Opposition Leader demands clarity on IMF agreement and debt restructuring

Opposition Leader 

Sajith Premadasa 

• Calls for transparency on restructuring of international sovereign bonds, next phase in debt optimisation process
• Criticises NPP for implementing same IMF agreement and debt restructuring policies they previously opposed while in opposition
• Demands Govt. table all agreements with the IMF, international sovereign bondholders, and bilateral creditors in Parliament
• Calls agreements that prioritise interests of SL’s citizens over external creditors

Opposition Leader Sajith Premadasa questioned the Government’s approach to the debt restructuring process and its commitment to the mandate received from the people, in Parliament yesterday. 

Premadasa accused the current administration of following the same International Monetary Fund (IMF) agreements established under former President Ranil Wickremesinghe, contrary to the promises made by the ruling National People’s Power (NPP) during their election campaign.

Premadasa underscored that the primary agreement between the Sri Lankan Government and the IMF is debt optimisation, which included domestic debt restructuring in 2023 and bilateral foreign debt restructuring by mid-2024. However, he demanded clarity on the next phase concerning international sovereign bonds. “Is the current Government operating under a new debt sustainability program as promised, or are they continuing with the IMF plan inherited from the previous Government?” he asked.

The Opposition leader reminded Parliament that the NPP had vehemently criticised the IMF program and domestic debt restructuring while in opposition. He cited statements from key NPP figures, including Anura Kumara Dissanayake and Vijitha Herath, who had rejected the IMF agreement as a betrayal of the people. “Is the current Government now contradicting its earlier stance by implementing the very policies it opposed?” Premadasa questioned.

Highlighting economic hardships, Premadasa criticised the Government’s inability to deliver on promises made to reduce electricity bills, fuel prices, and taxes. “The NPP pledged to lower electricity costs and fuel prices by eliminating corruption and fraudulent practices. Yet today, we see no action. Are internal or international forces conspiring against these reductions?” he queried.

Premadasa further noted that the Government had failed to protect the interests of workers and retirees. He accused the administration of reducing fixed interest rates on savings accounts, disadvantaging senior citizens and pensioners. Additionally, he questioned why the promised fertiliser subsidies and compensation for farmers had fallen short.

The speech also drew attention to the IMF’s macro-linked bond program, which ties debt reductions to economic growth. Premadasa argued that while international bondholders benefit as the economy improves, domestic savings funds such as the Employees’ Provident Fund (EPF) face disproportionate cuts. “This formula creates an imbalance, favouring external creditors over the hard-earned savings of the working people,” he said.

Demanding transparency, Premadasa called on the Government to present all agreements with the IMF, international sovereign bondholders, and bilateral creditors in Parliament. He also raised concerns about the country’s reserves, questioning their sufficiency for upcoming debt payments and whether yuan reserves could be effectively exchanged for dollars.

Premadasa urged the Government to honour the mandate given by the people. “You must answer the people’s questions. Do not betray their trust. We need an agreement that benefits Sri Lanka, not one that places further burdens on our citizens,” he stressed.