No barrier for foreign loan repayments - Minister | Daily News

No barrier for foreign loan repayments - Minister

* Govt to settle US$ 1 Bn loan installment on time
* No impact on Foreign Reserves
* Cash flow managed smoothly despite pandemic

The Government will settle the biggest installment of US$ 1 Billion due this year for foreign loans obtained by the Government on time, Co-Cabinet spokesman Minister Keheliya Rambukwella said.

Media Minister Rambukwella addressing the media conference held to inform the decisions taken at this week’s Cabinet meeting, said the Government has succeeded in managing the country’s cash flow smoothly even during a period where the whole world was suffering from a huge financial crisis resulting from the COVID-19 pandemic.

The Minister alleged that various groups levelled criticisms claiming that the Government had no capacity to pay this loan installment, although none of them forwarded any proposals on how to settle the loans. “Certain economic experts from the Opposition repeatedly stated in Parliament that the country is not in a position to settle the loan installment due by July 26 since the foreign reserves had drained. Even ratings agencies like Fitch Ratings also critically spoke about Sri Lanka’s economic issues.

 Various allegations were levelled against the Government in this manner,” the Minister said. According to the Cabinet Spokesman, the issuance of Letters of Credit (LCs) in the banking system and the importation of goods could be carried out without any obstacles starting from today. Responding to a question by a journalist, the Minister stressed that the loan installment was settled based on measures undertaken to control the finances, in a manner where there was no impact on foreign reserves. Foreign Media reported yesterday that Sri Lanka has successfully repaid a US$ 1 billion bond, thus avoiding any risk of default. Sri Lanka will implement a series of measures to boost its forex reserves, the reports said.

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