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Sri Lanka defaults on USD 6 billion payment despite rising reserves: Patali

8 April 2024 12:09 pm - 28     - {{hitsCtrl.values.hits}}

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Colombo, April 8 (Daily Mirror) - United Republican Front (URF) leader Patali Champika Ranawaka said Sri Lanka defaulted on a payment of USD 6 billion starting from April 2022 when the country announced bankruptcy.

He said this was the reality though the Central Bank data show the increase of foreign reserves to USD 5 billion.

"While CBSL data shows Sri Lanka's foreign reserves reaching USD 5 billion, it is imperative to understand that from April 2022, the sum of defaulted debt is approximately USD 6 billion. The sum of loans obtained since the default from the World Bank, ADB, and IMF is USD 3 billion," he posted on X.


  Comments - 28

  • Indika Monday, 08 April 2024 12:21 PM

    What a clown! Doesn't he know that debt restructuring talks are underway? Why does he think the debt repayments would commence before those talks a finalised. Just shows his shallow understanding of the subject matter.

    Mahila Monday, 08 April 2024 05:17 PM

    "DOESN'T HE KNOW THAT DEBT RESTRUCTURING TALKS ARE UNDERWAY?" He is well aware as are all other Parliamentarians!? In the case of Patali CR he is presently mesmerised by the thoughts of the Presidential Election 2024 (PE-2024), and the Vistas of Available Opportunity if elected as the Next EP in October 2024!!?? Too much to carry and Humungous and such confusion makes him forget!!?? Please Pardon him and grant small mercies and enable him to have a successful PE-2024, once he succeeds being a “Gentleman-to-the-Marrow” would thank you for your advice!?

    Zak Tuesday, 09 April 2024 08:33 AM

    Talking about idiots. Go look at yourself Indika. The pint he is making is at the time of default we had $1.5b Chinese swap. So now the reserves are $5m ($5-$1.5) $3.5b increase. Loans taken during bankruptcy is $3b. So $3 loans $1.5b Chinese swap = $4.5b. So his point is even without paying any loans we have only managed to save $500m over 24 months. Hope your understand now

    A Monday, 08 April 2024 12:22 PM

    Your are acting like typical Polical joker...targeting the gallery.

    C J Wednesday, 10 April 2024 07:07 AM

    Successive govt for past 25 years was fooling people. Attention is drawn for PMD this monday a report that govt paid loans of 2.0B and what we now.know is it's paid after borrow $3.0B

    Pxx Monday, 08 April 2024 12:58 PM

    Champika what's on your agenda? Are you aware that Sri Lanka is restructuring defaulted payments? It seems Champika isn't disclosing all the information truthfully. How can we suggest what Sri Lanka should do to increase foreign reserves from $250M to $5B in such a short time?

    ANNECUNT Monday, 08 April 2024 01:03 PM

    $ 2000 was paid for the sale of hazradous wate to Sri-lanka

    Gunadasa Monday, 08 April 2024 01:54 PM

    Patali trying to score cheap political points with meaningless statements! Everyone knows that all the debts still have to be fully paid back to the lenders. If not those WB, IMF and ADB loans country's financial status would have further gone down and no one would even sell fuel, food and medicine etc. to the bankrupt country.

    Freddy Flintstone Monday, 08 April 2024 02:19 PM

    And now please explain to me why the SL Rupee is becoming stronger against all currencies? What a joke. The FX prices are manipulated by the central Bank- by order of the government. Everybody is just lying.

    Saliya Monday, 08 April 2024 02:36 PM

    If the Central Bank didn't purchase the dollars the exchange rate would have come down further too fast, creating other issues. The gradual strengthening will minimise shocks and undesired outcomes.

    Citizen Silva Monday, 08 April 2024 02:21 PM

    Atleast he understands the reality of the situation.

    Take New Loans to Pay Previous Loans with interest Monday, 08 April 2024 02:33 PM

    Don’t worry, these past and current governments have a formula to repay them. Take newer loans, increase some taxes here and there and pay up the older loans plus interest. After all, around 17 IMF loans besides those from ADB, China and few others have been and still being taken. This cycle has been going on for many moons and you were part of the previous government who didn’t bother to cut expenses. So stop complaining and enjoy the ride. By the way, those who need to know how bad the Debt situation is, watch the Program on Spore’s news channel (CNA) on Debt Bomb - The Real Debt Trap. It’s on Google.

