Cabraal denies President’s claim of unaccounted debt

Saturday, 27 January 2018 00:00 - - {{hitsCtrl.values.hits}}

Former Central Bank Governor NIvard Cabraal who was in office under President Mahinda Rajapaksa regime, yesterday denied incumbent Maithripala Sirisena's allegations.

"Sri Lanka has diligently and faithfully recorded all foreign borrowings in accordance with our laws and regulations as well the terms of issue, during the time of the previous government," Cabraal told Reuters.

Serving as Central Bank Governor between 2006 and 2015 and a close ally of former leader Rajapaksa, Cabraal said the president may have made "this irresponsible statement to sling mud at the previous regime".

Reuters report said two officials at the Finance Ministry who spoke to Reuters on condition of anonymity said Sirisena's statement on the foreign loan was wrong.

Under the previous government from 2004-2015 led by Mahinda Rajapaksa, Sri Lanka borrowed Rs. 5.17 trillion of total loans including Rs. 2.16 trillion ($14.06 billion) of foreign loan.

"Sirisena's office did not respond when asked if the numbers were correct. However, it confirmed that the president stated the numbers. He made the comments to a group of local editors, Reuters reported.