Economy at rock bottom: Dr. Harsha

Monday, 13 December 2021 04:11 - - {{hitsCtrl.values.hits}}

SJB MP Dr. Harsha de Silva gestures during the media briefing yesterday – Pic by Lasantha Kumara

Claims Govt.’s delay in seeking IMF help, despite suggestion to do so a year ago, has plunged country into irreversible crisis with reserves below $ 1 b
Opines SL now too late to get bailout from global lender

By Darshana Abayasingha

Main Opposition SJB MP Dr. Harsha De Silva yesterday claimed it was too late for the Government to go to the IMF, whereas it should have done so a year ago to get support and restructure the external debt.

Briefing the media, Dr. de Silva noted the Cabinet is holding a special meeting tomorrow to debate if it should go to the IMF to obtain a bailout facility.

He claimed any assistance would now come with heavy conditions and difficulties. Dr. de Silva noted that the Government now effectively has less than $ 1 billion in reserves, which is not sufficient to meet imports for essential items for over a month.

The MP said he advised the Gove-rnment in Parliament in November 2020 to obtain IMF assistance, but instead of discussing the ground realities and going for a pragmatic way out, the Government chose to debate with him and the opposition why it need not go to the IMF.

Dr. de Silva said the country, as a result, had sunken to its lowest economic depth as a result.

He also charged that over 1,000 containers of goods are stuck in the Colombo Port due to the shortage of foreign currency, whilst banks sought over 10% interest to import essential pharmaceuticals.

“The country is in a deep crisis,” he said, and added that any investors to Sri Lankan bonds in January would receive an interest of 184%, but no one would touch them as they country cannot meet such payments.