajinikanth-Tamannaah's 'Jailor' created a stir in the theatre, such a thing came out of the mouth after seeing the climax
Jailer Twitter Review: Before 'Gadar 2' and 'Oh My God-2' hit the theatres, South Superstar Rajinikanth and Tamannaah Bhatia starrer film 'Jailor' has already hit the theatres. This is the 169th film
US F-35 Crashes: Wreckage of fighter jet F-35 should not be caught by China, America is scrambling to search
The United States Navy is working hard to retrieve the wreckage of its most advanced fighter jet, the F-35, as soon as possible. The jet had crashed in the depths of the South China Sea. This fast
UGC Draft: Opinions of experts differ on the opening of campuses of foreign universities, some praised and some said nonsense
The University Grants Commission (UGC) has issued new draft regulations for the establishment of foreign universities in India. Once these rules come into force, foreign universities will be allowed
Weather Update Today: Bye-bye rains in North India! The temperature will reach 35 degrees, read where Badra will rain
In many states including Delhi, UP, and Uttarakhand, it has been raining heavily for the last few days. Due to the rain, the temperature dropped and the weather became pleasant. However, the weather
Team India: Rohit, Virat, and Pujara have been able to score four centuries in two years; Major changes are needed in the Indian Test team!
India\'s second straight defeat in the final of the World Test Championship has left the Shivsundar Das-led selection committee worried. The next final of the Test Championship is to be played after
Sandeshkhali Row: Suvendu Adhikari and Vrinda Karat stopped from going to Sandeshkhali, BJP leaders sitting on dharna in the middle of the road
The political atmosphere is heated regarding the Sandeshkhali violence. The ruling party and the opposition are continuously accusing each other in this matter. Meanwhile, BJP leader Suvendu Adhikari
Delhi NCR Flood: Yamuna ravages in capital, water reaches civil lines and Delhi secretariat
Due to the continuous release of water from Haryana's Hathni Kund Barrage, the Yamuna River in Delhi is assuming a monstrous form. For three days, the river has been flowing above the danger mark of
SRH mistress disappointed with the defeat from Lucknow: Captaincy was snatched from Warner last season, now people said - call and say sorry to Kavya Maran
The start of the 2022 season has also not been special for SRH, who finished last in IPL 2021. The team has come last in the points table after losing both its opening matches.
Mahavir Jayanti 2023: When is Mahavir Jayanti? Know the date, worship, and their principles
According to the Panchang, the birth anniversary of Lord Mahavira, the 24th and last Tirthankara of Jainism, is celebrated every year on the Trayodashi date of Shukla Paksha of Chaitra month.
