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Editorial

Budget, cannabis and reality

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Wednesday 16th November, 2022

President Ranil Wickremesinghe has, in his budget speech, sought to kindle hopes of economic recovery. Claiming that the ongoing talks with the IMF, India, China, etc., would lead to positive outcomes, he has offered to build a ‘social market economy’ or an ‘open economic system of social protection’ whatever that means. However, there is no harm in the Head of State trying to infuse the public with some optimism amidst a national feeling of doom and gloom.

President Wickremesinghe has said a social market economy will help achieve a high economic growth of 7 to 8 percent, increase international trade (as a percentage of GDP) by more than 100 percent, ensure an annual growth of US$ 3 billion from new exports between 2023 and 2032, secure foreign direct investment of more than US$ 3 billion in the next 10 years, and create an internationally competitive workforce within the next decade.

Youth unrest and the resultant protests seem to have prompted the government to undertake to adopt what it calls a youth-oriented approach to economic development. President Wickremesinghe, in his budget speech, chose to call the youth ‘the real national wealth’. He is of the view that attention has not been paid to the country’s youth, and their hopes are fading; they are calling for systemic changes.

It is heartening that the President has realised the need to serve the interests of the youth, but it is not clear how his government intends to set about the task. One can only hope that it is not paying lip service to young citizens’ cause.

Among the measures the government has proposed to boost the foreign currency inflow is to create a business-friendly environment. One of the biggest obstacles to foreign investment is corruption. No foreigner can invest here unless he or she is willing to grease countless palms. How does the President propose to tackle this problem? The culprits are in his government!

Budget 2023 has proposed labour law reforms but stopped short of specifying them. The President has only said the country’s labour laws are outdated and fragmented and there is a pressing need for what he calls a new, unified labour law. Will the proposed labour laws deprive workers of their rights in the name of investment promotion?

The government has also proposed land reforms in all but name. The President has said that a programme will be launched to enable investors to utilise land productively to increase both production and exports. This is an area where the government ought to tread cautiously, for the disposal of state land always leads to rackets.

The proposed macro-fiscal framework is aimed at increasing government revenue from 8.3% to 16% of GDP by 2025, achieving a primary surplus of more than 2% of GDP in 2025, reducing public sector debt from about 110% of GDP to less than 100% in the medium term, bringing inflation to a single-digit level in the medium term, ensuring that interest rates will reach a moderate level, restoring macroeconomic confidence and replenishing exchange reserves with foreign finances to ease pressure on the exchange rate, and enabling the medium-term economic growth to return to about 5% by enhancing structural reforms. This is a tall order, and how the government will fare in pursuing these goals remains to be seen.

Budget 2023 is very clear on the government’s plan to restructure some profit-earning state-owned ventures such as Sri Lanka Telecom and Sri Lanka Insurance, and utilise the proceeds therefrom to strengthen foreign exchange reserves and the rupee. So, a fire-sale of state assets will commence soon.

The government’s desperation for forex is evident from its proposal to set up an expert committee to explore the possibility of producing Triloka Wijayapathra (cannabis or ganja) for export. This is bound to cause quite a stir. President Wickremesinghe is no stranger to controversy. If the government cares to solve farmers’ problems such as the existing fertiliser shortage and high cost of production thereby developing the agricultural sector, and goes all out to recover the country’s stolen funds, there will be no need to grow cannabis.

President Wickremesinghe, on Monday, sought to justify the unconscionable tax increases ratified by Parliament weeks earlier. He proposed to set up a Presidential Commission on Taxation ‘to study and make recommendations on the functioning, coordination and changes to be made in the tax structure, the institutions, procedures, etc.’ It is one’s fervent hope that the government is not contemplating any more tax increases!

The Opposition has dismissed Budget 2023 as something worthless, and flayed the government for not providing relief to the public. The budget is not devoid of flaws, but the question is whether the President could have done better, given the country’s economic situation.

