The US$ 500 million bond to be raised by the Government from foreign banks will be used to improve the infrastructure and thus expedite development of the country, Prime Minister Ratnasiri Wickremanayake told Parliament yesterday.
Responding to a special statement made by Opposition Leader Ranil Wickremesinghe, the Premier said the bond will be a fillip for the local economy as it would stabilise the value of the rupee and help maintain a healthy interest rate.
"It would strengthen our foreign funds and enable the Government to expedite its development drive by successfully implementing the projects to provide electricity, construct ports and highways etc. Therefore, I call upon the Opposition Leader to support this initiative without sabotaging the forward march of the economy," he said.
He stated that three leading foreign banks - JP Morgan, Barclays and HSBC and the Bank of Ceylon have been selected to raise the bond, out of 13 internationally recognised banks and two local banks who offered to assist the Government in this effort.
"All developing nations in the world today follow this method of raising funds on the basis of an independent economic analysis, instead of obtaining loans subject to the conditions of the World Bank or the International Monetary Fund (IMF). We are proud to have facilitated an independent analysis of the country's economy after 30 years," he said.
Addressing Parliament yesterday Opposition Leader Ranil Wickremesinghe charged that the Government has slashed subsidies provided to the people to please foreign banks who have agreed to provide loans.
Prime Minister Wickremanayake said that Wickremesinghe's statement was the expression of his jealousy of the Government which has been able to achieve a healthy economic growth of over seven per cent. "In 2006, our economic growth rate reached 7.4 per cent which was only a dream for the UNP regime.
He further said it was ironical that Wickremesinghe who followed the directions of the World Bank and IMF throughout his tenure as Prime Minister has to attack internationally recognised banks today.
He also pointed out that the Government is in the process of providing the relief pledged in the 'Mahinda Chintana' including free text books and meals to schoolchildren and medical insurance, relief loans and salary increases to Government employees.
Over 100,000 persons have been recruited to the State sector while subsidies are provided for fertilizer and kerosene. The Samurdhi subsidy and aid to disabled soldiers are continued while development programs have been launched in the entire country except two districts which are yet to be liberated from terrorism.
"Today the Opposition Leader speaks with a new found concern for the oppressed class. I would like to question as to where this concern was when he sacked the July '80 strikers, cut down the pension of Government employees, burnt our youth on tyres in '88-89 and when he paved the way for the division of the country in 2002." The Premier pointed out that the Government has constantly kept the Parliament and the people informed of its decisions and plans regarding the economy.`
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