Rs. 100Bn Relief Without New Debt: President Details Economic Safeguards

COLOMBO (News 1st); Sri Lanka President Anura Kumara Dissanayake has announced a Rs. 100 billion relief programme to be implemented over a three-month period, saying the government must prioritise public welfare amid current challenges while maintaining economic stability.

Addressing the issue, the President said the government is committed to providing relief to the people and has allocated an amount that it is capable of sustaining. He said the entire Rs. 100 billion will be mobilised within the existing budget framework, without borrowing new funds or creating new money, emphasising that this approach will ensure there is no increase in money circulation in the country and no additional government debt.

The President warned that if fuel prices continue to rise at the current pace, Sri Lanka could be required to spend an additional USD 1.5 billion on fuel imports between April and December, an amount he said exceeds what the economy can comfortably sustain. He noted that such a development would place pressure on the national currency, making it necessary for the country to be more cautious in fuel consumption.

He said the government’s primary responsibility is to ensure uninterrupted energy and fuel supply, and according to current plans, Sri Lanka is capable of maintaining continuous fuel supplies up to May.

The next priority, he said, is ensuring fuel is supplied at concessionary prices, which forms the basis of the proposals currently in place.

The President added that there are 55 days beyond May available to move further with planning.

At present, the President assured that uninterrupted fuel supply is guaranteed. In this regard, he said he personally spoke with the Government of India and Prime Minister Narendra Modi, who agreed to provide Sri Lanka with specific quantities of diesel and petrol, for which the President expressed his gratitude.

The President also said discussions were held with the President of China, and following recent talks with the Chinese government during a visit to China, it has been concluded that China has agreed to provide Sri Lanka with certain quantities of diesel and petrol as well.

In addition, the President said Sri Lanka is moving toward a strong engagement with Russia. He noted that the Russian Deputy Minister of Energy visited Sri Lanka recently, and that the Russian Deputy Foreign Minister also visited the country last week. Ongoing discussions with Russia cover gas, coal, fuel, and fertiliser, he said.

The President further stated that U.S. President Donald Trump has announced that countries like Sri Lanka are permitted to engage in transactions with Russia between March 11 and April 11. He said it is not yet known whether this window will be extended or end on that date, but confirmed that engagement with the Russian government is continuing.

He added that Sri Lanka’s Minister of Transport visited Russia last week, during which the Deputy Minister of Energy also held discussions.

President Dissanayake said if the current situation worsens further, the government will return to parliament with additional proposals for approval, reaffirming that the Rs. 100 billion relief programme reflects what the state is presently able to bear while ensuring essential supplies and economic stability.