Prez and PM walking two different paths as SL faces economic crisis – UNP


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With the country allegedly on the verge of an economic crisis, what with massive loan repayments due this year in a climate of uncertainty, President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa have embarked on different administrative paths, the main opposition United National Party (UNP) said.

UNP MP Hesha Withanage told reporters today that, with the government clearly split into two opposing camps resulting in severe economic mismanagement, the country has been put in an unenviable position where it can no longer apply for loans.

This is against a backdrop of a large loan repayment installment due January 31, he said.

Sri Lanka’s external debt repayments are USD 4.8 billion for 2020, and payments for the first half of the year is already financed, according to Central Bank Deputy Governor Nandalal Weersinghe, who told EconomyNext in December 2019 that the government would have to raise a “certain amount of commercial financing” to furnish the repayments.

The UNP MP accused the government of not having a concrete plan in place for managing the situation, adding that apart from the debt and interest repayments, the government is also subjected to risk payments as lenders are not satisfied with the economic situation of the country.

The Samurdhi welfare and social protection scheme is in danger of being discontinued as a result of this situation in about three to four months, the MP warned, along with reductions in state sector salaries.

MP Withanage also accused the government of incurring a loss of Rs 538 billion from the recent VAT reduction and other concessions that, according to him, was a politically motivated move to “get back at the UNP”.

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5 Comments

  1. Fortune did favour a few during the last two governments. Management of the countries finances and institutions were highly questionable. The joke was to appoint a long dragging commissions of inquiry to finally be put onto the shelf to gather dust. The present President is displaying a rare determination in a politician to clean up not only the stables but to in place disciplines that would give the dedicated, honest, credible and truthful section of society to make their contribution towards a civilized and disciplined nation, And that would take time , but would bring this nation to a admirable stature recognized worldwide. All this convoluted putrefactive issues have reduced our country to a level where not only the Central Bank Robbery taking an unbelievable delay to justice and has given the opinion that any junk can be dumped on us, and be forgotten.

  2. Tell us whether you have passed O/L before talking about the Economy! Any fart of UNP will talk of things that they really do not understand starting from opposition leader down to MP peons. That is the tragedy of UNP.

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