Bandula unveils options for SL emerging out of economic crisis

Wednesday, 30 November 2022 00:30 - - {{hitsCtrl.values.hits}}

By Charumini de Silva

Cabinet Co-Spokesman Bandula Gunawardena

Cabinet Co-Spokesman and Minister Bandula Gunawardena yesterday outlined four methods to overcome the ongoing economic crisis, and insisted that a new culture should be created where the

Parliament is vested with power over public finance.

“There are only four methods that can fix the economy, one is to have a high income, second is to limit the expenditure, third is to maintain the budget deficit by managing the income and expenditure and fourth is to have an influx of foreign exchange income and minimise the outflow,” he said at the post-Cabinet meeting media briefing yesterday.

He said given the economic situation, these were the only four remedies that could be technically, economically and practically.

“This is why we have revised the tax rates and implemented them. But we learn that the parties affected by the high tax rates have appealed to the Finance Ministry as well as to various other international organisations. Some of the business and sector chambers have even written to the International Monetary Fund (IMF) citing the adverse consequences of it,” he explained.

He also said that the Cabinet of Ministers is planning to further discuss the matters of achieving the said targets.

“No matter how much we raise the tax income, the Government cannot manage the fiscal expenditure given the current economic status. One is due to the high public sector salary bill and the second is because of the debt repayments. We cannot even borrow anymore as we are no longer servicing the previously obtained debts. In this dilemma, we hope to further discuss how we should and can manage the situation,” he said.

Cabinet Co-Spokesman said that due to the lack of clarity in policies, only the Members of the Parliament are held accountable, noting that it should be rectified.

“As the powers on public finance are vested in the Parliament, it is important that we create a discussion on the matter within the House,” he added.