Courtesy Hiru News

In a significant development, Sri Lanka’s impending debt restructuring indicates a pivotal shift towards addressing its debt obligations, despite the current absence of repayment to foreign countries and external commercial bases. The restructuring underscores the imperative need to fulfill these obligations, utilizing both rupees and dollars.<

As of September 2023, Sri Lanka’s total debt burden stood at a staggering US $91 billion, indicating a prolonged timeline for debt settlement. To navigate this challenge, the nation must source funds locally to meet its debt obligations, thereby mitigating the risk of falling into the debt trap once again.

Although debt restructuring offers potential reductions in annual payments, Sri Lanka still faces an annual repayment of approximately US $3 billion. This unsustainable payment pattern necessitates a recalibration of income and expenditure balance, particularly given the acute nature of the budget deficit. Notably, government revenue for the year amounted to Rs. 4,127 billion, with a significant portion of Rs. 2,651 billion allocated for debt repayment.

Since the 1950s, Sri Lanka’s governance model has been heavily reliant on extensive borrowing, fostering a debt-centric economy. This approach, entrenched within both leadership and the populace, facilitated various concessions, including free rice distribution, subsidized electricity, educational initiatives, and government job proliferation. Election promises were diligently fulfilled upon assuming power.

In light of these challenges, Sri Lanka faces a critical imperative to break free from the shackles of a debt-driven mentality to secure its future. The elimination of the debt economy is paramount, necessitating a concerted focus on building a robust, independent economy. Rapidly increasing export income and foreign investment serve as crucial components of this transformative journey.

The nation’s ongoing economic reforms lay the foundation for creating a competitive, digital, and green economy. Central to this process is the eradication of corruption and social modernization, acknowledging corruption as a significant impediment to progress.

While corruption remains pervasive, addressing it demands a systematic and formalized approach, underpinned by stringent legal mechanisms and scientific methodologies executed by proficient officers. The enactment of the Anti-Corruption Act represents a significant step in this direction, emphasizing the importance of impartial implementation for all to witness.

In conclusion, Sri Lanka stands at a critical juncture, poised to embark on a transformative journey towards debt repayment and economic revitalization. By prioritizing fiscal responsibility, fostering sustainable growth, and combatting corruption, the nation charts a path toward a prosperous and resilient future.

“Despite not currently repaying any loans from foreign countries and external commercial bases, the impending restructuring signals a shift towards debt repayment. To fulfill these obligations, both rupees and dollars are essential.

By September 2023 our total debt burden was US $ 91 billion. It will take a considerable period of time to settle this debt. In order to meet our debt, we need to source the funds locally. It is imperative that we generate this income; otherwise, we risk falling into the debt trap once again.

As a result of debt restructuring, we will be able to reduce the annual payment. Nevertheless, even under such a situation, we will still have to pay around US$ 03 billion per year. We cannot continue to be paying in this manner. We need to create a balance between our income and expenditure. Our budget deficit is at an acute stage. This year government revenue stood at Rs. 4,127 billion and expenditure was Rs. 6,978 billion. Out of this Rs. 2,651 billion is for debt repayment. This clearly indicates our debt burden.

Since the 1950s, our approach involved extensive borrowing, encompassing all aspects of governance. Leaders and the populace became accustomed to this debt-centric economy, with concessions provided on various fronts, including free rice distribution, subsided electricity bills, educational endeavours, and the proliferation of government jobs. Promises made during elections were diligently fulfilled upon assuming power.

We must break free from the shackles of a debt-driven mentality to secure the future of our country.

The elimination of the debt economy is paramount, and we need to focus on building a robust, independent economy.

Rapidly increasing export income and foreign investment are crucial components of this transformative journey.

Our ongoing economic reforms lay the foundation for creating a competitive, digital, and green economy.

Central to this process is the eradication of corruption and social modernization.

While corruption is widely acknowledged as a scourge in our nation, it&rsquo;s crucial to recognize that a systematic and formal set of rules is essential to combat it. Shouting about catching thieves is ineffective without a strong legal system and a scientific approach, executed by trained officers.

Merely bringing corrupt individuals to justice is not a comprehensive solution; prevention is equally critical. Strict rules to deter corruption and severe punishments for offenders must work in tandem.

The enactment of the Anti-Corruption Act is a significant step in this direction, and its impartial implementation is evident for all to see.” – President