Former Finance Minister and Member of Parliament Ravi Karunanayake has raised concerns over the legality and accountability of Sri Lanka’s 2022 decision to suspend foreign debt repayments.
In a letter addressed to President Anura Kumara Dissanayake, Karunanayake has asked for clarification on whether the debt default was declared without the approval of Parliament.
He noted that although the Central Bank and the Ministry of Finance announced the suspension due to depleted foreign reserves and the inability to finance essential imports, the move had neither parliamentary approval nor a basis in existing law.
The MP further stated that the decision amounted to a unilateral executive action, raising serious constitutional, legal, and procedural concerns.
He argued that the default—made without prior parliamentary authorization or formal notification—has significantly altered the country’s economic trajectory, resulting in reduced credit ratings, restricted access to international capital markets, and long-term financial repercussions.
Referring to President Anura Kumara Dissanayake’s 2025 budget speech, which underscored the need for stronger fiscal accountability, Karunanayake stressed that it is vital to identify who authorized the debt default and to ensure that any similar decisions in the future undergo complete parliamentary scrutiny.
