Kabir defends 2016 economic performance

• Says Govt. has managed to improve loss-making State enterprises

By Chathuri Dissanayake

Lobbying to silence critics on the Government’s performance in developing the economy of the country, Minister Kabir Hashim yesterday claimed that despite the drop in the economic growth rate for 2016, Sri Lanka has been able to perform well in the face of a global economic slowdown with minimum impact.

The UNP-led Government has been able to improve the economy and increase rupee value GDP during the financial year, he claimed.  

“Those who have compared last year’s performance to the economic performance in 2014 under Mahinda Rajapaksa’s rule have done a very one-sided analysis. They should take the global situation into consideration. Compared to economic giants we have managed to maintain reasonable growth. If you take India there is a 52% drop in economic growth in the year 2016,” he said.  

Hashim highlighted that the country’s economy has been able to recover from a drop in tea and rubber prices, two of Sri Lanka’s main exports.

Stressing that Per Capita Income, which has dropped in 2016, should not be the singular measurement of the financial situation of the population, the Minister claimed that the rupee value of Per Capita Income has increased.

“There are so many measures the Government has taken to improve the living standards of the population, especially the poorest 20% of the population. We have started a five-year housing project to provide housing, and there are welfare programs as well. These don’t get reflected in the GDP,” he said.

Hashim also pointed out that the current Government has been able to turn around a number of loss-making enterprises while reducing losses at State-owned plantation companies.

More Cabinet changes to come, says Kabir

• ​Defends recent changes saying they are the need of the hour

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Indicating that there are more changes to come, Minister Kabir Hashim said there may be more changes to the Government in the future.

“There was strong criticism before the reshuffle that the Government had not made changes to the Cabinet. The President and Prime Minister have decided to make some changes as a first step. We cannot assume that this will end here. In the future there may be more changes. Depending on the need, the duties of different members may change,” he said.

Explaining the reasons for the change in Ravi Karunanayake’s portfolio despite him being recognised as Asia’s Best Finance Minister, Hashim said that changes were made according to the need of the time.

He added that the first two years of any Government were its most challenging.

“But as time progresses changes have to be made according to the changing needs of the Government. This may change even more next year. This is a flexible Government and we can change as needed,” he said.

Hashim said that as a coalition Government, they were constrained in the distribution of ministries among political parties within the Government.  

“In this light all ministers should be able to familiarise themselves with the subject given to them and work accordingly. If you take Ronnie de Mel, he is the best Finance Minister we have had in Sri Lanka. He was not an economics expert, but a graduate in History. But he was able to manage his ministry well. So that is the principle we follow,” he said.