SRILANKA ECONOMY HEADING FOR CRASH!!! BUT MR REGIME WON'T STOP GENOCIDE WAR ON TAMILS!!!

ECONOMY HEADING FOR CRASH: UNP

By Kelum Bandara

The main opposition UNP said yesterday the global economic melt down had reduced profit margins of companies registered at the Sri Lanka Stock Market by as much as 60 per cent while the country’s revenue from apparel exports was expected to fall by about US$1000 million this year.

UNP national organizer S.B. Dissanayake told a news conference that out of 1.6 million Sri Lankan expatriate workers, 300,000 had already lost their jobs and as a result foreign remittances from expatriates known to be the second largest foreign exchange earners of this country would slide by 20 per cent.

He said people had deposited their monies in unauthorized financial companies such as the Golden Key Credit Card Company, because of the attractive interest rates paid by these companies.

“The rate of interest paid by these companies is in the region of 27 to 28 per cent and according to the information we have some Rs.62 billion had been deposited in them. Every month, the depositors were paid a total of Rs.1200 to 1300 million as interest income which circulated among the people but with the collapse of these companies,

a large amount of money will not circulate any more,” he said.

Mr. Dissanayake said state banks paid an interest of eight or nine per cent for normal savings and 11 or 12 per cent for fixed deposits.

He said the world economy was expected to record a negative growth rate of 0.5 per cent for the first time in 60 years and with regard to the US$1.9 billion loan facility he said it would be advisable to obtain the loan to tide over the difficulty with our dwindling foreign reserves.
dailymirror.lk