FSP urges govt to address economic impact of Cyclone ‘Ditwah’

The Frontline Socialist Party (FSP) has called on the government to issue a clear and direct statement regarding the economic damage caused by Cyclone ‘Ditwah’.

The party emphasized that the government should give serious consideration to a recent statement issued by a group of leading international economic experts outlining recommended measures for Sri Lanka’s economic recovery in the aftermath of the cyclone-induced destruction.

According to the FSP, a group of 121 globally renowned economists, including Nobel Prize laureate Joseph Stiglitz, recently released a joint statement urging the temporary suspension of Sri Lanka’s external debt repayments in view 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 (IMF) 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 prevailing conditions.

Commenting on the matter, Frontline Socialist Party member Duminda Nagamuwa stated that the government must pay closer attention to the recommendations put forward by the international experts.

He noted 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 further stated that the experts have urged the IMF to grant a debt payment suspension and to reconsider the existing debt agreements. 

He further stated, “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.”