Colombo, Sri Lanka, July 5, 2024 — President Ranil Wickremesinghe has announced a comprehensive debt restructuring plan that will bring Sri Lanka USD 8 billion in debt relief. This announcement came today during his address at the ‘Urumaya’ Freehold Land Deed Ceremony held in Kurunegala, as reported by the President’s Media Division (PMD).
The debt relief package includes USD 5 billion in loan interest relief from bilateral creditors and an additional USD 3 billion debt write-off from commercial creditors. This restructuring is seen as a significant step towards stabilizing the country’s economy and providing much-needed fiscal space for further development initiatives.
Details of the Debt Relief Package
President Wickremesinghe detailed that the USD 5 billion relief comes from agreements with bilateral creditors, which will reduce the interest burden on existing loans. This agreement was reached after extensive negotiations and is aimed at easing the country’s repayment obligations.
The remaining USD 3 billion in debt relief results from successful negotiations with commercial creditors, who have agreed to write off a portion of Sri Lanka’s debt. This move is expected to alleviate immediate financial pressures and contribute to long-term economic recovery.
Urumaya Freehold Land Deed Ceremony
The announcement was made at the ‘Urumaya’ Freehold Land Deed Ceremony, where President Wickremesinghe emphasized his government’s commitment to real socialism by granting free land rights to the people, as opposed to mere discussions about socialism. He stated that his government, credited with saving the country from bankruptcy, is actively working to address public issues and improve the lives of ordinary citizens.
President’s Address Highlights
Addressing the audience at the North Western Provincial Council Auditorium, where symbolic deeds were presented to 463 recipients out of the 73,143 eligible individuals in the district, President Wickremesinghe highlighted the transformative impact of the “Urumaya” program. He stressed the importance of providing land rights to citizens who have lived on these lands for generations without legal ownership. The President noted that an additional 200,000 individuals will benefit from this initiative.
Economic Recovery and Future Plans
President Wickremesinghe spoke candidly about the challenges he faced upon assuming office during a period of governmental uncertainty and economic turmoil. He noted that the nation is now on the path to recovery due to effective economic management and highlighted plans for inclusive development in the Kurunegala district as part of the broader effort to advance the country’s economy.
He acknowledged the efforts of the local community in overcoming the crisis and emphasized that the economic recovery will benefit all segments of society. The President also announced that the government has a four-year plan to repay loans, offering reduced burdens and interest cuts, which will yield USD 5 billion in savings. He revealed that ongoing negotiations with private contractors have resulted in a USD 3 billion debt write-off, bringing the total relief to USD 8 billion.
Community and Economic Initiatives
The President highlighted several initiatives aimed at supporting economic recovery and development, including the allocation of land for a trade zone in Bingiriya and plans for a major industrial initiative in Kuliyapitiya. He also mentioned the launch of the Agriculture Modernization Program and the commencement of highway construction, which will complement existing road systems and boost regional development.
Comments from Local Leaders
Kurunegala District Coordination Committee Chairman, MP Samanpriya Herath, praised the “Urumaya” program, describing it as a significant initiative that aligns with the 2024 budget proposal. He thanked President Wickremesinghe for resolving longstanding land issues and providing legal ownership to citizens in the North-West Province.
North-Western Province Governor Nazeer Ahamed expressed gratitude for the implementation of the “Urumaya” program, noting that it is a crucial investment in the future. He highlighted the President’s role in rescuing the country from economic crisis and urged continued support for his leadership.
Future Outlook
The debt relief package and the “Urumaya” program represent significant strides towards economic recovery and social equity in Sri Lanka. The President’s vision for inclusive development and effective management of resources underscores the government’s commitment to overcoming current challenges and ensuring a prosperous future for all Sri Lankans.
Event Attendees
The ceremony was attended by State Ministers Shantha Bandara and D.B. Herath, MPs Johnston Fernando, Akila Viraj Kariyawasam, Anura Priyadharshana Yapa, Asanka Navarathna, Manjula Dissanayake, Sumith Udukumbura, Kurunegala District Secretary R.M.R. Rathnayake, North-Western Provincial Council Chairman Tikiri Adhikari, Secretary to the President Saman Ekanayake, Senior Additional Secretary to the President Chandra Herath, Mahaweli Authority Director General Mahendra Abeywardana, and several other distinguished guests.
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