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Govt. is realising that I was right: Harsha De Silva

14 Jul 2021

By Aazam Ameen Samagi Jana Balawegaya MP Dr. Harsha De Silva’s concerns over the present economic situation of the country has stirred up a response from some factions of the government, to the effect that the MP’s claims and solutions over pressing economic situations are correct, The Morning learnt. De Silva has been continuously stating that the balance of payments crisis was very real, underscoring that the repayment of Sri Lanka’s debts are a serious matter which needs to be resolved. Stressing on the need to recognise this as a solvency issue versus a liquidity issue, De Silva urged for the restructuring of debt, with the International Monetary Fund (IMF) acting as a facilitator for the same. “I am hearing now that various people in the government have said that I may have been correct and that perhaps it will be prudent to speak to the IMF to find a way out of this issue,” he told The Morning. He also claimed that despite the Central Bank of Sri Lanka (CBSL) stating that the value of the dollar is around Rs. 202, it is far worse in parallel markets standing between Rs.220 and Rs.230. “If they dealt with these issues at the right time and found a solution, the rupee would not have taken such a massive beating,” he stated. With regard to the Department of Census and Statistics’ recent release of Sri Lanka’s GDP growth figures which stood at 4.3% for the first quarter of this year, De Silva noted that last year’s first quarter figures were -1.3%. “Even before Covid, last year’s figures for the same quarter were -1.3%. The fact that we started from a lower base factors into how our GDP has grown,” he said. He also noted that the government has made contradictory statements with regard to the economy.  “According to the government, things are back to normal. On one hand they are saying the economy is growing and there is no problem. On the other hand they are saying that it is stagnating as Covid has struck a huge blow. These are oxymoronic statements,” he claimed. However, De Silva is of the opinion that it is not too late to save Sri Lanka from a balance of payments crisis, provided that immediate action is taken. “At some point we have to deal with it. To keep the adjustment costs within a manageable level, we must deal with issues prudently and professionally,” he concluded. 


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