• Sri Lanka’s economy is dependant largely on imports, whether we like it or not
• The Economy of the country has fallen as a result of import curtailment
• One cannot go along with a foreign reserves which is $ 1.7 billion. Local banks are functioning with complete non-performing loans

By Yohan Perera and Ajith Siriwardana   

Sri Lanka is not likely to experience a V shape economic recovery given the global issues and local issues which Sri Lanka has created by its own self, UNP MP Ranil Wickremesinghe told Parliament yesterday.   

“ The supply chain in Europe and Japan is expected to fall. Japan’s GDP has been reduced by one percent while China is facing an energy crisis. There are other local issues which Sri Lanka has created on its own. Sri Lanka’s economy is dependant largely on imports, whether we like it or not. The Economy of the country has fallen as a result of import curtailment. Foreign reserves have come down to $ 2 billion out of which gold reserves account to $ 300 million. One cannot go along with a foreign reserves which is $ 1.7 billion. Local banks are functioning with complete non-performing loans. Total non- performing loans in Sri Lankan banks accounts are between Rs 4,000 billion to Rs 6.000 billion. Just remember Sri Lanka’s GDP average is 18,000 billion,” he said 

 
“ Sri Lanka faces an annual foreign debt service of $ 500 million annually,” he added whilst highlighting that Sri Lanka would face a great economic crisis,” he added.   
 He also questioned about the allocation for the health sector in this year’s budget.   

Mr. Wickremesinghe further questioned as to how the Central Bank Governor took a unilateral decision to securitise Sri Lanka’s foreign reserves. “ It is the Cabinet and Parliament which have the power to make such decisions,” he said.