President’s claim “ridiculous & untrue” says Cabraal
Posted on January 27th, 2018

Courtesy  The Island

President Sirisena’s statement that only Rs.1 trillion out of foreign loans of Rs.10 trillion, taken during the term of the previous regime is accounted for “is ridiculous and untrue” and “may even be bordering on lunacy”, former Central Bank Governor Ajith Nivard Cabraal said on Friday.

In a statement issued hours after the president’s remarks, Cabraal who was Central Bank Governor during the Rajapaksa regime said this was particularly so considering that Sri Lanka’s GDP in 2014 was only Rs.10.3 trillion.

“If what the president claims is correct, the unaccounted loans will amount to a staggering 90% of GDP!” he said.

“Although the President may have made this irresponsible statement to sling mud at the previous regime as he regularly does, I do not think he realizes the grave danger that he is imposing on our economy with media releases of this nature.

“In that context, as the Governor of the Central Bank from 2006 to 2014, I urge all foreign investors who invested in Sri Lanka’s Government Securities at our invitation from 2006 to 2014 not to panic, since President Sirisena’s statement is without any foundation whatsoever.

“I also assure them that Sri Lanka has diligently and faithfully recorded all foreign borrowings in accordance with our laws and regulations as well the terms of issue, during the time of the previous Government.

“I also condemn this reckless statement, and call upon the President and his Government to desist from making statements of this nature that will surely damage the good name of our economy, which has been built up over the years with great care and dedication by thousands of responsible public servants and a dynamic private sector.”

One Response to “President’s claim “ridiculous & untrue” says Cabraal”

  1. Dilrook Says:

    Yes; the president’s claim is untrue. The president although correct in substance makes himself look like a fool by stating wrong numbers.

    But it is true the previous government has obtained foreign loans that were hidden from books to the tune of $9.5 billion. Sirisena has converted $9.5 billion into 9.5 trillion rupees using a funny exchange rate of 1,000 rupees for a dollar! He should have used the correct exchange rate in 2014 which was around 140. The number is 1.3 trillion rupees ($9.5 billion) unaccounted foreign loans by the previous regime.


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