Work as a team and deliver

The Cabinet’s swearing-in last morning has brought to an end what has been an exciting and historical election cycle that began last August with the naming of President Gotabaya Rajapaksa as the presidential candidate. Now that the dust is finally beginning to settle, it is undoubtedly time to get down to work. 

The Sri Lanka Podujana Peramuna (SLPP) masterfully carried out their election campaign on a platform of discipline and development, which captured the overwhelming approval of voters. It is now necessary to ensure that the goal of development is reached, and reached quickly, given the towering responsibilities and challenges before the Government. These have only been made worse by COVID-19. 

Sri Lanka’s economy was on a knife’s edge well before the pandemic. But as a result, the Government is facing a colossal fiscal deficit of 9% or higher this year, they are faced with significant debt repayments that include a $1 billion sovereign bond repayment in October, and high unemployment. Exports and investment will also be hard to come by in the current global environment. Rating agencies have warned that Sri Lanka’s debt to GDP ratio could surpass 100% next year, and the raft of debt repayments are unlikely to ease until about 2024. 

The new Cabinet therefore needs to hit the ground running. One of the key points of discontent expressed by the public under the former administration was that there were too many Ministries sucking up precious taxpayer rupees and not doing enough to deliver public services. The expectation is that this will change under the new Government. However, with 68 Cabinet and State Ministry portfolios handed out on Wednesday, it is clear that Government expenses will continue to be significant. Add to this the weight of loss-making State-Owned Enterprises (SOEs) and the challenge grows. Therefore reform-led policies will be imperative to ensure that the public sector operates smoothly and with some level of transparency. 

The Government will also push for constitutional reforms, and it is important that these are openly discussed so that the public are aware of how these changes will impact them. However, the Government should be wary of prioritising them above economic and social goals, as this would unleash the ire of a public that has its patience on a short leash. Also if the Government decides to lean towards reducing democratic rights, further isolation of minorities and entrenching power imbalances between Parliament and Legislature, they could find themselves facing, if not stiff opposition, then at least vocal critics. 

Eventually, governance and growth come together. Historically countries that move closer to more “disciplined” forms of Government also drastically weaken governance, which can lead to economic consequences. Corruption and inefficiency left unchecked can lead to situations, such as that seen in Lebanon today, where the country is effectively bankrupt. If the Government’s human rights record also weakens, as it did in the period before 2015, there could well be a local and international backlash that it could struggle to contain. 

Averting all these situations is now the duty of the President, Prime Minister and Cabinet. Only they, by working together, can ensure that Sri Lanka develops, while holding onto fundamental tenants of its democracy and inclusiveness. The public is waiting.