SJB urges need for bridge financing

• But doubts govt.’s ability to do it due to loss of confidence both internationally and locally
• Tells govt. to appoint legal and financial experts to deal with IMF if it is going for bailout 
• Highlights need to avoid the economic crisis spilling over into the banking sector

By Yohan Perera
The main Opposition Samagi Jana Balawegaya (SJB) yesterday called for the immediate bridging of Sri Lanka’s finances until steps are taken to settle its financial obligations, but expressed doubts that the nation will be successful in this endeavour because of the loss of faith in the government both internationally and locally. 

SJB Centre for Economic Policies member and Member of Parliament EranWickramaratne told a press conference that Sri Lanka needs to go for short-term borrowings until the government secures permanent financing to get rid of its financial obligations. 

“We are doubtful whether the Sri Lankan government will be successful in this endeavour as a result of loss of faith both locally and internationally.

Sri Lanka has got some supply space from India through the credit line it has received. However, there is an issue pertaining to bridging of finances,” MP Wickramaratne said.

Coming up with more proposals, he said the government should appoint legal and a financial expert to deal with the International Monetary Fund (IMF) if it is really interested in such an exercise. “Government should state whether it is really going to engage with the IMF,” he stressed.

MP Harsha de Silva called for the removal of Monetary Board Members of the Central Bank so that the board could be depoliticised. “What Sri Lanka is facing currently is a crisis of confidence,” he said.

MP Kabir Hashim said the government should opt to restructure the one billion dollar bond settlement that is due in June this year. “One cannot wait till June to think of this as people will be affected if the government goes ahead and settles it in July,” he said.

Also the SJB MPs said every effort should be made to stop the conversion of the Sri Lankan financial crisis into a banking crisis.