DDR a pandora’s box says Prof. Charitha Herath

Wednesday, 28 June 2023 00:43 - - {{hitsCtrl.values.hits}}

Says process by which Govt. intends to restructure domestic debt remains unclear
Claims its effects therefore cannot be predicted but the Macroeconomy will mostly likely be affected
Accuses Govt. of taking country towards another political and economic crisis
Stresses DDR will not affect people’s savings in banks

FPC member MP

Prof. Charitha Herath

Freedom People’s Congress (FPC) member MP Prof. Charitha Herath yesterday expressed concerns about the Government’s efforts to restructure domestic debt, likening it to opening Pandora’s box.

The MP said the Government is silent on the manner in which the debt will be restructured leaving concerned parties in the dark. “No one is saying anything. The President is abroad and the Ministers are keeping mum,” he said.

“It will be similar to opening a Pandora’s box. We cannot predict what this will lead to,” he noted.

The MP said despite the denials of those linked to the Government, restructuring domestic debt will most likely affect the country’s Macroeconomy and its current structure. “Interest rates may rise and the Government may have to curtail Recurrent Expenditures. The EPF and other similar funds may also be negatively affected,” he warned.

Herath accused the Government of taking the country towards yet another political and economic crisis through its actions. He noted that despite keeping silent, the Government has created a tense atmosphere by declaring a five-day holiday. “It has signified that something major is afoot,” he said. He also noted that the postponement of the cabinet meeting and the parliamentary business committee meeting has also added to the confusion.

The MP said while the restructuring of domestic debt is a duty of the executive, it is now attempting to gain the participation of the parliament for the process by getting the proposal passed in the house. “The executive is attempting to get the SLPP MP group to raise their hands for the proposal. At a time when the exact process of debt restructuring remains unclear, we ask them to refrain from voting yes,” Herath said.

However, the MP also noted that the process will not affect the personal funds of the general public. The MP said as a responsible party, they do not wish to engage in fear-mongering for political gain. “Savings of people will not be affected. The effect will be on the Macroeconomy,” he explained.