Mujibur Rahman on Covid-19 foreign financing: Right on amount, wrong on use

11 June 2020 12:01 am - 5     - {{hitsCtrl.values.hits}}



This fact check interprets the former MP’s statement as referring to the commitment of expendable financing—which is not limited to grants. To evaluate this statement FactCheck reviewed press reports of financing arrangements Sri Lanka has entered into with foreign entities. As of 28 April 2020, LKR 203.4 billion was reported in terms of such arrangements (Exhibit 1).

However, not all of these arrangements can be classified as expendable financing in the manner referred to by the MP. The financing arrangements are made up of: 

1. Grants (LKR 5.4 billion): Expendable for Covid-19 control activities.
2. Loans (LKR 121.0 billion, including a line of credit): Expendable for Covid-19 control activities. 
3. Currency swap (USD 400 million): Not expendable for Covid-19 control activities and makes no change to the Sri Lankan Government’s cash position or its ability to spend money for the control of Covid-19. This currency swap with India was merely an equivalent exchange of LKR for USD. The USD cannot be spent, and the exchange is reversed at the end of the agreed period. 

Consequently, only LKR 126.4 billion (or 62.1%) of the financing arrangements committed by foreign entities is expendable on activities to control Covid-19. Hence, while the former MP is right on the total amount of financing arrangements, he is mistaken in considering the currency swap with India as expendable financing. 
Therefore, we classify his statement as PARTLY TRUE.

*FactCheck’s verdict is based on the most recent information that is publicly accessible. As with every fact check, if new information becomes available, FactCheck will revisit the assessment.



FactCheck is a platform run by Verité Research. 
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  Comments - 5

  • Udhaya Jayampathy Thursday, 11 June 2020 06:36 PM

    Verité Research, please do not fool the people as if there had been massive foreign grants fallen on the laps of the Government due to Covid 19. Absent are the valuable PCR and PPD Kits donated to Sri Lanka by China. Other grants are shamefully negligible. NGOs often receive bigger donations from the same. Do not make a small minded politician look good with your biased conflated analytics combining paltry grants with big loans, the line of credit and the currency swap.

    Punchi banda Friday, 12 June 2020 07:53 PM

    Already it is widely known that atheist powerful China trapped stupid Buddhist primitive uncivilised yakka Sri Lanka into borrowing money to finance hambantota port by falsely saying that there will be 30,000 port calls be year when in reality there was only 37 last year and thus taking over the port. Now what is Sri Lanka proposing to sell to China for the new loans that they will not be able to pay, Sri Lankan women to wife shortage china

    GHarry Saturday, 13 June 2020 11:33 PM

    Mujuburrahman, a corrupt politicians who help his master ROBBED the country.

    Sambo Friday, 26 June 2020 09:08 AM

    What happened to all the donations that arrived by ship as per R.A

    SEYED SHERALI Sunday, 28 June 2020 10:00 AM

    Most Mps including Mujibur Rahman do not know the basics of economy. It is important that they are given regular coaching by the professionals to acquaint themselves with the economic basics. And most of them also need to be evaluated for the IQ. The other day Marikkar was blasting the President and his brother on the basis of their age. He assumes that the elderly people cannot run the country.....What a foolish statement wherein the party leader Sajith did not even express his apology for the statements made by Marikkar. He forgot that J.R.Jayawardena, Mahatir Mohammed, Nelson Mandela, Sir Razeek Fareed all did their best when they are old.....His IQ too like that of Mujibur Rahman very low. These guys cannot even make two sentences in English properly but boast themselves as the 'All knowing'. The Muslim community should totally reject such idiots and vote for people with IQ

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