WATCH: Ranil Wickremesinghe on resurrecting Sri Lanka’s economy

President Ranil Wickremesinghe speaks to Gulf Business. (Source: Motivate Media Group)

Sri Lanka has endured a torrid past few years with that country’s economy infamously spiralling out of control in 2022 as it faced down a severe debt crisis.

Last year, the island-nation’s economy shrank by 7.8 per cent, while inflation at one point surged past 70 per cent. In March this year, Sri Lanka had to endure more pain after receiving an IMF bailout to the tune of $3bn.

Any nation that receives a bailout from the IMF is expected to implement stringent reforms as part of meeting the financing conditions. As the IMF highlighted in a statement earlier this year regarding its $3bn facility for Sri Lanka, “institutions and governance frameworks require deep reforms” while “ongoing efforts to tackle corruption should continue, including revamping anti-corruption legislation.”

Amid the 2022 crisis, the former five-time Sri Lankan prime minister, Ranil Wickremesinghe, returned to power — this time as president, thereby giving him more executive powers. While his return hasn’t been smooth sailing, changes are slowly starting to happen.

This year, the World Bank forecasts that the Sri Lankan economy is expected to contract by 3.8% this year, posting a weak but better performance compared to 2022. The World Bank forecasts that Sri Lanka’s economy could even grow 1.7 per cent next year. Added to this, the inflation monster in Sri Lanka has also been tamed, with this rate hitting 3.4 per cent in November 2023.

Ranil Wickremesinghe on climate action and economic reform

So, when I sat down with President Wickremesinghe on the sidelines of the COP28 summit in Dubai recently, my questions first centred on how his country is dealing with the economic crisis first, and, second, with the emerging climate crisis.

Interestingly, Sri Lanka has made some meaningful contributions to the global debate on climate change with an offer to host a climate university in the country while also spearheading an initiative to drive private investment in renewables in the tropical belt nations of the world.

You can watch the full interview below: