Govt. says selling state assets only way to build reserves and prevent crippling shortages

By Rathindra Kuruwita

Cabinet spokesman Minister Bandula Gunawardena yesterday (06) said Sri Lanka wouldn’t be in a position to be part of the international trading system unless it boosted its foreign reserves by selling some of its assets. Gunawardena, who also holds media and transport portfolios said so at yesterday’s post-Cabinet press briefing.

Responding to a query about the government’s decision to divest vital national assets, the Minister said that if Sri Lanka did not shore up its reserves to the tune of over three billion dollars, international companies would not accept the letters of credit given by Sri Lankan banks.

President Ranil Wickremesinghe, in his capacity as the Finance Minister, has proposed privatising of several state enterprises including Sri Lanka Insurance and Sri Lanka Telecom.

“Former President Chandrika Bandaranaike Kumaratunga sold a number of state owned enterprises. If we don’t increase our reserves, to over three billion USD soon, we will have problems importing fuel, and other essential items. Last week, Fitch again reduced our rating. No matter who governs Sri Lanka, they will all face the same problem. We need to build our reserves,” the Minister said.

Minister Gunawardane said that the need of the hour was to sell some assets and boost Sri Lanka’s reserves.

“China, India, Vietnam, and Malaysia are attracting a lot of investors. Only we have failed to do so, and we need to think why this is. Even our entrepreneurs are leaving for other countries. We need to change the way we think, if we want to attract investors to Sri Lanka,” he said.