Time to work

After days of haggling, the Cabinet was appointed with few surprises. However, it is likely that these appointments will be expanded over the next few days, as the United National Party (UNP) looks to forming a coalition Government led by the United National Front (UNF). This means Prime Minister Ranil Wickremesinghe has the capacity to expand the number of Cabinet ministers beyond 30, and the Deputy and State Ministers past 40, likely resulting in a large number of office holders. 

The initial reaction from the public, especially those who banded together to battle against the Executive during the last seven weeks to uphold democracy in Sri Lanka, has been one of disappointment. The hope that the Cabinet would be limited to 30 and key positions would be given to credible Parliamentarians, as well as allowing new faces, appears to have been a misbegotten one.  

Understandably, there were no high expectations of change from the UNP. But there was some hope that UNP MP Ravi Karunanayake would not be appointed, given the seriousness of allegations against him, but this was to no avail, as it was announced he is the Power and Energy Minister. MP Tilak Marapana, who also resigned due to conflicts of interest and controversially returned to Cabinet, retained his Foreign Ministry post, even though it is even more critical now that Sri Lanka regain its lost reputation by showing that it is supportive of good governance and democracy. 

The UNP, which has slammed large Cabinets appointed under former President Mahinda Rajapaksa in Parliament, during debates on the 20th Amendment presented by the Janatha Vimukthi Peramuna (JVP) earlier this week, as being fiscally unsound, has done exactly the same thing themselves. In 2015, the logic presented for a large Cabinet and dozens of auxiliary portfolios was that it was a National Government, formed by the two main parties, and therefore key members from both sides needed to be accommodated. The same cannot be said of the latest coalition Government, even though its final shape is not yet clear.  

Bulky governments are notorious for being inefficient, corrupt, and wasteful. They are a study in mismanagement. They are unpopular even when they are deemed necessary and ultimately garner little else but public displeasure. A larger Government, especially when Sri Lanka is heading for three elections in less than one and a half years, may make sense to party leaders. The use of public finance to drum up votes can be done from multiple sources when there is a larger Cabinet or Government. But this is not really what the country needs. 

The reality is that unless the Government finds a way to implement policies and economic reforms crucial to improving growth swiftly, Sri Lanka’s economic woes will only increase. The cost of spending on an unwieldy Government at a time when fiscal consolidation remains crucial is detrimental. So is efforts to improve the business environment and encourage more investments. The more Government institutions, Ministries and Ministers investors are forced to deal with, the less likely it is they will be interested in starting a business in Sri Lanka. It doesn’t help exporters either, and with large debt repayments looming, the Government has no time to keep repeating old mistakes. Unless they are able to galvanise development, reconciliation and anti-corruption measures quickly, they will find the upcoming elections a tough challenge to face.