Need of the hour: Buy and be all that is Sri Lankan

When signs of a bankrupt economy become all too evident, political leaders dressed in suits may travel far and wide conducting road or media shows while rubbing shoulders with the rich and powerful while at it…but when the curtain finally comes down it will be none other than the begging bowl at the feet of international loan sharks such as the IMF, World Bank and the Chinese Government that will give us temporary respite before being dragged further into a deep abyss.

The optimist that I am, I believe there is still hope in alternatives and believe that what we need now is for our President Maithripala Sirisena to be a maverick and be brave enough to put the country in lockdown mode in order to overcome internal inefficiencies before we prove our creditworthiness to the international community. 

It may be hard times in the short run but we will overcome our plight and soar higher above when we put the interests of the country ahead of our personal ones. Likewise and in this context, as much as it would be expected from the public to tighten their belts, the intended mission will garner legitimacy only when legislators themselves adhere to exemplary conduct.

Even though I am no economist, I still hope my observations and suggestions below will draw the attention of those concerned in narrowing the trade deficit to some extent.

Import controls

When import figures reach twice as much as export figures, and when it results in a trade deficit of almost over $ 9 billion, I believe serious actions and restrictions need to be enforced in order to reverse the trend. Hence:

 Set up an Imports Control Board which will have the power to determine and allow the importation of essential goods while denying the right to import ‘non-essential’ ones for which alternatives or substitutes can be found locally. This legislation or process can last for a trial period of two years.

Instead of wasting hundreds of millions on closed buildings as rent payments, there should be clear Government policies in making this country (having ample fertile lands) a self-sustaining one in food production. Agricultural lands that are privately-owned and uncultivated for lengthy periods should be nationalised and leased out to individuals or companies willing to grow vegetables, fruits and other crops for local consumption and/or for export. A public awareness campaign should be created in this regard and State lands should be allocated for this purpose as well. In addition to sharing knowhow, the Ministry of Agriculture should also assist in providing necessary seeds and fertiliser. The importation of food products that are not considered essential should be restricted to a period of two years. The masses can sure manage without Nutella and Fererro Rocher chocolates among things in that short period.

If exporting seafood and fish results in increased volumes of fish being imported, though it may not be prudent to curtail the imports directly, the Government can indeed fund and lease out deep-sea fishing trawlers to fishermen engaged in less sophisticated methods netting a lower catch. In addition, the Government should fund or lease out suitable lands for freshwater prawn farming and develop the fishing industry as a whole. Being an island nation, it is a pity when we have to import fish from elsewhere. Furthermore, when the local fishing industry thrives, I believe the need to import fish products will decrease as well.

Impose restrictions or an outright ban on the importation of private vehicles for a period of two years while introducing an air-conditioned luxury bus service at the same time as an alternative mode of transport on all major routes. This can be done either as a private-public partnership (PPP) or as a sole Government-owned operation.

Impose restrictions on the importation of finished garments in large commercial quantities for a period of two years while encouraging local production and manufacturing at the same time.

Impose restrictions on the importation of milk powder. While high-yield heifers should be imported until such time when we can be self-sufficient in our requirements, the Government should aggressively make inroads in developing this industry either as a PPP or as a State-owned venture.

Regulatory controls

While the tourism industry loses approximately 15% of its income as a result of foreign-owned web portals monopolising the online travel booking engine industry, there is a pressing need for the Government to maintain a similar online presence and/or encourage private and locally-owned start-ups to do so.

Impose restrictions on foreign-owned companies in select industries engaged in retail businesses here. Uber is one such example where funds generated from locals are taken out of the country when similar homegrown and locally-owned alternatives are in existence. 

Introduce a cashless economy by introducing an extremely low-cost debit card by the State for each and every citizen in order to offset the cost incurred in the printing of currency notes and to prevent foreign companies such as Mastercard and Visa from raking in and remitting out billions earned from locals.

Individual Tax Numbers

As in the Social Security Card of the US and PAN Card in India, each and every citizen of Sri Lanka should have one such card and should have an individual tax file maintained by the Inland Revenue Department. 

In addition to a higher volume of income generated, this initiative will enable the allocation of larger amounts towards public expenditure as well. Not to mention the possible decrease in the number of white-collar crimes as a result of it.

Should we adopt such measures, signatories of international trade agreements and financial lending institutions may express their opposition by insisting on trade liberalisation and the relaxation of applicable local tariffs but on the same lines as in extending the deadline to comply with UN requirements with regard to the reconciliation efforts of our Government, I believe warding off possible external pressure exerted by lobbyists and such international organisations for a period of two years would not be that difficult since economic benefits for the country would far outweigh than playing by the rules of capitalist economies while being straddled with a larger debt burden.

In the event the Government takes such radical initiatives, as patriotic citizens the masses too should contribute their share by adapting to lifestyle changes and making sacrifices that are easily manageable considering the perilous circumstances the country is faced with. 

(The writer is an independent social and political activist and can be contacted at [email protected] and through FB (Fazl Muhammed Nizar))