Country on the verge of bankruptcy – UNP Chair

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UNP Chairman Vajira Abeywardena yesterday (24) claimed that Moody’s Investor Services (MIS) downgraded Sri Lanka’s sovereign credit rating, due to the Government’s decision to suspend the payment of foreign debt. As a result, the country has been thrust into a perilous situation.

UNP Leader Ranil Wickremesinghe has a plan and a programme to rebuild the bankrupt country and ensure a prosperous life for the citizens of this country by resolving all burning economic crises, he said.

While speaking to the Media at the UNP office in Galle, Abeywardena lamented the state of Sri Lanka today.

For example, MIS downgraded Sri Lanka’s sovereign credit rating, which is the worst situation the country has ever been in. The payment of international bonds was due on 18 April. The country is in this tragic situation as a result of the suspension of payment on these bonds, he said.

Due to the prevailing shortage of foreign reserves, the growth of balance of payment deficit, skyrocketing price of essential commodities and fuel and due to the low level direct foreign investors in the tourism industry, the MIS pointed out that the loss to private sector borrowers due to debt repayment was high. No Government which was in power beginning from 1983 upto now had gone bankrupt in this way. Due to mismanagement of the present Government such a tragic situation has arisen in the country, the UNP Chairman noted. The Finance Minister went to the IMF to get help. Without paying attention to IMF proposals, merely participating in discussions will not provide any solution to the burning economic crisis of this country. Especially, if, according to their observations, a member country fails to meet adequate performance criteria. Structured measurements and scores and target indicators do not require such removal and their purpose is to monitor the progress of the overall programme, he said.

The situation is somehow, the report, which was kept secret by the Government for some time when the IMF released a report on Sri Lanka and was publicised by Wickremesinghe following a request made by President recently, Abeywardena added.

BY Naalir Jamaldeen