26 June, 2022


Rajapaksa Says Sirisena And Ranil Borrowed US $ 7.4 Billion In Foreign Loans

Amidst claims by Prime Minister Ranil Wickremesinghe that his government was saddled with a Rs. 10 trillion debt mostly left by the previous administration, former President Mahinda Rajapaksa today said that since January 2015, incumbent President Maithripala Sirisena and Wickremesinghe have borrowed a staggering US $ 7,436 million in foreign loans alone.

MahindaIn a statement issued today, Rajapaksa said that of the borrowings, the government has to pay back US $ 3.2 billion before end of this year. “This is apart from the hundreds of billions of Rupees the government has been borrowing in the domestic market by issuing treasury bills and bonds. Now the government is trying to collect taxes from the people to repay these debts,” he said.

Rajapaksa also called upon the people to rise up against the government for imposing additional burdens by way of increasing the Value Added Tax from 11% to 15%.

“Though the government has been saying that they have had to borrow heavily to pay off the debts taken by my government, that is not true. In 1977, Mrs. Bandaranaike left behind a debt to GDP ratio of 68.6%. When the UNP was voted out in 1994, this had increased to 95.1%. When President Kumaratunga lost to the UNP in 2001, the debt to GDP ratio was 103.3%. It was still 102.3% when the UNP was voted out in 2004. When I assumed office in 2005, it had declined to 90.6%. By the time I left office in January 2015,the debt to GDP ratio was 75.5% – the lowest since 1979. Even if the debt of all public enterprises is added to the government debt, the debt to GDP ratio will still be much lower than it was more than a quarter of a century ago,” he said.

He accused the Yahapalanaya government of increasing taxes to find money for their political survival. “This is another cynical trick on the part of a government that won power through, and is sustained by deception. This is why the people should rise up as one against the impending tax increases,” he said.

While emphasizing that no state can exist without taxes, he noted that taxes have to be justifiable and reasonable. “The international prices of virtually everything that we import declined after this government came into power in January last year,” he said.

According to the former President, the current government should sell petrol at less than Rs. 80 and diesel less than Rs. 50 per litre, based on the current world market prices.

“Though international sugar prices have declined since 2014, the government has not passed the benefit onto the consumer. The import levy on sugar was reduced to Rs. 18 with much fanfare in January 2015. Bu tin September 2015, it was increased to Rs. 30. The international price of milk powder has declined by as much as 60% since I was in office. The yahapalana budget for 2016 fixed the price of a 400 gram packet of milk powder at Rs. 295 which means that the retail value of a tonne of milk powder in Sri Lanka is Rs. 737,500 when the world market price is something like Rs. 290,000. Leaving aside a small amount for shipping and packing, the difference is what the government takes as taxes and importers get as profits,” he said.

He noted that while some ministers say people can afford to pay extra taxes because salaries had been increased, Rajapaksa pointed out that only government servants who make up 15% of the employed population got a salary increase while the remaining 85% who are either in the private sector or self employed, have not seen an increase in their income.

“The government is going to increase taxes because there is no money to continue implementing the reckless pledges they made to the voting public to win power. They actually expected vast amounts of Western aid to flow in to sustain their government. But no country gives aid to fulfill election pledges,” Rajapaksa added.

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  • 31

    Obviously! All borrowed to pay for your sins and excesses!

    • 10

      Former President Mahinda Rajapaksa

      RE: Rajapaksa Says Sirisena And Ranil Borrowed US $ 7.4 Billion In Foreign Loans

      Well. Can you or your advisors estimate as to how much you borrowed from

      2005 to 2015

      What they are for

      What the returns were

      What the payments are for those loans.

      Can you also explain why the Air Lanka went from from a profitable Airline during CBK’s time to a loss during your regime from 2007 to 2015?

      Thank you,

      On behalf of

      The People of the Democratic Socialist Republic of Sri Lanka.

