Sunday May 12, 2024
Sunday May 12, 2024
Thursday, 31 March 2022 02:02 - - {{hitsCtrl.values.hits}}
By Darshana Abayasingha
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| SJB MP Dr. Harsha de Silva |
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| SJB MP Eran Wickramaratne |
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| SJB MP Kabir Hashim
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Sri Lanka’s internal and external stakeholders have all lost confidence in the current Government, and this will impact the level of assistance the country receives to overcome the current crisis, charged the Samagi Jana Balawegaya (SJB) at briefing yesterday, and once again called on the Government to resign and make way for change.
The party also called on the Government to dissolve the Monetary Board and make fresh appointments, as the incumbent had clearly failed with its strategy.
SJB MP Eran Wickramaratne said: “We have an economic crisis in the country, which is turning into a financial crisis. At all costs, we must avoid that becoming a banking crisis. This confidence in this Government has been lost in local and international markets. We have been talking about solutions for more than a year and it has fallen on deaf ears. Our clear message to them is please go home.
We have a plan on how to deal with the IMF, restructure our debt and how to get bridging finance so that the queues will go away, plus, strengthen the banking system, recapitalise banks and major reforms. It will be a difficult period for everyone, we will not lie to the public. There has to be social protection of the poor and the most vulnerable. Everybody accepts that including the IMF report. We will make sure the financial system is protected, but for that we need to see a change in the financial leadership of this country.”
Wickramaratne added there is no room for delays, and questioned why the Government is yet to appoint financial and legal advisors to engage with the IMF and its creditors. He noted history offers many examples from around the world on how to handle this situation, but the Government is still stuck debating whether to make these appointments. The SJB MP stressed on the need to restructure Sri Lanka’s debt, and once again called on the Government to prioritise feeding its citizens over making payments.
Joining the discussion, SJB MP and Chairman Kabir Hashim, argued if the Government will move to pay the $ 1 billion payments due for ISBs maturing in June, or instead if it will restructure it and focus on offering much-needed relief to citizens.
He lamented he is forced to raise this question at a media briefing as the Finance Minister does not attend Parliament to respond to queries.
“The Government is going around the world with a begging bowl seeking loans. At last week’s All-Party Conference, the Government spoke of finding solutions, and said it was prepared to engage with the IMF. What is the status of that decision? We need to see immediate action, there is no time for delays. Have we laid the foundation for the IMF program, if not then the country must know. Government must take right decisions for the country and its people even though they are politically unpopular at this juncture,” Hashim said.
Dr. Harsha De Silva stated the lack of confidence in the Government, even from within its own quarters, will hamper market activity, adding this was now a crisis of confidence more than economics. He noted the Monetary Board needs to be reconstituted pointing to the rapid depreciation of the rupee as ample evidence of its ill-timed decisions and grave consequence.
The MP raised concerns on the status of the Government’s said engagement with the IMF, adding that even producing a letter addressed to the organisation seeking a program of assistance would instil a degree of confidence in the market.
“Our lenders are ready with lawyers to negotiate, but Sri Lanka is not ready. Where will we get bridging finance from? An IMF program will take some time to implement, how will we survive until then? Also, what action is being taken on interest rates? They still have not changed. The current rates are too low. If inflation is 17.5%, how can we have interest rates at 7%? This is a crime and needs immediate attention and this money printing must stop. Steps must also be taken to immediately reverse the Gazette mandating banks to offer 50% of foreign remittances to the Central Bank. Business and purchases are made via commercial banks, not the Central Bank, why was this bad policy decision taken?” the MP questioned.
The SJB added it was continuing discussions with stakeholders to enhance its economic blueprint. The party stressed that there are no easy solutions to the current crisis and it will focus on stabilising macro factors and offer a social security scheme for vulnerable segments.
- Pix by Ruwan Walpola -
