The United National Party has expressed it’s dismay at the announcement by the Government that they would be defaulting on all external debt repayments.
Sri Lanka has had an unblemished record since independence of honouring our debt repayment. Even at difficult times we as a nation have tightened our belts and made the payments. However, the mismanagement of the Government has resulted in the current economic crisis. The suspension of all external servicing will also bring undue pressure upon the banks who have obtained foreign loans to facilitate Letters of Credit as well as those who hold International Sovereign Bonds (ISBs).
Since 2020 in the UNP manifesto it was recommended that the assistance of the International Monetary Fund be sought to help restructure our financial obligations. The delay by the authorities to act on this advice has resulted in the crisis that is unfolding. Had the calls made by the UNP and others been heeded this default could have been avoided.
Parliament, under article 148 of the Constitution, has control of public finance. The Government must present a full explanation to the House of what led to this situation when Parliament meets on the 19th of April.
The UNP will also be calling for the establishment of a Parliament Select Committee. They will be tasked with inquiring into the decision to devalue the currency prior to securing the IMF funding, as well as the Government’s decision to delay the restructuring of the country’s debt which has led to this default.
Central Media Unit
United National Party
12th April 2022
