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CBK blames frauds during MR era for economic crisis

09 Mar 2022

BY Buddhika Samaraweera The main reason for the current economic bankruptcy in the country is the serious financial frauds committed by the leaders of the Governments from 2005 to 2014, claimed former President Chandrika Bandaranaike Kumaratunga. Commenting to the media on Tuesday (8), she charged: “The main reason for the economic bankruptcy we are experiencing today is the serious financial frauds committed by the leaders of one Government, the administration from 2005 to 2014. They stole trillions of public money. It is those stolen monies which are still being paid off as loan instalments to other countries.” Incumbent Prime Minister Mahinda Rajapaksa was the President during the said period. She noted that poor countries generally do not obtain loans from international private banks, charging, however, that the administration from 2005 to 2014 borrowed at a very high interest rate of 9% and stole most of the money under the guise of implementing various unnecessary projects. “Governments in poor countries usually do not go to international private banks for loans. Instead, they obtain loans from institutions such as the International Monetary Fund, the World Bank, and the Asian Development Bank, and allied countries, and borrow at an interest rate as low as 1%. Ignoring all these practices, the 2005-2014 administration borrowed at a 9% interest rate.” During her tenure, Kumaratunga claimed, the contract for the construction of the Norochcholai Power Plant was signed with a Chinese company for $ 280 million, but that the Government that came to power in 2005 signed the same agreement with another Chinese company for as high as $ 520 million.  “How can the country’s economy be strengthened by paying $ 520 million for what could have been done for just $ 280 million? These are the reasons why the country is now heavily in debt. The people now have no fuel, electricity, and food. The main reason for this is financial fraud and the current Government having no plans.” She added that when she came to power, Sri Lanka was one of the 25 poorest countries in the world, but that by the end of her presidency, the country was able to become one of the 72 richest countries in the world because of governance under a clear programme and progressive economic policies.


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