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Sri Lanka: SL faces worst ever financial crisis: Champika
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COLOMBO, 08 August 2021, (TON): Opposition MP Patali Champika Ranawaka said “Sri Lanka is facing the worst ever public finance crisis and time is ripe for evolution of sustainable solutions to the present ills instead of trying to muddle through them.”
In his monthly economic analysis, Mr. Ranawaka said the country's debt burden had increased beyond means due to the absence of fiscal discipline over the years.
He said that raising high interest short term loans and sometimes investing them in economically unviable projects had compounded to the situation.
He said the tax relief package announced in the recent times was the most irresponsible act ever done by any government in the post independence era.
Mr. Ranawaka said “state revenue dropped by 30% due to it in 2020. He said state revenue accounted for only 9.2% of the GDP and 70% of it was spent for interest payment last year.”
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