    • 8

      Obviously MR will behave like a mad bull this way, but I really dont think the days ahead of him will be easy for the men. Even if they would be the break away fraction after 1 st of May, he would not succeed for sure. All local and international forces will strengthten the hands of Mr Sirisena and his credibility of perofrming. His speech yesterday is gradndiose, anyone who knew the situation would bend down to have kept them for him over the few months.
      And RW is a clean person, he would not abuse the funds unncessarily which are gotten for the development projects. And Sajith Premadasa would do better knowing all the past incidents, no doubt about that. All in all together with new young men in politics, lankens will march towards the progress. It si a good thing that the country be blessed with IMF and other funds, so that they can go for the development next on. State power will make them even stronger in next days than had been in the past.

    • 2

      MARA [Edited out]

  • 24

    An ’empty vessel’?. Is there anyone out there to tie both ends of this hypocrite?

  • 19

    There should be a law in this country – to control any kind of abuses.

    Like for example if Basil is now on the order of Meeharaka on a missions offorcing people to join their rally and send the message across in the motive of weakening the ruling govt – they should be banned.
    THe days, rascals abused the power should be stopped by introducing new laws.
    The democratic values that the western world is practising are not applicalble to lankens. More freedom can lead them to abuse it as no other nations do.

    As president makes it clear, the admistration that MR ran was authoritarian by all means. At least yesterday, he has revealed it.
    Now it is upto media to work on the benefit of the people and make it clear with them … ground realities of the Rajaakshes.
    Real Rajaakshe face is miles away from the average people in this country.

    • 26

      People are no fools anymore.

      Today they dont see Dansal and extra wastful events.

      President in power is making it clear the way how he has reduced the all costs that were then unnecessarily done during the days of MR.

      He has reduced his staff from 1600 to 800. And no extra vaganza at all.

      So does PM. Both travel by normal flights. Not abusing srilanken carrier in their entourages.
      But both have made and developed all the external affairs to this day so that entire world is praising.
      But MR and his clans, abused aircrafts for week long tour sessions. As if he is born to eat the fund of tax payers money.

      If people have brains they should finally get it.

      That way only they can isolad MAHARAJA ET AL learn him a lession also for the third time.

      (FIRST TIME was the Presidentioal Election, Second time was the general election)

      • 12


        say you hire an airplane for your entourage – that can cost multi millions of dollars. Since during the time, no business through passenger transport. Only lovely ones within Rajapkshes circles, to the very same manner a film crew travels to Swtierland moutains for shooting events.

        All these sould be made clear by MEDIA men that work unbiased.

        As president makes it very clear, ….. as I also raised it several times on CT and other forums, no journalists have raised very many crucial questions, revealing the realities of the issues related to Rajakshe andhis exponnetially increasing allegations after all to have abused mountains of dollar millions.

  • 14

    Let us see this Rajapaksa cabal before the courts?
    Leaving the wounds to fester is a big mistake?

  • 9

    Let us see this Rajapaksa cabal before the courts?
    Leaving the wounds to fester is a big mistake.

    • 7

      not just bringing to court, but need to hang by their balls for the mess deliberately done to this nation. Presidents speech yesterday was so credible. He has no chatu … he speaks out today.. i am so happy .. Mr President finally held a good speech on most murderous Rajapakshe.

  • 15

    “Rajapaksa Says Sirisena And Ranil Borrowed US $ 7.4 Billion In Foreign Loans”

    And out of this, how much was paid to service high interest loans taken by the Rajapaksa clan?

    • 6


      “And out of this, how much was paid to service high interest loans taken by the Rajapaksa clan? “

      It is MR’s liquid asset, which rightfully belongs to him. It is also unreasonable for MS & RW to deny him access to the fund.

      MR & RW hands off, let him have it as he has a large extended family to feed and clothe.

  • 9

    Did this imbecile seriously just come up with all this shit by himself. I would love to get my hands on some of the stuff that he seems to be snorting. I can’t do much but shake my head at the punnakku this scumbag keeps feeding the meeharaka section of the masses. Why doesn’t this sakkili pimp do us all a favor, roll up into a ball and die ??? No doubt your cronies will pay a few people to wail at your funeral.
    Damn corrupt and murderous pig.
    End rant !!!!

