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Godahewa warns of economic challenges
Former State Minister Dr. Nalaka Godahewa, MP yesterday pointed out that a careful look at the Central Bank’s 2023 data revealed that the much-touted promise to build a thriving export-oriented economy under the current government was only a pipedream.
Addressing the media at the Nidahasa office at Nawala where he dealt with economic issues, the dissident SLPP MP said that according to the Central Bank’s data, by the end of the first half of 2023, the trade account exhibited a much expanded deficit of $364 million, a significant departure from the $22 million surplus recorded in June 2022. Furthermore, export earnings and import expenditures for the first half of 2023 had both declined by 10 percent and 18.6 percent, respectively, compared to the previous year. Earnings from industrial products, primarily driven by the apparel industry, had contracted by 12%, plummeting from $5,260 million in the first half of 2022 to $4,616 million—a drop of $650 million. Notably, the garment industry, a critical export sector, experienced an 18% decrease, declining from $5,260 million to $2,461 million in compared to the first half of 2022, resulting in a substantial $516 million reduction.
Dr. Godahewa argued that this compelling evidence pointed to a failure in achieving an export-oriented economy, as advocated by the President. However, he also emphasised that tourism revenue and remittances from foreign workers, which were not included in the trade balance, could potentially offset the balance of payments deficit if the government continued to postpone settling foreign debts. Consequently, he pointed out that there should be no issue with importing oil and gas until debt repayment commenced, stressing that economic growth was the only way to manage the country while servicing debts simultaneously.
Nonetheless, Dr. Godahewa noted that the overall state of the economy was concerning, with four consecutive quarters of economic contraction. In the first quarter of 2023 alone, the economy had contracted by 11.5%. He speculated that the contraction in the second quarter would be even more pronounced, although the central bank reports were delayed.
The MP expressed optimism that the government would secure the second installment of the promised $2.9 billion loan over five years from the IMF. However, he cautioned against viewing this positively, as many of the measures taken could have long-term detrimental effects on the country. For example, he highlighted the reduction of employees’ pensions due to domestic debt restructuring and the loss of numerous jobs due to the government’s economic mismanagement, particularly in key employment sectors such as construction and the garment industry.
To meet IMF demands, the government had raised taxes, leaving the working population financially strained. The government aimed to increase tax revenue by 70% by 2023, with tax revenue expected to rise from 1852 billion rupees in 2022 to 3130 billion rupees in 2023. This meant a 70% reduction in disposable income for most people, who already spent the majority of their earnings on basic necessities like food, electricity, and water.
Dr. Godahewa emphasized that there was little money left for essential expenses like education, healthcare, and clothing. This tax burden had driven professionals to leave the country in large numbers, with over 800 doctors, more than 300 specialist doctors, over 1000 engineers, over 500 university professors, and thousands of other professionals departing in the first half of 2023. This brain drain raised concerns about the nation’s ability to build and develop in the future.
The MP asserted that the government’s unreasonable tax policy was ineffective. They pointed out that when taxes were reasonable, people and businesses were more compliant, whereas excessive taxes led to emigration and business closures. By June 2023, the government had only managed to collect 77% of the expected tax revenue, even amidst a significant economic downturn.
The MP also criticized the government for attempting to stifle democratic processes, referencing recent remarks by the President and the Leader of the United National Party concerning the availability of funds for oil and gas in the event of a 2024 election.
Dr. Godahewa argued that the government’s decision to cancel local government elections due to financial constraints was questionable. For the local government election, the Election Commission had initially requested 10 billion rupees, which was later reduced to 4 billion rupees. Despite this, the government claimed it couldn’t afford to allocate the 4 billion rupees for the election, even though they had earmarked an additional 1390 billion rupees as government expenditure for 2023 compared to 2022. Dr. Godahewa pointed out that a mere 0.3% of the total estimated government expenditure was required to fund the election.
News
Stop the collection of funds from parents at school level for Smart Boards — PM
Prime Minister Dr. Harini Amarasuriya stated that the Ministry of Education has already commenced the distribution of Smart Boards required for the new education reforms, and that the collection of funds from parents at school level for this purpose must be stopped immediately. She further emphasized that no decision has been taken to curtail free education or to close the Jayewardenepura Faculty of Dental Sciences.
