In a discussion with the COPE committee and the central bank authorities, several decisions and some concerns were discussed, and decisions were taken. The central bank governor and the secretary were asked about the current financial crisis and the steps taken towards it.
Adding to that, the COPE committee also questioned the relationship with the IMF and the current monetary and fund rate whether the country is safe to run, fulfilling the basic needs of its fellow citizens such as food, fuel, and gas.
Addressing the issues, the governor and his fellow college mentioned that the following three months will be crucial and they need to get support from the world bank and neighboring countries such as India in the form of loans. Furthermore, he discussed that some loan arrangements have been made and he is expecting those credits from the related parties to be received on time. He also stated that we are expecting to get another loan of $1 billion worth of credit line from India and some emergency assistance from the World Bank in the short run. He also stated that US $500 million worth of credit will be gained from the WB (World Bank) alone, and this credit line is sufficient for all the imports of fuel, gas, and food imports.
He also stated the necessary measures have been taken in order to get all the US dollars from the black or grey market, which is mostly used to import non-essential goods, in Hawala and money transfers. When questioned about the country’s revenue and income in the form of dollars, he stated that around $1 billion is made from exports and $300 million from remittances. He also underlined that the country is not generating any revenue from tourism, which has been buried in the grave since the start of this crisis.
Also, the secretary of the Central Bank compared the 2021 income and expense stats in front of the committee. He stated that Sri Lanka made total of 1400 billion as income and 3500 billion for expense which is 2.4 % higher than the expense. Furthermore, when addressing the committee, he stated that 70% of the income needed to be paid as a debt installment.
MP Harsh De Silva questioned the IMF statements issued on the November 2019 IMF stated that Sri Lanka is a debt sustained country and in March 2020 as not sustainable debt, and the removal of tax income, which is estimated at around 600 million per annum.
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