Question to the Foreign, Commonwealth & Development Office:

To ask the Secretary of State for Foreign, Commonwealth and Development Affairs, what recent assessment she has made of the economic situation in Sri Lanka.

Sri Lanka is experiencing a severe economic crisis. Shortages of hard currency, caused by a debt crisis, have led to shortages of imported necessities including medicines, cooking gas, fuel and food. The economy contracted by 1.6% in Q2 of 2022 and annual inflation jumped to an all-time high of 54.6% in June. The UK welcomes ongoing discussions between Sri Lanka and the International Monetary Fund (IMF) on a bailout package and the reforms needed to bring the economy back to a sustainable path. We urge the government to engage fully and deeply with the IMF, to build confidence in a stronger future for Sri Lanka and drive reform, growth and development for Sri Lanka's people.

The UK has a significant voice in international debt fora. We are working closely with fellow Paris Club members and multilateral organisations, including the World Bank, on solutions to Sri Lanka's debt crisis. We are also supporting the UN and its agencies in their coordinated response based on the UN's joint Humanitarian Needs and Priorities (HNP) Plan, launched on 9 June. This called for $47.2 million to provide life-saving assistance to 1.7 million people who are most at risk and need immediate support.