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| Money and Capital Market and Public Enterprise Reforms State Minister Nivard Cabraal
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The Government can manage the current debt with the resources that are at its disposal as well as implement other plans without the help of the International Monetary Fund (IMF), State Minister of
Money Capital Markets and State Enterprise Reforms Ajith Nivard Cabraal told Parliament yesterday.
“The Opposition says we are in a debt trap. There are many trying to push us towards the IMF; so we are forced to sell our national resources, cut down the public service, depreciate the Rupee and take the Government towards failure — but we will not allow that to happen,” Cabraal said while participating in the debate on the 2020 Appropriation Bill.
He said 2020 has been a difficult and uncertain year, but the Government has overcome these obstacles and put the country on the right track.
“The turnover in the Colombo Stock Exchange (CSE) had increased three-folds during the past few months. Most of the companies in Sri Lanka have been able to stabilise profit levels during the second and third quarters of this year. This is a result of the Government’s policy of granting loan concessions and rescheduling them. Sri Lanka’s foreign remittance has been stable as it stood at 36%.”
Cabraal said the economy will stabilise through fiscal consolidation in the coming months and the year. “We have managed to reduce the budget deficit to 4.3% of GDP, while foreign debt is being reduced from 49.5% to 33%.”
He said the country’s foreign direct investment (FDI) is slated to grow in 2021, especially in the pharmaceutical sector with a company waiting to invest in a 400-acre manufacturing plant.
“We have been talking to many investors and telling them what we plan to do. I have spoken personally with at least 30 investors through Zoom.
“Revival is finally visible, and we will be stepping into 2021 with confidence, trust and with expectation.”
