Sri Lankan opposition leader Sajith Premadasa said on Sunday he doubts the Sri Lankan government understands what the cost-benefit analysis entails.

“The basic approach of cost-benefit analysis should be used in decision-making, but I doubt the government is aware of what that entails,” he said.

Criticizing the Sri Lankan government for its handling of the economic crisis, Premadasa said the government is incompetent and lacks a deep understanding of economic fundamentals.

“They have so far refused to accept economic principles as the guiding principles of the Sri Lankan economy,” he said.

On resolving the crisis, he said, “We need to take a multifaceted approach and approach the international monetary institutions to ensure that we reach an agreement that does not impose hardship on the people of the country.”

“This approach will have several benefits, including a moratorium on benefit payments and debt reductions, as well as a reduction in our debts, and it will help stabilize our currency,” the leader said.

Sajith Premadasa added: “The country needs both bilateral and multilateral bridging funding, including through the World Bank and the Asian Development Bank, as well as bilaterally with countries such as India. , Japan and others who will help us secure bridge financing”.

READ | Refugees, inflation and power cuts: How Sri Lanka got into trouble

Not how you should handle external relations

Lashing out further at the Rajapaksa-led government, he said: “Alliances with India and other countries should not be handled haphazardly, but I think we need general policies in place to establish good relations with friendly countries while protecting their integrity, political independence, and serenity.”

“You must not one day realize that you only have 52 billion dollars in foreign exchange reserves and that you must be friends with countries a, b, c and d. This is extremely unprofessional , and that’s not how you should deal with your external relations,” Premadasa said.

READ | No gas, no medicine, no food: life in Sri Lanka in crisis | Exclusive

What’s going on in Sri Lanka?

Sri Lanka is currently experiencing one of its worst economic crises in decades, with the country grappling with issues such as food shortages and soaring inflation, among others.

Sri Lankan President Gotabaya Rajapaksa’s government has been heavily reprimanded for its handling of the crisis, as people continue to struggle to make ends meet on a daily basis.

Food and fuel are scarce in the country as Sri Lanka has run out of foreign currency to pay for imports. People have also suffered daily four-hour power outages and are running out of supplies.

READ | Rice Rs 220/kg, powdered milk Rs 1900/kg: Skyrocketing prices in crisis-stricken Sri Lankan supermarkets