- Currency swap of USD 400 million in March 2015 and USD 1,100 million in May 2016. So in currency swaps, the total is USD 1,500 million.
- International Sovereign Bond of USD 650 million in May 2015 and another USD 1,500 million ISB in October 2015. So in ISBs, the total is USD 2,150.
- Sri Lanka Development Bonds totaling USD 2,711 during the tenor of the new government.
Truth behind USD 6,361mn loans of this government: Harsha de Silva
Apr 01, 2016 (LBO) – Sri Lanka’s Deputy Foreign Minister Harsha de Silva has denied the allegations that present government is taking huge loans but not utilizing the same for any productive purpose.
The opposition recently charged the present government has taken 6,361 million US dollars in foreign loans in its fifteen-month lifespan thus far but hadn’t even built a culvert with that money.
In a statement the Deputy Minister said the truth is that the loans taken on project basis to build most of the infrastructure cannot be serviced as the infrastructure is under-utilized and has hardly any revenue forcing the treasury to make payments on the due dates by finding money from other sources.
De Silva therefore says the ‘story’ that the present government is so inept that it is just borrowing large amounts without using the funds for any productive purposes, even to build a culvert, has been carefully crafted to mislead the people.
“Whoever fabricated it did so fully aware of the fact that he or she was doing so purely to deceive the people of Sri Lanka for cheap political advantage” he said.
The full text of the statement is reproduced below.
The truth behind the USD 6,361 loans of the present government
Harsha de Silva, MP, Deputy Minister of Foreign Affairs
The accusation by the former President
Former President Mahinda Rajapaksa has been repeating adnauseam over the last few weeks that the present government has taken USD 6,361 million in foreign loans in its fifteen-month lifespan thus far but hadn’t even built a culvert with that money.
He says that he could have built two Mattala airports, one Hambantota port, one Norochcholai coal power plant, one Colombo-Matara highway, one Colombo-Katunayake highway, not one, but two Colombo port cities and one 500 MW Sampur coal power plant with that money.
Finally, he says that the present government is incapable of running the country and that he should be given the opportunity once again to ‘rescue’ Sri Lanka.
The calculation of the USD 6,361 in loans
Mr Rajapaksa’s calculation of the USD 6,361 million the present government borrowedis as follows:
Is this guy an economist? Now I know why the prime minister wanted him to keep away from economic management.
Its a pretty decent and convincing explanation
Unfortunately, many Sri Lankans are not intelligent ( or not open) enough to understand this ‘dangerous’ situation. We keep on asking for benefits (free or subsidised) without doing our part for the country.
How much have we earned for our workplace(company) and how much have we saved for them ? Ultimately; this would add into our country’s economy. We should ‘work’ for the money we get paid as salary ( not demand it without doing any proper work)
No point in holding protests during your ‘work time’… Do your work properly and then ask for benefits (once the country comes back into a better economic stability)
A reasonable explanation at a time when those who brought the present government into power have also begun to question the capability of the government to continue the thrust towards infrastructure development. However this will be appreciated by a handful of people and many judge by what they see when roam the streets or turn on the TV. It would be important for the government to have a communication plan which makes the public understand the current plight AND how and when we will come out of this and time plans for when we can start seeing progress and development. Someone has to keep his neck on the line and make these commitments to the public. You cannot expect people to be sympathetic towards the government and be happy with a sob story, all be it true.
that is silly. UK is going to China becoz they dont want to miss out , not becoz they want $$$. they are a rich country compared to sri lanka so they have bargaining power. UK has aspirations of being a world power like usa and russia. they know china is a threat to that. keep ur friends close and ur enemies closer ….
as paupers we have no bargaining power. that is why the chinese managed to get a land in sri lanka. do u know that in australia special laws were brought in just to stop the chinese buying up property in sydney ???
true the chinese have money – and unlike the arabs who flaunt it with gold cars and exotic animals and scores of women , they work like terrorists , buying up assets in a covert way . oneday u will wake up and find that most of the land is owned by the chinese , with their buying power. maybe u can try naming how many countries that can say there are no chinese living there. i doubt out of the 220 or countries in the world even 20 can say that. u find chinese even in saudi arabia and that is hell to live in.
australia has land to melt and wash off to the sea , but still they are taking precautions. does sri lanka have enuf land for its natives?
the mistake MR did was to cut off the japs. if u look at most of our infrastructure (aside from the victoria and related projects) japs and JAIKA have given it. even now its not too late to get them abroad.