SL’s return to a financial crisis once debt servicing begins is a fallacy

He said foreign currency debt servicing should be only 4.5 percent of GDP (Gross Domestic Product) according to the agreement in principle reached with bilateral creditors. He said it was as high as 9.2 percent in the past.   
“Until 2028, we have to pay only a small amount in terms of interest. After that, we will have to pay debts in small instalments from 2028 onwards. It means we have enough time to implement policies, build economy and reserves,” he said.   
He said it is a fallacy that Sri Lanka would return to a financial crisis once debt servicing begins.   
“If we start debt servicing without debt restructuring, it will be a crisis then. 
That is why we restructured debt payment. If we press ahead with the current programme, it will not happen. Any government has the right to alter it and revert to the old system. Then, it will be a different story,” he said.