Debt sustainability a challenge for Sri Lanka: Sagala

By Yohan Perera  

Sri Lanka is to face a challenging situation in maintaining debt sustainability, Sagala Ratnayake, Advisor to former President Ranil Wickremesinghe said.   

Mr. Ratnayake who was speaking during the launch of Young Professionals Association said Sri Lanka would find itself in trouble during the next IMF review if the government fails in maintaining debt sustainability.   

“Government has said it is planning to bridge the budget deficit which is over 6 percent of GDP through foreign financing and local borrowing. This is challenging,” he said.   

Mr. Ratnayake who was a member of the team which conferred with the IMF during the previous regime, said Sri Lanka has had a miraculous recovery from economic setback but remains fragile.” We had a challenging task meeting the parametres set out by IMF. The agreement was not just between Sri Lanka and IMF but it involved a number of other donor countries,” he said.   

Touching on the political front, Mr Ratnayake said talks are going on with Samagi Jana Balawegaya (SJB) and parallelly with other parties to form a common opposition alliance.   

UNP General Secretary Talatha Athukorala who also participated said her party is planning to bring in young blood. We need young people to come in and take over the party, “ she said.   

She said the Young Professional Association could provide UNP with young blood.