Editorial
Economics vs. Politics

Thursday 15th August, 2024
All signs are that the upcoming presidential poll and the next general election, which is expected to follow in quick succession, will take their toll on the country’s economic recovery process. The main presidential candidates are ready to do things that are fraught with the danger of not only inhibiting economic recovery but also sending the economy back into a tailspin.
The government, controlled by President Ranil Wickremesinghe, who is also the Finance Minister, is playing Santa. It is throwing money around in a desperate bid to recover lost ground. It has promised a pay hike for the public sector workers while claiming that the IMF-prescribed revenue targets have to be met. The President himself has indicated that vehicle imports will resume soon. Predicting that the country’s foreign currency reserves will suffer a temporary setback as a result, he has claimed that they will improve with the passage of time. However, there is no guarantee that they will. Tensions between Israel and Iran are reaching a boiling point, and if war erupts in the Middle East, oil prices will shoot up and workers remittances will drop; the prices of imports are bound to increase exponentially in such an eventuality. We peddle no argument against the resumption of vehicle imports, but the government must tread cautiously without allowing its political goals to take precedence over the country’s economic recovery strategy.
Until the announcement of the presidential election, the government had been rejecting requests for a downward revision of painfully high personal taxes. It has now made an about-turn. President Wickremesinghe is reported to have told a group of university administrators that government is ‘looking at adjustments to the personal tax structure to provide some relief to the taxpayers’; he says he has received two proposals in this regard––one from the Treasury, which is under him, and the other from the IMF.
There is no gainsaying that people are reeling from direct and indirect taxes, and the news about possible tax revisions will certainly gladden their hearts, but the question is whether the factors that led to sharp tax increases have been tackled for tax cuts to be considered. The IMF has stressed the need for Sri Lanka to raise its state revenue to the region of 15% of GDP by 2025, and pointed out that the revenues in other middle-income countries average 26% of GDP. The SJB and the JVP/NPP have also promised to ease the tax burden on the public. Their argument that if the tax net is cast wide, and tax collection is streamlined with corruption being tackled, it will be possible to grant relief to the public, is not without some merit, but will that goal be attainable in the foreseeable future? It will be interesting to see the tax adjustment proposals by the Treasury and the IMF.
Curiously, all contestants in the presidential race have chosen to remain silent on the imputed rental income tax on the cards. What do they propose to do with it?
There is hardly anything that Sri Lankan politicians baulk at doing to further their political interests and win elections. Never do they hesitate to subjugate the country’s long-term economic interests to their short-term political goals. The current economic crisis is multifactorial, but it is mainly attributable to politically-motivated tax cuts and ill-conceived welfare measures under the Gotabaya Rajapaksa government. Having won the 2019 presidential election, the SLPP slashed taxes, causing a sharp drop in state revenue, and embarked on a relief programme aimed to win the 2020 general election. It resorted to excessive money printing, which led to an increase in inflation, and the depreciation of the rupee, aggravating the country’s forex woes.
Having ruined the economy, the SLPP had to upend its own economic strategy by way of crisis management at the behest of the IMF. But there are signs of the blunders that led to the current economic crisis being repeated.
Given what the government has undertaken to do at the expense of the economy to garner votes, and the attractive promises its rivals are making to woo the public, the upcoming presidential election can be considered a contest between economics and politics. One can only hope that the economy will survive the coming elections.
Editorial
May Day hijacked

Thursday 1st May, 2025
The International Workers’ Day falls today, and Sri Lanka is ready to mark it on a grand scale. However, May Day celebrations in this country are like Hamlet without the Prince of Denmark or Sinhabahu without the Lion’s son; workers do not play any important role in the main May Day events. Politicians grab the limelight and workers become mere spectators.
Today’s main May Day events are held by the government and the Opposition to further their own interests rather than those of workers or labour unions; they are all out to use their May Day rallies and processions to gain a boost for their election campaigns.
Sri Lankan political parties have hijacked May Day. Almost every International Labour Day rally is a cringeworthy display of workers’ servility to politicians, with trade unionists falling over themselves to please their political leaders by showering praise, and cutting pathetic figures in the process. Today, we will have politicians thundering at May Day rallies, laying out what they consider their achievements and making more promises to workers.
There are some genuine workers’ unions championing labour rights on May Day, but they are the exception that proves the rule. Most trade unions are affiliated to political parties, and they subjugate workers’ interests to political agendas. No wonder workers’ lot has not improved all these years.
