Former Minister Bandula Gunawardena has stated that Sri Lanka currently lacks the financial strength required to withstand either domestic natural disasters or sudden external shocks arising from foreign countries.
Speaking to the media in Homagama, he said that regardless of which government is in power, the country does not possess sufficient funds to manage its affairs or the foreign currency reserves necessary to carry out international transactions.
He pointed out that government revenue for this year is estimated at Rs. 5.3 trillion, while recurrent expenditure is expected to reach Rs. 5.6 trillion, resulting in a budget deficit of between Rs. 300 billion and Rs. 400 billion to sustain government operations.
Gunawardena further warned that the country is ill-prepared to cope with internal shocks such as landslides and cyclones, as well as external shocks including international conflicts, due to its weak economic and financial position.
He emphasized that the core issue confronting Sri Lanka is the acute shortage of both local currency and foreign exchange.
