The Frontline Socialist Party (FSP) has called on the government to issue a clear and direct statement on the economic damage caused by Cyclone Ditwah.
The party stressed that the government should give serious consideration to a recent statement issued by a group of leading international economic experts, which outlines recommended measures for Sri Lanka’s economic recovery following the cyclone’s destruction.
According to the FSP, 121 internationally renowned economists, including Nobel Prize laureate Joseph Stiglitz, have released a joint statement urging the temporary suspension of Sri Lanka’s external debt repayments in light of the severe damage caused by Cyclone Ditwah.
The experts noted that Sri Lanka has already secured an additional loan from the International Monetary Fund to address urgent needs arising from the crisis and is likely to require further borrowing in the future.
In this context, they have called for an immediate suspension of Sri Lanka’s external sovereign debt repayments, along with the initiation of a new debt restructuring process aimed at restoring long-term debt sustainability under the current conditions.
Commenting on the matter, FSP member Duminda Nagamuwa said the government must pay closer attention to the recommendations put forward by the international experts.
He pointed out that the public statement issued by the 121 economists clearly warns that Sri Lanka will face difficulties in servicing its debt in the coming period.
He added that the experts have urged the IMF to grant a debt payment suspension and to reconsider the existing debt agreements.
“If the government is unwilling to accept what we have been saying domestically, it should at least consider what the world’s most influential economic experts have emphasized,” he said.
