Connect with us

news

Sajith: Rating downgrade will make borrowing more expensive

Published

on

Cabraal: Opposition deriving perverse pleasure at the expense of people

By Saman Indrajith

Opposition Leader Sajith Premadasa in a special statement to Parliament yesterday, said the country was in the midst of a severe financial crisis.

“Moody’s Investors Service recently downgraded Sri Lanka’s sovereign credit rating by two notches, stating that our country would be hard-pressed to secure funding to service its huge foreign debt. On Sept 28, Moody’s downgraded Sri Lanka from “B2” (high credit risk) to “CAA1″ (very high credit risk). Now we are in the company of countries such as Angola, Mali, Barbados, Gabon and Iraq. This down grading would have a severe blow for the economy which needs to borrow around four billion US dollars from 2020 to 2025. As at August, our foreign reserves were at 7.4 billion US dollars. In that context, the Government repaid a billion US dollars due on international sovereign bond (ISB). That is not a move favourable for the country’s economy,” he said. 

 Premadasa said that the need of the hour was urgent economic reforms through collective efforts.

The Opposition leader said that the downgrading of Sri Lanka by Moody’s, which, he said, would make borrowing in the international market more expensive and harder to obtain for Sri Lanka.

He said owing to the downgrade interest rates Sri Lanka would have to pay for Bonds and loans would go up and it would be very hard for us to raise money to settle loans.

Responding to Opposition Leader Premadasa, State Minister of Money & Capital Market and State Enterprise Reforms Ajith Nivard Cabraal said: “When this issue was raised, my mind went back to 2007. We were trying to raise funds by issuing bonds. The then Opposition leader and his supporters did their utmost to prevent us raising funds. They surrounded HSBC and threatened not to buy the bonds which they would not honour under a future government of theirs. Later, when I travelled overseas to bring foreign investors, I saw each of them had a copy of a document sent from here telling them not to give funds to us. That was the time we were in a critical situation as a fierce war was raging. We somehow managed to win on both war and economic fronts. It seems that the Opposition is deriving perverse pleasure as the expense of people. that we are confronting challenges. They may be dreaming of that we will fail to manage the economy. Trust me we will deny the Opposition that pleasure. We shall prevail!”

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

news

Special COVID-19 probe crippled by infections among CCD sleuths: AG calls for new police team

Published

on

By Shamindra Ferdinando

Brandix Apparel Limited yesterday (29) said that the company would fully cooperate with relevant authorities in the investigation ordered by the Attorney General (AG). A spokesperson for the company said so when The Island sought a clarification with regard to AG Dappula de Livera, PC, directing the police to launch a criminal investigation into the alleged lapses on the part of the company as well as those officials leading to the devastating COVID-19 outbreak.

The Minuwangoda eruption, which happened in the first week of October is widely believed to be the cause of the fast expanding Peliyagoda cluster.

Asked whether the police had contacted the Brandix management as regards the investigation and sought access to Brandix management and workers at its Minuwangoda apparel manufacturing facility as well as records at the Minuwangoda facility, the spokesperson said: “We will work with the relevant authorities in this regard”.

The Colombo Crime Division (CCD) tasked with the probe has suffered a serious setback due to a section of its officers being tested positive for COVID-19. Authoritative sources said that the CCD lacked sufficient strength to carry out the investigation.

AG de Livera early this week told DIG Ajith Rohana that a progress report should be submitted to him by or before Nov. 13.

Sources said that the badly depleted CCD was not in a position to conduct the high-profile investigation, in addition to other ongoing inquiries. The AG has directed the Acting IGP to constitute a special team of law enforcement officers to conduct the investigation. Sources acknowledged the urgent need for a thorough inquiry into the far worse second corona wave. Sources said that the AG issued fresh instructions in that regard after the crisis in the CCD was brought to his notice.

Continue Reading

news

Most garment workers under self-quarantine left to fend for themselves

Published

on

By Rathindra Kuruwita

A large number of garment workers who were undergoing self-quarantine in Minuwangoda did not receive any assistance, Chamila Thushari of the Dabindu Collective, a labour organisation that works with garment workers, told The Island yesterday.

She said that those who were under self-quarantine did not have money to purchase food and even those who were willing to help could not reach them.

“Some of them have received food parcels from their work places but that is not adequate. Most others have not received any assistance. Matters will only get worse after curfew is imposed throughout the Western Province,” Thushari said.

Most of these workers are undergoing self-quarantine at their boarding places, which also house individuals who still work in garment factories. “Although there is a curfew, they can go to work. These are perfect incubators for the virus,” she said.

Thushari said that every day between 20-30 workers under self-quarantine, tested positive for COVID-19.

There were no public health inspectors to monitor the boarding houses of garment workers to ensure that COVID-19 prevention measures were being followed, she said.

“Not even Grama Niladaris visit them,” Chamila said.

Continue Reading

news

SJB requests separate seats for its dissidents

Published

on

Chief Opposition Whip and Kandy District MP Lakshman Kiriella has written to Speaker Mahinda Yapa Abeywardena requesting him to make arrangements to provide separate seats to the nine MPs who had voted with the government for the 20th Amendment to the Constitution recently.

The letter dated yesterday said that the SJB parliamentary group had decided to expel MPs Diana Gamage, A. Aravind Kumar, Ishak Rahuman, Faisal Cassim, H. M. M. Haris, M.S. Thowfeeq, Nazeer Ahmed, A.A.S.M. Raheem and S.M.M. Musharaf and it requests the Speaker to make separate seating arrangements for these MPs in the Chamber.

Continue Reading

Trending