Bandula slams Govt. for slow growth

Thursday, 7 March 2019 01:34 -     - {{hitsCtrl.values.hits}}

 

  • Argues constitutional crisis did not trigger worst-ever economic collapse  
  • Insists healthy economy was handed over in 2015
  • Claims Govt. has increased debt without delivering development 

 

By Ashwin Hemmathagama – Our Lobby Correspondent

Kicking off the debate on the second reading of the Budget in Parliament, United Peoples Freedom Alliance (UPFA) MP Bandula Gunawardana yesterday challenged the Government to reveal true statistics and give reasons for the economic downturn during the last four years. 

UPFA MP Bandula Gunawardana



According to Gunawardana, the questionable economic conditions prevailing in the country are mainly due to the imprudent management of the Government, and not due to the 52 days of constitutional crisis last year. 

During the Budget speech, Finance Minister Mangala Samaraweera held Sri Lanka’s credit ratings were downgraded, resulting adversely on external borrowing cost, which surged into double-digit levels. According to Minister Samaraweera, the constitutional crisis toppled the gradually improving economy and impacted tourist arrivals. 

“It is false that the 52 days change of government led to all this economic crisis. He has referred to this period as the darkest era of Sri Lankan history. He is well aware of the situation which prevailed in the country where JVP killed voters. According to a report, 67,052 people disappeared or died from this JVP’s failed coup during 1986–89,” he said.

The UPFA having fought a war against terrorism, which was undefeatable under several political leaders, reached victory under former President Mahinda Rajapaksa, he argued. “Then there was a period of 10,950 days where we fought a battle against terrorism. Three decades we fought this battle with the loss of many lives. The economy collapsed. All political leaders wanted to free the country from terrorism. Mahinda Rajapaksa had the courage to go forward against the international calls to stop the offensive,” he charged.

During the first 56 years of the economy after Independence, the GDP has failed to exceed $20 billion per annum. According to Gunawardana, it took 56 years for the GDP per capita to reach the $ 1000 mark. “But Mahinda Rajapaksa managed to increase it to $2,054 within five years. At the time we handed this country over, the per capita stood at $ 3,821. So, Sri Lanka was listed as a low middle-income country. Please don’t go against these facts. I challenge your economists to prove, using any index, to prove us wrong, and to say what you received was a country with a failed economy,” said MP Gunawardana. “It is false you claim to have taken over a country during the peak of the oil prices. In 2012, a barrel was sold at $114 and it came down to $55 by the end of 2015. This is the first time the oil price came down. Compared to the Mahinda Rajapaksa era, you are incurring $6 billion less for oil imports. You sold the Hambantota harbour for $1.6 billion. So, the harbour could have been saved by making use of this oil saving.” 

“During the Rajapaksa era, we had to spend $7 –$ 8 billion average for debt servicing and for oil imports in 2012. During your Government, the oil prices came down, despite the debt servicing going up. So, we spent $7.4 billion in 2014 but in 2016, $6.9 billion was spent. So, what was your issue? You have had to spend less than what we had to spend. But you have got rid of $3,250 million and $ 1,093 in 2016, to control the devaluing of the rupee. So, this is the issue you are blaming us for. If Mahinda Rajapaksa was allowed to continue, the benefits would have been more for Sri Lankans,” he added.

Bringing the controversial bond scam issue into the picture, MP Gunawardana blasted the Government for the opportunity cost, which keeps on adding each year. “Then came the great bank robbery in February 2016 under your Government. So, after four years, the opportunity cost has come to Rs. 2,000 billion. Then you robbed Rs. 50 billion using the super gains tax. The FCID was established for the first time, and threatened the private sector. You stopped the Port City, Nelum Kuluna, and Uma Oya, which completely destroyed investor confidence,” he said.

“You also claim that there is a surplus of 0.6% in the primary account. On the other hand, you have increased the tax income by 100% to reach Rs. 2 trillion. Technically speaking you have added Rs. 1 billion tax per day. When Mahinda Rajapaksa took over the country, the national debt stood at Rs. 2 trillion and it increased to Rs. 7 trillion by the end of 2015. Now your debt stands at Rs. 12 trillion,” claimed Gunawardana. 

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