UPFA slams UNP for Moody’s downgrade

MP Anura Priyadharshana Yapa (centre) speaking at a media briefing yesterday. MP Wimal Weerawansa (left) and MP Dullas Alahapperuma look on

– Pic by Sameera Wijesinghe

• Claims downgrade was assisted by UNP statements on economy
• Alleges UNP attempting to create negative impression of economy
• MPs insist economic issues will be addressed, downplays concerns  

 By Nuwan Senarathna

United People’s Freedom Alliance (UPFA) yesterday charged Moody’s Investors Service’s decision to downgrade Sri Lanka’s sovereign rating and the rating of three prominent banks was precipitated by the United National Party’s (UNP) criticisms of the economy.

Moody’s Investors Service on Wednesday said it has downgraded the long-term local currency deposit and foreign currency issuer ratings of Bank of Ceylon (BOC), Hatton National Bank Ltd. (HNB), and Sampath Bank PLC to B2 from B1. At the same time, Moody’s downgraded the long-term foreign currency deposit ratings of the same three banks to B3 from B2. A day earlier, it had downgraded the sovereign rating for Sri Lanka.  

“When Moody takes a decision, they may have some reasons for that. All this propaganda by the UNP about how the economy is doing badly may also have been instrumental in the final decision to downgrade Sri Lanka. But the clarification has been made by the Central Bank of Sri Lanka (CBSL). In addition, our Government will take a decision to correct itself if there is an issue,” UPFA MP Anura Priyadarshana Yapa told journalists at the Prime Minister’s Office.

He charged the UNP was trying to create a negative impression on the international community over Sri Lanka’s economy to gain political advantage.

“The Government has been functioning as usual. Therefore, Moody’s cannot downgrade the economy and the banking sector of the country in such a manner. If they are going to do something like that, they have to have conclusive evidence. But according to my knowledge, Sri Lanka is not facing any crisis to downgrade its economy in this way.”

Speaking to reporters, MP Dullas Alahapperuma also charged the UNP had been trying to create an economic crisis in the country. “They are trying to spread false information about the economy,” he charged.

“They met heads of diplomatic missions in Colombo and urged them to issue travel advisories to give a negative impression to the international community to reduce tourist arrivals to the country, but we have the strength to boost the economy.”

MP Wimal Weerawansa also alleged the UNP was conspiring with the international community to damage the reputation of the country.

“At the end of the Civil War, Moody’s had downgraded Sri Lanka while failing to provide conclusive evidence to prove the facts. Despite Moody’s ratings, the Sri Lankan economy had shown positive growth. As a Government, we will do our best to develop the economy.”