Sri Lanka Economy: Sri Lanka Welcomes G7 Declaration to Secure Debt Relief:

Sri Lankan Prime Minister Ranil Wickremesinghe welcomed the G7 announcement on Friday that they would help the country secure debt relief as it battles its worst economic crisis. Sri Lanka has been going through its worst financial crisis since gaining independence in 1948. The country has faced a severe shortage of foreign exchange due to which prices have risen and there has been a shortage of thermal fuel for vehicle fuel, cooking gas, food and electricity. Production

In this challenging time, the Group of Seven (G7) countries have announced that they will help Sri Lanka to get out of debt.

The G7 consists of the United Kingdom, Canada, France, Germany, Italy, Japan and the United States.

“I welcome the G7 announcement that they will help Sri Lanka ensure debt relief. The continued engagement of the international community with Sri Lanka is key to overcoming the economic crisis,” Vikram Singh tweeted on Friday.

Meanwhile, the Japanese government on Friday announced a USD 1.5 million fund to help Sri Lanka respond to the ongoing economic crisis. These funds will be used by the United Nations World Food Program (WFP) to provide food assistance to children and families in need.

On Wednesday, Sri Lankan Prime Minister Wickremesinghe said the country had missed a payment to the Asian Development Bank, blocking new funds amid warnings that the currency-hit country could be locked out of multilateral funding in a new push.

Sri Lanka has already suspended repayment of loans for international sovereign bonds, commercial bank loans, exim bank loans and bilateral loans. However, multilateral lenders and senior lenders were excluded.

Sri Lanka is now negotiating a loan with the IMF. The country had to pay 10 106.34 million this year but was able to pay only .4 12.4 million by April.

The Prime Minister then said that the debt-ridden country could not pay even one million dollars.

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