May 08, 2022

No money to pay State sector salaries - Sabry tells Cabinet Featured

Finance minister - Ali Sabry has informed the Cabinet that the country is nearing the maximum credit limit obtainable in the prevailing situation.

Speaking during the sudden Cabinet briefing held last Friday (06), the Finance Minister has pointed out to the cabinet that the government can borrow only Rs. 2.9 trillion and that the limit should be increased to Rs.04 trillion.

He has also stated that if the credit limit is not increased, there will be no money in the coffers to pay the salaries of public servants from next month.

However, increasing the credit limit would require parliament approval, something that the government is unable to at the present, the minister had noted.

SL facing a rupee shortage as well - Ranil
Meanwhile, former Prime Minister Ranil Wickremesinghe has claimed that Sri Lanka's foreign reserves have declined to less than US $25 million.

Speaking to young professionals at UNP headquarters Sirikotha, Mr. Wickremesinghe said the government has lost Rs. 800 billion in revenue and is now facing a rupee shortage as well.
"We are now unable to pay back our debt. So we must first enact a debt repayment structure", he stated.

Mr. Wickremesinghe added that the Government must cut unnecessary expenditure and provide whatever relief that is possible to the masses.

"Local banks were facing the possibility of collapse due to the outstanding loans taken by the Government. These issues can be resolved within a year or two at the most," he has added.

Wickremesinghe explained that a system change would require a new approach to education. He said the youth must be assisted financially to pursue these new educational avenues.