Former President Mahinda Rajapaksa has defended the decision taken when he was in power to borrow money.
Furthermore he said such borrowings were spread out over many years and that his Government never borrowed for consumption like the present Government which is why he said there were no fiscal fiascos like sweeping revisions of budget proposals and constant revision of tax rates when his Government was in power.
After coming into power, the present Government obtained $ 400 million under a currency swap arrangement with India in March 2015. They obtained another $ 650 million through a sovereign bond issue in May 2015. Another $ 1,100 million was obtained from India in July under a currency swap agreement. A further $ 1,500 million was obtained through a sovereign bond issue in October.
Between March 2015 and March 2016, the Government issued short and medium term Sri Lanka development bonds on 12 different occasions borrowing over $ 2,711 million. Thus in the 15 months they have been in power, the present Government has obtained $ 6,361 million in foreign loans.