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JVP predicts crash of economy imminent, due to mismanagement

Published

4 years ago

2021/05/10

By Saman Indrajith

The 2020 Central Bank annual report presented to Parliament last week is a testimony to the fact that the country’s economy is in dire straits, says the JVP.

Addressing the media at the party headquarters in Pelawatte yesterday, JVP Politburo member and former MP Sunil Handunnetti alleged that the government was using the funds meant for the development of the country for its projects to cling on to power. “The Central Bank report confirms many warnings we have been issuing in the recent past. The country’s economy is sliding into a recession and there would be a crash soon. The economy recorded a growth of -1.6% during the first quarter of 2020. That was before the onset of the pandemic. The situation worsened in the second quarter. The government is citing the pandemic as the reason for the sharp economic downturn.

“The impact of the pandemic on the economy is evident, but what we are experiencing is mainly due to the economic mismanagement. There are five main crises in our economy. The first is the loan crisis. The revenue received by the Treasury is not sufficient even to pay the installments of loans taken. To pay-back the due installments the country needs to borrow an additional 135 billion rupees. The total outstanding loans as at 2019 was Rs 14,115 billion. That increased to Rs 16,427 billion in 2020. The government has to pay 6.9 billion US dollars as loan repayments. The second is the import-export crisis.

“The government came into power promising to improve the production industry and bring down imports. We have sea areas, which eight times the country’s land masse, but we imported fish worth Rs 34,650 million in 2020. In 2010, we produced 27 percent of the onion requirement in this country; now it has dropped to eight per cent so that we have to import 92 per cent of the country’s onion requirement. We have imported Rs 27,610 million worth of salt, milk and milk products worth Rs 61,930 million. The third crisis is the weak government revenue. In 2016 the government income was around 23 per cent of the GDP. As at 2014 the figure dropped to 11.5 per cent. Now it’s at 9.1 percent.

“The fourth crisis is the collapse of the industrial sector due to the high cost of raw materials, failure to combine technological support with the industrial process and inability to create a proper market for industrial output. The fifth crisis is the inequitable distribution of national wealth.”

Of the total population, the top 10 percent of rich enjoy 38.4% of national income while 10 per cent at the bottom receive only 1.1 per cent of the national income. There is a huge tax burden on the people. This government promised to maintain 40 percent direct taxes and 60 percent indirect taxes. Yet now the indirect taxes are around 80 percent. Sri Lanka is the only country in the world with this much taxes on food consumed by the people. Even in India it’s 49 per cent, in Indonesia its 50 percent and in Thailand it is at 40 percent.”

JVP Central Committee Members Wasantha Samarasinghe and Nalin Hewage also addressed the press.

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Our government has reaffirmed its commitment to breaking barriers that limit women’s full participation in the economy, recognizing their vital role in national development. – Dr. Harini Amarasuriya

Published

8 hours ago

2025/03/15

Priyan

“Women play a pivotal role in Sri Lanka’s economic and social development. Yet, despite their immense contribution, structural barriers continue to limit their full participation in the economy. Our government is committed to breaking these barriers by fostering an inclusive economic environment where women can thrive as business leaders, entrepreneurs, and exporters.” Said Prime Minister Dr. Harini Amarasuriya

The Prime Minister made this statement while addressing the launching the She Trades Sri Lanka Hub funded by the UK’s She Trades Commonwealth+ Program held at Galle face Hotel in Colombo on March 14 organized by the Sri Lanka Export Development Board (EDB) and the International Trade Centre (ITC).

While addressing the audience, the Prime minister stated, the government has reaffirmed its commitment to breaking barriers that limit women’s full participation in the economy, recognizing their vital role in national development. Emphasizing gender-inclusive policies, financial inclusion, and access to global markets, authorities are prioritizing support for women-led businesses in key sectors such as ICT, agribusiness, and engineering.

A new initiative will establish 200 women-led cooperatives, fostering supportive environments for female entrepreneurs. Additionally, efforts to strengthen childcare, elderly care, and disability services aim to reduce the burdens that limit women’s economic participation.

