The Island
Total debt Rs. 824 bn, revenue only Rs. 702 bn
Waste and mismanagement of the economy, by the Mahinda Rajapaksa government, had resulted in a loss of Rs.459 billion last year, economist and the UNFNational List nominee at the forthcoming parliamentary election, Harsha de Silva said yesterday.
Addressing a news conference in Colombo, he said that the impact of the Rs.459 billion loss on each Sri Lankan family of four, was that their debt burden rose by Rs.100,000 in 2009.This has caused each family’s total debt to increase to Rs.835,000.
De Silva, said that the imprudent and short sighted policies followed by the ‘Mahinda Chintana’ had resulted in the debt quantum Sri Lankans owed the world, rising to Rs 4,160 billion.
Referring to the infamous ‘Templeton Deal’, he said that the Rajapaksa regime was very fond of expensive “commission-agent” commercial loans, arranged by foreign fund managers. A classic example being the high interest HSBC Bond issue.
High cost commercial foreign loans increased by 151% from Rs 164 billion in 2008 to Rs 411 billion in 2009, de Silva said.
“The debt servicing situation is precariously placed, with repayments due, outpacing revenue by 17 per cent, he said. ” The total debt service [capital and interest] for 2009 was Rs 824 billion, while revenue stood at only Rs.702 billion.”
De Silva, said that the government, had creatively hoodwinked the people, by showing a budget deficit of 9.7 per cent in 2009, when it should have been 10.2 per cent.