Responding to Central Bank of Sri Lanka (CBSL) Governor Ajith Nivard Cabraal’s statements which alleged that the former CBSL Governor Dr. Indrajit Coomaraswamy “wasted” Sri Lanka’s foreign reserves, Samagi Jana Balawegaya (SJB) MP Dr. Harsha De Silva firmly defended Coomaraswamy’s actions and explained the borrowings of the former Governor.
This exchange took place during De Silva’s recent virtual address to the International Chamber of Commerce Sri Lanka.
“Mr Cabraal said that at the end of 2014 we had $ 7.6 Bn in reserves, that is true. Of the $ 7.6 Bn, $ 2.2 Bn consisted of very short term swaps. Of the rest, $ 3.5 Bn consisted of foreigners investing in local Government securities, they were unstable hot reserves.
During the coup, $ 400 Mn just flew out in two months. Indrajith had to rebuild these reserves and change the composition from short term to more stable longer term debt. He had to borrow about $ 5.7 Bn.
In 2019, the Government of the day had to pay back over $ 5 Bn in debt which included $ 1.5 Bn in International Sovereign Bonds borrowed by Mr Rajapaksa.
Therefore, having had to borrow that money, Indrajith told us that next year will be an election year. He had no idea there would be a pandemic. He said that during the election year, things might be a little shaky. Indrajith, Mangala and myself went to meet the IMF Head at the time Christine Lagarde because in January there was a payment that had to be made.
The illegal Government threw out the IMF agreement and we had to restart this process. Indrajith said that during the election year, we should borrow more. He looked into the future and said that we have to be prepared and he borrowed an additional $ 2.2 Bn and that is how we had $ 7.6 Bn which has now come down to $ 1.5 Bn,” De Silva said.
Cabraal says former CBSL Governor “wasted” reserves, Harsha explains actions
23 Jan 2022
Cabraal says former CBSL Governor “wasted” reserves, Harsha explains actions
23 Jan 2022
Kapruka
Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Automobile, Mother and Baby Products, Clothing, and Fashion. Additionally, Kapruka offers unique online services like Money Remittance, Astrology, Medicine Delivery, and access to over 700 Top Brands. Also If you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.Send love straight to their heart this Valentine's with our thoughtful gifts!
Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Automobile, Mother and Baby Products, Clothing, and Fashion. Additionally, Kapruka offers unique online services like Money Remittance, Astrology, Medicine Delivery, and access to over 700 Top Brands. Also If you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.Send love straight to their heart this Valentine's with our thoughtful gifts!