… after their administration bankrupted country through costly borrowings
It was absurd to hear Opposition MPs, who were part of the Ranil Wickremesinghe administration from 2016 to 2019, speak about debt sustainability, Deputy Minister of Industries and Entrepreneurship Development, Chathuranga Abeysinghe, told Parliament on Thursday (05).
He pointed out that the Wickremesinghe administration had issued International Sovereign Bonds (ISBs) at an exorbitant seven per-cent interest rate, and argued that the over-reliance on ISBs was one of the factors that had led to the country’s current economic crisis.
“It is laughable to hear members of the Wickremesinghe administration talk about debt sustainability,” Abeysinghe said. “They talk about debt sustainability analyses, but I wonder if they conducted any when they overexposed the country to ISBs. Did it not occur to them that issuing such high-interest ISBs was reckless? It was evident that the country would struggle to repay these debts given the rate of economic growth at the time.”
Abeysinghe emphasised the need for Sri Lanka to look towards comparable nations, such as Vietnam, which had achieved rapid development in recent decades. He noted that Sri Lanka must significantly increase its foreign reserves to prepare for loan repayments starting in 2028.
“All countries that developed rapidly had industrial policies. We lack one. A review of history shows that no country has developed solely through private sector initiatives. Development occurred when the state intervened to assist the private sector in accessing international markets. Furthermore, economic democracy cannot be achieved without a significant reduction in corruption,” he said.
The Deputy Minister also rejected claims that the National People’s Power (NPP) government is following the policies of former President Ranil Wickremesinghe. He criticised previous administrations for establishing industrial zones in an arbitrary manner, driven by the whims of influential politicians.
“We do not have a national industrial policy. We could learn much from South Korea’s development model, particularly how the state acts as a facilitator for private entities. The South Korean government reviewed productivity every six months and ensured state involvement in key areas, such as energy, banking, transport, and communication to reduce input costs. Rapidly developing countries also implement tax policies that support industries, unlike ours, which seem designed to cripple them,” he said.
Abeysinghe also highlighted the role of development banks in fostering growth in countries like Brazil and India. “Ranil and his administration destroyed our development banks. We stand with the industrial sector and represent a clear departure from everything Ranil, who dismantled local industries, stood for,” he said.
