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00 percent a year to raise dollars from international markets shows the fiscal pressure brought on by high spending, an opposition legislator has said. Harsha de Silva, an economist said, dollar loan rates of around 9.
00 percent was too high for people to afford.
NSB's bond went to markets yesterday with a price guidance of 9.
25 percent and eventually came out at 8.875 percent.
De Silva questioned where the money will be invested to generate a return higher than 9.
0 percent.
He questioned whether the money will go for wasteful current spending, including to luxury vehicles due to be imported for a Commonwealth heads of government meeting and election vote buying expenses.
De Silva said state banks were being used to borrow for government spending, because the government could no not directly go to markets due to previous high levels of borrowing.
Sri Lanka has high budget deficits partly due to one the largest state worker cadres in the world compared to the working population.
The public sector has expanded recently due to taking on unemployable graduates who have earned degrees at tax payer expense at state universities