Former Prime Minister, Ranil Wickremesinghe, in a statement to the media, called upon the government to refrain from allowing the upcoming debt servicing to impact the lifestyle of the people of Sri Lanka.
Speaking further, Wickremesinghe explained that in the past several years debt servicing has been ongoing, but it has been done without any restrictions imposed on the goods and services in the country.
From now until 2023, Sri Lanka has debt servicing of up to US $10 billion. This year alone Sri Lanka has to pay US $3 billion in debt, and on a single day in October the country has to pay US $1 billion.
Wickremesinghe questioned the government as to where they will raise the necessary foreign exchange and whether or not they will be banning imports to finance these debts.
Highlighting that the price of goods was increasing and the government was unable to provide the public with the financial relief promised, Wickremesinghe urged the government to present their plan of action for economic recovery.
Drawing attention to the recent reports from international media organisation that several countries, including Argentina, have defaulted on their debt repayments. Wickremesinghe further explained that these reports have highlighted Sri Lanka as the only country outside of Latin America that is in danger of defaulting on their debt repayment.
Explaining that Fitch Ratings has already downgraded Sri Lanka, Wickremesinghe went on to state that Moody and Morgan Stanley are also in danger of downgrading the country’s credit rating.
He went on to say that according to The Economist magazine, Sri Lanka’s economy is considered the most stressed economy in South-Asia.
Wickremesinghe urged the government to address these urgent financial concerns in the country, and present to the public the plans they have for fiscal policy and for revenue policy.
He concluded by urging the government to allow the true facts of the current situation come out, and allow the public to know what remedy the government will pursue.
Meanwhile Prime Minister Mahinda Rajapaksa says the coronavirus pandemic has left all Sri Lankans with only one option – building Sri Lanka. He says the choice is stark – pull together or perish.
In a statement yesterday the Prime Minister said that in this new global environment, even the option of going overseas in search of greener pastures will be very limited because all countries will be facing economic hardship and mass unemployment.
“On 16 November 2019, President Gotabhaya Rajapaksa inherited an economy that was in shambles. It was in such a context that the entire world was engulfed by the Covid-19 pandemic. A worldwide economic crisis reminiscent of the 1930s Great Depression is widely expected to follow the Covid-19 pandemic. In this new global environment, even the option of going overseas in search of greener pastures will be very limited because all countries will be facing economic hardship and mass unemployment. The Covid-19 pandemic has left all Sri Lankans with only one option – building Sri Lanka. The choice is stark – pull together or perish,” he said.
PM Rajapaksa said that in the difficult times that lie ahead, Sri Lanka’s economic survival and the futures of Sri Lanka’s children, depend on the vision, ability and skill of those running the country.
He recalled that German Chancellor Angela Merkel recently stated that COVID-19 had hit Germany at a time when the economy was doing well and they had the strength to face the crisis.
“The situation in Sri Lanka was the exact opposite. We should all be mindful of this reality and make our choices and decisions accordingly. Everyone knows what would have happened if the yahapalana cabal had been in power when the COVID-19 pandemic hit Sri Lanka,” he said.
The Prime Minister said that the team that is now running the country from the President downwards, won a war that was deemed unwinnable, and presided over the greatest economic boom since independence despite impossible odds between 2006 and 2014.
He says that is the kind of leadership needed to steer the country forward in the post-COVID-19 world.