Opinion
What is money?
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By Prof Kirthi Tennakone
People, who are over-conscious about money, strive to earn as much as they can in the shortest possible time. Some resort to crooked means of acquiring large sums. Few realise money is not everything but depends on it for survival. The poor sweat and exhaust themselves to earn pennies. Improvised beg for pennies in streets. Governments in debt plead for dollars
Whether you like it or not, money drives modern society. It is hard to think of an affair that costs no money. Being so familiar and too attached people take money for granted and rarely question what it really means. And tends to think of money in terms of currency notes and coins. Money is not something tangible but an abstract entity representing the worthiness of goods and services. Money can be moved across any distance at the speed of light, permitting beneficent transactions as well as laundering. It can be stored to postpone usage or invested.
Concept of money
Philosophers and economists have attempted to define money. According to Aristotle, money facilitate exchange of goods and serve as an assessment of worth – implying money has an intrinsic measurable value. Thereafter gold became the standard of money and the value of currency was defined in terms of weight of gold. Aristotle was materialistic, but his teacher Plato being more idealistic and abstract, disagreed. He denounced linking money to metals like gold and silver and declared money is only a symbol devised to makes exchanges of goods easier. More recent credit theory of money akin to Plato’s idea considers money as the entity that keep track of credit and debit in transactions of commodities and services. International Monetary Fund (IMF) states: money is anything that serves as store of value, unit of account and medium of exchange.
In physics familiar quantities such as length, weight and time are precisely defined in terms of fixed units. Money cannot be similarly defined to the satisfaction and precision of a physicist. It is a social attribute that emerged naturally.
The concepts in physics are understood and defined precisely. We feel temperature, it is the degree of hotness of a body, which can be measured using a thermometer. Physicists have understood temperature as average energy of random motions of molecules constituting the object. Money is also a measurable entity, but cannot be understood that accurately as the simpler idea of temperature.
Complex systems derived from a large number of mutually interacting entities acquire qualities absent or un-meaningful to an individual entity existing alone. We cannot talk about the temperature of one single isolated molecule. Likewise, money made no sense to earliest ancestors of humans, when each adult was singly dependent by himself for food and shelter. As humans advanced, the community noted there are individuals who perform better in certain tasks. Some were good at hunting, while other excelled in searching and digging yams. Why not exchange meat for yams and by how much? Three handfuls of meat for one handful of yams, because yams were a scarce commodity in the forest! The primitive tool makers had an opportunity. They would have exchanged stone tools for meat or yams; devoting lesser time for gathering food and gaining time for improvising better tools. This is the origin of barter system–exchange of goods and services. The barter marketing posed a natural hurdle; the producer of a certain item had to find a customer who possessed something he or she wanted to exchange – a double coincidence of low probability. With the advent of agriculture, grain became a commodity consumed by everybody. The quantity of it being measurable by volume; grain reached the status of a quantifiable commodity, adopted as the standard of barter – a form of money. However, grain money entailed problems. Grain cannot be stored indefinitely and instant transport of large quantities poses insurmountable difficulties. Thereafter, money shifted from grain to weighed amounts of noble metals; gold, silver and copper. Being rare and durable metals served as better exchange materials quantified in handy light weight pieces, which later transformed into coins. A community in a pacific island had used coconuts as the exchange material, one nut as the unit of money. Later, realising the inconvenience of transactions using a bulky object as exchanging agent, they resorted to a rare kind of sea shells. The pacific islanders had no contact with the continent, where metal money originated. Nevertheless, reverting from coconuts to sea shells in the pacific island is conceptually equivalent to going from grain to metal money in the continent. Things material or immaterial can represent money, provided counterfeiting is prevented. Today world has accustomed to paper money. Electronic money already there, might replace it in the future
A society progressing and moving forward, imperatively arrives at the concept of money. Aliens with capabilities similar to humans, if they exist elsewhere in the universe, would undoubtedly use money for their activities. A civilisation cannot advance without invoking the idea of money. How else they would exchange goods and compensate services? English novelist and historian H.G. Wells in his work ‘A modern utopia’ says, I do not see how one can imagine anything at all worthy of being called a civilization without money.
