News
DEW says most countries struggling to overcome worst-ever economic crisis
… frowns on tax concessions to businesses
By Rathindra Kuruwita
Former General Secretary of the Communist Party, D.E.W. Gunasekera yesterday said three reasons had triggered Sri Lanka’s current economic crisis, which is considered the worst ever since Independence.
“There is a global economic crisis, and we are affected by it. Prices of most goods we import have gone up, and this is beyond our control. On the other hand, COVID-19 too has affected us immensely. Once production and transportation are affected prices go up,” he said.
Gunasekera said that there was also a global financial crisis and most countries were simply printing money to overcome it. The United States had printed trillions of dollars during the last two years and recently the US Congress had increased its debt ceiling by another two trillion dollars, Gunasekera said.
“These have caused inflation in the United States too. We are also facing inflation because we too have taken similar steps,” he said.
China is the biggest lender to the United States and despite the ‘cold war’ between the two nations Chinese are still buying most of the US bonds, the veteran Marxist said.
“China has the biggest dollar reserves in the world. They have over 4.5 trillion in dollar reserves. The reserves of the US is only the fifth in the world. China has more US dollars than the US. Most people are blind to this fact; politicians have no clue and economists who know this don’t reveal it. So, we are doing the same things over and over again,” he said.
The crisis in Sri Lanka was exacerbated by the fact that the country was ruled by the worst Cabinet in the parliamentary history of the country, Gunasekera said. The government did not know how to deal with the economic crisis, he added.
Gunasekera said the government provided tax concessions to businessmen 14 times so far, aggravating the economic crisis.
Prime Munister Dr Harini Amarasuriya returned to the island this (23rd) morning after attending the World Economic Forum in Davos, Switzerland,
The Sri Lanka Navy successfully conducted a diving operation on 19 Jan 26 to inspect and restore the sluice gate of the Bomburuella Reservoir.
Acting on a request from the Department of Irrigation, the Sri Lanka Navy deployed a specialized diving team from the Western Naval Command, for the urgent requirement.
Through concerted effort, the Navy divers successfully cleared accumulated debris, including a significant quantity of wooden fragments, which had impeded the sluice gate mechanism.
Prime Minister Dr. Harini Amarasuriya held a series of high-level bilateral meetings on Wednesday [January 21] on the sidelines of the World Economic Forum in Davos, Switzerland, engaging with representatives of the European Union, the United Nations Development Programme, and the global private sector.
The Prime Minister met with Hadja Lahbib, European Commissioner for Preparedness and Crisis Management. During the meeting, she expressed Sri Lanka’s appreciation for the support extended by the European Union and its member states following Cyclone Ditwa. The Prime Minister also briefed the Commissioner on the key findings of the World Bank’s GRADE report and requested continued EU support for Sri Lanka’s development and recovery efforts.
Prime Minister Amarasuriya also met with Alexander De Croo, representing the United Nations Development Programme. She expressed appreciation for the longstanding partnership between Sri Lanka and the United Nations and acknowledged the UN’s support in flood relief and livelihood assistance. The Prime Minister noted that, following the mandate received at the parliamentary election, the government is focused on meeting public expectations through national rebuilding grounded in public trust and good governance. She further reaffirmed the Government of Sri Lanka’s commitment to strengthening social protection systems and safeguarding vulnerable communities.
In addition, the Prime Minister met with Robert M. Uggla, Chairman of A.P. Moller Holding. The discussion focused on engagement with the private sector and potential areas of collaboration.
These meetings reflected Sri Lanka’s continued engagement with international partners and global stakeholders to support recovery, development, and long-term economic stability.
[Prime Minister’s Media Division]
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