Government lacks competence to run the economy

Wednesday, 21 October 2015 00:00 - - {{hitsCtrl.values.hits}}

Every morning when I read the well-laid-out FT, I am convinced the Government does not have the experience and the people to run or manage the economy. The Finance Minister changes policy by the day. He makes statements that no kindergarten student would make. His only experience, running a travel company.

What is happening is unimaginable for a UNP Government that generally knows how to give leadership to the economy. Malik Samarawickrama is in charge of signing trade agreements. Other than selling a few garments, God knows what experience he has to even understand what a FTA is. His only qualification to be in the cabinet is his friendship to the Prime Minister.

Sri Lanka will be taken for a ride if Malik negotiates on behalf of Sri Lanka. He could not even negotiate with Mano Tittawela to save the UNP ministries in 2004. Are jobs in this Government given on people’s ability or on their connections to the Government?

Tourism, our No. 2 earner, is led by a 75-year-old lawyer. What does he know about tourism? Education is led by a school boy Minister. The Foreign Ministry by a fashion designer. Surely not a patch on Lakshman Kadirgamar. The Central Bank is headed by a Chief who changes all his key staff in one day.

This Government is borrowing like crazy to run day-to-day operations; the country is walking into a debt trap. Over the last 10 months the country’s foreign reserves have fallen by more than $ 2 b and foreign borrowings have exceeded $ 4 b.

The rupee has devalued more than 10% during last 10 months and this will result in the trade gap widening further because our imports cost is much bigger than the revenue from exports. We will have to use our foreign reserves once again to bridge the gap and rupee will devalue further.

My conclusion, whether right or wrong, the Government does not have the competence to run this country. The way it is going it is only a matter of time we hit the bottom. Please publish this in the interest of the public.

Bert Gunawardana