Sri Lankan Economy Extremely Precarious, Petrol Stocks Left For A Day: PM Ranil Wickremesinghe

Criticizing the previous government, PM said, "Although the former government’s budget projected revenue of SLR 2.3 trillion, SLR 1.6 trillion is the realistic projection of this year’s revenue."

Sri Lanka's Prime Minister Ranil Wickremesinghe. (Source: Getty Images)

New Delhi: In his first public address after being appointed as the new Sri Lankan Prime Minister, Ranil Wickremesinghe on Monday said that the Sri Lankan economy was "extremely precarious" and proposed to privatise the Sri Lankan airlines, which is incurring extensive losses, news agency ANI reported. Wickremesinghe also said that the country had petrol stocks left for a single day only.

Criticising the previous government, PM Wickremesinghe said, "Although the former government’s budget projected revenue of SLR 2.3 trillion, SLR 1.6 trillion is the realistic projection of this year’s revenue."

"The estimated govt expenditure for this year is SLR 3.3 trillion. However, due to increase in interest rates & addl expenditure of ex-govt, total govt expenditure is SLR 4 trillion. Budget deficit for the yr is SLR 2.4 trillion. This amount equals 13% of the GDP," he added. 

Stating that a new "concessionary budget" needs to be planned as an alternative to the development Budget 2022, PM Wickremesinghe said, "I propose to privatise Sri Lankan Airlines which is incurring extensive losses. The loss for 2020-2021 alone amounts to SLR 45 billion. By 31st March 2021, total loss was at 372 billion. Even if we privatise Sri Lankan Airlines, this is a loss that we must bear."

I propose to privatise Sri Lankan Airlines which is incurring extensive losses. The loss for 2020-2021 alone amounts to SLR 45 billion. By 31st March 2021, total loss was at 372 billion. Even if we privatise Sri Lankan Airlines, this is a loss that we must bear: Sri Lankan PM pic.twitter.com/zdogkC1M1Y

— ANI (@ANI) May 16, 2022

Highlighting the Cabinet's decision to present a proposal to Parliament to increase approved limit for issuing treasury bills from 3000 bn to 4000 bn, PM Wickremesinghe said, "Approved debt ceiling is SLR 3200 bn. By 2nd week of May, we had spent 1950 bn. Therefore, remainder is SLR 1250 bn."

"In November 2019, our foreign exchange reserves were at USD 7.5 billion. However, today, it is a challenge for the treasury to find USD 1 million. The Ministry of finance is finding it difficult to raise USD 5 million required to import gas," he further said. 

Addressing the public, PM Wickremesinghe said, "We're faced with several grave concerns. To ease queues, we must obtain approximately USD 75 mn within next couple of days. At the moment, we only have petrol stocks for a single day. Due to diesel shipment that arrived y'day, lack of diesel will be resolved to some extent."

"A quarter of electricity is generated through oil. Therefore, there's a possibility that daily power outages will increase to 15 hrs a day. However, we've already obtained money to avert this crisis. We must also immediately obtain USD 20 mn to provide gas to consumers," he added. 

Sri Lanka is experiencing its biggest economic crisis since its 1948 independence. Long lines for gasoline, cooking gas, and other commodities have formed due to a catastrophic scarcity of foreign funds, while power outages and increasing food costs have added to the people's agony.

The economic crisis prompted a political crisis in Sri Lanka, with demands for the powerful Rajapaksas to quit.

Last week, the 73-year-old United National Party (UNP) leader was appointed as Sri Lanka's 26th prime minister. Former prime minister Mahinda Rajapaksa resigned last week after violence erupted following his supporters' attack on anti-government protesters.

(With ANI Inputs)