78th session of the UNGA – Economic and Financial Committee
(Second Committee)

General Debate Theme: “Building a Sustainable Recovery for All”

Statement of Sri Lanka delivered by Ambassador Mohan Peiris,
Permanent Representative of Sri Lanka to the UN

Chairperson
Excellencies
Distinguished delegates

Chair,

Allow me the opportunity to congratulate you and the other members of the Bureau on your election, and express confidence in your able stewardship of the work of the second committee.

Sri Lanka also expresses thanks for the role of the outgoing Bureau led by Ambassador Lachezara Stoeva, during the 77th session of the UNGA, which included navigating intense negotiations on many vital topics of the sustainable development agenda.

We also thank Prof Jayati Ghosh for a very thought-provoking keynote speech at the opening of the Committee yesterday.

Chair,

Sri Lanka aligns itself with the statement made by Cuba on behalf of the G77 and China. In fact, the central point of this statement echoes the question posed by the President of Sri Lanka at the High level Dialogue on Financing for Development convened on 20 September, querying - “While we have heard words of solidarity, when will we witness solidarity translated into action?”.

At this Dialogue, President Wickremesinghe drew specific attention to the predicament of the Middle-income countries in times of financial distress – particularly due to the lack of a common framework and procedures. It is necessary indeed to develop a comprehensive plan to address the financial difficulties of MICs, which had been neglected, until the crises were compounded and multiple countries faced near collapse.

Chair,

“Building back better and broader” has become both more urgent and more feasible. The goal is to recover rapidly and achieve strong long-term growth that’s ecologically sustainable and economically and socially inclusive and resilient. The Sustainable Development Goals (SDGs) and the Paris Agreement provide, embody values and principles for the future. At a time of growing international division and threats to the global order, these themes can and should unify. The new path does not mean trading prosperity for abstract principles. The perception that the current generation would be asked to somehow pay for its sins has burdened the discussion and weighed down the psychology of change. Defining a new course will enable more comprehensive use of all assets (human, natural, physical, social) within planetary and societal boundaries. Today’s inequality and market failures mean that capacity, talent and potential resources are wasted, while others are consumed in unsustainable excess. Sustainability, rooted in new technologies and practices, is driving a new industrial revolution.

To “build back better” we need a broad-based recovery that leaves no one behind. We need to build a more resilient, inclusive society. And we need to make our economy grow quickly and sustainably.

Chair,

Against this backdrop, Sri Lanka has been moderately successful, thankfully, in re- graduation in its recovery trajectory, since its debt default last year. This has been a difficult period for the country, with its most vulnerable segments of society as well as the middle-income sector bearing the brunt of the crisis. This year, Sri Lanka’s economic situation has significantly improved compared to a year ago. Inflation, which stood at 70% then, has now decreased substantially to 1.3%, providing a substantial boost to our country’s economy. With the on-going economic development, Sri Lanka has laid out a sustainable economic growth roadmap for the upcoming year.

The government’s economic reform efforts are currently under evaluation by the IMF. The negotiations to secure the second tranche of funding from the International Monetary Fund (IMF) are progressing positively. The local debt optimization program is nearing its completion and discussions regarding foreign loans are already in progress with all creditors. Sri Lanka appreciates the willingness of partner countries to support the foreign debt optimization program.

However, the many developing countries burdened with substantial debt highlight the inadequacy of existing mechanisms like the IMF to address this new situation. Sri Lanka’s recent experiences have cemented its position on the need for reform of the international financial architecture that better reflects today’s global realities and provides effective representation for nations in need.

Chair,

Sri Lanka re-iterates the calls for debt forgiveness/ write-offs for low-income countries. While acknowledging concerns of the creditors, a focused approach on this proposal is required for immediate relief. As President Wickremesinghe noted – “If we don’t provide that relief immediately, we can write off all the other proposals we have made”.

Chair,

Sri Lanka supports the Secretary General’s accelerated climate action agenda, based on concrete achievable climate action. Sri Lanka has adopted a dual approach to mitigate the imminent loss of Sri Lanka’s GDP due to climate related issues, as warned of by experts. At COP 27 Sri Lanka presented the nation’s strategy for green growth, based on renewable energy generation. It is also part of Sri Lanka’s economic restructuring consequent to the 2022 financial crisis that Sri Lanka faced.

President Wickremesinghe, at the Climate Ambition Summit, also declared Sri Lanka’s intention to support the establishment of a climate justice forum, aimed at fostering international collaboration to address climate related challenges.

Chair,

As the incumbent Chair of the High Level Committee on South-South Cooperation, Sri Lanka is committed to seeking closer implementation of the principles of the Buenos Aires Plan of Action on technical cooperation between the countries of the global south. We view south-south cooperation as vital to development, particularly in this global context; but not as a replacement for north-south cooperation.

Chair,

Sri Lanka echoes the proposals of the G77 statement in the urgent (a) need for reform of the international financial architecture (b) renewed commitments to fulfill ODA targets (c) promotion of a rules-based, inclusive, transparent multilateral trading system (d) eliminating forms of unilateral coercive measures which undermine the principles enshrined in the UN Charter (e) scaling up investment in digital infrastructure and other related aspects to bridge the digital divide – which widens the development divide, and (f) increase the provision and mobilization of climate finance, for adaptation and resilience, particularly loss and damage.

The Programme of Work of the Second Committee, particularly the implementation of solutions to issues identified for discussion – is wide and varied. It also reflects the matters vital in the road to sustainable recovery and development of our countries, including to ‘rescue the SDGs’ from the impact of the polycrises facing the world.

In working towards the action plan as suggested by the G77, it is essential to re-build trust and reignite global solidarity – as the theme of 78th session of the UNGA reflects. These actions should form the basis for a comprehensive policy package that can harness the combined efforts of both the public and private sectors. Action should be coordinated globally, making finance and technology available and accessible to developing countries through international cooperation.

Chair,

My delegation assures you of its full support and collaboration in facilitating the Committee’s work during the upcoming session – working towards the Summit of the Future and setting forth a new development agenda in line with the needs of the world.

Thank you.

Link to the Video : https://youtu.be/oKRE79-aruY