The country would be bankrupt if the government is unable to repay the borrowings obtained from the International Financial Market in September, Megapolis and Western Development Minister Patali Champika Ranawaka said yesterday.
He expressed these views while addressing the gathering at a ‘Pannaraya’ promotions campaign held in the Nelum Pokuna under the theme of ‘for a country worth living in’.
“If a country obtains loans from the International Financial Market, the repayment must be settled on the due date. Otherwise, the country will be in bankruptcy,”
He said countries like Argentina, Greece and Ireland were bankrupt for not being able to repay borrowings obtained from the International Financial Market on the due date.
“Sri Lanka will experience the same destiny in September as it has to repay borrowings obtained from the International Financial Market. If we become insolvent, the country will undergo a severe economic crisis resulting in bankruptcy,” the Minister added.
He said the procedure of repayment of borrowings to the International Financial Market distinguishes to the procedure in the countries like Japan, China.
“If a country is unable to repay the borrowings obtained from Japan, the date of repayment can be negotiated whereas it is not possible in the context of International Financial Market,”
Meanwhile, he said the country had been gradually dragged into this spiralling cycle of government debt due to the indiscriminate resort made after 2005 to obtain debt at commercial market rates.
“The country needs a major structural transformation in its national economy in order to come out of this grave crisis, and then march towards economic prosperity cashing on the current opportunities in its external environment,” he said.
“One of the key drivers of such economic transformation would be the conducive spatial transformation of our Land. This involves creating urban agglomerations with carefully planned urban spaces, fostering economic growth, livability and environmental sustainability, while optimally locating the major physical infrastructure such as highways, railways and ports, and conserving the environmentally sensitive zones etc”, he added. (Sheain Fernandopulle)
Pix by Waruna Wanniarachchi