Sri Lanka has emerged from its economic turmoil, signaling a fresh start for the nation. Late last year, the country successfully concluded a long-delayed debt restructuring deal with both bilateral and private creditors. This achievement marked the end of Sri Lanka's status as a bankrupt nation, following its default on a staggering US$46 billion external debt in April 2022. The once-precarious financial state saw the nation run out of foreign exchange reserves, crippling its ability to import essential goods like food, fuel, and medicine. This economic meltdown forced former president Gotabaya Rajapaksa to resign.
The country's current leader, President Anura Kumara Dissanayake, has pledged to reform Sri Lanka's global image as a "corrupt" nation. On February 4, during the anniversary of independence from Britain, Dissanayake emphasized his commitment to change. The president dispensed with the usual elaborate military displays typically observed on this day, opting for a more subdued celebration as a gesture of the country's new direction.
"We are committed to transforming Sri Lanka's global image from a country known for corrupt governance." – Anura Kumara Dissanayake
Dissanayake's leadership follows in the footsteps of his predecessor Ranil Wickremesinghe, who secured a crucial US$2.9 billion bailout loan from the International Monetary Fund (IMF). This four-year programme is seen as vital for ensuring the country's economic stability and recovery. By maintaining the tough austerity measures introduced by Wickremesinghe, President Dissanayake aims to continue rebuilding the nation's economy on solid ground.
"Despite countless obstacles and the deep-rooted flaws of the past corrupt political system, the people's government, built by the collective will of the citizens, is steadily progressing forward." – Anura Kumara Dissanayake
"As the new government, over the past four months, we have laid the foundation for a stable economy and introduced a new political culture." – Anura Kumara Dissanayake
The journey toward recovery has been arduous, but there is optimism in the air. Sri Lanka's economic crisis was unprecedented, leading to a significant decline in its image and reputation on the world stage. However, under Dissanayake's leadership, there is a renewed focus on transparency and governance.
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