Sajith calls for action to prevent further downgrading by credit agencies

COLOMBO (News1st): Opposition leader Sajith Premadasa has urged the government to take "credible action" to prevent the country from being downgraded by credit rating agencies. "If the government does not take credible action, they won't be able to prevent Sri Lanka from being downgraded by Standard & Poor Global Ratings," Premadasa said in Parliament. He pointed out that two other leading global credit rating agencies - Fitch and Moody's - have already downgraded Sri Lanka's position. "In such a situation we will face a ... sharp rise in interest rates that will inevitably lead to a devaluation of the rupee and a decline in living standards," the Samagi Jana Balawegaya leader cautioned. He pointed out further downgrading the country may dampen foreign exchange earnings, amidst a debt liability of USD 23 billion to be settled by 2025. However, state finance minister Ajith Nivard Cabraal said the government will streamline foreign borrowings to address the shortcomings in the country's economy. "We hope to stabilize the rupee, maintain low-interest rates, support entrepreneurs, and take business-friendly measures to increase revenue collection," Cabraal noted. He added that the government will also implement measures to attract Foreign Direct Investments in the coming years, and increase the country's reserves as well.