The Samagi Jana Balawegaya says the government’s statement that the country is facing an economic crisis due to loans obtained by the previous administration is false.
Speaking during a media briefing in Colombo today, Parliamentarian Eran Wickramaratne said only 10 percent of new loans were obtained during the 2015-2019 period.
MP Wickramaratne said when comparing 2014 and 2019, a total of USD 9.9 trillion was obtained in loans adding interest payment in rupees amounts to 10 percent while it is 3.9 percent in USD.
The Parliamentarian said the total interest payment due amounts to Rs.3.8 trillion.
He said the loans obtained between 2015-2019 increased by Rs.4.25 trillion, of which Rs.3.8 trillion was used to settle the interest for loans taken up until 2014.
He added 90 percent of the Rs.4.25 trillion was used to pay off interests for loans obtained prior to 2015.
Furthermore, MP Wickramaratne said obtaining the support of the international community has become a difficult task due to the weakening economic situation in Sri Lanka.
He said loans at low interest rates are given to individuals with a steady income and assets adding those with a lesser incomes are granted lesser loan sums at a higher interest rate.
He said this was the same scenario in a country.
MP Wickramaratne said he never proposed going before the International Monetary Fund adding he always proposed following a stringent financial policy.
He said the source of income was irrelevant as long as the economic policy remained strong.
The MP said the government is now attempting to negotiate with the IMF after creating a false image of the IMF and misleading the public.