LNP – Stop making false allegations against rating agencies: Sajith tells Govt.

The government should stop making false allegations against rating agencies and should seek assistance from international financial agencies and friendly nations to see the nation through the exchange rates issue, Leader of Opposition Sajith Premadasa said yesterday.

Speaking during a public gathering in Hambantota, Mr. Premadasa said the allegations made by the government against Fitch Ratings and questioning the method followed by them to award credit ratings is a joke. “Rating agencies follow scientific methods to award ratings to countries. All the leading nations such as the USA, China, UK and Japan recognise and accept Fitch rating as a professional institution. Therefore, one wonders as to how the Central Bank and the government as a whole reject it,” Mr. Premadasa said.

“Maybe the government thinks that Fitch Ratings and other rating agencies are engaged in manipulating data like it is done in Sri Lanka. Sri Lanka’s foreign reserves have declined to US dollars 1.6 billion as of now. It is actually dollars 1.1 billion when special drawing rights and gold is reduced. Sri Lanka has to settle US dollars 1.3 billion in January 2022. The total average borrowings that has to be settled in 2022 is dollars 6.7 billion. Therefore, one could imagine Sri Lanka’s position. Is it possible to find fault with rating agencies in such a situation?” he asked.

“Government should seek the assistance of international financial institutions and friendly nations to resolve the exchange rate issue,” he added.