Is money also an evil?
Money is neither an evil nor a virtue intrinsically. Nonetheless, literature frequently portrays money as an evil. According to Aristotle man’s ambition and desire to make money are the most frequent causes of deliberate injustice. Bible says love for money is root of all evil. In the play ‘The Merchant of Venice’ Shakespeare writes a love for money can be deadly. Treating money as something sinister had also originated from the attitude of predatory money lenders. In early days when barter economy was transforming into a currency system. Peasants and workers were deprived of new commodities purchasable only with currency. Money lenders offered coins for unwarranted rates of compound interest. They quarreled and harassed peasants in the event of failure to settle the loan with due interest. Often the law of the land favored the moneylender, supported by corrupt officials of the state. When East India Company introduced their coins to Sri Lanka, moneylender exploited our famers. Folklore recite many such incidents.
Evil is not money but the manipulations of opportunists who grab money unfairly and illegally or use of money to inflect crime. Rightful earning of money is not considered a sin but a meritorious deed worthy of praise as told in Chulasetti Jatakaya.
Chulasetti Jatakaya
Chulasetti who inherited his father’s position as the Treasurer of the King Brahamadatta was a man of unmatched wisdom-a Bodhisattva. One day on way to the palace he saw a dead mouse lying on the road. With a burst of foresight, Bodhisattva declared this is an opportunity for young man to be rich and marry a woman. A poor lad having overheard the words of the Bodhisattva, picked up the carcass sold it for one penny to a nobleman fondling a cat. With the penny he bought jaggery. Serving sweet and water to tired men returning from jungle after collecting flowers, he earned eight pennies. After a series of many other innovative pursuits, he earned sufficient money to buy a shipload of merchandise and sold them to wealthy persons in the town. One day he went to see Chulasetti and told him, I earned so much money because of your words. Chulasetti said, you deserve praise for earning money rightfully. I will give my daughter in marriage to you and transfer my wealth.
Money is neutral and innocent. The neutrality permits any person irrespective of his or her social standing to earn rightfully and become rich, whereas innocence allow rogues to pilfer billions. Society honors the former and condemn the latter.
Relative value of money
A kilogram of sugar costs around 500 rupees in Sri Lanka and about 0.4 dollars in United States. On basis of these prices, can we deduce sugar is more expensive here than in United States? One would argue, as one US dollar amounts to about 360 Sri Lankan rupees, sugar is lot more expensive in Sri Lanka. But what made one United States dollar equivalent to 350 Sri Lankan rupees? The value of money is relative. Conversion rate of US dollars to another currency is absolutely determined by comparison of the average purchasing power of the two currencies. However, currencies are also marketable commodities, value determined by supply and demand, which depend on factors additional to purchasing power and determined by the foreign exchange market. The Central Bank adjust the value of local currency accordingly. Central Banks also have the authority to set the value of local currency at a desired level relative to the dollar. If the productivity of a nation is low, devaluation (depreciation) of its currency would be advantageous, whereas the impact of revaluation (appreciation) likely to be negative; when it comes to earning of foreign exchange.
Wages and prices of goods together decides money’s worth in the society. If you express price of sugar as a fraction of the average wage of people in United States and Sri Lanka, you can meaningfully conclude sugar is cheaper in United States. Obviously, this fraction remains independent of the unit of currency. Likewise, the fraction defined as: the average price of goods divided by the available supply of money remain invariant with respect to the unit of currency. Economists, conjecture that the price level of goods increase in proportion to the money supply. When a government print money to raise the wages, the price level escalates. Compelling workers to demand further salary increases and if implemented by printing more money, prices of goods continue to increase – an economic outcome referred to as hyperinflation. The price of goods can be reduced effectively only by boosting the production.
