The Committee on Public Enterprise today recommended the appointment of a Parliamentary Select Committee to inquire into the reasons that led to the current economic crisis including those responsible and officials who neglected their duties.
COPE said the country is in crisis at present due to decisions of certain individuals who handled the economy adding it should be investigated and be considered a crime.
Officials of the Central Bank of Sri Lanka convened before the Committee today to examine the Auditor General’s reports and the present performances.
When inquired into the root causes of the economic crisis, the CBSL Governor Dr. Nandalal Weerasinghe, said when Sri Lanka sought the support of the International Monetary Fund to obtain loan facilities in March-April 2020, the IMF stated in writing that Sri Lanka’s credit was unsustainable.
The Governor said the IMF had at the time informed the Secretary to the Ministry of Finance and the CBSL Governor in writing that the existing loans must be restructured in order to obtain loan facilities.
Parliamentarian Dr. Harsha de Silva joining the discussion said the then Minister of Finance failed to address Parliament and while former CBSL Governor Ajith Nivard Cabraal, who addressed Parliament on his behalf, failed to inform Parliament of this matter as well.
The MP said according to the IMF report, by November 2019, Sri Lanka’s debt was at a stable level while several months after the Presidential Election, the country’s debt would be unsustainable.
MP de Silva said a tax concession of Rs.600 billion was granted with the intervention of the then Secretary to the President and questioned why such a decision was reached at a time when the IMF had advised against tax concessions.
Governor Dr. Weerasinghe said while securing the required foreign exchange for the next three to four months will be a difficult task in the process of securing an IMF agreement, this challenge will be overcome.
