The drastic depreciation of the Sri Lankan rupee against the US Dollar has increased the country’s national debt amount by Rs.1,000 billion since 2015, the Joint Opposition (JO) said today.
Addressing a news briefing, MP Bandula Gunawardane said Prime Minister Ranil Wickremesinghe continues to mislead the people by saying that the former government was responsible for current colossal amount of debts.
“I challenge the Prime Minister to prove his claim. The debt amount has increased because of deprecation of the rupee which is a result of the government’s fiscal mismanagement. The national debt amount has increased by Rs.285 billion in 2015, Rs.187 billion in 2016 and Rs.225 billion in 2017 due to depreciation of the rupee. When all this is added on to the increased debt amount this year, the total increase in the debt amount will be close to Rs.1,000 billion. The Premier can issue a statement if these facts are false,” he said.
He said the amount of all loans obtained to construct the Hambantota Port, the Mattala Airport, the Lotus Tower and the Akuregoda Defence Headquarters Complex was only Rs.300 billion.
In order to prevent the rupee from hitting 200 against the US Dollar, he said President Sirisena should immediately suspend the New Trade Policy of the Government.
“This New Trade Policy is the epitome of the liberal economic principles of the government. If this was suspended, at least the pace of depreciation of the rupee will slow down. During the Rajapaksa government, depreciation of the rupee was 2% per annum and under the current government it is 6% per annum,” he said. (Lahiru Pothmulla)
Video by RM
Comments - 17
Unchikun Tuesday, 18 September 2018 07:58 PM
This is true if all the foreign loans are paid by rupees. That is not the case. Part of the foreign loans will be paid from the foreign currency our poor ladies earn (in the hill and the Middle East). Hey man, as I keep alway repeating, the joker is no economist. No wander we produce unproductive arts and commerce graduates .
Amith Waduge Wednesday, 19 September 2018 11:04 AM
I could not agree with you more. Doctor Bandula's knowledge on economy is good enough to provide tuition for AL students. Nothing beyond. He is very happy over LKR depreciation. Doctor Bandula Emerging Market and Frontier Market currencies are under tremendous pressure against the strong USD. It all started in Turkey and later on spilled over to other EM and frontier markets due to speculation by investors. what is happening with LKR is also the same. Exporters are holding on to USD expecting further depreciation. If you are a responsible citizen of the country, you should not add more fuel into fire.
Bala Wednesday, 19 September 2018 04:58 PM
Fishing in troubled waters with twisted half truths. The US$ has appreciated 14.5% since Jan 2018 alone to date. Every country is badly hit. India paid InRs 63/$ in Jan 18 and nine months later today is InRs 73.25. Bandula is a JOker.
surath Tuesday, 18 September 2018 08:53 PM
This is catastrophic situation. No solution from current regime.
Be Fair Tuesday, 18 September 2018 09:31 PM
Wonder who took the loans in the 1st Place. Ane hitang Bandula
Dhammika Tuesday, 18 September 2018 09:36 PM
If all famalies live a month with Rs.2500 as this man BG said the saved money will be taken to pay this debt burden IF THE JOkers WERE IN POWER with BG AS FINANCE MINISTER .
Sincere Tuesday, 18 September 2018 09:39 PM
No worry. As you said we are still surviving with Rs. 2500 a month. You are a genius!
Ghost Wednesday, 19 September 2018 08:06 AM
....we are happy to say!!!
dulan Wednesday, 19 September 2018 08:22 AM
He is really cool and easy with numbers ? Bond scam trillions, family needs 2500 etc etc
Greenback Wednesday, 19 September 2018 08:35 AM
In a nut shell this government does not have any clue for this serious issue. forex technical analysis predicts LKR depreciation will continue up to 175.884 in a short period of time
sujith Wednesday, 19 September 2018 08:35 AM
@Be Fair•Debt to GDP ratio: 71% (down from 91% in 2005)•Total Debt - Rs. 7,391 billion; of which, External Debt - Rs. 3,113 billion: Domestic Debt – Rs. 4,278 billion External Debt to GDP: 30.0% (down from 39.0% in 2005) Domestic Debt to GDP: 41.3% (down from 51.6% in 2005) •Average time to Maturity of Domestic Debt: 5 years and 8 months (up from 2 years and 5 months, in 2005) •Total Chinese Debt, mainly Project-related: $ 4.5 billionPercentage of Chinese Debt out of Total Debt: 8%•Total International Sovereign Bonds outstanding: $ 5.5 billionPercentage of ISBs, (mainly held by US and Western Investors) out of Total Debt: 10%•Interest cost was Rs. 443 billion or 4.2% of GDP.
sujith Wednesday, 19 September 2018 08:36 AM
Current situation by this govt actions, who’re creating robust economy for future growth.• now Chinese debt has increased to 8 billion (77% increase) more loans in the pipeline.•International sovereign bonds mainly held with US and western countries is about $11.6 billion(more than $3.6 billion more than Chinese debt). *To all the people who say we’re in Chinese debt trap please conveyor this information to them. We have more debt in international sovereign bonds than Chinese bonds.* International sovereign bonds interest is much higher than Chinese loans also.•Debt to GDP ratio has shot up to 87% from 71% in 2014.•Interest Cost has jumped to 820 billion, nearly doubling our interest cost within 3 n 1/2 years.
fareed Wednesday, 19 September 2018 11:08 AM
Loans or borrowing is not an issue, the issue is how you utilize it.
Lumbini Wednesday, 19 September 2018 08:59 AM
I cannot understand how the New Trade Policy was suspended, the pace of depreciation of the rupee would slow down. Will it stop US dollar appreciating? This man is talking rubbish.
fareed Wednesday, 19 September 2018 11:05 AM
You don't have to be a rocket scientist to understand this,China and US and US and Japan has the same problem when the currency moves up and down.
VJ Wednesday, 19 September 2018 11:29 AM
The US dollar is gaining strength, the currencies of several countries have fallen including India. The Tuition master is trying to mislead the people.
Freddy Yong Wednesday, 19 September 2018 12:12 PM
Enter - the whiz kid of economics and world economy of the Jokers Organization.
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