Debt-stricken Sri Lanka marked its 77th independence anniversary with a military parade, while the country’s newly elected president, Anura Kumara Dissanayake, pledged to heal Sri Lanka’s economic woes by the end of his five-year term.
Sri Lanka, which gained independence from Britain in 1948, suffered its worst economic crisis in 2022, forcing the island nation to declare bankruptcy.
Sri Lankan traditional dancers perform during the country’s Independence Day ceremony (Eranga Jayawardena/AP)
It also suspended repayments on some 83 billion dollars (£66 billion) in domestic and foreign loans amid a foreign exchange crisis that led to a severe shortage of food, medicine, fuel and cooking gas, and hours-long power cuts.
The economic crisis caused political upheaval and finally paved the way for Mr Dissanayake’s party to win power four months ago.
Sri Lankan President Anura Kumara Dissanayake has pledged to rebuild the country (Eranga Jayawardena/AP)
On Tuesday, Mr Dissanayake said he would improve the living standards of all Sri Lankans during his tenure, giving them opportunities to enjoy modern scientific and technological innovations.
Addressing a ceremony in the capital, Colombo, he urged Sri Lankans to work together to win economic, social and cultural freedom, saying, “Everyone has a role to play in this struggle.”
Members of the Sri Lanka’s police special task force march during the country’s Independence Day ceremony (Eranga Jayawardena/AP)
A military parade followed his speech.
Under his leadership, Sri Lanka is trying to emerge from bankruptcy by restructuring its staggering debt.
Sri Lankans dressed as ancient soldiers carry their national flags during the country’s Independence Day (Eranga Jayawardena/AP)
When Sri Lanka declared bankruptcy, it sought the help of the International Monetary Fund, which approved a four-year 2.9 billion dollar (£2.3 billion) bailout package in 2023, under which Sri Lanka was required to restructure its debt.
In September, Sri Lanka announced it had concluded the debt restructuring process after reaching agreements with bilateral and multilateral creditors and private bondholders.
A military parade followed a speech from President Anura Kumara Dissanayake (Eranga Jayawardena)
Sri Lanka is seeking to obtain 17 billion dollars (£13.6 billion) in debt service relief.
Sri Lanka’s crisis was largely the result of economic mismanagement combined with the fallout from the Covid-19 pandemic, along with 2019 terrorist attacks that devastated its important tourism industry.
The pandemic also disrupted the flow of remittances from Sri Lankans working abroad.