DDR process has cost Sri Lanka Rs.760 billion; Patali

By Yohan Perera   

Domestic Debt Restructuring (DDR) has cost Sri Lanka a staggering Rs 760 billion, Member of Parliament and former chairman Parliamentary Committee on Ways and Means Patali Champika Ranawaka said yesterday.   

MP Ranawaka who was speaking during the launch of the United Republic Front common nation building programme said Sri Lanka has lost this Rs 760 billion as a result of converting treasury bills into treasury bonds. “Sri Lanka decided to convert treasury bills into treasury bonds as a part of the domestic debt restructuring process,” he recalled .   

“Sri Lanka will have to get into an agreement by March this year with the international sovereign bond holders who have filed legal action . If we fail in that process Sri Lanka will have to face another crisis. In addition Sri Lanka will have to settle US $ 1.5 billion by 2028 which have been rescheduled. The nation will go into a second financial crisis in the event of a failure to settle this amount,” the MP added painting a grim picture on the country’s future.   

“Increase of Value Added Tax (VAT) is not necessary if the institutions which are responsible for revenue collection do their jobs effectively. “ We have instructed the officers attached to these institutions to collect these revenues. However I have lost my membership of the parliamentary committees in which I was involved in as a result of my instructions. 
He said Sri Lanka should also address the issue of non-performing loans which has come to Rs 1387 billion in total.