The NPP urges the public against acting hastily due to fears for their saving deposits as a result of any writing-off of domestic debt.
The party’s economics council member, Prof. Anil Jayantha Fernando, said that going by a claim by the state finance minister, any plan to be formulated within a short period would be perilous to the country.
Fernando said he doubted if the government expected the people to become worried, as it was without a solution and was allowing for financial instability.
He went onto say that debt restructuring cannot be discussed without its root causes, such as shortsighted and authoritarian governance, fraud and corruption.
It appears the government is forcing private banks to agree to a writing-off of debt that will directly impact financial stability.
The NPP member added that the banking system as well as pension funds will be badly hit in the long-term by any such move.
