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Premier: Sri Lanka is on the verge of a total economic disaster.

The island nation’s economy is “facing a catastrophic collapse,” the prime minister of Sri Lanka said on Wednesday.

Speaking to the nation’s parliament, Ranil Wickremesinghe declared: “Our economy has faced a catastrophic collapse,” adding that the path to financial recovery lies in building up foreign reserves.

The most important problem facing us right now is that. Only by rebuilding Sri Lanka’s economy will these problems be solved. A copy of the premier’s address in the local Sinhalese language quotes him as saying, “In order to do this, we must first overcome the foreign reserves situation.

As the island nation struggled with significant anti-government rallies and its greatest economic crisis, it declared in April that it had defaulted on all of its foreign debt.

The nation announced that crisis-stricken Sri Lanka has run out of fuel in mid-May. Sri Lanka, a country with a large tourist industry, saw its foreign exchange reserves decline after the Covid-19 outbreak stopped all inbound travel and remittances.

Mahinda Rajapaksa, Wickremesinghe’s predecessor, resigned as a result of the financial crisis following unruly demonstrations.

Wickremesinghe had earlier this month stated that over the next six months, the nation will require USD 5 billion for necessities including food, gasoline, fertilizer, and gas.

Wickremesinghe informed the parliament that since entering office, “I have taken steps to notify you of the genuine predicament faced by the country and the measures we are taking to overcome it.”

It is no easy undertaking to recover a country with a completely shattered economy, especially one that is critically low on foreign reserves, Wickremesinghe said in a speech urging unified efforts to lead Sri Lanka, which is home to about 22 million people.

The prime minister declared that “we are seeing indicators of a probable collapse into the very bottom” and that “the only safe choice is to have conversations with the International Monetary Fund.”

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