Previous government hid debts of at least Rs. 1.36 trillion – PM
Sri Lanka’s previous government hid debts of at least 1.36 trillion rupees on the books of some state and semi-government institutions, aggravating the debt crisis, Prime Minister Ranil Wickremesinghe said on Wednesday.
He said the global economic downturn was also making it more difficult for Sri Lanka to boost state finances.
The International Monetary Fund, which approved a $1.5 billion, three-year loan in May, said a durable reduction of the fiscal deficit and public debt through a growth-friendly emphasis on revenue generation should be a priority for the nation’s fiscal policy.
Total debt stood at 8.77 trillion rupees ($60.29 billion) as of March 31, the latest central bank data showed.
The prime minister told parliament: “We still don’t know the exact total debt number.” He said it would only become clear after a three-member committee reported following an investigation. It was not immediately clear when that would be.
The previous government of Mahinda Rajapaksa, in office for nine years until January 2015, borrowed heavily on commercial terms to fund infrastructure projects after a 26-year war ended in 2009.
Total government debt rose more than three-fold to 7.39 trillion rupees under Rajapaksa’s government, central bank data showed.
Rajapaksa has rejected the allegation that he hid debts and said his government borrowed money to develop the country.
The central bank estimates government debt will fall to 74 percent of gross domestic product this year from last year’s 76 percent.
Wickremesinghe said the government had to increase revenue, streamline taxes and create jobs through foreign investment, Reuters reports
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Oh no this cannot be right. May be a printing mistake. How can a country that got best universities producing top class graduates working in develop countries like cleaners for about 60 years until they get a job in their field get in to this much of debts.?
Ah ! Now I understand how these so called executives (junior clerks) have top quality cars like BMW and Mercedes .
You cannot get some thing for nothing. If you do that some how you have to pay for it dearly.
The medicine is to nationalize all assets of stolen money and add it to the poor mans budget
Hey Ranjith, Enough with your remarks about the Graduates and the universities. It is getting a bit boring and you sound like an old f__ng record. If you have a grievance with the universities then take it up with them or get some counseling. Too much of hatred is not good for you. IT will eat you up and drive you nuts if you are still not.
It is boring when the truth come out Fernando.
my math is limited to spending what little i can control and doe not go beyond 1000s. the other day i drew rs 2000 and after 2 days iam reduced to 1000 and i cannot figure out as to where it went and Rani talks of 1.36 trillion. IMF itself is in a fix having bailed out most of Europe and the USA amounting to a few trillions. they had to scrape the bucket to release the 1.5 billion pledge and over 3 years.
IMF administrates are a crazy bunch probably they have the likes of Ravi and Arjuna to run their operations. Private banks are not so for they have a responsibility to its share holders and depositors so it is unlikely that they would ever consider lending to bankruptcy. name those who lent these trillions and at what rates. The interests must amount to billions and Ravi continues to lobby for more and what is the collateral he can offer
pie in the sky Mr prime minister
O No Zama. Mr Prime Minister’s pie is with Akila and the boys brigade.