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Editorial

More heavy lifting to be done

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As President Ranil Wickremesinghe tirelessly stressed, the signing off on the Extended Fund Facility (EFF) with the International Monetary Fund marks a new beginning. “Forget the past and the old games,” he has said seeking the cooperation of both the opposition and the media for a great leap forward. He has made the point that the IMF arrangement of USD 2.9 billion opens the doors for further credit adding up to USD 7 billion from elsewhere. When he met editors and other media heads on Thursday he said we have to continue negotiations with bilateral and multi-lateral lenders as well as private creditors which he admitted would be the most difficult.

The bad news when this was being written on Friday was that unless there is a dramatic change of heart on the part of the executive, the likelihood of the scheduled local government elections in the foreseeable future appears more than remote. There are, of course, a clutch of cases before the courts at present and which way the determinations will go is not clear right now; also in which direction the dice will roll once the courts rule. But it is patently clear that both the president and the government want these elections as much as they want a hole in the head.

There is no need to labour the reason why the incumbent establishment does not want local elections at the present moment. This, notwithstanding SLPP General Secretary Sagara Kariyawasam’s mealy-mouthed protestations that his party does not wish these elections put off. The electorate is very well aware that these elections cannot mean a change of government. Wickremesinghe is safely ensconced on his presidential throne until Gotabaya Rajapaksa’s term runs out in November 2024. Wickremesinghe is constitutionally empowered to dissolve parliament whenever he wishes from now until then. That’s the whip-hand he holds over his SLPP backers who made him president. It will safely ensure that they will not rock the boat during his tenure.

Just as much as the president and his government do not want any election in the short term, the opposition parties are literally panting that these be held soonest for reasons that are all too obvious. The last time the country elected local bodies was in February 2018 and the Rajapaksa party was the comfortable winner. The credit for this within the SLPP was widely apportioned to Basil Rajapaksa, its national organizer. That election victory heralded the coming of Gotabaya Rajapaksa in November 2019 and the Mahinda Rajapaksa government the following August. This is why the opposition, principally Sajith Premadasa’s SJB and the JVP-led National People’s Power (NPP), is striving might and main to have this election one way or another. The present signal is that they will not succeed in this endeavour. But as in cricket, there is no certainty in the outcome.

Though the president requested that the old games must not be played any longer, his supporters don’t practice what he preaches. There was a vulgar display of firecracker lighting, in true Sri Lankan style, greeting the announcement that the IMF deal was through. Everybody and his brother well know that this polluting lighting of strings of firecrackers greeting election results, politicians arriving at meetings and other similar events are funded by the politicians themselves. Some ghouls even lit crackers when President Premadasa was assassinated. We don’t know whether last week’s cracker lighting was a command performance or of old habits persisting. Whatever it was, it was unseemly.

The mere fact the IMF deal is through does not mean that the country is going to emerge from the economic morass in which it is mired. A great deal of heavy lifting remains to be done. The initial benefits cannot be more than a trickle. Possibly the June negotiations down the road may be an opportunity to offer some tax relief to professionals loudly protesting that the new rates are totally unrealistic. We run a letter from a retired Commissioner General of Inland Revenue in this issue who says that in his view, the problem is not with the rate of taxation which is between six and 36% but with the exemption threshold.

He rightly says that given today’s hyper-inflation. high cost of electricity, water and essential food, the Rs. 1.2 million exemption threshold is far too low. He believes that if this is raised to at least Rs. 1.8 million a year, it may be possible to win the unions over and reduce the tax burden on high income professionals. He has said this should not impact on the IMF agreements and the time has come for a compromise between the government and protesters. Clearly the now retired writer will not have access to actual numbers. But given his long service in the tax department, he would have an instinct for these matters.

It is also pertinent to say here that it is time the government makes a statement about the safety of the country’s banking sector. There are many worries on this score particularly after what happened recently in the U.S. and in Switzerland. It is well known that our state banks have been captive lenders to insolvent state-owned enterprises with such loans underwritten by the government. The fact that the IMF deal was successfully concluded, no doubt, is a reassuring factor about the stability of our commercial banking system. Nevertheless, a statement from the government will reassure constituents.



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Editorial

Sailing between Scylla and Charybdis

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Friday 17th April, 2026

Chinese Foreign Minister Wang Yi is reported to have told his Iranian counterpart, Abbas Araghchi, in a telephone conversation, that reopening the Strait of Hormuz is a unanimous demand from the international community. He has stressed that Iran’s sovereignty, security, and legitimate rights should be respected as a littoral state of the Strait of Hormuz, but the freedom of navigation and safety through the strait should be ensured. One cannot but agree with the Chinese Foreign Minister.

