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Country to face dire economic consequences; UNP


31 May 2012 09:44 am - 20     - {{hitsCtrl.values.hits}}


The UNP yesterday charged that the country would face dire economic consequences if it went ahead with another IMF loan of US$500 million as a security arrangement which the government had requested for recently.

UNP MP Eran Wickremaratne said this in response to a statement by International Monetary Cooperation Senior Minister Sarath Amunugama who said on Wednesday that the government would begin negotiations for another IMF loan.

He said that the government would have to beg on its knees and hope that it would receive a loan of US$500 million from the IMF for if not the economy would fall apart.

Wickremaratne said that the country’s budget deficit was widening further, the Balance of Payments was on the decline and that the devaluation of the rupee showed that the economy would face more setbacks.

He said that countries such as Spain, Portugal and Greece did not do IMF transactions as they had their own economic policy. However the government had made Sri Lanka heavily dependant on the IMF partnership.

“It is not surprising that the government is requesting for another loan. The government’s policy is very much IMF driven. The Central Bank always paints a pretty picture but the reality is that the situation in the country is further deteriorating,” Wickremaratne said. (By Olindhi Jayasundere)

  Comments - 20

  • sarath Thursday, 31 May 2012 03:58 PM


    dellbell Sunday, 03 June 2012 07:46 AM

    Without wasting the time,resign whole opposition members from the parliament to show the real mother of Sri Lanka..and call the people to the street...

    prasanna Friday, 01 June 2012 12:40 PM

    cannot talk about talking sri lankan economy alone. the economies of the whole world inter connected. Indian rupee is also rapidly depreciating against the dollar.
    Sri Lanka is good enough to manage the economy at this level.

    Undertaker Friday, 01 June 2012 10:18 AM

    Sarath.. When UNP took over from 2001 the economy was minus, the dollar was 110 & when people took loan's from a bank the insterest payment was in double figures. What they did during the 2 years was brining the dollar down to 96, interest payment for loans to a single digit & bring economy to a plus mark. Sarath hope you understand what they did during the 2 years when they were in power...

    Sri Minnal Friday, 01 June 2012 06:54 AM

    If there is a genuine peace is installed the Tamils in overseas will invest substantial money in Srilanka. But the President prefers borrowing from IMF is better solution than resolving the issue. Genuine peace is much better solution. By the way reduce the jumboo cabinet and tamashas and that will reduce the state expenses.

    ABDUL Friday, 01 June 2012 05:53 AM

    exactly your write ranjith.

    Ranjith Thursday, 31 May 2012 07:45 PM

    For thirty years politicians sold the war deceiving people of an economic prosperity after the war. Now the war is over and the GOSL still deceive people with fake development and economic figures, while looting country's wealth and making people today and the future to suffer eternally. GOSL vandalizing the country and it's economy, chased the educated and honest and real patriots out of the country and now looting it's remaining wealth. Someone has to stop this soon before it becomes another Somalia.

    Observer Thursday, 31 May 2012 07:08 PM

    According to the CIA Fact book, Sri Lanka's public debt is 80-90% of its GDP. Highest in the region. This regime got attracted to easy loan money and now cannot do without it as servicing the loans alone eats into the GDP. Its like 'holding the Tiger by the tail'. LTTE Tiger is gone but the economic Tiger is getting bigger by the day!

    politically illitera Thursday, 31 May 2012 07:01 PM

    what about the cost of new ministers in waiting? Please do not deprive them of this opportunity as they have served well by the count of the prefences voting in eletion.

    Peoples Thursday, 31 May 2012 04:11 PM

    Common people are either not bothered about the awaiting economic meltdown or they are scared to talk about it.

    Sue Thursday, 31 May 2012 10:57 AM

    So, why arn't you people doing anything about it? You live in your A/C rooms and fight among yourself and don't care a damn about the suffering people. Your leader and the whole opposition is bloody useless. Take some action or stop talking or better still resign en mass and let the people take over from there.

    P.L.J.B.Palipana Thursday, 31 May 2012 01:13 PM

    The Government is creating a General Economic Crisis. Thanks Eran.

    Navin Thursday, 31 May 2012 01:12 PM

    Angela Merkel made a comment recently that anybody can understand: "Its just about not spending more than you can collect."

    ANTON Thursday, 31 May 2012 12:59 PM

    Srilanka economy on the verge of collapse. Just imagine the heavy expenses of our ministers , local government, provincial councils, parliament and their deputies including film stars, musicians, cricketers, monks.....GOSL will have to face the music soon.

    Ajith Thursday, 31 May 2012 12:31 PM

    Very True..But how many people are going to understand this?

    Kondeybendapucheena Thursday, 31 May 2012 12:19 PM

    debits and more debits and to cover that more debits and more and more debits,why this kolavari

    Calistus Jayatilleke Thursday, 31 May 2012 12:10 PM

    The loud-mouthed jokers who talked about "unplugging" the World Bank, IMF etc. have to now eat their own words and fix the plug permanently to one of their own anatomy. This government, by the time it finishes its term, would have pawned the entire country for a number of generations to come after enjoying all the super luxuries for them and their families.

    tarzan Thursday, 31 May 2012 11:22 AM

    like UNP faces today

    sizzler Thursday, 31 May 2012 11:15 AM

    Sack RW everything will be alright

    Ranger Thursday, 31 May 2012 10:58 AM

    Who in this present Government cares. They won't be around when payment time comes, that's for sure >

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