SL could face USD 9B external funding gap

By Nabiya Vaffoor | Published: 2:00 AM Oct 16 2020

By Nabiya Vaffoor

Sri Lanka could face a US$ 9 billion external funding gap during the next 12 months according to a Morgan Stanley Financial Service Company report, said Member of Parliament Dr. Harsha De Silva.  

 “The report by Morgan Stanley is assuming a scenario where Sri Lanka is unable to pay its international debts, what are the benefits the investors will be expecting as a ‘Tale Risk Scenario’. Though there is only a five per cent chance of facing such a situation, this is the first time something like this has happened,” he added. Speaking further in this regard Dr. De Silva said this has tarnished the fidelity of the country in front of the world.

“They further claim that they might have to stop paying interest of international bonds of our country for 18 months and the due dates of these credits will be postponed for five years if our country has to face such a situation. Though Morgan Stanley does envisage that the above will occur for sure, it the situation in which we now find ourselves as a nation. This report comes hot on the heels of the Moody's downgrade in ratings and cannot have come at a worse time for the country,” he added.

De Silva expressed these views, yesterday (15) addressing a press briefing held at the Samagi Jana Balawegaya (SJB) headquarters.

By Nabiya Vaffoor | Published: 2:00 AM Oct 16 2020

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