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“Current govt. forced to borrow heavily to repay previous debts”

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Senior Professor Wasantha Athukorala of the Department of Economics and Statistics at the University of Peradeniya revealed that the previous government had borrowed approximately Rs. 800 billion per month from the domestic market without any repayment plan. The current Government is compelled to borrow to repay these loans, he added.

Professor Athukorala emphasised that the current Government is paying off a significant amount of debt accumulated through Treasury Bills and Bonds by previous administrations. The Government will have to borrow to repay Rs. 4,859 billion in Treasury Bills and Bonds maturing over the next year.

Responding to allegations of large-scale borrowing by the current Government since assuming office, Professor Athukorala stated that the majority of the funds the Government is borrowing now is to settle previous loans. The former governments had no concrete plans to repay these loans, which forced the current Government to continue borrowing to meet these obligations.

Highlighting the scale of previous borrowings, he said that around US$ 12 billion of the US$ 17 billion borrowed through International Sovereign Bonds was taken between 2015 and 2019. This accounts for nearly 70 percent of the total foreign borrowings during that period. With Sri Lanka’s credit rating downgraded by agencies like Fitch, the country has lost the ability to borrow from foreign markets.

He also noted that even though foreign loans have decreased, Sri Lanka is still borrowing from bilateral and multilateral institutions. Even if foreign loans are restructured, the country will eventually have to repay them. Domestically, the government raises funds through Treasury Bills and Bonds every week to meet its financial needs.

Looking ahead, the Government will need to repay Rs. 3,774 billion in Treasury Bills from November this year to November next year. Additionally, Rs. 13,237 billion in Treasury Bonds must be settled by March 2045, and Rs. 1,125 billion in Bonds will mature next year. In total, Rs. 4,859 billion will mature between this November and the next.

These loans, borrowed from local banks and financial institutions, cannot be avoided. Failure to repay them could plunge the banking system into crisis. Therefore, the Government will continue to borrow from the market every week to meet the maturing debt obligations.

While previous governments borrowed to repay loans without any long-term plan to reduce the debt burden, the current Government needs a strategy to address this ongoing debt. Each month, the Government borrows approximately Rs. 400 billion to meet debt repayments. From January to August of this year, the Government borrowed about Rs. 800 billion per month from the domestic market, compared to last year.

Professor Athukorala stressed the importance of establishing a plan to reduce borrowing gradually. Over the next five years, the Government should aim to reduce monthly domestic borrowings to around Rs. 200 to 250 billion to ensure sustainable debt management. Such a plan would help avoid future debt crises. He also observed that while previous governments often wasted borrowed money, there are signs that wasteful spending is decreasing under the current administration, which is a positive development.

(Daily News)

(Except for the headline, this story, originally published by Daily News has not been edited by SLM staff)

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Police come out in full force for Lankan contestant Anudi at Miss World

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The Sri Lanka Police have mobilised support for Anudi Gunasekara, daughter of SSP Hemantha Gunsasekara, as she competes in the 72nd Miss World pageant. A congratulatory message was officially shared this week, recognising her as Sri Lanka’s representative at the international event.  

A circular issued by the Acting Inspector General of Police (IGP) Priyantha Weerasooriya was shared with Senior DIGs, DIGs, commanding officers, directors, OICs, and headquarters inspectors across the country. The directive outlined the importance of supporting Anudi through social media engagement.

The document emphasised that online popularity plays a role in the selection process. It included instructions for downloading the Miss World mobile app, voting for the candidate, and increasing her online presence by liking, commenting, and following her pages.

Police Media Spokesman SSP Buddika Manathunga defended the initiative, describing it as a matter of national pride. “Her representation brings honour to the country,” he said, noting that public funds were not used and drawing parallels with past promotional efforts for Sri Lanka Cricket.

Anudi among 20 finalists

Anudi Gunasekara, Sri Lanka’s representative at the 72nd Miss World pageant, has advanced to the 20 finalists of the Head to Head Challenge. She has also secured a place among the Top 5 finalists from Asia.

The final competition of the Miss World Festival will be held next Saturday, on May 31 at the HITEX Convention Center in Hyderabad, Telangana.

The public have been invited to vote for contestants via the “Miss World” app which can be downloaded via Google Play Store or Apple App Store.

(sundaytimes.lk)

(This story, originally published by sundaytimes.lk has not been edited by SLM staff)

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CIABOC unearths cash-for-favors racket at Motor Traffic Dept

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A Bribery Commission raid at the Motor Traffic Department on Friday resulted in the detection of Rs. 4.1 million in cash in the office of a deputy commissioner, believed to be bundled for distribution among selected staff later in the day as part of collections from private parties during the week.

Investigators from the Commission to Investigate Allegations of Bribery or Corruption (CIABOC) had found the cash packed in packets and

ready for distribution when they raided the premises armed with a search warrant.

Further investigations have found that the cash amounted to bribes collected from people who had visited the different divisions of the DMT from Monday to Friday of that week, sources added.

Bribery Commission officials who visited the DMT with the search warrant had come upon the cash stacked in a cupboard in the office room of one of the deputy commissioners.

The key to the cupboard, however, had been in the hands of an office assistant, who was unable to provide a satisfactory explanation of why he had the key to a cupboard with so much money in his possession.

CIABOC officials had arrested the deputy commissioner, a management assistant and the office assistant once they uncovered that the cash had been collected to be distributed among DMT employees on Friday.

The three suspects, identified as Deputy Commissioner Dilantha Nuwan Kumara, Pradeep Nishantha and D. Samantha Perera, were produced before Colombo Chief Magistrate Thanuja Lakmali Jayatunga and remanded till June 6.

(sundaytimes.lk)

(Except for the headline, this story, originally published by sundaytimes.lk has not been edited by SLM staff)

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Legendary actress Malani Fonseka passes away

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Veteran Actress Malini Fonseka, widely revered as the “Queen of Sri Lankan Cinema,” passed away this morning (May 24) at the age of 78 while receiving treatment at a private hospital in Colombo.

Born on April 30, 1947, in Kelaniya as Wanni Arachchige Malani Senehelatha Fonseka, she later rose to fame in Sri Lankan cinema under the name Malani Fonseka.

Fonseka began her acting career on stage in 1963 and made her cinematic debut in 1968 with the film Punchi Baba.

She won the Most Popular Actress award in 1973 and has received numerous accolades, including the President’s Award, Sarasavi Award, OCIC Award, and Sumathi Award, with several honors for Best Actress.

Plays such as Nidhanaya, Bambaru Awitha, Wekande Walawwa, Aradhana, and Ammawarune are regarded as outstanding works that showcased the acting talents of Malani Fonseka.

Beyond her artistic achievements, she entered politics in 2010 and served as a National List Member of Parliament until 2015.

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