GR says crisis not created by him but will seek external assistance to stabilise economy  

President Gotabaya Rajapaksa 

• President addresses nation amidst worsening economic crisis and growing public anger
• Says aware of difficulties faced by public
• Says crisis not his creation but he is attempting to resolve it and provide relief to people
• Says root cause of current issues is foreign exchange crisis
• Confirms decision made to work with IMF after examining advantages and disadvantages
• Calls on public to keep faith in him and promises to deliver in next three years

President Gotabaya Rajapaksa in his address to the nation last night disowned responsibility for the current crisis but confirmed that he will seek assistance from external help including from the IMF to overcome the country’s foreign exchange crisis.

In a brief speech lasting less than 15 minutes, the President said the root cause of current issues is the foreign exchange crisis but it was not one made by him.

“This crisis was not created by me. When those who contributed to the creation of this crisis are criticising the Government in front of the people today, I am attempting to immediately resolve this crisis and provide relief to the people,” Rajapaksa said.

He also put an end to months of speculation by confirming  that he has decided to work with the International Monetary Fund (IMF) to overcome this situation.

The projected export earnings for this year is $ 12 billion, before the rupee was floated.

“According to the data of the last two months, we have to bear $ 22 billion as the import cost this year. This will result in a trade deficit of $ 10 billion,” the President said.

He said that the estimated income from tourism, as well as export services such as information technology is $ 3 billion and another $ 2 billion from remittances from expatriate workers. Accordingly, the trade deficit will be $ 5 billion.

Meanwhile, $ 6.9 billion will have to be paid in loan instalments and sovereign bonds this year. Then there will be a deficit of $ 11.9 billion, the President said, adding that the Government expects to generate $  2.5 billion from other grants and investments. This would leave a  total deficit of $ 9.4 billion in foreign exchange.

He said with the floating of the rupee, export earnings are expected to reach $ 13 billion. “This will also reduce the cost of imports from $ 22 billion to $ 20 billion. If that happens, the trade deficit could be reduced to $ 7 billion. We should aim for this target,” he said.

The Government also expects $ 4 billion by providing export services and $ 5 billion in remittances from expatriate workers. Accordingly, our trade deficit could be down to $ 2.4 billion.

“We must take action to fill this deficit and increase our foreign exchange reserves. To this end, we have initiated discussions with international financial institutions as well as with our friendly countries regarding repayment of our loan instalments,” the President said.

He said the Government is in discussions with various parties to implement a new method which will be beneficial to the country.

“Yesterday’s discussion with the International Monetary Fund was also held for this purpose. Through those discussions, we hope to find a way to pay off our annual loan instalments, sovereign bonds, and so on. Subsequent to my discussions with the International Monetary Fund, I have decided to work with them after examining the advantages and disadvantages,” he added.

The President said he is well aware of the difficulties people are facing due to the economic situation and said he accepts responsibility for the actions he has taken and will take in the future.

“I am determined to make tough decisions to find solutions to the inconveniences that the people are experiencing. I have appointed a National Economic Council and an Advisory Committee to assist it. I will constantly monitor whether the decisions I make through this are implemented,” he said.

He called on the people to have faith in him and that he would never betray the trust of the people.