SL fallen below bankruptcy

• Rupee would further depreciate against the dollar
• India had granted a credit line of over US $5Bn so far
• Suwaseriya Ambulance service in crisis due to insufficient funds

By Ajith Siriwardana and Yohan Perera 

Sri Lanka has relegated even below the level of bankruptcy as per the announcement made by Finance Minister Ali Sabry that foreign reserves have dropped below US $50 million, SJB MP Dr. Harsha de Silva said yesterday. 

He told Parliament that the rupee would also further depreciate against the US Dollar when reserves dropped to that low. 

He said India had already granted us a credit line of over US $5 billion so far and that the country would have to face a further crisis if Sri Lanka failed to find ways to increase foreign reserves. 

The opposition party Parliamentarian said China has refused to restructure loans obtained by Sri Lanka. “It is reported that the President has written to the Japanese Prime Minister requesting a loan of US $3 billion. We learnt that he has shown a positive response. That is the only hope we have right now. If we fail to obtain that loan, we will have to face a serious situation,” he said. 

Dr. de Silva said the tax rate in proportionate to Gross Domestic Product (GDP) in Sri Lanka stands at 7.5% which goes into record as a country with the lowest tax rate. “How can a country run with such a low tax rate?” he asked. 

He also said Suwaseriya Ambulance service was in crisis due to insufficient funds and requested the government to look into it and allocate adequate funds for it. “It is at risk of collapsing even today. Please look into it,” he said.