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Dr. Godahewa warns govt. over its IMF strategy

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‘Current crisis has given us an opportunity to rectify wrong decisions’

By Shamindra Ferdinando

SLPP lawmaker and one-time prominent Viyathmaga activist Dr. Nalaka Godahewa says the government has not been able to bring talks with the International Monetary Fund (IMF) to a successful conclusion for want of a cohesive action plan to reduce expenditure and increase revenue.The former Minister said so when The Island sought the former mercantile executive’s response to the current status of government negotiations with the IMF.

“The issue at hand is that we haven’t been able to convince the IMF of our plans to address the daunting task. The government cannot sidestep contentious issues as the IMF expects us to come up with a clear action plan to enhance income and reduce expenditure,” the Gampaha District MP said.

Responding to another query, Dr. Godahewa warned the government that finalization of an agreement with the IMF wouldn’t be possible as long as the government delayed presenting a proper plan. The lawmaker questioned the validity of the presentation made by the Finance Ministry to the IMF delegation. Had the government convinced the IMF and as well as other lenders an agreement could have been reached during the recently concluded talks in Colombo.

Participating in a discussion arranged by a group of Kelaniya undergraduates over the weekend, Dr. Godahewa explained the responsibility on the part of the government to reveal how it intended to repay debt.

Instead of repeatedly giving excuses and warnings of further deterioration of the economic status, the government should without further delay address four key issues namely how to increase foreign/domestic income, bring down expenditure in foreign currencies/domestic expenditure.

Dr. Godahewa said that the unprecedented economic crisis had given the incumbent government an opportunity to take appropriate remedial measures to rectify a spate of wrong decisions taken by successive governments over the past several decades. Unfortunately, the government seemed not capable of taking advantage of what the former media minister called a golden opportunity to push for required reforms with the support of all political parties represented in Parliament and other stakeholders, particularly the trade unions.

Dr. Godahewa warned that printing of currency notes continuously to meet budget deficit was nothing but a horrendous blunder.The government should concentrate on expenditure control while being tough on waste, corruption, irregularities and mismanagement, the new entrant to Parliament said. According to Dr. Godahewa, waste, corruption, irregularities and mismanagement perpetrated by successive administrations had caused significant loss of revenue over the years and the incumbent government was no exception, the ex-minister said.

Commenting on public sector enterprises, the Gampaha District lawmaker said that though there were 420 such ventures, the Treasury considered only 52 of them important. Of those categorized as important, the CEB (Rs 21.4bn), CPC (Rs.82.2 bn) and SriLankan Airlines (Rs 170.7 bn) suffered a staggering loss of Rs 270 bn in 2021.

Dr. Godahewa said the country could no longer afford to bear such huge losses. Therefore, restricting was nothing but an urgent necessity, the government MP declared, pointing out that the government lacked the wherewithal to sustain utterly incompetent public sector.

Dr. Godahewa gave a breakdown of the public sector. According to the latest available data, there were 1,402,000 in the state sector comprising ministries and departments 792,000, Provincial Councils and Local Government 390,000 and state enterprises 220,000.

In 2021 alone, their salaries and other payments cost the government Rs 845 bn whereas 672,000 pensioners received payments amounting to Rs 270 bn. Therefore, the total expenditure stood at Rs 1,115 bn (Rs 845 b +Rs 270 bn), Dr. Godahewa said, adding that amounted to staggering 80 percent of the total income.

The MP called for the pruning of the public sector declaring it was a very heavy burden. Public Administration Secretary Priyantha Mayadunne recently said that Sri Lanka could manage with about 500,000 public servants though the current strength of the public sector is 1.5 mn.Dr. Godahewa said that all unnecessary posts and positions should be gradually abolished.



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United Republic Front presents ‘A united step for the country’ to the President

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Leader of the United Republic Front Member of Parliament Patali Champika Ranawaka, presented the proposal titled “A United Step for the Country” to President Ranil Wickremesinghe , at ‘Srikota’, the United National Party headquarters in Colombo this morning (24).

Speaking at the event President Ranil Wickremesinghe, highlighted the government’s concerted efforts over the past two years to stabilize the country’s economy, which had faced significant challenges. Stressing the government’s commitment to steering the economy towards recovery through strategic reforms, the President expressed his determination to continue these initiatives with the collective support of everyone.

Recalling his open invitation to all political parties to unite under a common agenda for the country, regardless of political differences, the President reiterated his willingness to embrace constructive proposals from all political parties as part of the nation-building efforts.

The President responded positively to the request made by Member of Parliament Patali Champika Ranawaka to allow other political parties to participate in the upcoming negotiations with the International Monetary Fund (IMF) next month concerning the restructuring of foreign debt.

President Ranil Wickremesinghe, responding queries about the scheduling of elections, affirmed that the Presidential Election will proceed as scheduled, with the General Election anticipated to take place early next year.

