Ranil Cries Foul to Mask His Own Foreign Debt Trap – Analysts
Economic analysts have severely criticized former President Ranil Wickremesinghe for attempting to create a scaremongering narrative regarding the severe crisis Sri Lanka faces in resuming foreign debt principal and interest repayments starting in 2028, while conveniently remaining silent on the high-interest foreign loans acquired during his own tenure.
Analysts point out that if Wickremesinghe is to lament the country’s economic state, he should begin with a confession over how Sri Lanka was dragged into this foreign debt trap under his leadership.
While serving as Prime Minister and keeping the Central Bank under his direct purview, Wickremesinghe obtained USD 2,150 million through foreign bond issuances in 2015 alone. Analysts emphasize that beyond his connection to the Central Bank bond scam, Wickremesinghe holds direct responsibility for entangling Sri Lanka in a crushing foreign debt burden.
Under his administration, high-interest foreign borrowings—specifically International Sovereign Bonds (ISBs) obtained at exorbitant interest rates—rose rapidly:
2016 (July): USD 1,500 million
2017: USD 1,500 million
2018: USD 2,500 million
2019: USD 4,400 million
Over that five-year period alone, the total high-interest foreign debt secured reached a staggering USD 12,050 million. Analysts highlight that Wickremesinghe is now warning of a secondary economic crisis during long-term debt settlement only after personally creating this massive mountain of debt.
While high-interest foreign borrowings initially began under Mahinda Rajapaksa’s administration-reaching USD 4,500 million by the end of 2014—it was under Wickremesinghe’s regime that this foreign debt burden was expanded to more than triple its previous amount.
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