ECONOMYNEXT – Any future administration headed by presidential candidate Gotabaya Rajapaksa can deal with Sri Lanka’s debt by talking with creditors nations and continue to develop the country his brother Mahinda Rajapaksa, told reporters.
“We can talk with friendly countries get time and continue to develop the country,” Rajapaska who is widely expected to be Prime Minister if Gotabaya wins said.
“In 2005 also we had this problem. But we repaid the debt and re-built the economy.”
He was answering a question directed at Gotabaya Rajapaska.
Wimal Weerawansa, a vocal legislator backing Rajapaksa said in 2005 Sri Lanka’s national debt was close to 100 percent of gross domestic product.
“By the time he left it was brought down to the 70s,” Weerawansa said. “Here, what we have to do is to improve the ability to pay debt. If we can grow GDP, that means our ability to repay debt also goes up.
“Now what has happened is, gross domestic product is not growing, debt is growing and that is the problem.”
Sri Lanka’s growth has fallen in recent years amid continued monetary instability and currency collapses in the pursuit of a ‘flexible exchange rate’ and a policy framework based on price controls and no liberalization and higher taxation and state spending. (Colombo/Oct15/2019)