A dedicated platform has been launched to provide women entrepreneurs with knowledge, networking, and international trade opportunities. Strengthening public-private partnerships and expanding global market access are key strategies to create an inclusive and sustainable trade ecosystem.

By equipping women with the necessary skills, financial resources, and digital trade access, the government aims to ensure that women entrepreneurs become key drivers of economic growth, aligning with broader policies for inclusive and sustainable development.

The event was attended by Ms. Pamela Coke-Hamilton, Executive Director of the International Trade Center, His Excellency Andrew Patrick, British High Commissioner to Sri Lanka, Officials from the International Trade Center and the British High Commission in Sri Lanka, Chairman of the Export Development Board Mr. Mangala Wijesinghe and Officials from Export Development Board and International Trade Centre and woman Entrepreneurs.

(Prime Minister’s Media Division)

News

Batalanda Commission report tabled … finally

Published

14 hours ago

2025/03/15

Thilina Walpola

by Saman Indrajith

TheBatalanda Presidential Co-mission report was tabled in Parliament yesterday (14) by the Leader of the House and Transport Minister, Bimal Ratnayake.

Minister Ratnayake announced that the government has decided to forward the report to the Attorney General for legal advice. Additionally, a Presidential Committee will be appointed to provide guidance and recommendations on how to proceed with the findings of the report.

Ratnayake said that the Cabinet-of-Ministers, along with President Anura Kumara Dissanayake, has made a policy decision to take necessary action in response to the report. He reassured the public that steps are being taken to ensure that such a dark chapter in the country’s history is never repeated.

Minister Ratnayake said that a two-day debate on the Batalanda Commission report will be scheduled in Parliament at an appropriate time, allowing for a detailed discussion on the report’s findings and recommendations.

The report, which will be printed in all three official languages—Sinhala, Tamil, and English—will be made available to the public in the near future. Ratnayake confirmed that printed copies would be provided to Members of Parliament, as well as the general public, for review.

The Leader of the House revealed that there are 28 evidence volumes associated with the Commission’s work, which will be submitted to Parliament at a later date for further scrutiny.

Ratnayake said that as the entire country is concerned about the findings of the Batalanda Commission, the government’s commitment to addressing the issues raised, and preventing future atrocities, stands clear. The next steps, including legal action and policy recommendations, will be shaped by expert advice and informed parliamentary discussions, he said.

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COPE finds fake documents submitted for emergency procurement of drugs

Published

14 hours ago

2025/03/15

Thilina Walpola

The Parliamentary watchdog Committee on Public Enterprises (COPE) has found that there were fake documents regarding the importing of medicines under the emergency procurement system in 2022 and 2023.

This was revealed during a COPE meeting held at Parliament probing the transactions of the National Medicine Regulatory Authority (NMRA).

NMRA CEO Saveen Semage told the Committee that several fake documents have been found due to the lack of registration of medicines.

Stating that six such fake documents were found last year alone, Saveen Semage said he had recorded statements regarding each of the documents with the Financial Crimes Investigation Division.

He revealed that, however, no investigations have been conducted yet into the incidents.

“We have documents with confessions from a woman accepting that fake documents had been made. However, a statement has not even been recorded from that woman yet,” he said.

Meanwhile, COPE member MP Asitha Niroshana Egoda Vithana also revealed that the highest number of waive-off registrations (WOR) for medicines had been obtained in 2022 and 2023.

He said 656 waive-off registrations (WOR) had been obtained in 2022 and 261 in 2023, adding that this proves that discrepancies have taken place during the emergency procurement of medicines during these periods.

Furthermore, Deputy Director General of the Medical Supplies Division of the Health Ministry, Dr. G. Wijesuriya, said discussions are underway on allowing the State Pharmaceutical Corporation (SPC) to directly import essential medicines.He pointed out that it was essential to take a policy decision in this regard as a solution to mitigate such discrepancies.