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Basil intent on destroying economy, alleges Gammanpila

16 Mar 2022

  • Claims Basil shirked responsibilities as Cabinet Minister
Former Energy Minister and Co-Cabinet Spokesman Udaya Gammanpila claimed yesterday (16) that Finance Minister Basil Rajapaksa is purposefully bringing down the country’s economy.  Gammanpila made these remarks at the media briefing held by the 11 Party Coalition of the Ruling Government Alliance.  “In October 2020, the Cabinet decided to restrict the import of non-essential goods. However, the Finance Ministry did not implement this decision. In October 2021, the Central Bank of Sri Lanka (CBSL) presented an economic recovery plan to Rajapaksa, asking him to gain cabinet approval for it. However, it has still not been presented to the Cabinet. That is why we accuse Rajapaksa of deliberately bringing down the country’s economy,” observed Gammanpila.  Sri Lanka has been battling a severe economic crisis, with shortages of essential items such as fuel, electricity, and medicines being prominent. After months of keeping the Sri Lankan rupee at approximately Rs. 203 per US dollar, the CBSL announced last Wednesday (9) that the rupee is being floated, with the US dollar currently selling at over Rs. 260. Following this, prices of almost all essential goods have steadily risen – fuel by 54%, airline tickets by 27%, medicines by 29%, and a loaf of bread by Rs. 30.  Due to controlling the rate of the rupee, Sri Lanka faced a severe shortage of migrant worker remittances through the formal banking system last year. The country recorded its lowest foreign worker remittances over the past 13 years in January of 2022 with remittances falling to $ 259.2 million. Meanwhile, Gammanpila questioned whether, despite the free floating of the rupee, migrant workers will once again choose to send their remittances through the banks.  “If a worker in the Middle East gives $ 100 to the black market, in a few hours, his mother in Sri Lanka will get a call and the mother can then WhatsApp a picture of the medicine prescription to that number, along with the list of groceries, and in one day, she will get her goods delivered to her home. Even though the banks give Rs. 275 for a dollar now, will this worker still send money through the banks? It is easy to lose people to the formal system, but it is difficult to bring them back,” warned Gammanpila.  Gammanpila and former Minister Wimal Weerawansa were sacked from their posts earlier this month, after they criticised Rajapaksa and called for reforms of the economic policies in order to combat the fuel and power crises. They launched a programme titled “Taking the Nation onto the Correct Path” at the beginning of this month, with other Coalition Members, including Minister of Water Supply Vasudeva Nanayakkara.


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