Govt. to introduce new instruments to attract FDI: Cabraal

• Charges destruction of economy began during last 5 years 

By Yohan Perera and Ajith Siriwardana
Money and Capital Market and State Enterprise Reforms State Minister Ajith Nivard Cabraal told Parliament yesterday that the government would introduce new instruments to attract foreign investments to re-energise the country’s economy.

Acknowledging that the country’s economy is in dire straits, with debt services reaching a staggering level, Cabraal charged that the destruction of it began during the last five years.
“However, we will see to it that the economy will start resurging in few months’ time. We will introduce new instruments to attract foreign investments,” he said.

“The ineffective management of the economy during the last five years had been the reason for the current economic downturn. This had made rebuilding Sri Lanka’s economy an uphill task. We would have been able to come out of the COVID-19 crisis if our economy was managed well during the last five years,” he added.

The state minister also mentioned that the country’s foreign reserves have been on a downward trend during the last five years while debt services account for more than 90 percent of GDP currently.

He noted that many countries have experienced economic downturns as a result of the COVID-19 crisis. 

“There are countries whose economy had fallen by 25 percent,” he said.