Hard currency
Nation cry for dollars, shouting we cannot purchase adequate quantities essential commodities without this brand of money. Hard money means a kind of currency accepted in international transactions and readily convertible. United States dollar stands as the hardest currency – competitively preferred in global business dealings. Other currencies acknowledged as hard are; Euro, Japanese Yen, Great Britain Pound, Swiss Franc and Canadian and Australian Dollars. A general consensus of credibility in transactions determine hardness. The countries where hard currencies originate are politically stable and economically sound offering a wide variety of quality goods and services. It is impossible to define a hard currency precisely. They originate as competitive selection of different brands of money.
Development plans and Monetary Policy
Every country obtains a portion of goods and services from abroad. Demanding foreign exchange which has to be earned and maintained as a reserve. Lower the productivity greater is the requirement of foreign money. Increasing production to optimize local requirements and delivery of exportable goods and services ensure hard currency earnings and economic stability. During past few decades many nations, previously classified as underdeveloped have achieved this goal.
Development plans and monetary policy of a nation are intimately linked. Monetary policy means management of money by a Central Bank to secure price stability and employment. Economic theories and empherical evidence indicate sustainable economic growth necessitates maintenance of a low price level. Unfortunately, foreign exchange heavily influences the price structure and availability certain goods, compelling governments in low income countries to go for loans, to be paid back with interest. The situation is critical when countries are heavily dependent on imports for routine consumption and development. If borrowed funds are not properly utilized or misused the consequences would be disastrous.
Improper expenditure of money by governments: Wrong policies
The greatest harm to an economy would be the diversion public funds to avenues having no bearing on production and social wellbeing. Such expenditures incur as massive projects commissioned without ascertaining economic returns or misappropriation.
Providing extraordinary financial benefits to sectors not commensurately contributing to the society, constrains the budget and discourages productive groups who agitate for fairness. Programmes geared for alleviation of poverty and employment are sometimes counterproductive. Poor should be supported to become rich providing substantial inputs, instead of stagnating them at the same level of deprivation giving token subsidies. Instead of exploiting cheap labor to earn dollars, country needs to introduce policies to breed high quality labour for domestic and overseas expectations. Increasing work force for shake of employment creates inefficiency.
The human resource turns productive and innovative only when they receive proper education. It is a myth to believe that a general education inclined only towards technology will nurture innovators. Educational reforms have to consider inculcating rational thinking, absence of which is the root cause of many social ills. Innovators are dreamers who undertake risk, dispelling myth. Our policies should be geared for the purpose.
An example of wrong policy that will go to history is banning of chemical fertilisers. Even a high school student who had assimilated science understands why the present-day food demand cannot be not met without concentrated fertilisers. The stupidity and motives of the politician is one thing, but a band of so- called experts advocated the idea. The ineffectiveness of their carbon, organic, microbial, bio and biofilm fertilisers has now been manifested to the nation and world at large. Agricultural specialists in our institutions did not (could not) turn out sufficiently vociferous to nip the foolish idea in the bud!
The fertiliser episode reflects a serious fundamental flaw in our entire establishment. Identifying all the factors (not necessarily pertaining to agriculture) and their elimination is absolutely essential to rebuild the nation.
Author can be reached via email: ktenna@yahoo.co.uk
Opinion
Government by the people for the people: Plea from citizenry
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By an Old Connoisseur
The incumbent rulers keep on reminding the people, ad nauseam, that the current administration is a government for the people by the people. They have claimed the current government was born out of the uprising of the people.
All governments in democratic societies are born out of the will of the people. In such a context, all such governments have to work towards the well-being of the people with undiluted commitment. There is no doubt in the minds of even the most discerning citizens of Sri Lanka that all these promulgations are indeed the most noble of objectives and one would justifiably expect such contentions to even warm the cockles of the hearts of all and sundry.
