A new start

Wednesday, 2 January 2019 00:00 - - {{hitsCtrl.values.hits}}

Every New Year dawns with much hope and optimism. For Sri Lanka an extra dose of hope is needed given the significant political, economic and social challenges placed before it in 2019. As a country that is heading for high debt repayments this year, all the key actors in the political arena have an additional responsibility to ensure that unnecessary political turmoil is avoided in the next 12 months.

The run-up to the New Year was fraught with political turmoil that was caused by the appointment of MP Mahinda Rajapaksa as Prime Minister. The ensuing seven weeks of political uncertainty hit the economy the hardest. The outflow of investment, cancellation of tourist bookings, the depreciation of the currency and the downgrading of Sri Lanka’s sovereign rating are challenges that will need to be dealt with in 2019 as well.

The Central Bank and Finance Ministry is readying to repay about $1.5 billion from mid-January till April but additional repayments could mean that the Central Bank would have to raise funds from international capital markets. Given that these repayments are likely to continue till 2022 it is imperative that political stability, democracy and macroeconomic fundamentals are maintained in order to keep interest rates moderate, attract investment, encourage exports and foster growth.

This backdrop must be kept in mind as political parties prepare for elections. President Maithripala Sirisena, Prime Minister Ranil Wickremesinghe and Opposition leader Mahinda Rajapaksa as well as their respective parties and loyalists need to remember that there are serious challenges before the country and should do their utmost to ensure politics does not take precedence over all else. The President and the Prime Minister have to find a way to work together so that development work and economic reforms continue regardless of the different political ideologies they espouse.

The country has suffered enough because of political tension between Sirisena and Wickremesinghe. They must find a way to establish a middle ground so policies remain consistent and credible. Elections are an important part of democracy but they cannot also be the catalyst for instability, in fighting, and battles between different branches of government. Democracy means respecting the mandate of the people, which also includes taking steps to reform and improve the economy.

Rajapaksa in his New Year message said “unity will be the hallmark of our success” but this message needs to resonate deeper and Rajapaksa as well as his loyalists need to stop using nationalism to whip up inter-communal tensions. Steps to foster reconciliation, which includes discussions of a new Constitution, should be engaged with by evaluating facts and not fear mongering.

From the side of the Government it is imperative that public engagement is significantly improved so that people have ready access to the facts and are not misled by political agendas. Next to economic problems, fostering peace between different communities and building a Sri Lankan identity is an effort that must continue. Only then will true unity be achieved and Sri Lanka can move forward from decades of bloodshed and injustice.

A tall order awaits Sri Lanka in 2019. It is now time to collectively roll up sleeves and get down to business.