Marikkar challenges President’s bankruptcy recovery claims

Tuesday, 25 June 2024 00:55 - - {{hitsCtrl.values.hits}}

SJB MP S.M. Marikkar says President Ranil Wickremesinghe cannot declare SL free from bankruptcy
Stresses credit rating agencies say SL remains in state of selective default or default, contradicting any claims of recovery
Accuses Wickremesinghe of attempting to stage performance by declaring SL is free from bankruptcy to sway undecided voters
Warns repercussions of current borrowing will be felt within next two to three years, not in 2048

SJB MP S.M. Marikkar

(SJB) MP S.M. Marikkar yesterday said President Ranil Wickremesinghe cannot declare Sri Lanka free from bankruptcy, asserting that such an announcement should come from international credit rating agencies instead.

Addressing a press conference in Colombo, Marikkar highlighted that President Wickremesinghe plans to declare this week that he has rescued Sri Lanka from bankruptcy.

“In his address to the nation on 21 March last year, the President claimed that the country had recovered from bankruptcy and returned to normalcy,” Marikkar recalled. “He made this statement in Parliament, then proceeded to increase VAT, income tax, the price of essential goods, electricity bills, and water bills, making it impossible for the people to live.”

“The President and Parliament are not the authorities to declare if the country has emerged from bankruptcy; that is the role of credit rating agencies,” MP Marikkar stated. “According to these agencies, Sri Lanka remains in a state of selective default or default. Pretending otherwise is pointless. Genuine recovery from bankruptcy would be reflected in alleviating the people’s hardships, making it easier for parents to send their children to school, and improving the living conditions of pensioners,” he explained. The MP claimed that the Government plans to announce that the country is out of bankruptcy and intends to make an agreement with the Paris Club, India, and China. The MP noted that the Election Commission will be authorised to announce the Presidential Election after 17 July and current surveys place President Ranil Wickremesinghe at the bottom. “To appeal to undecided voters, the President is attempting to stage a performance. According to reports, President Wickremesinghe will only run for re-election if he ranks second in the surveys. This strategy mirrors Gotabhaya Rajapaksa’s 2019 Presidential campaign,” Marikkar said.

“When President Wickremesinghe assumed office, Sri Lanka’s debt stood at $ 83 billion. Currently, it exceeds $ 100 billion, with the country borrowing approximately Rs. 25,000 billion daily. The repercussions of this borrowing will be felt in the next two to three years, not in 2048. Sri Lanka has yet to begin debt repayments, and credit rating agencies do not rank the country highly. Thus, claims that Sri Lanka is not bankrupt only deepen the country’s financial crisis,” the MP explained.