Sri Lankan president Maithripala Sirisena has pointed fingers at the former regime for the current economic crisis that the government is facing.

Colombo is facing a spiralling balance of payments crisis, with reported figures revealing over 95% of all government revenue is spent on repaying existing loans.

“The members of the former government are now walking on the roads by telling fairy tales,” said Mr Sirisena. “But the people are suffering due to the economic debacle caused by them.”

Mr Sirisena was referring to a massive rally staged by former president Mahinda Rajapaksa earlier this week, which drew tens of thousands of supporters.

“Politicians, government officers and all people in the country should act understanding the economic debacle caused by the former government,” he continued, during his speech at the Sri Lanka Economic Forum held at the Cinnamon Grand Hotel in Colombo earlier this week.

Despite the ongoing crisis, Mr Sirisena pledged not to allow a cut in government subsidies – needed for much of the rural south's agriculture-based livelihood. “Though there is a loan burden, the government will not cut the subsidies for the people,” he said. “There must be a definite increase in the production to find money for subsidies”