Yet for all this, we do need to remember and firmly reiterate to our politicians that this principle should be the bedrock on which the political governance of any democracy is based. The people of a country should come first and foremost in all considerations of any legally elected democratic government. True enough, we do know for sure that even despite the very loud vocal grandiloquence of all previous governments, and I repeat all previous governments, they did not go even a little distance to hold the welfare of the people to be sacred, and their deeds and interests were completely at loggerheads with such an honourable foundation as well as essential and admirable attitudes. Without any significant exceptions, all previous political systems over the last 77 years of independence of our much-loved Motherland, have gone on record as institutions that put themselves first in all their considerations.
In point of fact, we also have to agree even unequivocally that this noble task cannot be achieved by the politicians alone. Politicians will have to take steps to stimulate, facilitate and unite all sections of society so that our people will put their collective shoulder to the wheel in a concerted initiative to lift up this country from the mire into which it has been pushed by politicians of various hues. Delving deeper into the depths of this contention, the question arises as to what or who are understood as people. In any society when one talks of people, we should focus on all people; the rich and the poor, the able and the disabled, the educated and the not so well educated, the employed and the unemployed, public-sector workers and the private-sector workers, the farmers as well as the white-collar workers, government enterprises as well as community organisations, and the business enterprises; in fact, the whole lot of Homo sapiens in our country. To improve the well-being of people we need the participation and unstinted cooperation of all these groups in our populace. An abiding sense of patriotism in the psyche of all of our people is definitely the need of the hour.
Politicians lay down the policies and the public sector ensures the implementation of these rules and regulations to improve the wellbeing of people. The public sector, including all politicians of different sorts, are servants of the people and are not deities with unlimited power just to take care of themselves and their political institutions as well as their kith and kin and acolytes. To realise these exalted goals we have to ensure that we have certain universal rules including respect for our people at all times, fair distribution of resources in an equitable manner, kindness, empathy and respect for the freedom of others, preservation and conservation of nature and the environment, adherence to the rule of law, unmitigated compliance with basic human rights and dignity, as well as the development of those very fine humane attributes such as beneficence, non-maleficence and altruism.
If we are to develop by transforming society by the people for the people, we will have to internalise and translate these attributes in our behaviour all the time and in all sectors of the community. Political leadership alone cannot do this honourable task. Society has to unite under these values and other attributes to be articulated and facilitated by the leadership. This is what many other progressive countries have attempted, some of them forging ahead with great success. For this to happen the entire society will have to work together over a long time with respect and minimal adversity. The stakeholders for this endeavour would be all individuals of society, Public Service including the political leadership, Private Sector and their leading figures and Community Organisations including their management. Every member of the population of our wonderful country should be invited to put his or her shoulder to the common wheel in a trek towards prosperity to enable everybody to enjoy an era of opulence.
The most admirable theme for the celebrations of our independence on the 4th of February this year was “Let us join the National Renaissance”. It was a clarion call to enable us to rise up like the proverbial phoenix from the ashes towards a magnificent revival. In addition to all that has been written above, the government and its leadership, for their part, have an abiding duty to take all necessary steps to facilitate the revitalisation of patriotism to urge the populace to contribute to the prospect of national resurgence. Towards that end, the general public has to be happy in this thrice blessed land and they need to live in a country that is safe and affluent. The powers that be need to realise most urgently that unless corruption is completely eliminated, the drug lords effectively neutralised, murderers and other law-breakers swiftly brought to book, various Mafia-type impertinent audacious organised collectives such as Rice Millers, Egg Manipulators, Coconut Wheeler-dealers, and Private Transport Syndicates; all of which hold the public to ransom, are ruthlessly tamed, there is no way in which we can rise and march towards any kind of Nationwide Resurgence. Of course, equally importantly, the farmers who provide sustenance to the entire nation should be looked after like royalty. It is also ever so important that vital and purposeful steps are taken to develop the rural impoverished areas and take steps to alleviate the poverty of the downtrodden. If these things are not attended to, at least for a start, the grandiose but implausible and tenuous rhetoric of that call to rally would just be a ‘pus vedilla’, and could even be a virtual non-starter.
