UNP says SLR 914,000 million has been allocated for debt repayment alone

United National Party’s economic affairs spokesman Dr Harsha de Silva, MP, said the country is to pay Sri Lanka Rupees (SLR) 314,000 million only as interest payment during the next financial year.

“The biggest expenditure for the next year is not the budget allocated for the defence ministry which is SLR 226,000 million,” he told journalists in Colombo.

“It is the huge debt that is to be paid back during the next financial year which is SLR 914,000 million together with the interest,” Dr de Silva, who is also an economist, said.

Appropriation act

Paying back such a huge debt would be a serious burden to Sri Lanka, he said, for a country which allocates only SLR 30,000 million for education.

There may not even be a change in the operator, but only a change in the mode of the operation   Central Bank

President Mahinda Rajapaksa, in his capacity as the finance minister, is to present budget proposals to the parliament on 22 November.

The main reason for the government to increasingly borrow is to maintain hundreds of loss making state enterprises, according to the UNP legislator.

The central bank, meanwhile, has said that the 37 enterprises acquired under the hurriedly passed appropriation act will be able to enter into a new agreement with the competent authority appointed under the new law.

“In such an event, there may not even be a change in the operator, but only a change in the mode of the operation,” said the statement issued on Thursday.

But Dr Silva questioned the authority of central bank governor “to lecture” private entrepreneurs on how to operate their businesses.