Mega SWAP facilities could push Sri Lanka to a more severe debt trap: Dr. W. A Wijewardena

Sri Lanka’s current economic meltdown-aggravated by the existing dollar crisis, soaring cost of living and a possible shortage of food in the coming year- has made people question the incumbent government’s promises when it assumed power. Although decision makers conveniently blamed the unforeseen COVID pandemic for this economic downfall, economists believe that several other factors contributed to this catastrophe.   Daily Mirror spoke to senior economist and former Deputy Governor of the Central Bank Dr. W. A Wijewardena who highlighted the mistakes made in the decision-making process, why the International Monetary Fund (IMF) bailout is a viable option and why Sri Lanka should get rating agencies to reverse the downgrade in order to attract foreign investors.

While addressing the media at the weekly cabinet meeting yesterday, he said the CEB had proposed a power cut to give the public a chance to prepare in advance. 

He said the President also advised the relevant authorities to manage the power cuts without disturbing the people’s day-to-day routine. 

The CEB stated that it would take another 9 to 10 days to repair the malfunctioning generator at the Norochcholai power plant, and that the problem will be resolved after January 20. 

Meanwhile, he said there is a sufficient volume of fuel in the country to drive the Sapugaskanda power plant and that it is being released gradually.       

• The President also advised the relevant authorities to manage the power cuts without disturbing the people’s day-to-day routine