Meanwhile, the government says it is confident that it has enough numbers in Parliament to secure the passage of Budget 2023. But efforts are being made in some quarters to shoot it down. The SLPP-UNP combine is taking precautions and all out to engineer some crossovers from the Opposition. A political war over the national budget has to be avoided for the sake of the ailing economy, which cannot take any more shocks. It is imperative that the warring parties get themselves around the table, with compromises being made in the form of committee-stage changes to the budget, so that there will be no showdown at the expense of the ongoing efforts to stabilise the economy.



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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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Editorial

Corrupt vs Corrupt

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Friday 10th April, 2026

A motion of no confidence against Energy Minister Kumara Jayakody is scheduled to be taken up in Parliament, today. The JVP-NPP government, which came to power promising to eliminate bribery and corruption and cleanse Parliament, finds itself in an unenviable position. It assured the public that its members would be above suspicion, but it is now in the dock over a corrupt deal. It has chosen to defend Minister Jayakody indicted of corruption and allegedly involved in a corrupt coal procurement deal. The only way the JVP/NPP can extricate itself from the current imbroglio is to ask Minister Jayakody to step down.

President Anura Kumara Dissanayake badly dented his good governance credentials on Tuesday by claiming in Parliament that the low-quality of coal imports had caused a drop in electricity generation at the Norochcholai power plant, but there had been no irregularities in the coal procurement process. He sought to fix the blame squarely on the coal supplier. He was obviously defending his friend, Jayakody, caught in a cleft stick. Interestingly, no sooner had he made that claim than the National Audit Office released its report on the coal procurement process revealing very serious irregularities therein. This official document has helped knock the bottom out of the government’s argument in defence of Minister Jayakody.

Keheliya Rambukwella and several Health Ministry panjandrums who served under him were arrested, remanded and prosecuted for their involvement in the procurement of substandard medicines which caused huge losses to the state coffers. So, why Minister Jayakody and his officials have not been dealt with in a similar manner over the coal scam defies comprehension. There is a prima facie case against them. The JVP-NPP government has made a mockery of its commitment to upholding the rule of law and accountability. The SLPP-UNP government ruined its chances of winning elections by defending Rambukwella and defeating a no-faith motion against him in 2023. The JVP-NPP administration is doing something similar.

The worst is yet to come where the adverse impact of the coal scam is concerned. Electricity tariffs will have to be increased again to recover the additional cost of burning diesel to produce more than 150 MW of electricity a day to make up for the Norochcholai generation shortfall caused by low-grade coal imports, independent experts have pointed out, warning of power cuts in a few months. The Opposition has stated that unofficial load shedding is already on. It has produced documentary proof in support of its claim.

More information about the Health Ministry procurement rackets came to light after the defeat of the no-faith motion against Rambukwella. Similarly, the magnitude of the coal procurement scam is yet to be determined. JVP/NPP politicians are known for their glib tongue, but they will not be able to pull the wool over the eyes of the resentful public battered by the soaring cost of living.

Two-thirds parliamentary majorities are apparently accursed in this country. Governments with such steamroller majorities indulge in corruption, succumb to the arrogance of power, which blinds them to reality, and dig their own political graves. They remind us of Lord Acton’s words of wisdom about the corruptive nature of power. One may recall that the SLFP-led United Front government, which abused its two-thirds majority, had a Humpty-Dumpty-style fall in 1977.

The Mahinda Rajapaksa government, which had a razor-thin majority, defeated the LTTE, developed the economy, implemented many development projects and lived up to the people’s expectation, but it failed pathetically after securing a second term and mustering a two-thirds majority in 2010. It became a metaphor for corruption, and suffered a catastrophic fall. The Gotabaya Rajapaksa government also became a victim of its two-thirds majority, so to speak. The JVP-NPP government is moving in the same direction, defending corrupt politicians and covering up crooked deals.

Ironically, many key Opposition figures who are flaying the JVP-NPP government for corruption and trying to engineer its ouster are themselves facing allegations of corruption. The people seem to have little option but to set thieves to catch thieves.

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