Opinion
Save Sri Lanka’s majestic elephants
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As practising Buddhists and animal lovers, both my wife and I believe all living beings are entitled to share our planet in harmony as they too feel pain like us and need protection from natural and more importantly, man-made disasters! It is in this context, I wish to highlight these tragedies becoming all too common through your esteemed journal. If I succeed in terms of creating greater public awareness which hopefully, make an impetus to drive forward things to make it happen, I will be a a happy man! Turning a blind eye is not an option knowing full well our elephant population is on the decline! Can we afford it? Certainly not! Our Buddhist monks can easily be right at the fore front rather than keeping elephants tethered to trees in temple precincts just for prestige values!
While recognising the sad truth about human elephant confrontations leading to death and destruction for both, there must be practical solutions to end it together with herds including young calves being killed by trains!
There should be mandatory slow speed limits to enable train drivers to stop when these magnificent creatures are trying to cross ! Here in Wales, UK we have 20 and 30 MPH speed limits monitored by cameras to ensure health and safety of the public! Why not adopt the same system for our national heritage? Impose hefty fines for law breakers!
The Sri Lankan elephant (Elephas maximus maximus) is native to Sri Lanka and one of three recognised subspecies of the Asian elephant. It is the type subspecies of the Asian elephant and was first described by carl Linnaeus under the binomial Elephas maximusin 1758. The Sri Lankan elephant population is now largely restricted to the dry zone in the north, east and southeast of Sri Lanka.
Elephants are present in famous Yala, Willpattu National Park and Minneriya National Park amongst others but also live outside protected areas. It is estimated that Sri Lanka has the highest density of elephants in Asia. Human-elephant conflict is increasing due to conversion of elephant habitat to human settlements and permanent cultivation. Elephants are classified as mega herbivores and consume up to 150 kg (330 lb) of plant matter per day. As generalists they feed on a wide variety of food plants.
In Sri Lanka’s northwestern region, feeding behaviour of elephants was observed during the period of January 1998 to December 1999. The elephants fed on a total of 116 plant species belonging to 35 families including 27 species of cultivated plants. More than half of the plants were non-tree species, i.e. shrub, herb, grass, or climbers. More than 25% of the plant species belonged to the family Leguminosae and 19% of the plant species belonged to the family of true grasses. The presence of cultivated plants in dung does not result solely due to raiding of crops as it was observed that elephants feed on leftover crop plants in fallow chenas. Juvenile elephants tend to feed predominantly on grass species. Food resources are abundant in regenerating forests but at low density in mature forests. Traditional slash-and-burn agriculture. creates optimum habitat for elephants through promoting successional vegetation.
Females and calves generally form small, loosely associated social groups without the hierarchical tier structure exhibited by African bush elephants. However, at some locations such as Minneriya National Park hundreds of individuals aggregate during the dry season, suggesting that grouping behaviour is flexible and depends on season and place. Please campaign hard and tirelessly to achieve our noble goal!
Sunil Dharmabandhu
Wales, UK
Opinion
Humane capitalism needed to generate national wealth
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(Text of Opposition Leader Sajith Premadasa’s speech in Parliament during the ongoing debate on Budget 2025)
When analysing the solutions that the 2025 Budget should provide for the country, it is crucial to examine the mandate given to implement such a budget and how that mandate has been executed.
The policy framework presented to secure the mandate was “A Thriving Nation – A Beautiful Life” and “Country to Anura”. We must assess how much of these policy features are reflected in the 2025 Budget.
Looking at the budget framework, its presentation, and its unveiling, it is clear that this budget does not align with the promises made or the mandate received. I would like to substantiate this argument with evidence, data, and facts.
On page 105 of the ” A Thriving Nation – A Beautiful Life” policy document, there is a commitment to conduct an alternative debt sustainability analysis when the current government came into power. What has happened to that promise? Instead, what we see today is an unbearable burden and hardship imposed on the people, with the benefits they deserve being severely restricted.
