Connect with us

News

Cash-strapped SLPP can’t afford Rs 229 bn package, says SJB

Published

on

Top Samagi Jana Balavegaya (SJB) spokesperson and economic guru Dr. Harsha de Silva said yesterday the cash-strapped government couldn’t afford to provide a Rs 229 bn relief package at the moment. In response to The Island queries, Dr. de Silva has sent us the following statement: “The government is losing control of the economy. At this rate we will be a free fall fairly soon. Looks like they are hallucinating. The solution offered has absolutely no relevance to the problem we are facing. We are in a Balance of Payments crisis. We have no dollars. That’s the problem. Fixing it with a swap here and a credit line there is nothing but plaster solutions. We need real reform. I doubt anyone but ourselves can help us now. It’s too late.

 But instead of addressing that, other than to say in the Cabinet Paper that the country can absorb an adjustment of the LKR to market rates (which they estimate at Rs 230 to the USD) on a completely flawed logic and therefore it must be artificially held at 200 and VAT cannot be adjusted (to what it was), they have introduced this relief package.

 Well, the people are feeling the high cost of living. Official Inflation is double digit after 13 years and food inflation is 22%. Unofficially it’s almost double that. So, yes people need help. Mind you this was created by this government. Two major wrong deductions. One, unprecedented and unnecessary tax cuts in Dec 2019. Two, a totally destructive ban of fertilizer. These had nothing to do with the pandemic. Yea the pandemic has an impact but these two decisions are what brought us to this almost bankrupt situation.

 Anyway, since no supplementary estimates can now be brought to Parliament (passed by 2/3 this budget) and he says no taxes will be increased the question is where is the LKR 229b going to come from? Unless they cut capital expenditure, where will they find the money? But it is almost guaranteed they will not do so, including the LKR 100b to be dished out to local government members to prepare for LG elections. So ultimately the Central Bank will end up printing all this money.

 We now are the lucky recipients of the fabulous outcomes of two years of money printing Modern Monetary Theory experiment. This round of printing will only exacerbate the problem by starting a wage-price inflation spiral. Almost text book style, if anyone in their government wishes to consult a basic Economics text.

We are heading for disaster.”



Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest News

Let us all build a society valued with peace and harmony, guided by unity and solidarity beyond all differences – PM

Published

on

By

Prime Minister Dr Harini Amarasuriya issuing a message on the occasion of the Hajj festival called upon all Sri Lankans to build a society valued with peace and harmony, guided by unity and solidarity beyond all differences

The Prime Minister’s message:

“On the occasion of “Eid-ul-Adha” or the Hajji Festival, celebrated with great reverence by Muslims across the world upholding the values of selflessness, unity, and compassion, I extend my felicitations to the Muslim community in Sri Lanka and around the world.

On this special Day, the festival of Hajji commemorates the boundless devotion to God and the noble spirit of generosity demonstrated by Prophet Ibrahim. This festival reflects the willingness of humanity to dedicate even its most precious possessions for the greater good of humankind and the devotion towards the God.

On this day, the most important lesson we must all understand is the value of rising above our differences and standing together in unity and solidarity. The message of Eid-ul-Adha, founded upon sharing and compassion, serves as a great example in our journey towards building a strong, peaceful, and prosperous Sri Lanka.

Therefore, setting aside narrow divisions, we must all resolve to act with respect and kindness towards one another and work together to create a society valued with peace and solidarity.

May this Hajji Festival bring happiness, peace, prosperity, and blessings to you all”.

Continue Reading

News

Rajitha calls for combined lists, denounces those unwilling to join as traitors

Published

on

Dr. Senaratne, flanked by Prof. Peiris, M. A. Sumanthiran and Wajira Abeywardena, lashes out at the JVP

Ranil-led group asks govt. to hold PC polls

Former Cabinet Minister Dr. Rajitha Senaratne yesterday (27) claimed that there was no consensus between the JVP and the NPP regarding the long delayed Provincial Council (PC) polls.

