ECONOMYNEXT — Sri Lanka’s debt is so high that even the world’s richest person would struggle to help out, President Ranil Wickremesinghe said, noting that recovering stolen assets from a few individuals would not cover the total accumulated debt.
Wickremesinghe was responding to a question asked by an audience member at an event in Colombo on Wednesday March 13 who suggested that recovering stolen funds could significantly ease Sri Lanka’s debt burden.
“Firstly, if you look at our debt, I don’t think we can do that even if we go to the richest person in the world. We have taken that much debt. If someone says you can take back the money that one or two persons took out of Sri Lanka and solve this, that is utterly false,” said Wickremesinghe.
The audience member also alluded to assets allegedly stolen by the leadership of the previous administration.
“I have appointed a new commission. Anyone can go and see about it. When we were in [the Yahapalana] government, we investigated it. Those who needed to be taken to court were taken to court. As for others, there was no evidence. But if there are new allegations, we have our new commission, you can report to them. None of us will interfere,” he said.
President Wickremesinghe was referring to the Commission to Investigate Allegations of Bribery or Corruption, to which new members were appointed in December 2023.
The total outstanding external debt of the central government was over 37 billion US dollars as of December.
There is no accurate calculation of the sum of money said to be have been stolen, though it is likely to be lower than the country’s total debt including domestic debt and the losses to the economy from inflation triggered by money printing to run deficit after deficit.
The cumulative cost of corruption overall, however, is likely to be much higher than the value “stolen assets” over the years. Corruption is a systemic and structural issue that needs to be mitigated through robust legislation. (Colombo/Mar14/2024)