Under the 2024 Fiscal Management (Responsibility) Act, primary expenditure is capped at 13% of GDP, and the primary balance is limited to 2.3% of GDP. Such limits are imposed in only about 10 countries worldwide, including Guatemala, Ethiopia, SriLanka, Venezuela, Nigeria, Yemen, Bangladesh, Lebanon, and Haiti.
Capping primary expenditure at 13% of GDP and maintaining a primary balance at 2.3% of GDP were not election promises of this government. This is not the execution of a mandate; it is a surrender of the mandate. It is a destruction of the mandate, forgetting what was promised, and entering into harsh and oppressive agreements with the International Monetary Fund (IMF) and sovereign bondholders.
This does not mean we advocate for withdrawing from the IMF program. Instead, we believe in entering a new, more people-centric and humane path that prioritizes the welfare of people.
These fiscal limits make it impossible to correct for externalities or address social costs. The responsibility of a government is to provide public goods, and these limits hinder that. They also restrict social redistribution. International studies show that capping primary expenditure and primary balances is counterproductive to a country’s development. Yet, the government has ignored all this, renegotiated agreements, and entered into new ones.
In essence, the government, which came to power with the people’s mandate, has completely surrendered that mandate.
I remember a statement made by President John F. Kennedy: “The great enemy of the truth is very often not the lie, deliberate, contrived, and dishonest, but the myth, persistent, persuasive, and unrealistic.” This statement holds great relevance today.
Many people are lamenting that they do not understand the increase in salaries. There is confusion about what will happen to allowances and how they will be structured. We must understand this confusion. This budget has been prepared within the constraints of 13% primary expenditure and a 2.3% primary balance of GDP. In reality, the amount of funds available to rebuild the country and empower the people is very limited.
We have met with the International Monetary Fund (IMF) on several occasions. I, along with Minister Harsha de Silva, Minister Kabir Hashim, Minister Eran Wickramaratne, and others, have clearly stated that we are working with the IMF and that we are moving forward with their program. However, we do not dance to their tune. We acknowledge that the IMF program creates hardship and burdens, and there are costs involved. But we must minimize these hardships and burdens as much as possible.
Yet, the President comes to Parliament and says that we must forget all the promises made on election platforms, forget the people’s burdens, tears, and pain, and ignore all these difficulties. He claimed then that by November 2024, the country’s economy would face significant shocks. The President is taking over the agreements negotiated by the previous Ranil Wickremesinghe government wholesale.
We see this as a betrayal of the people’s mandate. On one hand, it is a betrayal of the people, and on the other, he speaks of the lost decades. Will we lose another decade due to this decision? We could have made a better, more beneficial decision for the country—one that reduces burdens instead of increasing them, provides relief instead of hardship, and offers some solution to the people’s cries.
The President has firmly stated in this House that they will be ready to repay our debt by 2028. That is a good thing. Our hope is that we can achieve this. However, we do not endorse the tribal political culture that creates crises within the country and transfers power. To repay the debt by 2028, it is essential to boost economic growth and increase state revenue. There is a fact that no one talks about, and many are hiding it.
Since 1975, 75 countries have implemented IMF agreements. Of these 75 countries, 59% have inevitably had to enter second, third, and fourth debt restructuring programs. No one talks about this or informs the public. Only 41% of countries have successfully managed their affairs with a single agreement and debt restructuring. Honestly, I hope we are among that 41%. I pray that we do not have to undergo another debt restructuring. If that happens, it will lead to a severe economic collapse.
Our country should have stayed on the path of debt sustainability, but it has deviated from that line. Our country needs a higher economic growth rate and a faster rate of increasing state revenue. Otherwise, we will have to undergo another debt restructuring.
This revelation came to light during discussions I participated in with a team that advised the previous government until the last moment on formulating the current IMF agreement and sovereign bond agreements.
Even if we cannot stay on the debt sustainability line, we may have to undergo a second or third debt restructuring. If that happens, Sri Lanka will face a global crisis. To prevent this, the country’s economy must grow, and state revenue must increase.
