Sri Lanka's leader acts to lure investors

COLOMBO－Sri Lankan President Ranil Wickremesinghe has established eight task forces consisting of heads of public and private institutions to improve the country's investment environment.

The task forces will look at all procedures, regulations and actions of government agencies entrusted with promoting business.

They are expected to encourage business startups, reduce obstacles in obtaining construction permits and for registering business properties, while making it easier for businesses to get loans and boost crossborder trade, along with easier processes for paying taxes.

The president's secretary, Saman Ekanayake, said the move marks another effort by the administration to create a favorable environment for investors.

Sri Lanka is facing one of its worst economic crises. A shortage of foreign currency reserves has led to a crunch in the supply of fuel, medicines and food, among other essentials.

With the shortage in foreign currency reserves, imports of a number of food types have been banned.

The United Nations World Food Program, or WFP, said on Thursday that 1.5 million people in Sri Lanka needed emergency food assistance.

In a statement, the WFP said that three out of 10 Sri Lankans faced food insecurity and pregnant and lactating women were the worst affected by the economic crisis.

The UN agency said that nearly 6.3 million people are classified as food insecure and in need of assistance.

The agency also planned to support existing social safety net programs to reach 1 million children through the National School Meals Program, the statement said.

On Thursday, the government agreed to a conditional $2.9 billion bailout with International Monetary Fund negotiators.

In a statement, the IMF said the arrangement will support Sri Lanka's program to restore macroeconomic stability and debt sustainability, while safeguarding financial stability, reducing corruption vulnerabilities and unlocking Sri Lanka's growth potential amid a severe economic crisis.

"Sri Lanka has been facing an acute crisis. Vulnerabilities have grown owing to inadequate external buffers and an unsustainable public debt dynamic," the IMF said.

It added the country's economy is expected to contract by 8.7 percent in 2022 and inflation recently exceeded 60 percent. The impact has been disproportionately borne by the poor and vulnerable.

Wickremesinghe said the agreement marks "an important step in the history of our country".

Xinhua - Agencies