Gone are the days when governments passed progressive labour laws and adopted other measures to protect workers’ rights. Today, governments stand accused of trying to curtail labour rights at the behest of some international lending institutions. But workers continue to offer their services as palanquin bearers to politicians.
The party in power usually puts on the biggest May Day show. This, we have seen under successive governments. The ruling NPP is scheduled to hold its May Day rally at Galle Face today to display its power and outshine its political rivals in the run-up to the upcoming local government (LG) polls. It finds itself in a position where it cannot afford to suffer even a minor electoral setback. The problem with electoral setbacks is that they often snowball, eventually bringing down governments.
Crowd participation is not a reliable indicator of a political party’s popularity or electoral strength, for most of the floating voters who determine the outcomes of elections do not take the trouble of attending political rallies. On the other hand, crowd boosting with hired attendees, and methods such as astroturfing have become the order of the day; public opinion is swayed in devious ways. Crowd filling has become a kind of industry in this country, as former Justice Minister Dr. Wijeyadasa Rajapakshe said about six months ago. His claim went unchallenged.
It is high time Sri Lankan workers and their trade union leaders asserted their power and liberated May Day from the clutches of wily politicians who have been using them as a cat’s paw to pull political chestnuts out of the fire.
Meanwhile, trade unions ought to realise that they have a crucial role to play in helping the country come out of the current economic crisis. The goal of economic recovery will remain unattainable unless national productivity is increased substantially.
Besides serving workers by protecting their rights and supporting them in labour disputes, etc., trade unions can also make a huge contribution to economic development and national progress. They should shift their focus from demand-oriented struggles to promoting labour standards, and helping build a motivated and productive workforce to boost economic development. Among other tasks that trade unions are expected to perform is to help resolve labour disputes amicably, thereby preventing industrial unrest and disruptions to the ailing economy. Trade unions have adopted such measures in other countries, such as Japan, enabling those nations to achieve progress.
Editorial
Corruption and comeuppance

Wednesday 30th April, 2025
Two erstwhile strange bedfellows—the UNP and the JVP—are at each other’s jugular. Following the 2015 regime change, they embarked on the UNP-led Yahapalana government’s anti-corruption crusade. Their political honeymoon lasted for nearly five years.
Hardly a day passes without President Anura Kumara Dissanayake, who is also the JVP/NPP leader, taking a swipe at UNP leader and former President Ranil Wickremesinghe, and vice versa. After making a statement to the Commission to Investigate Allegations of Bribery or Corruption (CIABOC), on Monday, over what he had said in defence of former Chief Minister (CM) Chamara Sampath Dassanayake, who is being held on remand for alleged financial malpractices, Wickremesinghe tore into the JVP-led government for having targeted him unfairly. He went on to allege that the CIABOC had leaked information about its correspondence with him to President Dissanayake.
Wickremesinghe’s sharp rebuke of the CIABOC and the JVP/NPP can be considered as an instance of karmic forces in action. When Wickremesinghe was the Prime Minister (from 2015 to 2019), he and his JVP chums including Anura Kumara ran the Yahapalana government’s Anti-Corruption Secretariat, and came under criticism for launching political witch-hunts against their political rivals.
Current Minister of Public Security Ananda Wijepala functioned as the head of the Anti-Corruption Secretariat. Hundreds of files on various individuals found their way into the hands of the JVP leaders, who displayed them subsequently, claiming that a future JVP government would probe all of them. They have not fulfilled that pledge. PM Wickremesinghe could not have been unaware of the unauthorised removal of files from the Anti-Corruption Secretariat. Now, he is berating the CIABOC for leaking information to the JVP/NPP!
Wickremesinghe has been critical of the CIABOC’s selective efficiency, which however is not of recent origin. The national anti-graft commission has always taken action against Opposition politicians very efficiently, as it did during the Yahapalana government. The boot is now on the other foot!
One may recall that the Yahapalana era was characterised by show arrests, as it were, and some courts were kept open until midnight for the suspects who were taken there from the CID headquarters to be remanded. However, such measures did not help bring the corrupt to justice. Maithripala Sirisena, who won the presidency in 2015, with the help of the UNP, the JVP, etc., promising to throw the Rajapaksas behind bars for corruption, joined forces with them in late 2018 for expediency, and Wickremesinghe did likewise four years later.
Interestingly, the alleged financial malpractices for which ex-CM Dassanayake has been remanded occurred during the Yahapalana government, while the JVP was running the Anti-Corruption Secretariat for all practical purposes. There were complaints against Dassanayake. Why he was not arrested at that time is the question.