The Prime Minister made these remarks in response to a question raised in Parliament on Thursday [05th February] by the Leader of the Opposition, Sajith Premadasa.
Elaborating further, the Prime Minister stated,
“Although the Leader of the Opposition has not traditionally upheld free education as a policy, I appreciate your stance on the matter at this juncture. However, I urge that questions should not be raised based on social media content or unverified rumours in Parliament. No decision has been taken to curtail free education or to close the Jayawardenepura Faculty of Dental Sciences. The Medical Faculty of the Wickramarachchi University of Indigenous Medicine had commenced operations without regulatory approval and had introduced course work, resulting in students being placed in a vulnerable situation. Necessary action is currently being taken based on the recommendations of a report submitted by an expert committee appointed to examine the issue. This this is not a political decision, but one guided by expert opinion”.
“Arrangements are underway to distribute the required Smart Boards to schools during this year, and there is no need to collect funds from parents for this purpose. If any such collections are taking place, they must be stopped immediately. The Secretary to the Ministry of Education has already issued a directive instructing schools not to collect funds from parents”.
“The subject Information Technology will not be taught as a separate subject for Grades 1 to 5. However, recognizing the need to prepare students for a globally advancing technological world, discussions have been initiated based on expert advice on how to provide age-appropriate technological awareness to students. Decisions will be made after carefully considering child protection concerns and expert recommendations. The curriculum-related decisions will not be made politically, but by subject experts.
Based on the requests made by the universities and higher education institutions recruitment for essential academic vacancies is currently being carried out under the Cabinet approval. Although thirty years have passed since the establishment of the teacher service, further measures are required to enhance its quality. Existing issues relating to teacher promotions, considering the practical difficulties in evaluation processes and non-compliance with service minute provisions are being addressed alongside other challenges. The government is presently focused on formulating a systematic plan to ensure quality education.”
Responding to a question raised by the Member of Parliament Kader Mastan, the Prime Minister stated,
“Several programmes have been introduced based on government policy decisions to fulfill the basic needs of schoolchildren. These include the provision of school textbooks, uniforms, and the “Suraksha” health insurance scheme. Additionally, voucher schemes have been introduced to support the purchase of sanitary products for girls in Grades 6 to 13. Midday meals are also being provided for primary school students, and financial assistance is extended to students who pass the Grade 5 Scholarship Examination but do not receive bursaries. The Ministry of Education is in the process of gathering further information with the intention of expanding these programmes”.
The Prime Minister also announced that the 2025 G.C.E. Ordinary Level Examination is scheduled to be held from February 17 to 26. Although this period coincides with the observance of Ramadan, relevant authorities have confirmed that it will not pose an obstacle to the conduct of the examination. Furthermore, it has been decided to hold the Grade 5 Scholarship Examination and the G.C.E. Advanced Level Examination before August each year, and the G.C.E. Ordinary Level Examination in December. From 2026 onwards, efforts will be made to conduct examinations in accordance with this revised annual examination calendar.
[Prime Minister’s Media Division]
News
Steps have been taken to modernize Technical Colleges in all 25 Districts – PM
Marking a major transformation in Sri Lanka’s vocational education sector, the Government has decided to develop and modernize 25 technical colleges located across all the 25 districts in line with contemporary global standards.
It was revealed at a special discussion held on 06th of February at the Parliamentary Complex, chaired by the Minister of Education, Higher Education and Vocational Education, Prime Minister Dr. Harini Amarasuriya, together with the Deputy Minister of Vocational Education Nalin Hewage.
Addressing the meeting, the Prime Minister emphasized that these development initiatives should not be limited merely to providing vocational skills, but should also place strong emphasis on the mental health and overall well-being of the youth.
Accordingly, the Prime Minister stressed the importance of establishing modern hostels, cafeterias, and healthcare facilities; designing both internal and external environments in a manner that offers recreational and aesthetic experiences while promoting mental well-being; and developing a distinct identity for each technical college so that they can be clearly recognized as unique institutions, separate from other educational establishments.
