Turkish, Iranian economic crises may affect SL: PM

Fresh moves by the United States to impose sanctions on Turkey and the impending economic crisis in Iran may affect Sri Lanka as well, Prime Minister Ranil Wickremesinghe said yesterday.

He said this at the opening of the Deviduragama Udagama in

“Economic crises in Turkey and Iran may affect Sri Lanka and as such we should be prepared to face any such calamity,” the Prime Minister said while referring to the foreign media reports that the US will impose sanctions on Turkey shortly and the warnings given by the international economic experts that Iranian was on the verge of an economic crisis.

However, the Prime Minister was optimistic that Sri Lanka would resolve its debt crisis by 2025. “Government revenue was hardly sufficient to meet debt servicing when this government took over in 2015 but now debt servicing had dropped to 70 per cent of the GDP. We hope to bring it down to between 60 and 55 per cent of the GDP by 2025,” he said.

"The previous regime decided to hold elections because it could not manage debt servicing. “It may have thought that Sri Lanka would become another Greece. The opposition also thought that this government will be caught up in a crisis. However we have managed to steady the economy despite difficulties. We had no choice but to go for a standby arrangement with the IMF but we have steadied the economy now,” he said. (Yohan Perera)