Sabry looks to IMF for cash infusion of $ 3 b in next three years

Saturday, 9 April 2022 01:16 - - {{hitsCtrl.values.hits}}

Says will continue as Finance Minister with the new CBSL Governor, Treasury Sec. at helm
Insists foreign debt moratorium only option
Says will take on work for sake of country even though he will likely be vilified
Admits certain policy decisions of Government such as tax cuts were wrong

Finance Minister Ali Sabry said yesterday the country had no other option but to go for a debt moratorium, and believes Sri Lanka can get about $ 3 billion from the International Monetary Fund (IMF) in the next three years.

“We have a balance of payments crisis. We have to restructure our debts and reach out to multilateral agencies. I am taking on this work even though I may be subject to vilification but someone has to do it,” Sabry said in Parliament.

He disclosed that even though he had given his resignation soon after being appointed as Finance Minister by President Gotabaya Rajapaksa, he had decided to stay on.

“I stepped down hoping someone more competent would take over the Ministry and I was willing to give up my seat in Parliament but no one has come forward. The President has appointed competent officers to both the posts of Governor of the Central Bank as well as the Secretary to the Treasury, He has also appointed a panel of eminent economists which makes us optimistic,” he said.

Sabry said everyone admits the country is in the middle of an unprecedented economic crisis and all the finer pointing cannot solve the problems.

He admitted that certain policy decisions by the Government were wrong and they had added to a worsening economic situation after the outbreak of the global pandemic.

“We reduced taxes as we did not anticipate a collapse in tourism which happened due to the COVID outbreak. When that happened, we should have reintroduced the taxes,” he said.

Sabry said the President had requested the Opposition to join an interim Government but they had refused. “How can we take the country forward when no one is coming forward? I know I will be criticised, vilified for taking on this post but if no one is coming forward someone has to do this. I will do my best for my country,” he said.

He added that the situation in the country would be unimaginable if the country went into a hard default. “I don’t even want to talk about such a situation but look at Lebanon to see what can happen,” he said.