The President stated in his budget speech that they would achieve a 5% economic growth rate in 2025. That would be good if it can be achieved. However, the President’s speech mentions that according to the World Bank, our country’s poverty rate is 25.9%. These are the statistics presented by the President in the budget speech. But while the President accepts the World Bank’s poverty statistics, the World Bank states that the economic growth rate in January 2025 will be 3.5. The President has accepted the poverty rate of 25.9% while citing World Bank statistics.
According to the President, the economic growth rate is 5%. The World Bank states that the economic growth rate in January 2025 will be 3.5%. There is a deficit in the economic growth rate. If this deficit is not bridged, we will fall into difficulty. As a country, we must definitely move towards rapid economic growth. However, this budget does not clearly indicate how this will be achieved.
Similarly, we need to increase our Gross Domestic Product. This budget has not provided any clarification regarding expenditure methodology, revenue methodology, and production methodology. There is no clarity in this budget about how to maintain a high economic growth rate to begin debt repayment in 2028. We must be realistic in presentation.
The whole country is complaining today because of the wrong agreement reached on the primary balance and primary expenditure. There is confusion about salary increases and no clarity. There is no clarity about how salaries will be received by grades. There is no clarity about how much will be received this year and next year. There is confusion everywhere. There is no explanation about salary increases.
There should be a clear explanation of how the economy will grow rapidly. There should be a clear explanation of how to increase state revenue. The agreement with the International Monetary Fund and the International Sovereign Bond agreement have been entered into based on several scenarios. The scenario used as the basis for this is completely wrong. That’s why we stated that an agreement should be reached. This process created based on the agreement has created an unrealistic target that cannot achieve the economic growth rate. They have agreed to an unrealistic target regarding state revenue. The main reason for this is that the current government also agreed to a weak agreement. The current government is following in the footsteps of the former President.
During the period of electing 159 MPs, they should have discussed with the International Monetary Fund and international sovereign bondholders to change the signed agreements and move to a new agreement that would put less pressure on the people, provide more relief, less distress, and more strength. I request that they consider this even now.
I request immediate discussions with the International Monetary Fund. The economic growth targets are not realistic. State revenue targets are not realistic. Primary balance and primary targets are not realistic. The country will have to go for a second debt restructuring before debt repayment in 2028. This is a serious situation. The government is heading towards a very difficult destination. The government is heading in the wrong direction.
I was shocked to hear what the team that advised on creating the International Monetary Fund agreement and International Sovereign Bond agreement said. It hasn’t even been three months since discussing the end of the agreement. They say we need to go for debt restructuring again. These are not jokes. It’s our country’s people who face distress and pressure from these. Through domestic debt restructuring, they tapped into the Employees’ Provident Fund. Why can’t the current government bring a proposal to Parliament to do justice to the Employees’ Provident Fund and Employees’ Trust Fund?
Similarly, Aswesuma is not a solution for eliminating poverty. There should be a production program, consumption program, savings program, export program, and investment program to eliminate poverty, but none of these exist. The selection for and exclusion from the Aswesuma program are done without identifying the poverty line and without conducting a household income-expenditure survey. It has been done without knowing information about poverty as well as food and non-food expenses. How can a poverty elimination program be implemented that way?
There are several serious problems with the limitations the government has created. There is serious confusion in every service including teachers, doctors, nurses, workers, and office employee (KKS) staff. The government has been unable to provide the promised Rs. 20,000 salary increase. The limited primary expenditure limit is thirteen percent. The primary balance is limited to 2.3. Within this limit, the government cannot implement the promised “A Thriving Nation-A Beautiful Life” policy statement. Within these limited resources, you have placed the necessary limitations yourself to not implement this, and you have become a prisoner yourself.
The elderly retired community used to receive 15% interest on their Rs. 1.5 million savings. That saving has now been reduced to one million. The savings interest rate is only about 10%. This is a serious problem for the elderly community. Various benefits have been provided for women. That’s a good thing. But the most serious problem has become labor force participation. It’s thirty-four percent. We should work to bring that to 45%. Verite Research has prepared data-centric proposals to implement maternity allowances with state patronage. It costs about six to seven billion rupees. If such an amount is spent, women’s labor force participation can be brought to a higher level.
