Govt. planning spending frenzy whilst people suffer: SJB

SJB MP Dr. Harsha de Silva

SJB MP Eran Wickramaratne

SJB MP Kabir Hashim

• Says Rajapaksas nor others have tendered apology to people for what they did
• Alleges corruption continues as Govt. members cannot understand gravity of crisis 
• Insists Budget must consider new realities and formulate relevant policies

By Darshana Abayasingha

Main Opposition Samagi Jana Balawegaya's (SJB) Economic Centre yesterday charged that 

the Government is yet to grasp the gravity of the predicament the country’s economy is faced with, and this is apparent in some of implausible proposals laid out in the appropriation bill.

Sri Lanka’s foreign reserves are still in a precarious state, said SJB MP, Kabir Hashim, who added that as per estimates the Central Bank has only just over $ 200 million in reserves, which is insufficient for one month of imports. He charged that though the Central Bank may show figures of $ 1.7 billion, this includes $ 1.5 billion from the Chinese swap that cannot be utilized in any manner. 

The Central Bank is unable to issue dollars for local commercial banks, who complain that letters of credit are not being honoured by suppliers, as evident recently by action taken by Bangladesh when it instructed banks not to trade with Sri Lanka over the Asian Clearing Union.

“The Rajapaksa regime is to blame for this crisis along with their economic hitmen that include Ajith Nivaard Cabraal, P.B. Jayasundera and others. They have destroyed this country. The FAO says that our paddy harvests this year will decline by 42% because of decisions they took, but who will take accountability for that? The Rajapaksa’s nor any others are yet to tender an apology to the people of this country for what they have done,” Hashim stated. 

Pointing to media reports alleging corruption in the proposed elevated highway from Peliyagoda to Athurugiriya, Hashim said a thorough investigation must be carried out into its affairs as the opposition too had highlighted many irregularities. He stated that reportedly the Ministry of Highways had presented a cabinet paper recently with regards to construction of the highway, which requires over Rs. 35 billion for compensation, but the president had refused to discuss the matter. 

“If this is true, this goes to show that some members of government do not take the situation we are in seriously enough. This project was mooted under a BOT scheme, where it would be built in three years. “But then Sri Lanka must pay Rs. 22 billion annually for 15 years. The total cost of Samurdhi annually is Rs. 30 billion. If this is a BOT project, why are we paying billions of dollars to a Chinese company? There were six bidders initially and after five had left, the terms of the proposal were changed to include a sovereign guarantee and payments in dollars. This project requires serious scrutiny,” Hashim stated. 

SJB Economic Council member and Chairman of the Parliamentary Committee on Public Finance Dr. Harsha De Silva said it is imperative the Government’s budget proposals reflect ground realities and the plights faced by the people. 

“The upcoming budget must be very different to what has been presented in recent years. Poverty has increased to 45%, we are living in a very different country now. If it’s going to be the same old thing where we spend money on white elephant projects, then we are going to be in further trouble,” he said. 

Pointing to the appropriation bill, he remarked that welfare spending will come down next year in a scenario where more people are caught in poverty, and charged the Government is calling on people to be understanding of necessary reforms. De Silva said the SJB is not objecting to urgent necessary reforms but said reforms must take place taking into account the living standards and capacity of the people. 

Pointing to the State of the Economy 2022 report issued by the Institute of Policy Studies late last month, De Silva said the report identifies that necessary reforms cannot be conducted in a milieu of political instability but stressed that reforms must capture and address the needs of the poorest of the poor during this crisis. He also stressed that the Government must be forthright in communicating its priorities and intent, as recommended in the report. 

“The level of corruption taking place in this country given its dire situation is inconceivable,” remarked SJB MP Eran Wickemeratne adding the public are under immense stress as the cost-of-living has tripled over the past two years. He charged the Government is still failing to give priority to address the burning issues of the country such as the people’s suffering and continues to pile over 30% as capital expenditure in next year’s budget.

“What is our priority? Building roads and flyovers or helping poor people to live? The Government will once again be forced to print money in large volumes, as this appropriation bill has failed to shed light on a structured plan to give relief to the people or help Sri Lanka out of its predicament,” said Wickremaratne. 

He added that the SJB will lend its support to the protests planned in Colombo yesterday, to stand up against the oppression of the people, and the people’s right to protest. He stressed the need to protect the framework of democracy despite its flaws, and the SJB will stand for that together with others who may have different views on how to tackle the economy. 

 

Pix by Lasantha Kumara