Former President Mahinda Rajapaksa today charged that the government has introduced the Active Liability Management Bill in order to ‘give wings’ to its ‘borrowing spree’. 

The government has introduced in parliament the Active Liability Management Bill seeking authorization to borrow over Rs. one trillion from local and foreign sources, over and above the yearly borrowing limit set by parliament, he said. 

“The yahapalana government has been irresponsible and reckless in borrowing money from its inception,” he alleged.

The former President says that MP Bandula Gunawardene has already petitioned the Supreme Court pointing out among other things that this Bill undermines the authority of parliament over financial matters, undermines the Central Bank’s management of public debt and vests the executive arm with unrestricted power in utilising the money borrowed. 

“Under this proposed law, the executive will be able to raise over Rs. One trillion in debt and make regulations about how that money will be used,” he said, in a statement. 

Rajapaksa says that even if Parliament subsequently refuses to endorse the manner in which the money has been utilized, what was done on the authority of the Minister in the intervening period, would still be legally valid. 

Furthermore, so long as it can be established that they acted in good faith, no civil or criminal liability whatsoever will attach to those involved with regard to the manner in which this money is used, he added. 

“Given the scandals that have already taken place in the issuance of public debt under this government, the danger inherent in this proposed law is obvious.” 

Therefore, the Active Liability Management Bill should be resolutely opposed by every citizen of Sri Lanka, the former President said.

Former President Mahinda Rajapaksa's statement on Active Liability Management Bill by Anonymous 4xL1hr21yl on Scribd