Sri Lanka President Highlights SAARC Support in Economic Recovery

Sri Lankan President Ranil Wickremesinghe, in a recent address, highlighted the critical financial support received from India and Bangladesh amidst Sri Lanka's severe economic crisis. During the 45th "SAARCFINANCE" Governors’ Meeting and Symposium, Wickremesinghe expressed his gratitude towards the government and Reserve Bank of India, alongside the government and Central Bank of Bangladesh, for their pivotal financial assistance. He credited this support, along with contributions from the United States Agency For International Development (USAID) and the World Bank, as essential in averting a potential collapse of the country's economy.

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Wickremesinghe, who also serves as the finance minister of Sri Lanka, underscored the significance of the financial aid which amounted to USD 3.5 billion from India and USD 200 million from Bangladesh. "That USD three and a half billion and that USD 200 million were lifesavers. Without that, we wouldn't be here today; there would have been chaos," he remarked. The president also reflected on the rapid progress made in overcoming the crisis, a feat that surpassed many expectations.

Looking ahead, President Wickremesinghe outlined ambitious targets for Sri Lanka's economic recovery and growth. The nation aims for an annual GDP growth of 5 per cent by 2027, with expectations to surpass this figure in subsequent years. Efforts are also being made to reduce unemployment to below 5 per cent by 2025 and increase female labour force participation to at least 40 per cent by 2030 and 50 per cent by 2040.

Furthermore, Wickremesinghe detailed goals to improve Sri Lanka's balance of payments with a current account deficit not exceeding 1 per cent of GDP annually. The country also aims to significantly boost its exports of goods and services to reach at least 25 per cent of GDP by 2025, escalating to 40 per cent by 2030 and 60 per cent by 2040. Additionally, net foreign direct investment is expected to constitute no less than 5 per cent of GDP by 2030, increasing dramatically thereafter.

The president announced that the Economic Transformation Bill, poised for approval soon, will serve as a legislative framework to achieve these goals within the constitutional boundaries of Sri Lanka. This initiative marks a significant step towards stabilizing and enhancing the nation's economic landscape in the coming years.