Tax money from alcohol and cigarette manufacturing companies is not being properly collected. A wrong tax formula is being implemented. The government should look into this and work to increase state revenue.
There are several proposals to help the pre-school system. It has been proposed to increase pre-school teachers’ allowances. But there are very few pre-schools in the public service. Don’t implement it selectively. It should be implemented as a comprehensive program. We are happy about the increase in Mahapola scholarships. The Mahapola scholarship hasn’t even been paid for the past few months. The government has announced increasing an allowance that hasn’t been paid. I believe the government will work to pay both the increased Mahapola allowance and the unpaid Mahapola allowance.
Farmers are currently under severe pressure. Not just the paddy purchasing process, but the purchasing process of other crops has not been properly implemented. I’m not making this accusation against the government. No previous government had a proper cultivation formula with a clear cycle. This should be legislated. It should be legislated through a Parliamentary act.
The fishing community is waiting for the fuel subsidy. Many fishermen have become destitute. We talked about the wages of the Malayaha community. We believe we need to go beyond that. That Malayaha community has no land ownership, no house ownership. They should be empowered by giving them ownership of cultivation and lands, and the right to live in their own house. This community should be transformed into small tea estate owners who contribute 60% of production by utilizing 40% of the country’s land within the national production, with their own small tea estate in this country.
A sustainable solution should be provided to the unemployed youth community too by distributing some portion of uncultivated land. More than increasing salaries, such a process adds something to national production.
Many people are waiting for appointments after training as nurses. The family health sector is the same. There are about thirty-five thousand graduates. The President has promised to prepare a proper program for 35,000 graduates. Please don’t forget the promise given to unemployed graduates. Work to implement that too.
The current government hasn’t made any systemic changes. The Gotabaya-Mahinda Rajapaksa system hasn’t changed. Projects are implemented according to the government’s wishes. Political victimization is happening severely. Mahinda Weerasuriya was the Chief Secretary of Sabaragamuwa Province. Now he has retired. Mrs. Deepika, the Chief Secretary of the North Western Province, and Mrs. Damayanthi Paranagama, the Secretary of Uva Province, have been removed from their Chief Secretary positions. Nandana Galagoda, the Nuwara Eliya District Secretary, has also been removed. Mr. Wasantha Gunaratne has been removed from the position of Ratnapura District Secretary. Ganesh Amarasinghe has been removed from the position of Matara District Secretary. Why are they doing this? People didn’t vote for you to carry out such political victimization. This is wrong. Stop the victimization immediately.
I hope this budget will be successful. We will also support implementing the positive, people-friendly provisions in it. We will be a strength to add value to the country. Please let’s work with a mindset of providing decentralized funding. Let’s work under a new program. This budget shows no understanding of the external environment.
We need to diversify our export market. We depend on just a few exports. There is potential to create diversification in export destinations in other power regions of the world. There are no details about this in the budget. Foreign direct investment must necessarily be brought to our country to rebuild it. A special program should be implemented for this. We are ready to support this. We must compete with other countries in the world. I don’t see a clear program for this within this budget speech.
Within our political policy, in the ten-fold methodology we follow, we follow a social democratic program. Through this, humane capitalism is needed to generate wealth in the country. Limited state intervention is needed to correct the imbalances that occur within humane capitalism. While protecting the welfare state and increasing its efficiency, more action should be taken to provide resources to it. A results-oriented and time-bound poverty eradication program is needed. A balanced economic growth rate should occur at the Divisional Secretary level across all nine provinces of the country. An agriculture sector, fisheries sector, and industrial sector enriched with new technology should be created. All people should be empowered as Sri Lankans without discrimination. Democracy should be strengthened. Sustainable development should be strengthened. Foreign relations that add value to the country should be implemented. This ten-fold program is the program we follow. Standing within that framework, we will provide our strength to build this country.
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