November 24, 2022

Ceylon Chamber calls for urgent action from Sri Lanka’s Government to avoid a disorderly default

1 min read

Expressing serious concerns on the continuous deterioration in the fuel and electricity availability in the country, hampering daily operations of businesses and activities of the general public, the Ceylon Chamber of Commerce called for urgent action from the Government to avert a disorderly default.

While welcoming the steps taken in the correct direction such as going to the IMF for assistance, the Chamber urges that the process of
appointing financial and legal advisors is commenced with a sense of urgency as this will halt any future principal and interest payments of debt and allow the reserves available to meet the immediate needs of the people. This will help in the process of avoiding a disorderly default.

The Chamber believes there is a need to maintain a sufficient stock of fuel to balance both transport and power generation needs. Further, the public and the business community require clear and transparent communications on the availability of power along with the scheduled power cut arrangements being announced with adequate notice.

Prolonged power cuts have caused serious issues to business
continuity. CCC is also of the view that the need of the hour is to address the forex shortage urgently by fast tracking the process of debt restructuring and regaining access to dollar financing sources.

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The Chamber also calls on businesses and public at large to conserve the use of fuel and power at this crucial juncture. More people should use car pooling and reduce the use of power wherever possible.

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