For new Lanka Prez, economy revamp, keeping things afloat a huge challengeA source from the Ministry of Finance, Economic Stabilization, and National Policies told this daily that the current “absence of economic tension” is due to measures taken to stabilise the economy, including tariff and tax increases, and not some respite artificially created through the suspension of external debt repayments.“The country has been servicing its debt in 2022 and 2023 amounting to $2,483 million and $2,589 million, almost half of the standard annual debt service payments before the moratorium,” the source said.Alan Keenan, Senior Consultant of the International Crisis Group, in a written message said: “With many Sri Lankans still struggling to make ends meet more than two years after the country’s economic collapse, the upcoming presidential election promises to be close, tense, and possibly pivotal in setting the country’s future political trajectory.“Whichever candidate wins and whichever government is formed in the coming months, they will need to respond to public demands for greater equity in the budget cuts, tax rises and tariff hikes required by the IMF bailout program, as well as more boldness in fighting corruption and making governance more transparent. Failure to do so could further weaken public support for reforms essential to sustaining Sri Lanka’s economic recovery.”
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