A prolonged closure of the Hormuz Strait will only aggravate global economic woes and therefore be counterproductive. Tehran has a lot to gain on the diplomatic front; even some staunch allies of the US have taken exception to US-Israeli military aggression against Iran. It ought to take the shifting dynamics of the conflict into consideration and change its strategy accordingly.

The Chinese Foreign Minister has rightly noted that the current situation has reached a critical juncture between war and peace and the window of peace is opening. Iran must seize this opportunity. Araghchi has informed Wang Yi that his country is willing to continue to seek a rational and realistic solution through peaceful negotiations. It is hoped that the fragile ceasefire will be extended, and Pakistan will be able to bring the warring sides to the negotiating table again and help work out a compromise formula.

The US has imposed a naval blockade on Iran, targeting ships that enter or leave the Iranian ports, especially though the Hormuz Strait, through which about 20% of world oil supply passes. It has already turned back several ships that sought to enter Iran. Ironically, the US is doing what it has condemned Iran for—restricting international navigation through the Hormuz Strait. With its naval blockade, Washington is likely to incur more international opprobrium. It still has no way of forcing Iran to allow all ships to sail through the strategic chokepoint freely. However, the US naval blockade is likely to have a crippling impact on Iranian oil exports. With both Iran and the US using the Strait of Hormuz as a strategic lever, the countries that have nothing to do with the conflict have to sail between Scylla and Charybdis in the Gulf region.

Some experts are of the view that the China-Iran railway will help mitigate the impact of the US naval blockade and counter Washington’s efforts to isolate China and Iran, but this option could give rise to unforeseen logical and geopolitical issues.

About one-third of global seaborne trade in fertiliser reportedly passes through the Strait of Hormuz. The Gulf countries are key producers of nitrogen fertilisers. They also manufacture about 20% of phosphate fertilisers and 25% of global Sulphur. Urea prices have increased by 25% in the US, and the American Farm Bureau Federation has written to President Donald Trump, warning that production shocks will threaten national food security. The situation is far worse in the developing world. Sri Lanka is running out of its fertiliser stocks, and farmers are up in arms. Máximo Torero, the Chief Economist of the Food and Agriculture Organization of the United Nations, has warned that the ongoing disruption to the Strait of Hormuz trade corridor has triggered “one of the most severe shocks to global commodity flows in recent years, with significant implications for food security, agricultural production, and global markets”.

Meanwhile, Sri Lanka is playing politics with its national energy conservation strategy amidst a global crisis while all other countries are strictly enforcing regulations in place to curtail fuel consumption. The suspension of the QR-based fuel quota system on account of the traditional New Year celebrations must have led to a huge increase in fuel consumption for non-essential purposes, as evident from the record revenue from the expressways. What should have been done was to increase the fuel quota instead of suspending the rationing system so that the public would be compelled to consume fuel sparingly during the festive season. The West Asian conflict is far from over, and the crisis management strategies must not be compromised.

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Editorial

Emergency without emergency

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It is said that when the people fear the government, there is tyranny, and when the government fears the people there is liberty. However, in a bid to retain its hold on power, a government that fears the people, tends to resort to draconian measures that are deleterious to civil liberties and democracy and could lead to tyranny. Among them is the misuse of Emergency regulations on some pretext or another. Sri Lanka has spent most of its post-Independence years under a state of Emergency.

The JVP-NPP government keeps on extending emergency regulations even though several months have passed since the landfall of Cyclone Ditwah, which warranted their imposition. It drew severe criticism for an initial delay in declaring a state of Emergency, which it now cannot do without for all intents and purposes. A staunch critic of Emergency and the Prevention of Terrorism Act (PTA), the JVP/NPP came to power, promising to abolish the PTA and use the Emergency regulations responsibly, but it has reneged on that pledge.

On Thursday, Parliament voted to extend the State of Emergency under the Public Security Ordinance. There were 137 ayes and 27 nays. Members of the SJB, the ITAK, the NDF, the SLPP and Jaffna District Independent MP Dr. Ramanathan Archchuna opposed the government motion seeking the extension of Emergency. A vote was held after ITAK MP Shanakiyan Rasamanickam called for division. Worryingly, only 165 MPs, including the Speaker, were present in the 225-member House at the time of voting. Where were the other 60 MPs? Among the absentees were 21 government MPs and 33 Opposition members, according to media reports. At least the Opposition, which called for a division on the motion, should have ensured that all its MPs were present in the House. So much for the commitment of the MPs to their legislative duties and functions. They often haul state employees over the coals for dereliction of duty. First of all, they should put their own house in order.

