The JVP claims the government is involved in a major racket in the International Sovereign Bond market through secondary dealers.
Speaking to NewsRadio, former JVP Parliamentarian Sunil Handunnetti alleges that the government, while raising concerns about honouring its debt repayments, is in fact releasing funds to its affiliates who are heavily involved in the secondary bond market.
Handunnetti said the government is well aware about maturing ISBs and is tailor making the rates to suit its affiliates.
He said the rating downgrades result in ISB rates dwindling in the secondary market and those purchasing them now will pocket a huge profit at maturity.
Former MP Sunil Handunnetti said the panic created over ISB maturities and debt defaults are techniques used for the benefit of secondary market dealers.
He said the ISB market concern is another artificially created issue like the gas and fertiliser crisis.
Sunil Handunnetti said therefore the public should be mindful of the tactics used by the government to deceive the people.
He also said the dollar crisis also worsened owing to the government’s mismanagement.
Former Parliamentarian said everyone in the country was aware when the ISBs issued in 2007 and 2008 were maturing, adding however the rulers did not take steps to allocate required funds to fulfil the debt commitment.