  • 5

    Even our future Eelaam Sea Salt has gone up to LKR 100 a Kilo.

    Our poor in the bush find it hard to get their salt and rice diet now.

    While our Yahapalana suckers in Colombo are putting on extra Kilos even with Thapalpath at LKR 1200 a kilo and the humble Bollas selling for LKR 700 upwards.

    Batalanda reckons the Havier lifting the EU ban will be a bonanza to our fish eaters in Colombo.

    Yahapalana Sira’s brother is getting extra LKR 750,000 to pay his rent while the Yahapalana SLFP faction Secretary is paying LKR 15 Million a month for his Office in Colombo.

    No wonder the Singaporean has borrowed LKR 120 Billion LKR so far at 12.85% to 14.45 % for the Yahapalana suckers to pay back over the next 30 years.

    Wonder what happened to the USD 7.8 Billion which was borrowed from the West when Batalanad’s buddies in the Ministries say they haven’t paid back even one cent off the Chinese loans.

  • 13

    Well Mahinda Rajapaksa,

    If you return just a small part of the colossal amount of money you stole from the people RW will not have to borrow any money at all.

    Scumbag MR stop trying to hoodwink the people. You have no legitimacy at all.

  • 11

    Bloody vampire who together with his ghoulish family sucked the blood of the nation is now trying to display his patriotism! Miracle of Asia!

  • 7

    Naturally MS/RW had to ‘rob Peter to pay Paul’. They have to rob as there no one from whom they can ‘borrow’

  • 6

    Is there no way somebody to bring a case against the immigration and emigration department to have ruined the SAL by refusing to renew Peter Hills Visa. That debt is now $ 3.2 billion as per Ranil.

    Let’s do a little math.

    7.4 + 3.2 = 10.6

    If the 3.2 billion is restored from Immigration and emigration, the borrowing after october(2016) will not shoot up to $10.6 billion. it will stay at the current level .

  • 10

    My Dear Mahinda Ayya,
    I don’t know where you have hot these figures from. Don’t trust P.B. Or Ranjith Bandara any more.what they did to you is in the past will not work any more. We don’t need figures to see the truth. Even if we have all the details including what you didn’t record any figures in finance ministry books people know how much you really borrowed and spend during your 10 years. They also know who you are and what you did. We will expose you soon . Wait and see!

  • 8

    This guy knows what he is talking; he knows his economics!

    With the help of Cabral and T B Jayasundra he kept the longest SL Ponzi scheme going. He is the luckiest guy alive, escaped the consequences, Ranil will clean up the mess and cop the blame. And in time he will ride back into power. I like the way he operates. My kinda guy.

  • 4

    Borrowing for the good of the people of Sri Lanka is different from misappropriating and stealing for one’s personal benefit. Bensen

  • 2

    Aney Mahinda Mama

    Please give back the billions you stole then the country will have enough money

  • 1

    At least everyone knows how much has been borrowed by the present government.

    How much did you borrow, Mr. EX-President? And of those borrowings, how much went on to the state coffers and how much in to your s and your families’ pockets?

    Had one of your sons been an Accountant, you could answer that question. But you have a lawyer, a Naval expert, and an Astronaut as your sons.

    So it is understandable that you could not maintain proper accounts.

  • 0

    Rajapakse is trying to blind us with science with his convoluted statistics that cannot be fact checked even if you took him seriously and wanted to. There’s no doubt his regime left us with a huge millstone of a debt around our necks for generations as we are already struggling to service the loans. We did get an airport, seaport, flyovers etc.from those loans but there was no demand for them but with inflated costs, kickbacks and commissions paid to the Rajapakse regime who in turn built mansions in USA and conglomerates in Sri Lanka. Now he’s trying to incite civil disobedience and if he succeeds he’ll be the first on the soapbox declaring the country cannot do without him.

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