Govt’s debt trap accusation an absolute lie - Godahewa

Former Chairman of Securities and Exchange Commission (SEC), Nalaka Godahewa, says that the incumbent government’s claim - since its inception - that people are being heavily taxed because Mahinda Rajapaksa led the country into a debt trap is an “absolute lie.”

“J.R. Jayewardene took loans and built the Mahaweli. Premadasa took loans and built houses. Chandrika kept losing and fought the war by taking loans,” he said, addressing an event in Colombo on Tuesday.

He stated that while every government obtained loans in this manner, they proceeded to pay off a portion of the existing debts. 

Mr Godahewa said that when former President Mahinda Rajapaksa handed over the government to Ranil Wickremesinghe and Maithripala Sirisena in 2014 the remaining debt was estimated at Rs 7391 billion and that this included portions of the loans obtained by Lalith Athulathmudali to build the Colombo Port and Gamini Dissanayake for Mahaweli. 

He claimed that after two years of ‘good governance’ the country’s deabt has increased to Rs 9702 billion, which is an increase of over Rs 2,300 billion. 

“Now who has ensnared the country in a debt trap?” he inquired.