Dr. Senaratne said that though JVP General Secretary Tilvin Silva had declared in Jaffna, over the last weekend, that it wouldn’t be possible to conduct PC polls this year, due to financial constraints and legal impediments, the position of NPP General Secretary Dr. Nihal Abeysinghe was different.

Addressing the media at Hotel Nippon, on behalf of the People’s United Opposition grouping, operating out of Ranil Wickremesinghe’s Flower Road Office, Dr. Senaratne, who represents the UNP, claimed that the JVP/NPP was all out to postpone the long delayed PC polls. The New Democratic Front (NDF) parliamentary group, elected to the current Parliament, received the backing of Wickremesinghe.

The ex-Minister explained how the NPP, with a 159-member parliamentary group, could comfortably secure the approval of the Parliament to conduct the PC polls under Proportional Representation system.

Declaring that they would submit combined candidate lists at the PC polls, Dr. Senaratne declared that those who declined to join them would be considered traitors.

Dr. Senaratne emphasised that there was no need for alliances and their objectives could be achieved through fielding combined candidate lists.

The Illankai Thamil Arasu Kadchi (ITAK) was represented by former lawmaker and acting Secretaray General of ITAK but the Sri Lanka Podujana Peramuna (SLPP) and the main Opposition Samagi Jana Balawegaya (SJB) weren’t represented.

Convenor of the People’s United Opposition Prof. G. L Peiris, at the beginning of the briefing, explained how the people were deprived of their democratic rights by the NPP, through the postponement of PC polls.

On Tuesday (26) MPs Shanakiyan Rasamanikkam, Mano Ganesan, and Nizam Kariapper attended a joint Opposition discussion with SJB and others, organised by PAFFREL. MP Rasamanikkam has criticised the delay in holding PC elections.

The Batticaloa District MP highlighted that he had already presented a private member’s bill to facilitate the conduct of elections, under the earlier system.

Rasamanikkam said:”The four Opposition members representing the Parliamentary Select Committee affirmed their stance to hold the Provincial Council elections under the preferential voting system.

“We noted, however, that the establishment of this committee appears to be a measure to further delay the process.

“Concurrently, an Additional Solicitor General of the Attorney General’s Department presented two proposals for conducting the elections.

“One of these recommendations involves introducing minor amendments concerning women and youth representation to the private member’s motion I tabled in Parliament, which seeks to hold the Provincial Council elections under the previous system.”

Meanwhile, PAFFREL said that altogether 42 political parties and civil society organisations were involved in that discussion.

PAFFREL said that of the 42 political parties and monitoring organisations that participated in the discussion, all but one political party consented to endorse the following joint statement. And it was decided to forward the joint statement to the Parliamentary Select Committee and the government.

“We, the secretaries of political parties and representatives of the other organisations, who attended the meeting organised by PAFFREL at the Hector Kobbekaduwa Agricultural Training and Research Institute, on 26 May, 2026, agreed to the proposal adopted to hold the Provincial Council elections as per the electoral system prevailed prior to the enactment of Act No. 17 of 2017, pending the final outcome of the Parliamentary Select Committee. We also agreed to ensure 25% representation of women and youth on a voluntary basis.”

Continue Reading

News

20 lawmakers, four officials visiting China

Published

on

Twenty MPs and four officials are on a visit to China. Dr. Kaushalya Ariyarathna, Deputy Minister, leads the delegation (pic courtesy Parliament)

A Parliamentary delegation, comprising 20 Members of Parliament, and four officials, of the Parliament of Sri Lanka, led by Dr. Kaushalya Ariyarathna, Deputy Minister of Mass Media, is in China to participate in a workshop for Members of Parliament of Sri Lanka being held in Beijing and Guangdong.

The programme has been organised by the International Cooperation Centre of the National Development and Reform Commission (NDRC) of China, from 26th May to 5th June, 2026.

The delegation arrived in Beijing, on 25 May, and commenced official engagements on 26th May, with the Opening Ceremony of the Workshop held at the Fenghui Centre in Beijing, Parliament said.

Continue Reading

Trending