Eran calls on IMF for greater transparency with plans

SJB MP Eran Wickremaratne 

• Warns policy direction will contract economy not fuel growth
• Lack of visibility fans conspiracy theories

By Darshana Abayasingha

Main opposition MP Eran Wickremaratne said yesterday Sri Lanka needs the IMF program to instil confidence in the country, but there it is wanting of greater transparency.

“The IMF deal will send a positive message to the global community. The question is not if we need the agreement, but for the IMF too to be more transparent. The process must be transparent. Even at the executive level, whatever understandings that are in place are not known. This is why there are doubts and certain fears being created in the country. It is simply an issue of transparency,” SJB MP told journalists. Wickremaratne, a former State Minister of Finance, touched on the need to enhance state revenue as it is essential to ensure adequate cash flow to afford basic services such as education and healthcare. 

He said the SJB agrees there must be increased tax revenue, but disagrees with the current tax regime. The lack of transparency on discussions with the IMF in relation to tax, adds to these questions, Wickremartane said. 

“The protests we see today are against the oppressive tax regime. The tax free slab was Rs. 100,000 as well in the past, but inflation has more than tripled since then. This is no longer a privileged salary. People have been pushed to a point where they cannot make ends meet. We have to provide relief to poorer segments and protect vulnerable groups. 

Eran calls...

In addition, when joining strikes, the Government and trade unions must ensure that essential services like healthcare are not impacted,” he added.

With most nations agreeing to support Sri Lanka, Wickremaratne said the proposed IMF bailout package should materialise in the near future. The MP made light of the president asking in parliament if the opposition has an alternative proposal to the IMF, and stated the president must direct the question to his own ministers. “Our only concern is with respect to transparency,” he said. The only other problem with the IMF programme, if any, is that its direction seems to contract the economy to control it, as opposed to supporting growth and exports,” the MP added.

Wickremaratne again dismissed the Government's position that the state cannot afford to conduct the local Government election, and said the Government spends three times the required amount during a day. It is simply a matter of Government parties lacking confidence to face the people, and added the SJB was prepared to face an election on the given date.