Good governance has opened up credit lines to SL from previously unfriendly nations – Ravi K

Saturday, 21 May 2016 00:55 - - {{hitsCtrl.values.hits}}

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By Ashwin Hemmathagama – Our Lobby Correspondent

The combined efforts of Prime Minister Ranil Wickremesinghe and President Maithripala Sirisena have opened up credit lines to Sri Lanka from countries that had previously been unfriendly to Sri Lanka, Minister of Finance Ravi Karunanayake told Parliament yesterday.

Opening the second reading debate of the Asian Infrastructure Investment Bank Agreement (Ratification) Bill, Karunanayake said the good governance and rule of law established in the country has won the hearts and minds of the international community, which has in return helped the country to regain its lost credibility and status. “As a result of the leadership of Prime Minister Ranil Wickremesinghe and President Maithripala Sirisena, countries which were not lending to Sri Lanka before have come forward to assist us financially,” he said.

According to the Minister, the United States has offered Sri Lanka US$3.5 billion this week. “During the previous government, loans were taken at 7-8% commercial rates. This shows the foreign policy we had during the Rajapaksa regime. The financial assistance we received from the United States carries a rate of 0.05%. This saves a lot of money for the country in debt servicing,” said Karunanayake.

Based on good relations maintained with the United States and the prudent repayment, Sri Lanka is now looking to borrow US$1 billion in the days to come. “Borrowing at lower rates, we were able to save tax payers’ money at large and pass the benefit to the country. Receiving assistance from countries including the United States, we are confident to continue development plans and bridge the gap for urgent capital requirements,” he added.

Moving forward, the Government has discontinued all facilities taken at commercial rates.