If IMF agreement is changed, there won’t be a Budget next year- Minister Dr. Bandula Gunawardhana

Transport, Highways and Mass Media Minister Dr. Bandula Gunawardhana said in Parliament that the country cannot move forward if the agreement reached with the IMF is changed even by a letter or a cent.

The Minister said this during the adjournment debate in the Parliament yesterday on the Mid-Year Fiscal Position Report – 2024.

“President Ranil Wickremesinghe has managed the entire economy of our country by signing a loan agreement with the International Monetary Fund. As a result, our country received enough stocks of fuel, fertiliser, medicine, food and drink. It has been possible to draft the next Budget, pay pensions and other subsidies because of this agreement. We will have to work in the future only if we work according to the agreement made with the International Monetary Fund,” the Minister said.

“But the Chairman of the Committee on Public Finance clearly stated that the loan agreement with the international community will be changed if the Opposition comes to power. If we do that, we can move this country forward only for two weeks or a month. I say clearly, if that happens, next year’s Budget cannot be prepared.

“We have signed an agreement with the International Monetary Fund under a comprehensive programme. According to that agreement, there will be an international currency deficit of US$ 5,018 million in the year 2025. For this, an amount of US$ 663 million will be received under the comprehensive loan agreement. When preparing the 2025 Budget, another US$ 700 million has also been promised. The World Bank has promised to give US$400 million and the Asian Development Bank has promised to give US$ 300 million. We have brought the country to this state by making promises to the world. Japan, France and India have come together as official creditors and reached an agreement to restructure the foreign debt. Even if governments change, these agreements cannot be changed.

“Five Bills have been passed in this Assembly that we will do so. Whatever the reason, we cannot print money. We cannot get a loan with a sovereign bond. There is a Financial Management Act in Parliament. It is not possible to prepare the Budget as before. These cannot be changed just because the government has changed,” the Minister said.

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