$8 billion in debt relief through debt restructuring – President

President Ranil Wickremesinghe yesterday said the country has saved a total of $8 billion in the past two years due to debt restructuring. The President, who presented deeds to 463 recipients of the Urumaya National Programme at a ceremony held at the North Western Provincial Assembly Hall in Kurunegala yesterday, said the country had prepared a four-year plan to repay the loans, reduce the burden and lower the interest, which would save $5 billion.

“Now, our country has emerged from bankruptcy. We are currently negotiating with private creditors. As a result, $3 billion has been withdrawn. A total of $8 billion has been allocated for our use,” the president said. “We have received $2 billion on easy terms, not including aid from China or India,” the president said. “In addition, we have received another $2 billion on easy terms, not including aid from China or India. So we have saved $8 billion in the last two years.”

“During the tenure of President Gotabaya Rajapaksa, India provided a loan of $3.5 billion to Bangladesh on concessional loan terms and Bangladesh also contributed $200 million. Despite the economic challenges, we managed to repay the $200 million,” he added.

The President stressed that true socialism is giving people free land rights, not just empty talk of socialism.

He stressed that his government was credited with saving the country from bankruptcy and was actively addressing public issues. He noted that an additional 200,000 people would benefit from the “Urumaya” freehold land ownership scheme.

Addressing the gathering, he noted that he assumed leadership during a period of uncertainty for the government. He stressed that the country is currently recovering from economic turmoil due to effective economic management. He highlighted the inclusive development plan for the Kurunegala region as part of the drive for a new economy in the country.

President Ranil Wickremesinghe further elaborated: “In Kurunegala, our farmers are vital to our rice supply, but they have long been without legal title to their land. Today, hundreds of thousands of people across the country face the challenge of not having legal rights to their homes. We launched Project Urumaya to ensure they get their due rights.

I took office at a time of great uncertainty. Leadership was scarce, but I stepped up to lead. We brought together a diverse group of parties to form a government that worked together to make significant progress in addressing the concerns of our people.

When our nation’s economy collapsed, many lost hope. Today, I must express my gratitude to the residents of this region. Despite personal challenges like a house on fire, they put the welfare of their community first and worked tirelessly to provide relief. Now, our nation is out of bankruptcy. We have a four-year loan repayment plan that will reduce the burden and interest and will result in $5 billion in savings.

We are currently negotiating with private contractors. So about $3 billion has been withdrawn. A total of $8 billion has been allocated for our use. In addition, we have received $2 billion on favorable terms. This does not include the funds expected from China or the assistance from India. So we have saved $8 billion in the last two years.

Before President Gotabaya Rajapaksa took office, India had provided a loan of $3.5 billion to Bangladesh on concessional terms and Bangladesh also provided $200 million, which we managed to repay despite facing economic difficulties.

I had to take difficult decisions to rebuild our economy. Raising VAT was not easy but it was necessary to stabilize our economy. Some leaders encouraged people to protest and even burn houses, urging them not to support the government. Farmers were told to come to Colombo but without fuel and fertilizers, they could not come. We provided them with the necessary fuel and fertilizers. Finally, they were asked to come to Colombo without planting crops.

Thanks to the good harvest in 2022-2023, the country has increased production and tourism is booming. As a result, we achieved $8 billion in relief and paved the way for debt relief. When the economy collapses, the impact is greatest on the common people. When the economy recovers, its benefits reach another class. We introduced the “Urumaya” freehold land title program for the benefit of the common people. Today, these people have full ownership of the land they have lived on for generations. This is indeed a record for the government.