Jathika Hela Urumaya General Secretary Patali Champika Ranawaka yesterday explained how the government is reducing the national debt.

Speaking at the launch of his book “aalapaalu aarthikaya” or “Doom-Boom Economy” he stated that an easy method to reduce state debt was to transfer it to small companies. For example, the debt taken to construct the Puttalam Coal Power Plant was transferred to Lanka Coal Company. However, ultimately it is the public that is paying the debt and interest.

Another tactic used is to give loans through state banks. Ranawaka added that the debt interest paid to the People’s Bank and Bank of Ceylon by the Petroleum Corporation and Electricity Board are the major factors for these banks to make profit. Therefore, it is the people who ultimately pay for them through pumping fuel or paying electricity bills.

Ranawaka also added that the country is bankrupt despite claims to the contrary, adding that state revenue is lower that state debt and interest, adding that the government is paying salaries, carrying out mega projects and city beautification, all by borrowing at 7 percent. These will have to be paid back one day, he added.

Common candidate of the opposition Maithripala Sirisena and former minister Dr. Rajitha Senaratne and UNP parliamentarian Dr. Harsha de Silva also spoke at the event.