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SL would be bankrupt in September: Patali

28 August 2019 07:04 am - 22     - {{hitsCtrl.values.hits}}


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

  Comments - 22

  • B W L eyart Silva Wednesday, 28 August 2019 07:44 AM

    As a local manufacture ,we propose following activities ,any given government to carry out ,if the depth trap is being released. 1. Prioritizing local products to Government sector products ( this dosen't happen even within the Megapolice due to stupid local consultants.) 2.Over estimation Eg- 600% technical corruption) 3 Very slow tender evaluation and payment schedules due to lack of professionalism of Engineers 3 Custom is utter corrupted 4.Any given Officer dosent have the value on saving foreign reserves 5 Sub optimization Eg-In place where it is necessary of bricks, engineers tend to apply concrete in lieu of bricks, it incurs huge cost and dollars as well. 6. In Homagama , we propose local lightning protection system which has been developed locally unfortunately consultant gave it to foreign vendor , although the all the details were given. 7. Unnecessary wast of money due to over estimation ,lack of professional feasibility studies. Eg- Rajagiriya Bride and ?

    Dallas Wednesday, 28 August 2019 07:52 AM

    Ur government has borrowed far more than MR borrowed in 10 years.He completed major projects mostly beneficial like Norochollai

    Don Wednesday, 28 August 2019 07:57 AM

    Patali, if the country is almost bankrupt instead of blaming the last government which was thrown out 5 years ago take some actions like Stopping all capital projects Minimising wastage of money Getting into Debt refinancing

    Dallas Wednesday, 28 August 2019 07:59 AM

    Yes the country may have some cash flow issues how ever the Balance sheet of SL is far improved after improving GDP from 24B in 2003 to 86B in 2015 plus all the capital projects Get the experts to do some debt refinancing and you should worry abour ur Ministry

    Srilankan Wednesday, 28 August 2019 07:59 AM

    Ofcause if people like you are in the parliament.

    Jude Wednesday, 28 August 2019 08:03 AM

    How'd know the difference!!??? Country is already Bankrupt many years ago!!! Patali, which part of the world you're living in !!?.???

    mnsmart Wednesday, 28 August 2019 08:23 AM

    wasn't it bankrupt long time ago?

    Jayanath Wednesday, 28 August 2019 08:25 AM

    Good job partalee. That’s what you and your government capable of. We knew it before 2015. But many did not know!

    Dhammika Wednesday, 28 August 2019 08:26 AM

    A visionary leader .

    Premalal Perera Wednesday, 28 August 2019 08:37 AM

    Preaching is great but the practice is the issue.

    perera Wednesday, 28 August 2019 08:39 AM

    Miracles of yahapalanaya !

    Manu Wednesday, 28 August 2019 08:51 AM

    This govt. is responsible. The best way to repay the loans is to sell all the assets of all the yalapahana robbers.

    Jayanath Wednesday, 28 August 2019 08:53 AM

    One ambitious presidential candidate....huh huh ha... guys I know him from university. He as a whole is a big fraud.

    FREDERICK DE SILVA Wednesday, 28 August 2019 09:04 AM

    No No No Mr.Minister more borrowing is not the way.You must live within your means, spend less than you earn. By the way Mr Minister what was the govt doing all this time did they not know that the country was heading that way.Imran Khan knows and he has been in office only about 6 months or so other countries have budgets forecasts etc

    Senior Citizen Wednesday, 28 August 2019 09:10 AM

    That must be true sir, please look into the interest rates now as senior citizens are affected. We retired people depend solely on the interest.

    Deen Wednesday, 28 August 2019 09:17 AM

    You are a manured person in every respect. No any doubt about your predictions. I do not think any one will be bothered about these observations including the media. Politicians as well as every citizen of this country is totally occupied with the forthcoming Presidential election.

    Mm Wednesday, 28 August 2019 09:32 AM

    You are the other man who destroyed the areas around waters edge and japan friendship road area by building useless structures that didn’t blend in and was of no use.

    Punchi Banda Wednesday, 28 August 2019 09:47 AM

    Militant Buddhism has deservedly made Sri Lanka a pathetic beggar uncivilised country that is the arse hole to India and needs to send its damsels to service rich Muslim Arab men to survive. It will eventually and deservedly implode and collapse when the powerful civilised countries and India realise that it is a trash deceitful primitive Buddhist country

    Nalin Gooneratne Wednesday, 28 August 2019 12:49 PM

    Control wastage and corruption all problems can be solved.

    roobarbie Wednesday, 28 August 2019 02:01 PM

    Champaka is one reason why SLK is bankrupt. He had been stashing away money in a central american bank with the help of his friend in the power generation and distribution department: money that should have found its way into the Public Treasury. This man is corrupt as hell and he is a really slimey turncoat operating under JHU. He only cares for himself only.

    Parakum Thursday, 29 August 2019 06:01 AM

    Mr Ranawake, please put your house in order, UDA is the most corrupt govt organisation in the country. Also please employ competent personnel who does not make deliberate mistakes to frustrate the applicants who does not OIL THE PALM of your UDA staff.

    Lohan Gamage Friday, 06 September 2019 06:12 AM

    Do not panic my countrymen and women, this news is nothing new. We are Sri Lanka illang Kaa.

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