News
DEW: Rs. 229 bn relief package will lead to printing more money

… says govt. has got priorities mixed up
By Shamindra Ferdinando
Former Minister D.E.W. Gunasekera says that the cash-strapped government lacked the wherewithal to implement the much publicized Rs 229 bn relief package.
Therefore, the one-time General Secretary of the Communist Party said the government had no option but to print more money at the expense of financial stability at a time the country was under tremendous pressure. The former minister quit the top party post in August 2020.
CP organ ‘Aththa,’ in its January 09, 2022 edition quoted the former lawmaker as having alleged that the Rs 229 bn relief package meant for the public sector, pensioners and Samurdhi recipients was nothing but a political strategy to revive the waning popularity of the government.
Declaring that he had no issue with the government providing relief to the public sector et al, the ex-MP warned that such measures wouldn’t help resolve the growing crisis. The outspoken former minister said that the controversial relief package should be examined against the backdrop of the failure on the part of the government to allocate the required funds through the 2022 budget.
Mr. Gunasekera last served as a National List MP from 2010 to 2015.
Reiterating that such a move had been necessitated by political compulsions, the veteran Communist warned of the grave risk of rising inflation. The CP member questioned the absence of a mechanism to assist those in the private sector, small and medium scale industries as well as the unregulated economy. The much weakened national economy couldn’t be revived unless the government paid attention to the neglected sectors.
The veteran politician explained how the global Covid-19 epidemic devastated the unregulated economy world over. However, the government hasn’t taken into consideration the fuller picture. Instead the government sought to use the financial package to counter dissenting views within the government.
The ex-Minister said that even if printing money caused inflation, the government could have achieved positive results if the total amount was used to increase domestic production. Had that happened, the government could have accomplished both political and economic objectives.
The former MP said that incumbent Finance Minister Basil Rajapaksa hadn’t still understood the developing economic crisis.
Mr. Gunasekera told The Island that the private sector, including the plantation companies had quite clearly turned down the government request to match the special Rs. 5,000 monthly grant to employees. The government seemed not to have examined the situation at all, the former MP said, asserting that the current crisis could be the worst ever in post-independence Sri Lanka.
Continuing political instability in the wake of serious differences among coalition members with three ministers challenging a cabinet decision in the Supreme Court has jeopardized recovery attempts, Mr. Gunasekera said.
The one-time Chairman of the Committee on Public Enterprises (COPE) emphasized the pivotal importance of some real effort to reach consensus on the country’s response to the emerging threat. “We are almost overwhelmed. Unless tangible measures are taken there can be a catastrophe. Losses are likely to be immeasurable and irrevocable.”
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President invites exporters to rise again from the economic setback

President Anura Kumar Disanayake invited Sri Lankan exporters to rebuild and thrive on a robust economic foundation.
The President emphasized that our country faces the challenge of capturing market share from a position of relative weakness. He pointed out that, to overcome this, external support had to be sought. In this regard, he highlighted that the government is prepared to provide assistance for recovery based on the current economic stability.
President Anura Kumar Disanayake made these remarks at the 26th Presidential Export Awards Ceremony.
The 26th Presidential Export Awards, organized by the Sri Lanka Export Development Board (EDB), was held on Friday (07) at the Bandaranaike Memorial International Conference Hall (BMICH) under the patronage of President Anura Kumar Disanayake.
The main objective of the awards ceremony is to recognize exporters who have made significant contributions to the economic development of Sri Lanka.
The Presidential Export Award, presented by the President, is the highest honour for Sri Lankan exporters who have made significant contributions to the export sector and economic development.
The Presidential Export Awards program, initiated by the EDB in 1981, has been held annually to recognize Sri Lanka’s top exporters. The awards ceremony for the 2023/24 financial year took place this year.
A total of 14 major awards and 51 awards in the categories of production and services were presented, with recipients gaining the opportunity to use the Presidential Export Award logo as a marketing tool for three years.
President Anura Kumar Disanayake further emphasized the critical importance of the trust placed in Sri Lanka by international economic stakeholders to stabilize the country’s economy. He noted that the global market economy is interconnected, not entirely independent.
He further pointed out that the primary challenge facing Sri Lanka is securing a substantial share of the market amidst the current global division of markets and the ongoing competition to reclaim market shares.
President Anura Kumar Disanayake noted that the global market has become an interconnected network. He emphasized that in order for the country to become a key participant in this market, it must engage in trade agreements that are beneficial to Sri Lanka. He cautioned that aggressive, reckless approaches to market penetration would not be successful, stressing the need for strategic, thoughtful engagement.
The President further stated that the government is already taking steps to provide the necessary technical support for Sri Lankan exporters to enter the market with high-quality products. He highlighted the government’s focus on supplying new goods and services in response to global changes, in line with international market trends.
Regarding the reduction of electricity bills, the President mentioned that the government is prioritizing renewable energy sources to maintain long-term stability in energy costs. He added that efforts are underway to lower costs and ensure stable pricing over the next few years.
President Disanayake also emphasized that the government is committed to playing a pivotal role in advancing the nation’s economy to new heights. He noted that even small or misguided decisions can have significant negative impacts on the economy, and therefore, decisions regarding the economy must be made with great caution and foresight.
In his remarks, the President assured that the government is fully committed to fulfilling exporters’ requests, which are vital to strengthening the nation’s economy and maintaining a strong economic foundation.
Finally, the President invited Sri Lankan exporters to unite in strengthening the economy, stressing the importance of collaboration and mutual understanding to navigate the challenges of economic recovery and growth effectively.
The ceremony was attended by several distinguished individuals, including Minister of Industry and Entrepreneurship Development Sunil Handunnetti, Minister of Labour and Deputy Minister of Economic Development Anil Jayantha Fernando, Minister of Energy Kumara Jayakody, Deputy Minister of Industry and Entrepreneurship Development Chathuranga Abeysinghe, Secretary to the Ministry of Industry and Entrepreneurship Development Thilaka Jayasundara, Chairman and Chief Executive of the Export Development Board of Sri Lanka Mangala Wijesinghe, Chairman of the Ceylon Chamber of Commerce Duminda Hulangamuwa, along with various Ministers, Deputy Ministers, Parliamentarians, foreign diplomats, Secretaries to the Ministries, and members of the EDB.
[PMD]
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