The government has obtained loans amounting to Rs. 419,000 million by way of treasury bills and bonds within a 13-day period, alleged SJB district leader for Matale Rohini Kaviratne.
According to her, the government obtains credit without a limit although the country gets no matching relief satisfactorily.
Addressing a public rally in Dambulla, she demanded an explanation as to what investments had been made with that money.
However, senior presidential advisor on economic and financial affairs Prof. Anil Jayantha says no special or unusual borrowing has been taken as claimed.
Funds are collected from the local financial market to meet expenses of the ministries and to repay the matured treasury bills and treasury bonds, he said.
Also, finance secretary Mahinda Siriwardena said there was no option other than getting domestic credit, since there is a big budget deficit with no money printing possible.
