UNP to call for PSC to investigate debt default, rupee devaluation

Wednesday, 13 April 2022 00:25 -     - {{hitsCtrl.values.hits}}

The United National Party (UNP) yesterday said it will call for a Parliamentary Select Committee (PSC) to probe the decision by the Government to default on external debt servicing as well as the sharp depreciation of the rupee.

It said the PSC will be tasked with inquiring into the decision to devalue the currency prior to securing the IMF funding, as well as the Government’s decision to delay the restructuring of the country’s debt which has led to this default.

In a statement UNP expressed its dismay at the announcement by the Government that they would be defaulting on all external debt repayments.

UNP statement said: “Sri Lanka has had an unblemished record since independence of honouring our debt repayment. Even at difficult times we as a nation have tightened our belts and made the payments. 

“However, the mismanagement of the Government has resulted in the current economic crisis. The suspension of all external servicing will also bring undue pressure upon the banks who have obtained foreign loans to facilitate Letters of Credit as well as those who hold International Sovereign Bonds (ISBs).

“In 2020 in the UNP manifesto it was recommended that the assistance of the International Monetary Fund be sought to help restructure our financial obligations.

“The delay by the authorities to act on this advice has resulted in the crisis that is unfolding. Had the calls made by the UNP and others been heeded this default could have been avoided. Parliament, under article 148 of the Constitution, has control of public finance. The Government must present a full explanation to the House of what led to this situation when Parliament meets on 19 April.”


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