Lack of transparency on way forward presents grave concerns: SJB

• Warns real food inflation much higher than 25%, Rs. 5,000 benefit only to Govt. sector
• Says Finance Minister’s alleged comments on buying dollars from Pettah erodes confidence
• Says Govt. does not know what is happening within its own fold

By Darshana Abayasingha 

SJB MP Dr. Harsha De Silva - Pix by Ruwan Walpola

SJB MP Eran Wickramaratne

The main Opposition Samagi Jana Balawegaya (SJB) yesterday said controlling inflation is a primary responsibility for any government and the current regime has failed in this endeavour, and continues to adopt ill-conceived measures that will further escalate prices and cause added hardships to people.

Addressing the media SJB MP Eran Wickramaratne, said this Government has excelled at lies, racism and theatrics and scoffed at ministers asking the public to remain positive.

“They are only good at painting dreams. The Governor of the Central Bank told CNBC we have all the food stuff. But when we visit supermarkets there are notices that say: ‘Dear Customer, only one pack of milk powder will be issued per customer’.

 How can people remain positive in such a scenario?”

Wickramaratne said, during COVID, inflation was caused by supply issues at the outset. However, with the Government resorting to money printing this problem was compounded by adding demand-based inflation. The Government itself is saying there is 25% food inflation, and the reality is it’s even higher. Food inflation year-on-year has increased over 50% in real terms, and the Government does not know how to manage it, which is why they continue to print money and drive inflation up further, he charged.

Joining the discussion, SJB MP Dr. Harsha De Silva, noted the Government is attempting to bridge the deficit in foreign exchange through short-term facilities from India and Pakistan. He pointed to statements from the Finance Minister and the Cabinet Spokesperson stating the Government was looking at restructuring its foreign debt and engaging in a discussion with the IMF, whilst the Central Bank Governor was stating the Government will not do so.

“This is a big mess. No one in the Government seems to know what is happening. The Finance Ministry does not know what the Central Bank is doing. The President does not know what the Finance Ministry is doing. We cannot run a country like this. It is good if those involved in governance can get into one room and discuss a way forward; if not, it will impact confidence in the country,” De Silva stated.

He also pointed to reports of cabinet approval to purchase 43,000 metric tonnes of crude oil from an unsolicited bid from a party in Cyprus and stressed that tender process must be followed and Government transactions cannot be done on personal friendships. Such actions will further erode confidence in Sri Lanka, and the country’s economic management is slipping further down the abyss, he said.

Commenting on the controversy surrounding the Finance Minister’s alleged comments surrounding purchasing weapons from North Korea via dollars acquired by the Government from ‘Undial or Hawala’ schemes, De Silva said: “Now Foreign Minister G.L. Peiris says that the Finance Minister told him he had not said anything of the sort. So, did the journalist assume all that and why is the question and answer published in the paper?”

“Basil Rajapaksa said he along with Mr. Sumith Abeysinghe went to Pettah and purchased dollars in the black market to purchase oil, and previously ammunition and arms from North Korea. This is a serious statement to be made by a Finance Minister of a country. Sumith Abeysinghe is a civil servant with a high sense of integrity. I will bet my last rupee, Mr. Abeysinghe was not part of this. Can the Treasury purchase dollars from the black market to pay for oil? Should they not be opening LCs with reputed banks to purchase oil?”

“I think the Finance Minister should make a statement. This is a serious matter, because we have legislation to prevent money laundering and terrorist financing. So, if you are dealing with North Korea, you are breaking all the rules not just locally but internationally. It is absolutely necessary that the Finance Minister clears the air, because otherwise the repercussions will be bad,” De Silva said.