Faced with an unprecedented economic crisis, the Sri Lankan government is considering closing down a few of its diplomatic missions abroad in a bid to save precious foreign exchange. Last year, Colombo had shut down its missions in Abuja, Nigeria, consulates in Frankfurt, Germany, and Nicosia, Cyprus, citing financial difficulties.

“With the current dollar crisis, we are considering whether a country like ours needs 65 missions abroad. If we can do the work of one mission through another, then why not save some money for the country,” State Minister for Regional Cooperation Tharaka Balasuriya was quoted as saying by Daily Mirror. 

In February, the country’s foreign exchange reserves dropped to $2.31 billion, with the authorities struggling to pay for the imports of essentials like fuel, food, and medicine. The  Sri Lanka rupee touched 290 against the US dollar, depreciating by almost 50 percent in this month alone. 

Last week, Foreign Minister G L Peiris reportedly told the media that the government was considering closing down its missions in Iraq, Norway and Australia. 

Debilitating economic conditions have forced the government to adopt extreme measures like rationing fuel and electricity, with people facing planned power cuts as long as 10 hours a day. 

Meanwhile, the government has been seeking external assistance, including bilateral assistance from India, China and funding from the International Monetary Fund (IMF). Since January, New Delhi has offered assistance worth totaling $2.4 billion, including the recent $1 billion lines of credit for the import of essentials and medicine. A separate $500 million line of credit was offered earlier to cover fuel imports. 

Significantly, the IMF on Friday is expected to release its assessment report on the country, a move that came after opposition parties, in a recently held all-party meeting with Sri Lankan President Goatabaya, demanded release of agreements reached with the IMF. 

Adding to the current misery, the country is scheduled to repay almost $7 billion in loans and sovereign bonds maturing this year at a time when import bills are expected to touch an all-time high, roughly $22 billion. 

(SAM)