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Last Updated : 2024-04-29 22:32:00
7 December 2023 09:48 am - 8 - {{hitsCtrl.values.hits}}
MP Dissanayake claimed that debt had increased to unprecedented levels during Ranil Wickremesinghe’s tenure as prime minister (PM) from 2015 to 2019. In support of his argument, the MP cited that between 2015 and 2020, debt had increased by LKR 6.5 trillion to LKR 15 trillion (a 76.5% increase). To verify these claims, FactCheck.lk consulted the 2022 CBSL Annual Report. FactCheck.lk understands, from his numbers and calculations, that he is referring to central government debt and not total public sector debt (where the increase would be a little smaller).
The MP’s main argument is that there was an unprecedented increase in debt during Wickremesinghe’s five-year tenure as PM. This is incorrect and misleading for three reasons.
First, the MP makes a mistake in the years considered and thereby gets the wrong numbers. The numbers he has used are from end-2015 to the end-2020; whereas end-2014 to end-2019 is the relevant period for when Wickremesinghe was PM. The increase in that period was LKR 5.5 trillion to a total of LKR 13 trillion.
Second, there is a distinction between ‘net new debt taken’ and the increase in the LKR value of existing foreign currency debt due to currency depreciation. What the MP presents as net new debt taken, mistakenly conflates these two things.
A publication by Verité Research shows that the increase in just the ‘net new debt taken’ from 2014 to 2019 was 42.8%. The result is about the same for central government debt as well.
The 76.5% increase claimed by the MP is incorrect because (1) it considers the incorrect years, and (2) it includes not just net new debt but the revaluation of existing debt due to rupee depreciation.
Third, even the increase in the LKR value of debt from 2014 to 2019 (calculated on corrected years), with the rupee depreciation impact conflated (as the MP does), does not support the MP’s claim. That increase was 74.1% but it is not an exceptional increase as claimed by the MP. In fact, it is one of the lowest rates of increase in the LKR value of debt in a five-year period since 1950 (see Exhibit 1).
The MP’s statement is incorrect on three counts: the period considered, the valuation of net new debt taken, and the framing of the rate of increase from 2014-2019 in the LKR value of debt as being extraordinarily high.
Therefore, we classify the MP’s statement as FALSE.
*FactCheck.lk’s verdict is based on the most recent information that is publicly accessible. As with every fact check, if new information becomes available, FactCheck.lk will revisit the assessment.
FactCheck is a platform run by Verité Research.
For comments, suggestions and feedback, please visit www.factcheck.lk.
A citizen Monday, 11 December 2023 08:27 PM
AKD and JVP stating false facts... well that doesn't surprise anyone. That's how they have always functioned
Mohomed Monday, 18 December 2023 08:33 AM
This is the duty of a responsible media. Good work. No comments to challenge these stats means FactCheck.lk is correct.
citizen Friday, 05 January 2024 05:55 AM
People are not worried about figures and AkD may have made a mistake but fact remains that how the government of Ranil conduct himself as a president ( appointed by 131 rouges)of this bankrupt country.
citizen Saturday, 06 January 2024 05:26 AM
compared to others in the competition for presidency, AKD stands tall when comparing the conduct as ministers of these three candidates namely AKD,Sajith and Ranil
Kool Kat Wednesday, 24 January 2024 09:34 PM
AKD
Ganesh Tuesday, 30 January 2024 05:36 PM
Here's a question to AKD and his saviour party, when Gota offered the leadership of the country why didn't you guys take it? The NPP bandwagon, will for sure drive this country off the cliff.
last cjance Thursday, 01 February 2024 04:47 AM
Ganesh, Gotha didn't offer the leader ship of the country, he offered the premier ship of the country under the leadership of Gotha. No mam with little bit of intelligence would accept to be under gotha since he has no powers. AKD is not a full to accept such a position.
PARTIES MUST STATE THEIR AGENDA'S PUBLICLY Thursday, 08 February 2024 12:47 PM
GOTA OFFERED IT TO OTHERS PRIOR TO RANIL, BUT THEY DIDN'T ACCEPT PROBABLY NOT WANTING TO BE CONTROLLED IN ANY WAY BY GOTA, AS PEOPLE HAVE CLAIMED THAT RANIL IS OPERATING IN FAVOUR OF GOTA AND HIS PARTY AND SO IT ENDED UP IN RANILS LAP. OUTWARDLY IT APPEARS SO, BUT WHO KNOWS RANIL MAY HAVE HIS OWN AGENDA IF AND WHEN HE AND HIS PARTY IS VOTED IN BY THE POEPLE AND THAT IS ANY ONE'S GUESS. WE MAY EVEN SEE MORE BREAKAWAYS, PARTIES JOINING UP AND THE LIKES TO BOND TOGETHER. TIME WILL TELL. MAIN FOCUS FROM THOSE PARTIES CONTESTING IS TO SET OUT THEIR AGENDA'S PUBLICLY TO THE PEOPLE, SO THE CITIZENS KNOW WHAT TO EXPECT. OBVIOUSLY, THE PEOPLE WANT OUR ECONOMY TO GROW, BUT THEY ALSO WANT TO SEE ALL THOSE RESPONSIBLE FOR BRINGING THE COUNTRY DOWN AND PROFITING FROM IT, BROUGHT BEFORE A COURT OF LAW AND DUE PUNISTMENT METERED OUT TO THEM AND THEIR STOOGES. HEALTH SERVICES IMPROVED JOBS CREATED COST OF LIVING BROUGHT DOWN CORRUPTION WIPED OUT HUMAN RIGHTS AND THE LIKES.
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