 

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Opp. fears govt. discarding SC recommendations on ‘Anti-Terrorism’ Bill

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Prof. G. L. Peiris

Prof. Peiris highlights need for ex post facto judicial review

By Shamindra Ferdinando

Former External Affairs Minister Prof. G. L. Peiris, MP, said that Speaker Mahinda Yapa Abeywardena’s refusal to accept that Supreme Court recommendations hadn’t been accommodated in ‘Online Safety Act No 09 of 2024’, would undermine their faith in the committee stage of a particular Bill.

The dissident SLPP MP said so when The Island sought his opinion on the SC determination on the ‘Anti-Terrorism’ Bill.

Against the backdrop of the continuing controversy over the circumstances under which the Parliament enacted the ‘Online Safety Bill’, the Opposition was seriously concerned about the Wickremesinghe-Rajapaksa government adopting the same strategy in passing the ‘Anti-Terrorism’ Bill.

Prof. Peiris emphasised that the Speaker even ignored the Human Rights Commission advice that SC’s recommendations hadn’t been accommodated. The academic, who recently aligned himself with the SJB, said that the genuine Opposition shared his concerns.

Several parties challenged the ‘Anti-Terrorism’ Bill in the SC in terms of Article 121(1) of the Constitution. The determination of the SC as to the Constitutionality of the Bill concluded as—

(a) Clause 3, Clause 42, Clause 53, and Clause 70 of the Bill are inconsistent with Article 12(1) of the Constitution and required a special majority to be passed by Parliament.

(b) However, the SC stated that the said inconsistencies can be ceased if the said Clauses are amended as per the Determination of the Court.

(b) Clause 4 has to be suitably amended as per the Supreme Court Determination. Clause 72 (1) is unconstitutional and needs to be passed by a Special Majority and a Referendum. The unconstitutionality will cease if this Clause is amended as per the Determination of the Supreme Court.

(c) Correspondingly, Clause 72(2) must be amended in accordance with the Determination.

(d) Clause 75 (3) infringed the Article 4 (c) read with Article 3 of the Constitution and required 2/3 majority and a Referendum. The invalidity will cease 7 upon the amendments suggested in the Determination.

(f) Clause 83 (7) requires a special majority to be passed into law. It has to be suitably amended as per the Supreme Court Determination.

Further, the Supreme Court has determined that subject to the amendments that have adumbrated to the provisions of the Bill by the Supreme Court, the Bill could be enacted into law with a Simple Majority only if the amendments determined by the Supreme Court are introduced to the provisions.

Prof Peiris said that the crisis highlighted the need for ex post facto judicial review, for which there is at present no provision in Sri Lanka. The position is otherwise in countries like the USA and India where an Act of Parliament can be impugned, even after completion of the legislative process, on the ground of conflict with imperative provisions of the Constitution. Such provision existed in Sri Lanka prior to the First Republican Constitution of 1972.

The former minister said that in the draft Constitution Bill which he presented to Parliament on 3 August 2000 on behalf of the Government of President CBK, appropriate provision in this regard was included. “Unfortunately, the Constitution was burnt in the Chamber of Parliament. This gap in our law should be filled, in my view, when a comprehensive exercise in constitutional reform is undertaken by a new Administration after the conduct of national elections this year.”

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US Deputy Secretary of State Richard Verma visits Sri Lanka

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Deputy Secretary of State of the United States of America Richard Verma visited Sri Lanka from last Thursday to yesterday, the Ministry of Foreign Affairs said in a press release.

The visiting U.S. Deputy Secretary of State and delegation had extensive discussions with Foreign Minister Ali Sabry at the Ministry of Foreign Affairs on further strengthening bilateral cooperation. The U.S. Deputy Secretary of State also paid a courtesy call on President Ranil Wickremesinghe following the discussions at the Ministry of Foreign Affairs.

Foreign Minister Ali Sabry, while appreciating the humanitarian and emergency assistance granted by the U.S. to overcome the economic challenges encountered by Sri Lanka, welcomed the recent US$ 553 million development assistance extended by the U.S. International Development Finance Corporation to the Colombo West International Terminal Private Limited. He also appreciated the U.S. assistance in securing the Extended Fund Facility (EFF) from the IMF.

Foreign Minister Sabry briefed Deputy Secretary of State Verma on Sri Lanka’s priorities as Chair of the Indian Ocean Rim Association and the opportunities to foster collaboration in blue economy and maritime security in the region to promote freedom of navigation for all and for the facilitation of trade and commerce. He also apprised the Deputy Secretary of State of the Government’s efforts to further strengthen governance, democracy, and rule of law, as well as to combat corruption.

Deputy Secretary of State Verma while noting the encouraging progress in Sri Lanka following the economic downturn in the last two years, assured continuous U.S. assistance to the country towards economic prosperity.

The Deputy Secretary of State was accompanied by the U.S. Ambassador to Sri Lanka Julie Chung, senior officials from the White House National Security Council, U.S. Department of State, and the U.S. Department of Defence. Acting Secretary of the Ministry of Foreign Affairs Mohammed Jauhar and senior officials of the Foreign Ministry were associated with the Foreign Minister at the meeting.

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