Written by Staff Writer
06 Nov, 2019 | 6:57 am
COLOMBO (News 1st):- Reuters, in an article, claims Sri Lanka’s election pledges threaten fiscal targets under the International Monetary Fund. The article reads Sri Lanka’s two top presidential candidates are offering election giveaways as well as big tax cuts that officials and a credit rating agency are warning would push the country deeper into debt. Sri Lanka’s fiscal deficit fell to 5.3% of the gross domestic product last year from a six-year high of 7.6% in 2015 under the $1.5 billion IMF loan programme. The 2018 target was 4.8%.
The IMF has urged Sri Lanka to show fiscal discipline.
Article reads that Sarath Amunugama, a former finance minister backing Rajapaksa, said the party had a plan for revenue and if needed, it would renegotiate with the IMF. Harsha de Silva, economic reforms minister, said that under a Premadasa government, hopes would be pinned on greater private investment to drive growth and generate revenue. The world is littered with economic failures, following actions of intervention, by various international lending agencies, whose interests are clearly beyond those of the recipient nations.
It should be noted that these lending agencies are also similar to a banking institution. When accepting facilities with a bank, it is essential do so, from a position of strength. Strength, that can be achieved through professionalism, and sound understanding of policy planning prevalent in Sri Lanka. This professional approach to debt will ensure that Sri Lanka’s sovereignty and independence will remain intact, which are essential ingredients in a robust democracy.
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