Those who don’t agree with IMF, Foreign Debt Restructuring Agreements cannot save Sri Lanka

The Hewahetta-Kiwulathanna-Tolabothanna-Aponsuwatta Road in the Kandy District, which was carpeted under the 1500-km Road Renovation project for 2024, was vested with the public by Minister of Transport, Highways and Mass Media, Dr. Bandula Gunawardhana at the invitation of the Minister of State for Investment Promotion, Dilum Amunagama recently.

The local people had to face much inconveniences due to the fact that no renovation was done for a long time on this road, which is used by a large number of people daily for their transportation needs.

After State Minister Dilum Amunugama drew the attention of Minister Dr. Bandula Gunawardhana to this situation, the road was carpeted and developed within a short period of four months, under the direct labor contribution of the Road Development Authority (RDA).

Speaking at the event the Minister said, “after Independence, our country has not received enough income to meet the expenses required for running the country on a daily basis. As a result, every government had to take large domestic and foreign loans. When that was not enough, money had to be printed. In the last year, Sri Lanka’s revenue from all tax and non-tax channels was Rs 3 trillion.

In the last year, Rs 4.7 trillion has been spent on government employee salaries and pensions, subsidies including prosperity insurance, and interest payments.

During the last four decades, every development work has been done with local and foreign loans.

In the end, the country was unable to repay the loans. In order to save the country from the financial crisis it faced, it was necessary to seek the assistance of foreign expert institutions. Recognising that such a crisis will arise in the country, when former President Gotabaya Rajapaksa was planning to seek the support of the International Monetary Fund (IMF), many members of the Cabinet expressed their opposition to it. After that, President Ranil Wickremesinghe, who took over the country, considered it as the last chance to save the country from this crisis and entered into an extended loan agreement with the IMF.

All development work will be done under the loan agreement till 2027. The type of international confidence to issue a letter of credit again is based on the IMF agreement. Whoever abandons this agreement will not be able to maintain the country even for two weeks. The country could not have been saved without agreeing to IMF extended Credit agreements and foreign Debt Restructuring agreements”.

State Development and Design Corporation Chairman Kushan Devinda,former chairman of Pathahewaheta PS Ranasinghe Yapa Bandara, RDA Central Provincial Director Mahendran Wijepala, officials, Local Government officials and area residents were present on this occasion.

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