    Anil Fernando Monday, 08 April 2024 02:36 PM

    What an idiot. Does he expect us to reduce our Reserves to Zero. Without the Chinese swap we have only 3.5 billion.

    Sam Silva Monday, 08 April 2024 07:32 PM

    Yes. This guy is incompetent as well as no idea about economics but just making statements just like others.

    Dinesh Monday, 08 April 2024 02:51 PM

    Foolish comments. If you repay then the dollar rate would go up as we would be short of dollars. Then this same clown will complain that the COL is going up

    Jayantha Monday, 08 April 2024 03:24 PM

    Lol. He should be jailed for making false statements and misleading the public. A guy who did not have the backbone to solve the accident he had faced sometime back and made fake statements now talks about economy. Lol

    Freddy Flintsone Monday, 08 April 2024 03:32 PM

    to Saliya: Sorry, thats wrong. You and everybody seem not to know, that the SL rupee can not be bought and sold anywhere on the planet, there is no place at all execpt the CB of SRI Lanka. So there is no market. If the CB sells USD, it must buy SL rupee to have a move in the market. So they buy SL rupees from themselves and that brings up the rupee? What a joke to believe something like this. As there is no market, it can not go up or down, the FX rate is only made up by the CB by order of the government. With more then USD 90 Billion in debt and keep on getting more debts, the SL rupee has to loose - but it does not, it goes up. Do you understand? Everybody is fooled, especially foreigners bringing in FOREX.

    nobody Monday, 08 April 2024 06:08 PM

    Can you please enlighten everyone on your solution to the problem? SL has lot of 'Pandiths' like you.. all talk no solution.. as per your logic SL (for that matter any country with small economy) is fooling the world...ha ha ha..

    Saliya Monday, 08 April 2024 07:26 PM

    Yes, had the "excess" dollars not have been bought or "mopped up" by the Central Bank, the supply and demand would have dictated that the exchange rate would strengthen even further. It is the reverse of what happened during the dollar crisis. It would certainly not have been healthy to have a sudden appreciation. To respond to your inquiry, yes I understand the interplay and intricacies of the forex market having been in a relevant industry for in excess of 40 years. With regards to debt repayment, that is why a long term program (like that being supervised by the IMF) needs to be put in place to ensure a sustainable policy regime is pursued so that the fundamentals are not compromised.

    Buddhist Monday, 08 April 2024 03:39 PM

    Champika, don't you know that Ranil and Rajapaksas need this money to give Santhosams during the election campaign to win votes?

    Sunil Monday, 08 April 2024 03:56 PM

    Just because he has a Twitter account posting nonsense to keep himself relevant. Do you have a better solution other than criticizing

    R antjony Monday, 08 April 2024 04:43 PM

    Minister iis a vanker.

    Shera Monday, 08 April 2024 04:49 PM

    That was in 2022. Kind of late to the party, aren't we?

    Unplug Nations Untrust Monday, 08 April 2024 05:40 PM

    How much is the interest and other taxes? But it seems not like micro finance. Nations untrust bud still coming after people.

    Voter Monday, 08 April 2024 06:55 PM

    Relax Patali, this has nothing to do with you anymore. Let the people who govern today and in future manage it. You did nothing while SL was driven into this mess. So. Its time you retire.

    What point is he trying to make, or what does he mean Monday, 08 April 2024 08:03 PM

    Maybe Patali is trying to relay different point, but the way I read it, CBSL had 5 billion, and they had 6 billion due, so didn't have enough money. Anyway, it was current loon who runs the CBSL who did the deed. He lately asked for outragoues pay rise for him, and the hoi poli here actually support for head of CBSL to get 70% pay rise, while lower level staff get much smaller percentage. Sri Lanka can never be successful country while the local hoi poli does the idiotic to support the outrageous.

    Mandayan Tuesday, 09 April 2024 06:44 AM

    Who says the the truth? Govt announced that $2billion has been settled and he says this?

    Don seithan Wednesday, 10 April 2024 04:23 PM

    According to the statement of Central bank,it is said that they have a foreign reserve of 5.0 $$ billion.But as far as my knowledge is concerned, when S.L government asked for. a haircut from China,which means a curtailment of the total debts they refused . it Instead , they promised to give another loan to pay the instalment. After all from the total foreign debt osf $ 84 .0 billions to foreign debtors, we owe 52% to china So anyone doesn't know who tells the truth and tells lies.


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