Lankapage Logo Recent Top Stories
CP 14 YEARS
Go Home Home Serving the Sri Lankan community globally since 2000
go to LankaPage.com

Leading News from Sri Lanka::

* Sri Lanka is the latest Breakout Nation in need of life support - opposition MP
Wed, Feb 13, 2013, 11:01 am SL Time, ColomboPage News Desk, Sri Lanka.

Feb 13, Colombo: Sri Lanka's main opposition United National Party (UNP) says the country instead of becoming the Miracle of Asia has turned out to be the Breakout Nation in need of life support.

UNP parliamentarian and Economist Dr. Harsha de Silva says what the country now needs is neither budget support nor balance of payments support, but life support.

Issuing a statement, he has explained that on the one hand, the Treasury is looking for budgetary support and on the other; the Central Bank is refusing balance of payments support.

"President Mahinda Rajapaksa, in his capacity as Minister of Finance, announced with the presentation of the 2013 Budget that there will be no foreign commercial borrowing to bridge the deficit this year. This is because the government has borrowed so much under commercial terms that repayments are beginning to bite. Therefore it is expected that the government would seek the assistance of development partners for budgetary support at concessional terms and also shift the focus to domestic borrowing," Dr. de Silva has noted.

He has pointed out that when Treasury Secretary Dr. P.B. Jayasundera had announced recently that the government is seeking budgetary support from the International Monetary Fund (IMF), he had noted that it was highly unlikely, as the IMF does not have such programs for middle income countries like Sri Lanka.

"We argued that the government could have perhaps negotiated an Extended Fund Facility (EFF) given to countries facing serious medium term balance of payment problems due to structural weaknesses as in the case of Sri Lanka. But such negotiations, we noted, would have certainly included reforms that cannot be postponed and very well understood by the learned Secretary," he has added.

He has further noted, "In times like this, it is in the interest of everyone to accept reality and deal with it instead of attempting to pretend that we are doing so well that we are not only the wonder of Asia, but also the latest Breakout Nation!"



ColomboPage - Recent 10 Stories
UNP vehemently condemns attack on party supporters at election rally
-- [28 minutes ago]
SriLankan Airline's Tokyo schedule changes from end September 2015
-- [1 hour and 26 minutes ago]
Sri Lanka Navy deploys lifesaving teams to assist devotees
-- [4 hours ago]
Sri Lanka national carrier bags three outstanding titles at the SLIM NASCO Awards 2015
-- [4 hours ago]
Sri Lanka has no comment on Channel 4 'leaked' UN report
-- [4 hours ago]
Sri Lanka has taken significant strides to make financial reporting system more transparent - World Bank
-- [5 hours ago]
Construction work of Colombo-Kandy expressway to begin on Monday
-- [5 hours ago]
Ravi Jayawardena to be appointed to lead Sri Lanka Rupavahini after chairman's resignation
-- [6 hours ago]
Woman's body found in a travelling bag at bus stand in Colombo identified
-- [6 hours ago]
Gunmen open fire at Sri Lanka election rally, one killed
-- [7 hours ago]

Copyright © 2000, 2012 by LankaPage.com (LLC) :
The news and other contents on ColomboPage are copyrighted property of LankaPage.com, LLC. Any unauthorized use of any information on ColomboPage may constitute a violation of copyright laws. You need written permission to reproduce, republish, post, transmit, broadcast or distribute, material from this site from LankaPage.com, LLC. However, news organizations or broadcasters in Sri Lanka may republish the news items in ColomboPage with proper acknowledgment to ColomboPage.