Ranil calls for parliamentary debate on financial crisis

• Says reserves are at critical level
• Alleges that banks are out of dollars, questions risk to energy security
• Says forex shortage has affected vaccination drive
• Calls on Govt. to seek IMF assistance

By Asiri Fernando

Former Prime Minister and United National Party (UNP) Leader Ranil Wickremesinghe yesterday called for a parliamentary debate on the financial crisis the country is facing, urging the Government to seek IMF assistance to better navigate the difficult times ahead.

MP Wickremesinghe stated that Sri Lanka is facing a major foreign exchange crisis, pointing out that due to the shortage of dollars local banks were under pressure.

“I look forward to hearing a debate in Parliament on the current financial crisis over this serious issue. Because the financial affairs of the country are controlled by Parliament. The Central Bank and the Treasury operate under Parliament and not above it. Therefore, I request that under the privileges of Parliament a debate be held in regards to this matter,” MP Wickremesinghe said, issuing a video statement.

The UNP Leader blamed the Government for creating a fertiliser crisis to cover up their bankruptcy and warned that if the current status of the economic decline was to continue, unemployment will rise next year, which will further complicate matters. Wickremesinghe opined that due to forex shortage and import restrictions; industry, services and the general public were coming under increasing pressure.

“Our reserves amount to $ 4 billion. Once we service the bonds this year, it will be $ 1 billion less. The unpaid dollar bills of the Ceylon Petroleum Corporation amount to $ 1.3 billion. There is a foreign exchange crisis, there are dollars in the banks. 

“The (commercial) banks are in debt to foreign banks and the amounts have not been disclosed by the Central Bank. But, I am told that it comes to about $ 3 billion... once we settle the bonds and debt repayment what are we left with?” the former Prime Minister questioned.

The UNP Leader charged that the mismanagement of the foreign exchange problem by the Government contributed to the slow vaccination drive Sri Lanka faced on COVID-19. “We had a limited amount of money, that’s why all the vaccines are limited to those over the age of 30. Others do not have any vaccines. So, we are facing a serious situation,” he explained.

MP Wickremesinghe also stated that the foreign exchange crisis is affecting the energy security of the country. He alleged that an oil shipment that has arrived for the CPC remains in port without unloading due to lapses in payment by the CPC. “The Government is searching for dollars to pay for it” he claimed.

Wickremesinghe argued that short-term solutions to beef up foreign currency reserves will not work. He said that the International Monetary Fund (IMF) recently decided to provide $ 65 billion among its 190 member countries to mitigate the impact from the COVID-19 pandemic. Of which, $ 800 million is to be made available for Sri Lanka. However, the UNP Leader opined that the amount will not be sufficient to meet Sri Lanka’s needs at this stage.

“If the Government does not have an alternative way of raising money, I suggest that it discusses with the International Monetary Fund and find the money needed to sustain the country’s economy. Once we get the IMF certificate, we will be able to get money from countries like India, China and Japan,” Wickremesinghe stated, urging the Government to allow space to debate the crisis in Parliament.