Government is in a sinister move to deny the bankrupt status which the country is facing, UNP Deputy Leader Ruwan Wijewardene said yesterday.
Mr. Wijewardene who was speaking to party activists over zoom, said bankruptcy will result in a fuel and power shortages after January 2022.
“Fitch Ratings have named Sri Lanka as a nation which faces bankruptcy. this is because the country’s foreign reserves are down to dollars 1.5 billion.
Sri Lanka has to settle a loan of dollars 500 million by January 18 2022. There will be no funds to import fuel and medicines. there will be no funds to settle debts when this expenditure is met. This is what the rating agencies are talking about. No one will lend to a country that cannot repay.
However, the government is trying to deny this situation,” Mr. Wijewardene said.
“One cannot blame the COVID 19 pandemic situation for the diminishing of foreign reserves. this is because everything began with the government’s decision to reduce taxes. The reason for the foreign reserve crisis is bad financial management. Also, it is sad to note the absence of a finance minister when the country is plunged into a crisis with the exchange rate issue, gas and fertilizer crises.
Courtesy: Daily Mirror
