Wickremesinghe: Sri Lanka needs $ 5 bn in 6 months for essentials

Sri Lankan prime minister Ranil Wickremesinghe has said that the country needs at least 5 billion dollar over the next six months to pay for essential goods. Wickremesinghe told Srilankan Parliament, the money is needed for basic items such as food, fuel and fertiliser. Wickremesinghe, who is also the country's finance minister, said that more money was required this year to meet Sri Lanka's basic needs. The Prime Minister added that, the United Nations also plans to make a worldwide appeal for Sri Lanka, and has pledged 48 million dollar for food, agriculture and healthcare. "Only establishing economic stability not enough, we have to restructure the entire economy," said Ranil Wickremesinghe, who is working to prepare an interim budget to balance Sri Lanka's battered public finances.
He also warned of a slowdown in government payments to businesses and workers across the country, as funds are redirected to pay for food supplies. In May, Sri Lanka defaulted on its debts with international lenders for the first time in its history as it faces its worst economic crisis in more than 70 years. The country has held bailout talks with the International Monetary Fund. The country's economy has been hit hard by the pandemic, rising energy prices, and populist tax cuts. A shortage of medicines, fuel and other essentials has also caused to push the cost of living to record highs.

Meanwhile, Sri Lanka's Cabinet has deferred by a week the approval of the proposed 21st Amendment to the Constitution to empower Parliament over the executive president, amidst stiff resistance from some members of the ruling party. The 21st Amendment is expected to annul the 20A to the Constitution which gives unfettered powers to President Gotabaya Rajapaksa after abolishing the 19th Amendment. The draft of the proposed amendment was presented at Monday's Cabinet meeting. It was decided to approve it only after all parties agreed with the amendments proposed. It will be presented to the Cabinet next week," Charitha Herath, a government parliamentarian, told reporters.