(NewsRadio); State Minister of Finance Ranjith Siyambalapitiya says the depreciation of the Sri Lankan Rupee against the US dollar resulted in the total amount of debt payable by Sri Lanka increasing considerably.
Speaking to media, State Minister Siyambalapitiya noted that the Rupee deprecation was one of the main reasons for the debt crisis.
The State Minister said the state Sri Lanka was in 2022 was unsustainable and therefore the government had to first focus on debt repayment.
He said although all major powers have debt, the key factor to run a nation is to be able to repay loans.
The State Minister said the United States and Japan are some of the countries that have massive debts but their governments are able to repay them.
The State Minister of Finance said following last year’s crisis, the focus of the government was to create an environment where Sri Lanka will be able to repay its loans.
He noted accordingly, steps were taken to increase the revenue of the government while holding talks with international agencies.
State Minister of Finance Ranjith Siyambalapitiya said the government led by the President has been able to win the confidence of international bodies such as the International Monetary Fund.
The State Minister said Sri Lanka can be optimistic about the road ahead and the government is making further progress in stabilizing the country.
He noted that the President will finalize the staff level agreement with the IMF today which will be a giant steps towards shedding the bankruptcy status of Sri Lanka.
State Minister Siyambalapitiya said the IMF imposed strict conditions, since Sri Lanka did not honour the previous agreements.
He said despite the challenges, the government has made considerable headway and is expecting the second tranche of about USD 330 million as part of the IMF programme shortly.