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Govt Regrets Election Promises to Huge increase in Public sector Salaries

The Island: The minister underscored the pivotal importance of major political parties reaching agreement on measures required to avert economic crisis. MP Abeywardena stressed the need to prevent political parties from exploiting the electorate to gain political mileage at the expense of the rivals.

Minister Abeywardena said that political promises meant to secure electorates had placed successive governments in extremely difficult postilions.

Responding to questions, Ministers Amunugama and Abeywardena admitted that Sri Lanka was now seeking IMF stand-by-arrangement, the country was under scrutiny. The media was told of the IMF asserting that massive loans obtained by various state sector enterprises such as the national carrier SriLankan Air Lines should be brought under the government debt. During the previous administration several institutions had been allowed to negotiate and obtain loans and now the new government was under obligation to take the responsibility for repayment.
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