Parliamentarian Udaya Gammanpila is accusing the government of forcing a restructuring of the domestic debt.
The leader of Pivithuru Hela Urumaya said domestic debt restructuring, not an IMF condition, will only adversely affect financial stability to immobilize the banking sector from issuing loans to industrialists for economic revival.
Speaking to the media today (26), Gammanpila said they strongly condemned attempts to force banks and pension funds to restructure their debt without opting for many alternatives available such as extending the repayment period and reducing interest rates.
With the trust in the government, five banks have issued 25 per cent of their combined borrowings to the state, with the EPF issuing as much as 80 pc of its investments, he said.
Gammanpila urged the government to initiate a dialogue within parliament and also with the banking sector with regard to this matter.
