Sri Lanka not alone in taking loans: Minister
Not a single economy in the world is capable of taking its country forward with the use of fixed assets and Treasury funds, Minister Nimal Siripala De Silva said yesterday.
He said developing countries had to obtain loans from friendly countries and global financial agencies. The minister expressed these views at the vesting of the Ambagasdowa Drinking Water Project in Bandarawela in the people. He said global financial agencies, developed countries and foreign banks lend to Sri Lanka without hesitation because Sri Lanka had never defaulted on its loan commitments.
“Almost all developed countries are in debt. For instance, Japan is indebted to the tune of 230% of its GDP, Britain which is trying to teach us diplomacy and rule of law is in debt to the tune of 105% of the GDP and the US 170% of the GDP. But Sri Lanka has a debt ratio of an easily manageable 78% of the GDP,” the minister said. “The people must realize that Sri Lanka does not obtain loans for food or the purchase of food stuff. All foreign and domestic loans are for capital investment. You can see for yourself the amount of development achieved in all parts of the country by utilizing these loans.”
The minister said the government had given priority in its development drive to provide safe drinking water to the people as Chronic Kidney Diseases (CKD) are spreading fast and has become a major health concern in the country.
He challenged the opposition to name a single country that did not obtain foreign loans and added that the Rs.4,800 million invested in the Ambagasdowa Drinking Water Project which provides drinking water facilities to 80 villages was built using foreign loans.
Water Supply and Drainage Minister Dinesh Gunawardana said it was a huge shortcoming that despite ample water resources a majority of people did not have the access to safe drinking water.
“The Government hopes to provide safe drinking water to the entire country by 2015 and if that target was met, then CKD could also be controlled easily,” he said.