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Gazette allowing unlimited foreign loans detrimental to SL-Bandul

The government was getting ready to issue a Gazette titled ‘Active Liability Management Gazette’ which would grant the finance minister the power to raise unlimited foreign loans exceeding even the borrowings mentioned in the 2018 budget, MP Bandula Gunawardane said yesterday.

Addressing a media briefing, he said if the proposed gazette was
issued it would be detrimental to the country, adding that it had not been approved by parliament.

“The incumbent government has obtained approximately Rs.3 trillion as foreign loans since 2105 to date. During the tenure of former President Mahinda Rajapaksa, foreign loans worth Rs.7 trillion were obtained. It seems that the current government is stagnating and has been unable to repay its loans. Therefore the country would have to face a huge debt burden if this gazette is issued and more loans are received,” he warned.

He said they were willing to even go to the Supreme Court in order to seek its interpretation with regard to the gazette notification.  (Sheain Fernandopulle)