• SL will stabilise its foreign reserves by using its own  foreign exchange proceeds without depending on International Sovereign  Bonds to raise them

By Yohan Perera and Ajith Siriwardana  

 Finance Minister Basil Rajapaksa, in the conclusion speech of the budget debate in Parliament, ruled out any arrangement with the International Monetary Fund(IMF) to tide over the current foreign exchange crisis.   He said Sri Lanka will stabilise its foreign reserves by using its own foreign exchange proceeds without depending on International Sovereign Bonds to raise them.  

He said Sri Lanka will not seek IMF assistance if its conditions cannot be accepted. “No one will seek a loan from a bank unless conditions are favourable. Our stance is that we will stabilise our foreign reserves on our own,” he said. “IMF officials are already here and conferring with the Sri Lankan government and I have already met them.  

They come here annually, carry out a study on our economic situations and submit a report to us. We only implement recommendations which are realistic. We went to the IMF in 1961, as did I during the regime of President Mahinda Rajapaksa.  Our government is the only government which met their conditions effectively in the past,” he added.   

“We will not default any loans. Our intention is to settle all debts and tell the world that we will not borrow from anyone anymore. 

We will make this nation a debt free one,” the Minister said.  
The Minister admitted that the country was facing its worst ever foreign exchange crisis.