Sri Lanka’s foreign reserve drop to USD 1.5Bn, lowest in history

The opposition alleged in Parliament that foreign reserves have dropped to US 1.5 billion dollars which included the gold reserves of US 300 million dollars. The Govt. did not refute the opposition claim that the available cash reserve was only USD 1.5 billion less than one month’s import payment, lowest in history.

He told a news conference at the Leader of the Opposition’s office in Colombo that as a result, essential food items and fuel shortages would follow and the country could face power cuts in the future

The MP also stated that   manufacturers and businesses would be prepared to face the consequences if the government informs the country well in advance. The oil refinery was also closed for the first time in history.

When this government came to power, the foreign reserves, which was more than  $ 7 billion, has  now reduced to 1.5  billion dollars as this government is  more concerned with giving relief to its cronies than governing the country.

He added that despite reports that the International Monetary Fund (IMF) has provided emergency assistance to 80 countries, including Asian countries such as Pakistan, Nepal, Maldives and Myanmar, the government has not yet responded to a question raised in parliament a year ago whether it had received a rapid financing instrument from the IMF.  Sri Lanka did not receive this assistance because the International Monetary Fund (IMF) had speculated that Sri Lanka would not be able to repay its loans due to the depletion of our foreign reserves which needs a comprehensive reform process.

The present government, which had criticized and repealed the fuel price formula implemented by the yahapalana  government as a timely solution to the problems faced by the country, now insists that fuel formula  is good for the country. This proves that they do not have a proper understanding of economic management or  governance.

The foreign reserves which  were around $ 7 billion  in 2019  has been gradually  declining every month up to $ 1.5 billion by November 2021 making it inadequate to meet the one month’s import needs.

Even the poorer countries than us in Asia  received this Covid-19 emergency aid from the IMF, Sri Lanka was not included in the recipient lists due to the assessment of the International Monetary Fund that Sri Lanka needs major economic reforms in the context of the collapse of its foreign reserves.

According to the Standing Orders of Parliament, when a question is raised, it can be adjourned only twice. However, Mr. Wickremaratne warned that the government was still  postponing his question ostensibly collecting data and urged  that it was the responsibility of the government to tell the people the truth about the dollar shortage and its consequences in importing essential goods to the country and prepare them in advance, realizing that deceiving the people in prevarication of the fact  is not a solution to the serious situation facing the country.


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