Lankapage Logo CP 22 YEARS
Go Home Home Serving the Sri Lankan community globally since 2000
go to

Leading News from Sri Lanka::

* There is only an economic solution, not a political solution, to overcome the current crisis – Bandula Gunawardena
Wed, Nov 15, 2023, 11:29 pm SL Time, ColomboPage News Desk, Sri Lanka.

Nov 15, Colombo: Minister of Transport, Highways and Mass Media, Mr. Bandula Gunawardena emphasized that addressing the prevailing crisis of the country requires an exclusive focus on economic solutions, highlighting the inadequacy of political measures in this context.

The Minister further highlighted that once the International Monetary Fund issues the second loan instalment, it will pave the way for the resumption of all stalled development projects.

Minister of Transport, Highways and Mass Media, Mr. Bandula Gunawardena, conveyed this information during his participation in a Media briefing held at the Presidential Media Centre (PMC) today (15), under the theme ‘Collective path to a stable country’.

Minister Gunawardena, in his extended remarks, characterized this year’s budget, presented by President Ranil Wickremesinghe, as historic, radical and revolutionary.

He highlighted its significance as the first budget unveiled following the official declaration of the country’s bankruptcy last year.

The Minister underscored that the state budget’s current account deficit and the international balance of payments’ current account deficit were pivotal factors leading to the country’s financial crisis. He further revealed that the failure to meet International Monetary Fund criteria during the respective periods as a contributing factor to the current crisis.

To navigate the country out of the current crisis, a strategic approach involves focusing on four key aspects. Firstly, there is an imperative to enhance government revenue. Secondly, it is essential to curtail both recurrent and capital expenditures of the government. The third element involves boosting foreign exchange inflows while concurrently minimizing foreign exchange outflows. Lastly, the goal is to establish a current account surplus in the balance of payments. The budget presented by the President for the year 2024 is aligned with these crucial objectives.

Moreover, the existing national debt stands at approximately US $ 36 billion. Notably, only 37% of this debt is slated for payment within the next 5 to 6 years, with 51% of the loan amount scheduled for repayment between 6 and 20 years. The remaining 12% is earmarked for settlement after the 20-year mark. It’s crucial to acknowledge that irrespective of the governing party, the country is obligated to service this debt until the year 2048. Failure to meet these financial commitments would result in a governing party’s ability to administer the government for only a two-week duration.

Avoiding loans from global entities and defaulting on payments poses a critical challenge, as the current international system relies on this financial mechanism. In addition, refusal of other nations to accept letters of credit issued by Sri Lanka would hinder the importation of vital commodities such as petroleum, gas, medicines and essential food items. Consequently, political solutions prove ineffective in addressing this predicament; instead, the imperative lies in implementing an economic solution to navigate through these challenges.

President Ranil Wickremesinghe assumed responsibility amid financial management challenges. A resolution was achieved through debt restructuring, involving consultations with leaders from creditor states, including India, China and Japan. Following the budget, the International Monetary Fund is expected to issue the second loan tranche. Successful refinancing of the debt would provide ample resources to execute all the proposals outlined in the budget. Subsequently, the revival of all stalled development projects becomes feasible.

It is crucial for everyone to bear in mind that the anticipated increase in government employees’ salaries, as per the budget, is contingent upon the tax revenues collected by the government from the public.


ColomboPage - Recent 10 Stories ::
SOC directs local government officials to provide the necessary services with equal consideration to the public
-- [4 hours ago]
Bulgarian President seeks increased bilateral trade and tourism flows and multifaceted cooperation with Sri Lanka
-- [5 hours ago]
COYLE’s Leadership Forum themed “People, Planet, Paradise” powered by Nations Trust Bank achieves resounding success in relaying Youth Entrepreneurship
-- [5 hours ago]
JAT Holdings PLC reports topline growth amidst Export Growth of 130%
-- [5 hours ago]
Four Sri Lankans stranded in Gaza safely arrived in Sri Lanka
-- [5 hours ago]
President to present three special proposals to the UN climate change conference in Dubai
-- [5 hours ago]
New Sports and Irrigation Ministers appointed
PM, Italian envoy hold discussions on a direct air and nautical route between Italy and Sri Lanka.
Water Ministry unveils plans for sustainable water management and tariff reform
Saudi Arabia keen to strengthen economic ties with Sri Lanka in Garment and Tourism Sectors

Copyright © 2000, 2020 by (LLC) :
The news and other contents on ColomboPage are copyrighted property of, 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, LLC. However, news organizations or broadcasters in Sri Lanka may republish the news items in ColomboPage with proper acknowledgment to ColomboPage.