UNP proposes measures for Govt. to strengthen COVID-19 resilience

Monday, 6 April 2020 01:36 - - {{hitsCtrl.values.hits}}

RW proposes updating VoA to meet current needs
Calls on Govt. to consider seeking support from IMF
Warns fiscal situation could worsen as public revenue drops due to virus impact
Says private sector struggling to pay salaries and suggests Govt. support
Wants Rs. 5,000 for low income earners given without political bias
Concerned CB measures insufficient to counter growth decline

United National Party (UNP) yesterday made several recommendations to mitigate the impact of the looming economic crisis on the public, which includes amending the Vote on Account (VoA) and considering seeking assistance from the International Monetary Fund (IMF).

UNP Leader Ranil Wickremesinghe Wickremesinghe

UNP Leader Ranil Wickremesinghe Wickremesinghe in a statement pointed out that the public was already under significant strain due to the COVID-19 outbreak and that Sri Lanka was going through a crucial period.

“At times like this we need to think of the future, the decision we take must be based on what›s best for tomorrow,” he stated, pointing out that he intends to draw the attention of the Government to the need of the hour.

His proposals include updating the VoA to meet current needs as the amount allocated is not sufficient to deal with the tasks at hand and because the Government income streams are limited.

Wickremesinghe also proposes that Sri Lanka prepare a conducive climate to obtain maximum assistance from the IMF which will release its plans mid-April. He also called for streamed-lined national policies covering a range of State and private sector entities to improve their ability to counter COVID-19.

“I make these recommendations because I feel that the current measures taken by the Central Bank of Sri Lanka are inadequate,” he added, pointing out that the Government and stakeholders need to be open-minded and highlighted the need to protect the banking sector for a successful recovery.

Wickremesinghe warned that Government revenue could be halved due to the prevailing situation. “Let us think of the current situation, the apparel sector and tourism bring in half of our foreign currency, both are now paralysed,” he explained. He pointed out that securing foreign loans and aid will be difficult as the world is in an economic crisis.

He explained that while Government employees get salaries and benefits, most of the private sector is finding it difficult to pay salaries. He urged the Government to deliver the promised Rs. 5,000 payment to low income earners fairly and without any political prejudice.

“Other countries have introduced measures to provide relief to private sector employees, the Government should look at those measures and see if a similar scheme can be introduced locally,” he stated.

Wickremesinghe also emphasised on the need to grant the apparel and tourism sectors some reprieve by giving concessions on loan repayments. The latter has already been covered by the loan moratorium introduced by the Government.