Rs 1.2 bn allocated for ministers’ luxury vehicles in 2017 alone
Posted on May 9th, 2017

By Shamindra Ferdinando Courtesy The Island


The national economy was deteriorating at an alarming rate as revealed by the latest Central Bank annual report, but the ruling coalition had presented three supplementary budgets amounting to staggering Rs 1.2 bn to acquire more super luxury vehicles for politicians and officials this year alone, JO heavyweight Prof. G.L. Peiris said yesterday.

Addressing the media at Punchi Borella, Prof. Peiris attacked the controversial process of presenting supplementary estimates for the benefit of politicians and officials.

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The media was told the circumstances under which the government presented two supplementary estimates in March and one in May this year. Among those who had been named as the beneficiaries of Rs 329 mn supplementary estimate presented in May is Prime Minister Ranil Wickremesinghe’s Parliamentary Secretary, Prof. Peiris said.

The former External Affairs Minister pointed out that a new post had been created to accommodate a person on the Prime Minister’s staff at the taxpayers’ expense.

Comparing a range of economic indicators given in the latest Central Bank publication with that of previous years, Prof. Peiris painted a bleak picture of the national economy.

JO member Peiris said that President Maithripala Sirisena had admitted Sri Lanka’s foreign reserves were down to USD 5 bn

One Response to “Rs 1.2 bn allocated for ministers’ luxury vehicles in 2017 alone”

  1. Ananda-USA Says:

    The LIABILITIES Coomaraswamy is referring to are being COMPOUNDED by the PROFLIGATE WASTEFUL SPENDING of the Yamapalanaya, as exemplified by the RS 1.2 billion for luxury vehicles for Politicos.

    Are we to assume then, that this “LIABILITY MANAGEMENT FUND” would be MASSIVE SLUSH FUND for the Yamapalanaya to use as it sees fit, instead of SERVICING and REDUCING the National Debt??

    EXPECT to SEE MORE BOND SCAMS to SIPHON-OFF the monies in this LIABILITY FUND just before they LOSE the next General Election!

    …………………….
    Govt. to use proceeds from non-strategic asset sales for liability management
    May 9, 2017, 8:10 pm

    by Sanath Nanayakkare

    Central Bank Governor Dr. Indrajit Coomaraswamy said yesterday that proceeds from the potential long lease of Hambantota Port and proceeds from the sale or divestment of other non-strategic state assets would be pooled into a separate fund for liability management as foreign debt servicing commitments “will come in a bunch from 2019 onwards.”

    Responding to a question from the media in Colombo, on announcing the monthly monetary policy review, the Governor said,” The Prime Minister has articulated this fact and I think the government has accepted it at policy level.

    “Our domestic debt servicing will spike in 2017 and 2018. And then from 2019 onwards, we will have to repay a bunch of external debts. With this in mind, the government intends to put the proceeds from the Hambantota Port deal and other non-strategic asset sales into a separate fund earmarking it for liability management. So, the government’s ability to attract foreign investors to divest in these assets will help its liability management programme, he said.

    Coomaraswamy said that with a change of law we may borrow a bit more in the international capital market for liability management.

    The Governor, however, pointed out that the real answer to servicing mounting national debt lies in increasing exports. There are some favourable signs in this direction. The United States, Europe and Japan are showing signs of rebounding even at a slower growth rate. If the GSP+ is restored as expected, it will help boost our foreign exchange yield from garment products, rubber etc. The international commodity prices also have rebounded. These three upbeat factors should offset the decline in exports in the first quarter of the year.”

    Coomaraswamy also noted that last week’s international sovereign bond issue of US$ 1.5 billion reflected the level of confidence the international capital market has in the Sri Lankan economy.

    “Last year, our 10-year bond issue was 554 basis points above U.S. treasury bond rates. This year it was 385, which means it was 169 basis points less. This is a significant improvement of the confidence of the international capital market in the way the fiscal consolidation and the monetary policy are handled , the Governor pointed out.

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