Former Deputy Leader of the United National Party and former Finance Minister, MP Ravi Karunanayake, says that the most serious issue facing Sri Lanka today is the government’s inability to generate the revenue it projected.
Speaking to the media, he explained that the country’s difficulty in repaying its loans is directly linked to this decline in revenue. He stressed that national income must be sufficient to cover the interest on loans.
However, Karunanayake pointed out that while Sri Lanka has borrowed at interest rates of 7 to 8 percent, its revenue is being generated at only 2 to 3 percent, creating a severe imbalance.
He emphasised that the government must focus on finding solutions to these structural revenue issues. The MP also noted that there is growing uncertainty about who is taking responsibility for the country’s ongoing loan defaults.
