US to support SL in efforts to manage debt, stabilize economy

Alaina Teplitz, US Ambassador in Sri Lanka.

The United States was ready to support Sri Lanka it is efforts to manage debt and stabilize the economy, US Ambassador to Colombo, Alaina Teplitz said as the Indian Ocean island is running out of reserves amid unprecedented money printing after cutting taxes.

“Yes, the United States would support the government in managing its debt and finding a more sustainable path forward,” Ambassador Teplitz told reporters in Colombo in an online discussion.

“And we would be happy to have those conversations. We have already indicated that we would like to see more economic stability and in the country and that we would want t support that,” the Ambassador said.

The US is Sri Lanka’s top buyer of exports and the country’s export apparel industry was born due to the trade liberalization measures undertaken by then President Ronald Reagan and continued and by President Bill Clinton.

Under his Fed chief Paul Volcker, US tightened monetary policy with no help from the IMF and lowered inflation worldwide ending monetary instability that dated back to the late 1960s sending gold and oil prices sky high.

“Let me say at the outset that our trade policy rests firmly on the foundation of free and open markets – free trade,” President Ronald Reagan told a meeting of business leaders and trade officials in September 23, 1985.

“I, like you, recognize the inescapable conclusion that all of history has taught: The freer the flow of world trade, the stronger the tides for human progress and peace among nations,” he also said.

‘Reaganomics’ and the US leadership in trade liberalization not only made goods cheaper in the US but helped lift millions out of poverty in Asia, especially in countries which had good central banks or had reformed central bank to maintain strong exchange rates.

America also helped Sri Lanka develop its stock in a US Aid program. America also helped Sri Lanka develop a petroleum exploration law and market oil blocks in Texas.