4 September 2021 12:00 am Views - 91
Opposition MP Patali Champika Ranawaka said the latest inflows of US dollars from the IMF and China would vanish into thin air because of payments for vaccine purchase, imports of essentials and debt servicing.
Mr. Ranawaka, in his monthly analysis of the economic situation said the recent loans obtained from China will be spent back on Chinese vaccine Sinopharm purchased at a very high price. Besides, he said US $ 900-1,000 million loan premium is due before the end of the year.
“Once spent on Petroleum, Coal, Medicine, milk powder and fertilizer, these reserves will vanish before the end of the year,” he said.
He said, “The State Minister of Finance and the Secretary to the Finance Ministry are out boasting about the increase of Dollar reserves from 2.8 billion at the end of July to 4 billion. This was solely due to the replenishment of quota for 780 million dollars from the IMF and loan facilities by Bangladesh and China worth 400 million dollars.
How long will these reserves sustain the crumbling economy?
We have continued to point out that the economic crisis of the state will cause an inability to repay debts and maintain essential imports. There is an even worse crisis looming around the corner. Due to the rapid depletion of foreign currency assets, the state banks and private banks are at the brink of collapse. When the foreign currency assets are depleted below the level to maintain overseas expenditure, even the Central Bank could collapse,”