Politics

Opposition Leader Demands Clarity on IMF Agreement and Debt Restructuring

Opposition Leader Sajith Premadasa raised critical concerns in Parliament about the Government’s handling of the debt restructuring process and its adherence to the people’s mandate.

Premadasa accused the administration of continuing with the International Monetary Fund (IMF) agreements established under former President Ranil Wickremesinghe. He noted that these actions contradict promises made by the ruling National People’s Power (NPP) during its election campaign.

He emphasized that the IMF agreement prioritizes debt optimization, including domestic debt restructuring in 2023 and bilateral foreign debt restructuring by mid-2024. Premadasa demanded clarity on the handling of international sovereign bonds, questioning whether a new debt sustainability plan is in place or if the Government is following the previous administration’s path.

Premadasa reminded Parliament of the NPP’s prior criticism of IMF programs and domestic debt restructuring, highlighting statements from NPP figures like Anura Kumara Dissanayake and Vijitha Herath. He questioned whether the current Government was now contradicting its earlier stance by implementing these measures.

Criticizing the lack of promised relief, Premadasa pointed out failures in reducing electricity bills, fuel prices, and taxes. He also highlighted the Government’s failure to protect retirees and workers, citing reduced fixed interest rates on savings accounts and insufficient compensation for farmers.

He raised concerns over the IMF’s macro-linked bond program, arguing that it benefits international bondholders while domestic savings funds, like the Employees’ Provident Fund (EPF), face disproportionate cuts.

Demanding transparency, Premadasa called on the Government to disclose all agreements with the IMF, international bondholders, and bilateral creditors. He also questioned the adequacy of the country’s reserves and the utility of yuan reserves in debt payments.

He urged the Government to honor its commitments, stating, “We need an agreement that benefits Sri Lanka, not one that places further burdens on our citizens.”