Friday 1st of March 2024

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Sri Lanka is falling into the most severe financial abyss

2021-12-16 7688


No penny to import medicine, food and fuel


18th January is critical


(Sujith Mangala De Silva and Rumi Speelberg)


Samagi Jana Balawegaya Parliamentarian , Patali Champika Ranawaka says that Sri Lanka is falling into the most severe financial abyss in history. Commenting further he stressed.

“The country's domestic financial crisis is also growing at a serious pace. The crisis caused by the foreign exchange deficit is also turning into a massive hurricane. With this situation, the coming early months of next year, especially January, is likely to turn into a crucial month. At the moment there is only 1.5 billion in foreign assets.  

But we should not be fooled by these foreign assets. Because today the net foreign assets of the Central Bank as well as the rest of the banking system in this country are in minus.  That is a very serious value. The net foreign asset deficit of the whole banks has exceeded miners $ 3600 million. However, out of the current $ 1500 million, about 350 are gold. Accordingly, we have only 1150 million in cash. These, too, are actually loans, especially those left over from reserves built up during good governance. What is the situation in 2022 now?

This is what we have to pay as loans obtained from foreign countries in 2022. That's over $ 7000 million. This is a very important question. If we take bilateral debt, that is, between countries, $ 550 million to be repaid next year. Multilateral loans and loans from international financial institutions will be $ 604 million. Exports will remain at $ 514 million.

International sovereign bonds are $ 1500 million. There are 500 of them in January. Other issues in international sovereign bonds such as interest are $ 1083 million. Also, Sri Lanka Development Bonds are $ 1441 million. The loan obtained from Bangladesh is $150 million. Other financial commitments are $ 1200 million. The total is $ 7042 million. This is the situation. But we have only 1150 in hand.

$ 500 million should be paid on 18th January 2022 for international sovereign bonds. $ 242 million will be due as Sri Lanka Development Bonds. The total of multilateral, bilateral loan installments will be $ 200 million. Accordingly, more than $ 947 million should be paid in January alone.

Ranawaka also revealed that the Central Bank does not possess a single penny to import essential medicines, oil, gas, coal as well as essential food items such as flour and sugar.