JO condemns PM’s move to call FTFF

• Demands CB Governor response on Ravi K’s 
• statement about illegal notes amounting to Rs. 13 b 

By Chamodi Gunawardana

The Joint Opposition (JO) yesterday condemned Prime Minister Ranil Wickremesinghe’s move to call for Foreign Currency Term Financial Facilities (FTFF) as the Minister of National Policies and Economic Affairs, claiming that action is above the mandate of the ministry. 

JO MP Bandula Gunawardena alleged that Wickremesinghe has issued proposals to raise foreign currency without transparency.

A statement issued by the National Policies and Economic Affairs Ministry says that the Government intends to raise FTFF in US dollars up to a limit of $ 1000 million in 2017. It further said that the FTFF is expected to be raised at a fixed rate or a floating rate, linked to the $ 6 month LIBOR with a maturity period of three years or more. 

The statement also said proceeds of the FTFF will be used to meet corresponding imports elements of development projects specified in the budget for the fiscal year 2017. 

Gunawardena claimed that FTFFs must be issued by the Public Debt Department of the Central Bank and any other authority has no right to issue such proposals on behalf of the Government.

“The Public Debt Department has the authority to issue proposal to call FTFFs and it is the only one body which has the mandate to do so. Furthermore, there is a special procedure in issuing proposals, but Wickremesinghe has attempted to ignore that process,” he charged.

Gunawardena further claimed that Wickremesinghe tried to misuse his powers to gain a huge commission from FTFFs calling.

“According to what we learnt, when the proposal is done by the ministry, the line minister could obtain a high commission via the deal. That was why Wickremesinghe tried to call FTFFs through his ministry without giving the chance to Central Bank Public Debt Department,” said Gunawardena.

Meanwhile, the JO has written to Central Bank Governor Dr. IndrajitCoomaraswamy asking for a clear response for the validity of the statement made by Finance Minister Ravi Karunanayake that a sum of Rs. 13 billion in Rs.5000 notes had been illegally taken out of the Central Bank on the eve of presidential election 2015. 

Gunawardena said that if the sum of Rs. 13 billion in Rs.5000 notes had been in circulation illegally for the past two years, that will be the biggest currency related crime in the country’s history.

“Any statement about the currency notes in circulation made by the Finance Minister who signs them will be taken seriously by the society and specially the international market. It may cause a negative picture of Sri Lankan currency in foreigners’ minds. Therefore, the Governor should issue a statement to clear the facts behind the Karunanayake’s words,” he said.