Move a resolution in Parliament to raise borrowing limit-Mangala to gvt

8 April 2020 11:17 am - 8     - {{hitsCtrl.values.hits}}

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While claiming that due to legal complications, there may also be delays in drawing down the USD 128 million (Rs. 24.4 billion) soft-loan granted by the World Bank Group for fighting COVID-19, former finance minister Mangala Samaraweera urged the government to immediately move a resolution in Parliament to raise the borrowing limit.

Issuing a statement, Mr. Samaraweera said;

For the period of January 01, 2020 to April 02, 2020, the Government has borrowed           Rs. 650.15 billion through Sri Lanka Development Bonds, a dollar-loan from the China Development Bank and primary auctions of Treasury bills and Treasury bonds. Furthermore, Central Bank holdings of Government securities and other data on Central Bank open-market-operations suggest significant direct monetary financing of the deficit. This will add to the sum of government borrowings.  

The borrowing limit, approved by a resolution of Parliament on 23 October 2019 for the period 1 January 2020 to 30 April 2020, is Rs. 721 billion. Last year, the Treasury issued Rs. 194 billion in bills and bonds between 3 April 2019 and 30 April 2019. Therefore, it is almost certain that a breach of the borrowing limit is imminent. 

Once the borrowing limit is reached, there will be no legal authority under which public debt can be issued. As a result, the government may face insurmountable challenges in raising the funds necessary for managing this crisis. Due to these legal complications, there may also be delays in drawing down the USD 128 million (Rs. 24.4 billion) soft-loan granted by the World Bank for fighting COVID-19. 

Therefore, in light of these urgent and unforeseen requirements arising from the pandemic, I urge the government to immediately move a resolution in Parliament to raise the borrowing limit. I am certain the entire Parliament will support such a resolution that responsibly increases the borrowing limit. 

  Comments - 8

  • Buddhist Wednesday, 08 April 2020 07:09 PM

    Will Gotabaya have the guts to recall the Parliament?

    Sarika perera Wednesday, 08 April 2020 09:32 PM

    Do you have guts stop playing politics and putting your true name?? Vultures posting as Buddhist!!!

    RB Wednesday, 08 April 2020 09:37 PM

    Yes; but not to fall for this political trap. He has enough constitutional powers to manage the situation.

    Prabash Wednesday, 08 April 2020 08:27 PM

    There is NO law to recall a dissolved Parliament except for extending the emergency Laws, if impose by the President.

    Senthil Khana Wednesday, 08 April 2020 09:27 PM

    Dears, During R.mahin govt had received plenty of loan from eastern, wester and european country for theire self using at present R.Godapaya like his bro demanding from like thats countries for election expensive. At present lot of district lockdown by govt there are no desastre situation free food issued facilities, the people have live with hunger, there no money no job not allowed for leave from house. All over the region the armies forces standing alert. specially tamil district have very lockdown. please be releaf and issue for their daily needs. thanks

    Punchi Singho Wednesday, 08 April 2020 09:32 PM

    Mangala - you were part of the government that facilitated the biggest bond scam in history, and then hushed it up. This government does not need your advice. Instead, you should try to find a cleaning job that you might even be able to hold for more than five years.

    CITIZEN Wednesday, 08 April 2020 10:24 PM

    THIS GOVT WILL NOT CONVENE PARLIAMENT AS THEY FEAR LOOSING THE VOTE AND WILL HAVE TO GIVE UP POWER

    Sajith Thursday, 09 April 2020 12:01 AM

    When the Government tried to do exactly this (raise the debt sealing with a new budget in Jan/Feb 2020) the UNP/SJB blocked it. Now preaching otherwise as if they care about the country and this pandemic (their historic actions are proof of what they think of the country).


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