Sri Lanka’s economy still in critical care, govt’s role crucial – Ranil

Former President Ranil Wickremesinghe emphasized that it is the incumbent government’s responsibility to ensure that Sri Lanka fully recovers from the economic crisis.

He acknowledged that the previous government had made some progress toward economic recovery but stressed that the task of guiding the country out of the crisis now lies with the current administration.

Speaking at the launch of the book The Panchayudha of Sri Lanka’s Economy, written by former Minister Dr. Bandula Gunawardena, Wickremesinghe urged the government to honor agreements made with investors during the previous regime, rather than introducing new proposals that could undermine investor confidence.

He warned that such actions could erode the trust of investors and harm Sri Lanka’s reputation as a reliable destination for investment.

Wickremesinghe compared the Sri Lankan economy to a patient who had been on life support and was now being weaned off but was still in critical care. He stressed the importance of the government’s role in ensuring a full recovery for the economy, likening the task to taking proper care of a patient in intensive care.

“To grow the economy, we need both capital and technology. However, we lack sufficient capital to undertake these initiatives, nor do we have the necessary technology. Therefore, we must seek these resources from external sources—just as China and India have done,” he stated.

He expressed concern over recent government decisions, particularly the announcement requiring all companies in the energy sector to submit new proposals. Wickremesinghe warned that this could create uncertainty among investors, potentially leading them to view Sri Lanka as an unreliable place for investment.

“We must build confidence among investors and avoid actions that could shatter that trust by reverting to outdated methods. That is why I have been concerned in recent days. The government has announced that all companies involved in the energy sector must submit new proposals. This decision could create uncertainty among investors, making them believe that Sri Lanka is not a reliable place to invest. As a result, they may hesitate to come here.”

“With great difficulty, we have managed to attract a few investors, and we must safeguard their confidence at all costs. The government must reconsider this decision and continue with the established approach,” he added.

Wickremesinghe also highlighted the significance of the agreement with India’s Adani Group, urging the government to continue with the Adani project, which he believes could be pivotal in boosting Sri Lanka’s economy. He mentioned his discussions with Indian Prime Minister Narendra Modi, during which Modi expressed interest in purchasing power from Sri Lanka.

“The agreement with India’s Adani Group has become a significant factor. We must bring the Adani project to Sri Lanka. When I discussed this with Indian Prime Minister Narendra Modi, he expressed interest in purchasing power from Sri Lanka.”

He noted that Sri Lanka could potentially supply between 25 and 50 gigawatts of power, which could result in a substantial inflow of investment.

“Although I am not fully aware of our electricity production capacity, I mentioned that we could supply between 25 and 50 gigawatts. If we can achieve this, imagine the level of investment that would flow into the country.”

Further emphasizing Sri Lanka’s relationship with India, Wickremesinghe remarked that India is a vital ally and that it is important not to give the impression of an anti-India stance.

He recalled his visit to Delhi, where Indian officials raised concerns about Sri Lanka’s position toward India, urging the two countries to strengthen their relationship and continue to move forward together.

“We must not give such an impression. Instead, we must strengthen our relationship and move forward together”, Wickremesinghe expressed.