A state of Emergency is no doubt a legitimate constitutional tool, but it must be used responsibly and sparingly strictly in response to genuine crises. Its extension for political reasons risks undermining democratic institutions, civil liberties and, most of all, public trust in democratic governance.

The deplorable practice of keeping a country under Emergency regulations for extended periods leads to the weakening of democratic culture, public distrust in government, corruption, lack of transparency, the debilitation of civil society and media freedom, an authoritarian drift, and economic and social uncertainty. The misuse of Emergency regulations could create a climate of instability, driving investors away at a time when Sri Lanka is emerging from its worst-ever economic crisis and desperately seeking foreign direct investment to build its forex reserves.

Political leaders currently in the Opposition wax eloquent in Parliament on the ill-effects of a prolonged state of Emergency. But their parties cannot absolve themselves of the blame for the culture of Emergency; the UNP, the SLFP and the JVP are prominent among them. There have been numerous instances where Emergency regulations were invoked in this country. In 1953, a UNP government imposed an emergency rule to restore order during a countrywide hartal. The SLFP did so in 1958 to suppress communal riots. Thereafter, the UNP used Emergency regulations to suppress a Tamil civil disobedience campaign. The SLFP and its leftist allies started the practice of extending Emergency regulations to consolidate its power after crushing the JVP’s first uprising in 1971. The situation took a turn for the worse under the UNP governments after 1977, and the country was under a state of Emergency during the Eelam war, which ended in 2009. The main Tamil political parties backed the LTTE both in and outside Parliament. In the post-war period, an anti-Muslim riot, the Easter Sunday terror attacks, the beginning of the current economic crisis, a mass uprising and natural disasters also led to the imposition of Emergency regulations.

Emergency has been more abused than used in this country. The incumbent government is now emulating the SLFP, the UNP and the coalitions led by them where all bad practices are concerned, while pontificating on the virtues of good governance.

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Editorial

Govt. drops fig leaf

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Saturday 11th April, 2026

The JVP-NPP government has dropped the fig leaf of good governance and defended Energy Minister Kumara Jayakody allegedly involved in a coal procurement scam, which has cost the state coffers billions of rupees and caused a huge drop in the national power supply. It went so far as to defeat a no-faith motion against him in Parliament yesterday. In 2023, the JVP/NPP vehemently condemned the then SLPP-UNP government for defending Minister Keheliya Rambukwella allegedly involved in a pharmaceutical procurement scandal. It has just done what it vilified its predecessor for.

The SLPP-UNP government at least allowed legal action to be taken against Rambukwella, who was arrested, remanded and prosecuted, but the incumbent administration has ensured that Jayakody remains above the law.

The no-faith motion was a smart move by the Opposition. It caused the government to make a mockery of its commitment to upholding the rule of law and accountability. President Anura Kumara Dissanayake himself defended his friend, Jayakody, in Parliament on Tuesday, sending a clear signal to the NPP parliamentary group; they had to vote en bloc against the no-faith motion on Friday. It is now clear that the JVP-NPP government has no qualms about defending tainted politicians.

The coal scam will not go away simply because the no-faith motion against Jayakody has been defeated. Governments abuse their parliamentary majorities to defend their members and protect their interests. Now, the Opposition will take the coal issue to the streets and flog it hard to gain political mileage. It held a demonstration near Parliament yesterday. It has got hold of something to beat the government with.

There is no way the government can prove its claim that there has been no wrongdoing on its part where the low-grade coal imports are concerned. The National Audit Office itself has pointed out serious procurement irregularities related to coal imports. Power tariffs will have to be increased again to meet the additional cost of operating oil-fired power plants to make up for the generation shortfall at Norochcholai. It has been reported that Sri Lanka’s household electricity tariffs are among the highest in South Asia, and further power tariff hikes will make the situation far worse, and Sri Lanka will have its work cut out to attract foreign investors who factor in power prices before parking their money in any investment destination. Ordinary Sri Lankans are struggling to make ends meet, and their patience is wearing thin, and this will make the task of mobilising popular support easier for the Opposition. It was people’s economic hardships and public protests that made the JVP’s meteoric rise to power possible in 2024.

Governments with supermajorities succumb to the arrogance of power and ruin things for themselves. The best way out of the current coal imbroglio would have been for the JVP-NPP government to ask Minister Jayakody to step down and let the national anti-graft commission and the police institute legal action against him. Such a course of action would have helped the government convince the public that it was serious about fulfilling its pledge to eliminate bribery and corruption and send a clear message to the corrupt elements in its ranks that they would not be protected.

The JVP/NPP is now without any moral right to be critical of former Presidents who defended their cronies involved in corrupt deals. A fish is said to rot from the head down.

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