Sri Lanka is not likely to experience a V shape economic recovery given the global issues and local issues which Sri Lanka has created by its own self, UNP MP Ranil Wickremesinghe told Parliament today.
“The supply chain in Europe and Japan is expected to fall. Japan’s GDP has been reduced by one percent while China is facing an energy crisis. There are other local issues which Sri Lanka has created on its own. Sri Lanka’s economy is dependent largely on imports whether we like it or not. Economy has fallen as a result of import curtailment. Foreign reserves have come down to US$ 2 billion out of which gold reserves account to US$ 300 million. One cannot go along with a foreign reserves which is US$ 1.7 billion. Local banks are functioning with complete non-performing loans. Total non performing loans in Sri Lankan banks accounts are between Rs. 4,000 billion to Rs. 6,000 billion. Just remember Sri Lanka’s GDP is averagely 18,000 billion,” he said
“Sri Lanka faces an annual foreign debt service of US$ 500 million annually,” he added whilst highlighting that Sri Lanka will face a great economic crisis,” he added.
Also he questioned why the allocation for the health sector from this year’s budget.
Mr. Wickremesinghe further questioned as to how the Central Bank Governor took a unilateral decision to secutrice Sri Lanka's foreign reserves. ” It is the cabinet and Parliament which have the power to make such decisions,” he said. (Yohan Perera and Ajith Siriwaradana)