Sri Lanka seeks ‘deep reforms’ to get financial aid

this new government Sri Lanka was formed after the departure of former President Gotabaya Rajapaksa a week ago.begins to seek deep reforms have access to aid programs that allow the nation to restore its financial stability.

As part of the reforms pointing in this direction, Sri Lankan Energy Minister Kanchana Wijesekera announced this Friday that the state-owned Ceylon Electricity Board (CEB), the sole generator, transmitter and electricity distributor, needs to be restructured. in the country. in the country.

“I hope to get Cabinet approval to start the division of the CEB with Production, Transmission and Supply. at the same time rate adjustments requiredThere should be a plan to reduce the cost of Generation with more Renewable Energy,” the minister said on Twitter.

The severe economic crisis in Sri Lanka, which dried up its foreign exchange reserves, deprived the country of sufficient liquidity to acquire energy resourcesfuel or gas that turns into a strict daily electric ration card.

A loan that allows the country to pay suppliers for shipments of essential goods, food, medicine or fuel, urgently needs Sri Lanka to cut government spending and establish sustainable policies, among other things, political analyst Efe told Efe. .

The announcement made by the Ministry of Energy, the World Bank (WB) said in a statement, does not plan to offer new financing to Sri Lanka until the country is gone “an appropriate macroeconomic policy framework”.

According to the World Bank, a nation of 22 million people “requires deep structural reforms focusing on economic stability and also addressing the structural causes that created this crisis to ensure that Sri Lanka’s future recovery and development is resilient and inclusive.”

The World Bank’s position mirrors that of the International Monetary Fund, with which the island nation is currently negotiating an agreement. recovery programand also called for major reforms to provide financial aid.

In this sense, Kulatunga said, “It is encouraging to state that the Ministry of Energy took the first step this Friday to destroy the state electricity monopoly that was planned for a long time but was not implemented.”

In the analyst’s view, multilateral agencies Let the IMF take the initiative in the process. and to negotiate the cuts necessary for deep and painful structural reforms, especially in deeply troubled state companies, before intervening.

Sri Lanka is facing its worst economic crisis since gaining independence from the British Empire in 1948.This is partly due to massive borrowing, wrong government policies, and the impact of the Easter attacks and the pandemic on tourism.

Source: Informacion

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