Govt's prudent monetary control loosens debt

Ramani Kangaraarachchi

As a result of prudent financial management the government has been able to reduce the debt burden of the country to a satisfactory level, Deputy Finance Minister Ranjith Siymbalapitiya told the Daily News.

He said that the amount of debts by 2006 is estimated to be 89.5 per cent of the GDP which is 16 per cent less compared to 105.5 per cent in 2004.

It was 93.9 in 2005.

"The local debt percentage in 2004 stood at 56.4 and it went upto 83.5 but it has come down to 50.9 this year which is also a good sign," he said.

Meanwhile the foreign debts percentage in 2004 was 49.1 came down to 40.4 in 2005 and it came further down to 38.6 in 2006. The government has paid 19.6 both local and foreign debts in 2003 and it is estimated that this amount will come down to 16.6 this year.

The minister said that the overall picture is very positive and in a healthy state although some politicians are trying to point out that the government debt in 2005 as Rs 36.4 billion but that includes the loans taken for Mahaweli project 30 years ago.

However he hoped that the government would be able to reduce this amount step by step. Referring to the Gold Crest issue the minister said that the government has introduced a new Parliamentary Act titled Money Laundering Act to minimise illegal acts of that nature by various groups. He stated that President Mahinda Rajapaksa despite objections from some parties decided to go ahead for the betterment of the country as this Act includes rules accepted by well developed countries in the world.

However, the racketeers who make use of loopholes are engaged in these illegal acts and as such it is not possible to bring them to book completely, the minister said.