Prez seeking unfair advantage, politicising bankruptcy – Prof. Peiris

By Shamindra Ferdinando

Top Opposition spokesman Prof. G. L. Peiris yesterday (01) asked the Wickremesinghe-Rajapaksa government to explain how it intended to work out an agreement with external private commercial creditors.

Of Sri Lanka’s total debt, 39.5 % were owed to external private commercial creditors, with ISBs amounting to a staggering 33.6%, the former External Affairs Minister said, urging the government to come clean on the issue at hand without seeking political advantage over the recently finalised agreement with Official Creditor Committee (OCC) USD 5.8 bn debt restructuring coupled with the USD 4.2 billion debt agreement with China.

Prof. Peiris dealt with the two agreements at his regular media briefing at the Nawala Office of the pro-SJB People’s Freedom Congress, a breakaway faction of the SLPP.

Sri Lanka, on June 26, finalised an agreement with OCC to restructure the debt owed to its bilateral lenders, including India and Japan, and signed a separate agreement with China for debt treatment. The agreement with China dealt with USD 4.2 bn.

Instead of seeking the best possible arrangements for the country, Prof. Peiris charged that the government sought to exploit the debt restructuring process to the advantage of Ranil Wickremesinghe’s presidential election campaign. The country could have had secured a better deal from OCC if the government didn’t pursue a political agenda, Prof. Peiris said, claiming that undue haste caused irreparable losses to Sri Lanka’s cause.

The Island sought an explanation from Prof. Peiris as to why he refrained from commenting on the debt treatment agreement with China’s Exim Bank. The academic said that the agreement with China was due to the absence of direct relevance to core of his presentation to the media.

Referring to the convening of Parliament at 9.30 am today (02) as requested by Prime Minister Dinesh Gunawardena, to debate the Resolution for the Implementation of External Debt Restructuring Agreements, Prof. Peiris said that at that time he addressed the media at 10 am on July 1 the Opposition was yet to receive the relevant agreements.

The Public Finance Committee and all members of Parliament should have had access to those documents the moment the Premier requested the Speaker to convene Parliament on July 2 at 9.30. The Parliament scheduled the debate for July 2 and 3.

Prof. Peiris said that at the end of the two-day debate, the vote on the Resolution for the Implementation of External Debt Restructuring Agreements was to be held.

However, soon after the end of the briefing, Prof. Peiris informed The Island that the government had cancelled the debate scheduled for today. The three-page resolution that had been distributed wouldn’t be moved and the day’s business would be restricted to President Wickremesinghe’s speech. Furthermore, the second day of the debate had been cancelled, Prof. Peiris said.

Prof. Peiris said that those who portrayed President Wickremesinghe as the man of the moment in the wake of finalisation of the agreement with OCC should keep in mind the total external debt had risen to USD 100.9 bn – 19.2% increase since he joined the government in May 2022.

The actual situation is quite serious and further deteriorating, Prof. Peiris said, urging the government to adopt a result-oriented genuine strategy instead of seeking petty political advantage ahead of the presidential election. The former Minister alleged that instead of taking the Opposition and public to confidence the government sought to manipulate the electorate to Wickremesinghe’s advantage.

Pointing out that Ghana, experiencing severe financial difficulties, had handled debt restructuring talks successfully with commercial lenders, Prof. Peiris said Sri Lanka failed pathetically to push for better conditions. Those who negotiated on behalf of Sri Lanka couldn’t achieve the desired results as they were forced to pursue a political agenda, the dissident SLPPer said.

The ex-Minister said that proper debate on debt restructuring deals could be held after the Opposition received the agreements signed in Paris.