The JVP/NPP has condemned Wickremesinghe for defending the corrupt. Ironically, the JVP had no qualms about defending Wickremesinghe and his UNF government although he openly shielded the perpetrators of the Treasury bond scams. The JVP was also instrumental in defeating President Sirisena’s efforts to sack theYahapalana government and dissolve Parliament in late 2018; it enabled Wickremesinghe to retain the premiership. It did so in spite of serious allegations of corruption against the UNP and Wickremesinghe. The UNP-led dysfunctional government, propped up by the JVP in Parliament, neglected national security and failed to prevent the Easter Sunday attacks (2019).
What Wickremesinghe is experiencing at the hands of the JVP can be considered his comeuppance. After securing the presidency with the help of the SLPP in 2022, he unflinchingly threw his weight behind the then Minister Keheliya Rambukwella, who was accused of procurement rackets in the Health Ministry. He also defended Sri Lanka Cricket officials despite damning allegations against them, and incurred much public opprobrium, which found expression in a massive protest vote, which benefited the JVP-led NPP in last year’s elections.
Meanwhile, it will be interesting to know from President Dissanayake how his government intends to deal with corruption in the cricket administration, which is the Sri Lankan version of the Augean Stables.
Editorial
Specious arguments

Tuesday 29th April, 2025
The government and the Opposition are engaged in a no-holds-barred battle to win the upcoming local government (LG) elections. Their election campaigns have turned down and dirty, and the polity is red in tooth and claw, with vilification campaigns being carried out against not only politicians but also their kith and kin.
If the ruling NPP fails to retain its votes at the current level next month, the Opposition will claim to have made a breakthrough in its battle against the government. This is something the NPP needs like a hole in the head. If the Opposition parties, especially the SJB, the SLPP and the UNP-led NDF, fail to recover lost ground and improve their electoral performance significantly, they will have to face a long haul in the political wilderness. So, it is only natural that both the NPP and the Opposition are doing everything in their power to shape and sway public opinion in their favour.
Some NPP MPs have put forth an absurd argument; they say that since their party has won both presidential and parliamentary elections, the local councils, too, should be placed under its control if the people are to benefit. If the public is convinced that the NPP is better than its predecessors and can be trusted with the administration of the local councils as well, they may vote for the NPP, but they must not do so simply because the NPP has won the executive presidency and is controlling Parliament.
A democracy worthy of the name should be able to function properly in situations where the three tiers of government are controlled by different political parties. The Colombo Municipal Council remained under UNP control for decades during SLFP/SLPP governments. The JVP bagged the Tissamaharama Pradeshiya Sabha in 2002 while Chandrika Bandaranaike Kumaratunga, who led the People’s Alliance (PA), was the President, and the UNP led by Prime Minister Ranil Wickremesinghe was controlling Parliament. It won six seats as opposed to the PA’s two and the UNP’s four. The JVP, which leads the NPP, is now using the exact opposite of the argument it touted in 2002 to persuade the people of Tissamaharama to vote for it!
There is an incomprehensible practice of handing over the reins of Parliament to the party that wins a presidential election, and this makes one wonder whether there is any point in holding separate parliamentary elections. A popular mandate given to the Executive President does not cancel that of the party controlling Parliament.
The SLPP, the SLFP and the UNP have set a very bad precedent. Last year, the SLPP government stepped down, allowing the NPP to secure control of Parliament after Anura Kumara Dissanayake’s victory in the presidential race. In 2015, the SLFP-led UPFA gave up control of Parliament, upon the election of Maithripala Sirisena as President, enabling the UNP-led UNF to form a government. The UNF government did likewise in 2019, when Gotabaya Rajapaksa was elected President. The SLPP controlled Parliament, without a mandate, from Nov. 2019 to August 2020. In 2015, within a few weeks of forming a government without a popular mandate, the UNF facilitated the first Treasury bond scam.
The Executive Presidents do not resign when their parties lose general elections. Haven’t those who vehemently oppose the Executive’s interference in the legislature themselves subjugated the ‘independence of Parliament’ to the will of the President?
There is also another flawed argument that the people should strengthen the hands of President Dissanayake to govern the country better by bringing the LG authorities under NPP control and thereby enabling him to have his policies and programmes implemented effectively at the grassroots level. President Dissanayake has been controlling not only the LG bodies but also the Provincial Councils through the Governors appointed by him, the way Presidents Gotabaya Rajapaksa and Ranil Wickremesinghe did. The Special Commissioners who are currently in charge of the local councils report to the Governors and therefore they are at the beck and call of the President.
It is hoped that the public will not be swayed by preposterously specious arguments that are being touted by the government and the Opposition.
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