UPFA says PM should refrain from irresponsible statements

• Argues against Rajapaksa ‘withdrawing’ reserves during his time as Finance Minister post 26 Oct.

By Nuwan Senarathna 

United People’s Freedom Alliance (UPFA) MP Bandula Gunawardena yesterday called on Prime Minister Ranil Wickremesinghe to refrain from what he termed as irresponsible statements regarding Opposition Leader Mahinda Rajapaksa “withdrawing” $ 8 billion in reserves during the recent political turmoil.   

Referring to reports of a speech made by PM Wickremesinghe during the opening of the Water’s Edge 50K Orchid restaurant last week that the Sirisena-Rajapaksa administration after 26 October had mismanaged reserves and increased the depreciation of the rupee, Gunawardena noted that no such withdrawal or mismanagement of reserves had taken place and contended that such irresponsible statements were discouraging investors.  

“The Prime Minister should not be making statements like this. His statement has given the wrong message to investors and now they are pulling out their investments from Sri Lanka,” charged Gunawardena during a media briefing at Wajirashramaya in Punchi Borella.  

He also argued that the Central Bank should have come forward and provide the correct details to investors regarding the current economic status of the country to reassure them. 

“The Central Bank should announce the correct reserves level. It is the Central Bank’s responsibility to tell whether Mahinda Rajapaksa spent $ 8 billion during the 51 days when he took the office of Prime Minister or not. As long as the Central Bank is silent, the situation will only get worse,” he added.  

Gunawardena also alleged that the Prime Minister’s statement also contributed to the Colombo Stock Exchange (CSE) recording its lowest turnover last Friday. He noted the Prime Minister’s statement created a negative picture of the Sri Lankan economy which eventually led them to pull out their investment in Sri Lanka’s capital markets.

“Even during the time prior to 2009, we have not witnessed such collapse in Colombo Stock Exchange (CSE) as we have seen last Friday. This is a very serious matter and should be discussed thoroughly,” he added. 

Gunawardena said Mahinda Rajapaksa had not taken any decision to withdraw funds from foreign exchange reserves under any circumstances when he held the post of Minister of Finance in the Sirisena-Rajapaksa Cabinet. He noted Rajapaksa would never take a decision that would destabilise the economy to such an extent.