Financial sector to receive substantial boost as Sri Lanka slated to secure more international funding

Financial sector to receive substantial boost as Sri Lanka slated to secure more international funding

President Ranil Wickremesinghe yesterday told Parliament that Sri Lanka’s success in securing the necessary funds from international financial institutions in recent months would provide a significant boost to the country’s financial sector, ensuring its complete security.

With the International Monetary Fund approving the second tranche and the World Bank extending US $ 150 million for deposit insurance, Sri Lanka is poised to receive additional funding for the development process from the other key financial institutions such as the Asian Development Bank and JICA, at low-interest rates and favourable terms, he said.

“This approval reinstates the confidence of foreign investors, who can now invest in Sri Lanka without hesitation. Our international letters of credit are once again recognised, providing us with the opportunity to expand our market more easily and gain global recognition.  It is imperative that we strive to maximise these opportunities for the benefit of our country,” Wickremesinghe said.

Although the country has bagged some wins, Wickremesinghe said it is crucial to acknowledge that achieving this victory does not signify perfection.

“We have a long journey ahead to attain complete economic freedom. Hence, I implore every member of this honourable assembly to safeguard the progress we have made along the right path. Let us remain steadfast in our commitment to the path of progress,” Wickremesinghe said.

He went on to caution that deviation from the correct course poses the risk of “losing our way and succumbing to distractions”.

According to Wickremesinghe, as Sri Lanka progresses forward, it is imperative to advance steadfastly along the path while exercising caution to prevent the recurrence of past errors that led the nation towards financial insolvency.

“The commitment to these principles will unequivocally influence the security or jeopardy of our country’s future,” he said.

Wickremesinghe pointed out that the journey towards revival and growth is marked by several paramount objectives—minimising the foreign exchange deficit, achieving trade balance, narrowing the income and expenditure gap, optimising the surplus in the primary budget account and upholding stringent financial discipline.