Speaking at the discussion, Deputy Minister of Vocational Education Nalin Hewage stated that development work at 23 technical colleges could be commenced in the near future in order to enhance the human resources required for national development. He further noted that it is expected to obtain the labour contribution and assistance of the Tri-Forces for these construction and modernization activities.
The discussion was attended by Deputy Minister of Defence Major General Aruna Jayasekara, Secretary to the Ministry of Defence Air Vice Marshal Sampath Thuyacontha, Secretary to the Ministry of Education Nalaka Kaluwewa, along with the officers from the Tri-Forces.
[Prime Minister’s Media Division]
News
Coal scam has become litmus test for NPP: FSP
The scam involving the import of substandard coal has become the litmus test for the NPP Government, says the Frontline Socialist Party.The substandard coal scam has become the litmus test for the NPP government’s integrity and transparency, Frontline Socialist Party (FSP) Education Secretary Pubudu Jayagoda said on Thursday, alleging serious irregularities and contradictions in the government’s handling of coal procurement for the Lakvijaya Power Plant.
Addressing the media in Colombo, Jayagoda strongly rejected recent statements made by Tilvin Silva, General Secretary of the JVP, during an interview with a state television channel on the ongoing coal tender controversy. He said several of Silva’s claims were factually incorrect and echoed earlier statements made by the Minister of Power and Energy that had already been abandoned after being proven false.
“There are serious inaccuracies in the views expressed by Tilvin Silva. Some of these false points were first raised by the Power Minister a week or two ago, but he stopped repeating them once we produced documentary evidence,” Jayagoda said, adding that the JVP General Secretary appeared to be “not up to date with the facts.”
Jayagoda rejected claims that coal had previously been purchased without calling for tenders from a politician’s company at inflated prices. He said that since the Lakvijaya Power Plant commenced operations in 2008, tenders had been called annually and contracts awarded to the lowest bidder.
He also dismissed assertions that no tenders were called in 2023. “The Power Minister initially made this claim, too, but stopped after we presented the tender advertisements,” Jayagoda said. He questioned contradictory statements made by government representatives, pointing out that while Silva claimed no tender was called in 2023, references to 2023 tender specifications had been publicly cited by Deputy Minister Kumara Jayakody.
“If no tender was called in 2023, how were tender specifications published that year?” Jayagoda asked, describing the claims as mutually contradictory.
According to Jayagoda, tenders were, indeed, called in 2023 and the contract was awarded to Coral Energy. When that company failed to supply coal on time, the supply responsibility was transferred to Black Sand. He further rejected claims that no tenders were called in 2024, explaining that during the bidding process a company named Potentia had offered a lower price than the initial lowest bidder.
“Based on approvals from the Technical Evaluation Committee, the Procurement Committee, the Cabinet, and finally the Attorney General, coal was purchased from the lowest bidder,” he said, adding that any doubts regarding the legality of the process could be investigated through proper legal channels.
However, Jayagoda stressed that the controversy was not merely about whether tenders were called, but about how the process was manipulated. He listed several concerns raised by the FSP from the outset, including a four-month delay in calling for tenders, changes to tender specifications, and the tender period being reduced by half.
“Urgency was cited as the justification for these changes, yet there was a six-week delay in awarding the tender. That clearly shows there was no real urgency,” he said.
Jayagoda also alleged that laboratory reports were concealed when substandard coal shipments were imported, in order to protect the supplying company. He said that despite a contractual clause requiring the tender to be cancelled if two shipments failed quality standards, the government continued with the order. He further accused the authorities of violating the agreement by approving emergency purchases in a way that benefited the supplier.
“The entire process is suspicious,” Jayagoda said. “A Minister will not resign unless they admit to fraud. But it is the responsibility of the President and the government to conduct an independent investigation, determine whether fraud has occurred, and remove the Minister if wrongdoing is established.”
He concluded by reiterating that the coal tender controversy would serve as a decisive test of the government’s commitment to accountability. “This is the litmus test for the integrity and transparency of the government,” Jayagoda said.
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