SJB MP Dr. Harsha de Silva on Tuesday (24), described the recent upgrade of Sri Lanka’s credit rating as a positive development, not only for the government but for the entire economy.

Addressing the media at the SJB headquarters Dr. de Silva highlighted its significance, “Sri Lanka has been removed from the list of countries at risk of debt default by leading credit rating agencies such as Moody’s and Fitch Ratings. This is a momentous development for the nation. The previous government’s mismanagement of debt placed immense pressure on private sector investors. For example, during negotiations between Sri Lanka and India’s Adani Group over electricity tariffs, Adani raised concerns about Sri Lanka’s poor creditworthiness. Similarly, the downgraded credit rating discouraged other investors from considering Sri Lanka as a viable destination. This upgrade, therefore, is a relief for both the government and the economy.”

Dr. de Silva, however, noted that Sri Lanka has not yet achieved the credit rating necessary to borrow from international markets.

“To reach that milestone, the economy must be further strengthened,” he emphasised. He attributed the recent credit rating improvement to measures initiated in 2023 during the country’s economic crisis. These included parliamentary-approved reforms and stabilisation efforts.

He observed that the credit rating upgrade was the result of adhering to the International Monetary Fund (IMF) agreement without deviating from its fundamentals. “Before the election, the National People’s Power (NPP) pledged to introduce an alternative Debt Sustainability Analysis (DSA) for debt restructuring. However, when the opportunity for restructuring arose, no alternative DSA was implemented. Instead, the existing agreement was followed, ultimately benefiting the country,” he explained.

Dr de Silva also discussed the government’s recent decision to extend the gazette notification for rice imports until 10 January. He stressed the importance of setting a guaranteed price for paddy before the next harvest to support farmers. “Farmers affiliated with the NPP have demanded a guaranteed price of Rs. 130 per kilogram of paddy. If the government agrees to this price, will it revise the rice import gazette accordingly? Will the price of rice remain at Rs. 230 per kilo? If not, large-scale rice mill owners will exploit the situation by purchasing paddy from farmers at reduced prices, leaving them vulnerable once again,” he warned.

As a sustainable solution to the rice price issue, Dr. de Silva proposed reviving the Shakthi Rice Enterprise, a cooperative initiative launched during the Good Governance administration to support small- and medium-scale rice millers. “The solution lies in restarting the Shakthi Rice Enterprise, which previously operated in eight districts. Neglecting this initiative would be a mistake,” he concluded, urging the government to take decisive action to stabilise the rice market and safeguard the livelihoods of farmers.