In Parliament, Mass Media, Transport, and Highways Minister Dr. Bandula Gunawardhana emphasized the need for constructive dialogue rather than mudslinging to address the economic crisis facing Sri Lanka. Stressing the importance of international cooperation, he asserted that overcoming the crisis would be impossible without it. Minister Gunawardhana underscored the urgency of the situation, warning that failure to address it promptly would hinder the country’s progress in 2025.
Identifying key factors contributing to the economic downturn, Minister Gunawardhana highlighted the significant current account deficit of the state budget as a longstanding challenge. He pointed out that successive governments have grappled with inadequate revenue to meet recurring expenses, such as public servant salaries and pensions. The Minister cited alarming statistics, revealing a recurring expenditure far surpassing the government’s income in 2023, exacerbating the financial strain.
Addressing the chronic deficit issue, Minister Gunawardhana elucidated on the historical reliance on foreign aid to sustain development projects, resulting in a mounting debt burden. He emphasized the repercussions of this debt accumulation, cautioning that without restructuring or repayment, future access to foreign aid for essential infrastructure projects, such as road construction, would be jeopardized. Highlighting the government’s commitment to addressing these challenges, he mentioned agreements with international financial institutions like the International Monetary Fund (IMF) to restructure debts and reduce the debt burden by 2030.
Minister Gunawardhana emphasized Parliament’s pivotal role in fiscal matters, affirming its authority over financial decisions. Responding to opposition criticism regarding changing agreements made by previous administrations, he reiterated the government’s commitment to fulfilling international obligations, such as debt reduction targets. He acknowledged ongoing efforts to restructure loans with international creditors, signaling a proactive approach to addressing the country’s economic challenges and restoring fiscal stability.
In conclusion, Minister Gunawardhana’s remarks underscored the gravity of Sri Lanka’s economic situation and the imperative for collective action to navigate through the crisis. By advocating for informed and constructive discourse within Parliament, he signaled a commitment to addressing fiscal challenges and steering the country toward sustainable economic growth.