Opp. Leader slams Govt. handling of economy

• Says policies medieval, restrictive and akin to North Korea
• Says Govt. trying to disengage with international trade
• Expresses alarm at EU concerns over import restrictions
• Queries if Govt. has thought out repercussions if EU rejects import restriction policy
• Says SL only country in world to reject international ratings
• Accuses Govt. of hiding 2Q and 3Q figures on economy

By Chandani Kirinde

Opposition Leader Sajith Premadasa yesterday slammed the Government on its handling of the economy, calling its policies medieval and restrictive, while appealing for more transparency on the impact of COVID-19 and multiple downgrades by international rating agencies.

“This Government has embarked on medieval economic policies, putting import restrictions in place and moving towards a command and restricted economic model, which stifles international trade and tilts towards an economy akin to North Korea – a failed state, a failed and bankrupt economy,” Premadasa said in Parliament.

Speaking during the debate on the votes of the Ministries of Industries and Trade, Premadasa said the present administration is trying to disengage itself from international activities, and requested the Government focus its attention on the recent statement issued by the European Union (EU) on import restrictions.

“They are alarmed and we, too, as a responsible Opposition, are alarmed because EU countries are a vital destination for Sri Lankan exports,” he said.

The Opposition Leader said the EU was talking about the one-way-street attitude of the Government to trade, and questioned if the Government has thought of the repercussions if the EU countries decide to reject the import restriction policy the Government has put forth.

“Has the Government given thought to the detrimental impact on Lankan exporters, loss of the EU market, and how it is going to the impact domestic employment if the EU takes such measures?” 

Premadasa also referred to the recent downgrades in ratings of Sri Lanka’s economy.

“International rating is an important way of gauging international confidence in our economy. That has a direct bearing on investment inflows – on businesses that are proposing to set up businesses in our country. The whole international community looks at Fitch Ratings, Moody Ratings, etc. We are the only country that is rejecting these ratings,” he said.

Premadasa queried if the Government has a domestic ratings system that is going encourage and induce foreign investors to come to Sri Lanka. “Does the Government have a magic wand that it can wave to attract foreign investors to set up businesses in Sri Lanka and promote employment?”

He also said the Government has failed in its duty to present to the country the second and third quarter figures for the economic growth rates. “It is incumbent on the Department of Census and Statistics and the Government to release these figures 75 days from the conclusion of that quarter. This administration has woefully failed in informing the country and Parliament of these details,” he said.

Premadasa warned this was having a negative impact on the financial markets, which does not bode well for the country’s economy, and queried as to what the Government is hiding.

He also said that some of the statics given to Parliament in the Budget are deceptive. “The Government has, through the 2021 Budget speech, said State revenue would rise from 9% GDP to 14%. I would like to ask when in our history have we achieved a huge jump in State income within 12 months? This is preposterous, absolute humbug. This is to deceive both the Parliament and the people.”