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Editorial

Loan ecstasy and harsh reality

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Friday 2nd September, 2022

The government is cock-a-hoop that it has been able to reach a staff-level agreement with the IMF for a 2.9-billion-dollar loan to be released over a period of four years. Something is certainly better than nothing, but Sri Lanka needs much more to be able to straighten up its ailing economy. Most of all, it has to get its macroeconomic fundamentals right while curtailing waste and corruption.

While the government is crowing about its agreement with the IMF, it is coming under increasing pressure to hold a snap general election. This time around, the call for early polls has come from no less a person than SLPP Chairman, Prof. G. L. Peiris, who has voted with his feet together with a group of ruling party MPs. The SLPP is now like a temple whose head priest has disrobed himself! Could there be a worse indictment of a ruling party than its Chairman leaving it, sitting in the Opposition and calling for an election? The rebel SLPP MPs maintain that the government has lost its mandate to rule the country.

The SLPP has retained its hold on power despite the resignations of President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa. SLPP General Secretary Sagara Kariyawasam, MP, has, in a recent television interview, bragged that the SLPP is still governing the country. His argument holds water; the SLPP has a parliamentary majority, which it used to have UNP leader Ranil Wickremesinghe elected President and appoint MEP leader Dinesh Gunawardena Prime Minister. But what the government is doing is against the SLPP’s election manifestos.

A cursory look at the composition of the government will reveal that the SLPP is without any legitimacy and a moral right to rule the country. The number of SLPP MPs in the government has dropped to about 103, according to the Opposition, and the SLPP is retaining power with the help of other political parties whose policies are diametrically opposed to its. The SLPP would never have been able to secure the support of the voters who made its victories possible at the 2019 presidential election and the 2020 parliamentary polls if they had known that it would seek the TNA’s help in Parliament, appeal for economic assistance from pro-LTTE groups, make Wickremesinghe the President, and privatise state institutions, especially profitable ones.

Above all, those who ruined the country’s foreign currency reserves to the tune of several billions of dollars by defending the rupee in spite of expert advice, refused to ask for IMF assistance, opted for disastrous tax cuts, created a rupee crisis and resorted to excessive money printing, thereby worsening the currency devaluation and inflation, are still in the ruling SLPP. How advisable is it to entrust these elements with the task of managing the much-needed dollars to be received from the IMF? One of the main conditions the IMF has laid down is that a robust state mechanism be set up to fight corruption. The SLPP has become a metaphor for corruption due to its involvement in mega rackets such as the sugar tax scam. So is the UNP, which suffered humiliating electoral losses mainly due to the Treasury bond rackets. Can there be a bigger boost to corruption than the coming together of the SLPP and the UNP as partners in governance!

Meanwhile, Japan has undertaken to help Sri Lanka with external debt restructuring, and all Sri Lankans must be grateful to that country for leaping to their defence despite the current administration’s hostile actions such as the cancellation of the Japanese-funded Light Rail Transit project. The SLPP has also caused an affront to Japan by refusing to conduct a proper investigation into a complaint a Japanese diplomat made against a minister in the current Cabinet. In early July, the then President Gotabaya Rajapaksa asked Minister of Ports, Shipping and Aviation Nimal Siripala de Silva to resign following a complaint that the latter had solicited a bribe from a Japanese company. President Wickremesinghe, true to form, appointed a three-member probe committee, which exonerated de Silva, who has since been reappointed to the Cabinet. That the ad hoc committee would whitewash the tainted minister was a foregone conclusion because he had backed Wickremesinghe to the hilt in the presidential contest in Parliament. It may be recalled that, in 2015, a three-member committee appointed by the then Prime Minister Wickremesinghe to investigate the Treasury bond scams cleared Central Bank Governor Arjuna Mahendran. So much Wickremesinghe’s probe committees!

It is being argued in some quarters that the current situation is not conducive to an election, and Chairman of the Election Commission Nimal Punchihewa has also subscribed to this view, which was widely endorsed a few moons ago because an interim all-party government was apparently on the anvil at the time. But the situation has since changed; the government is not interested in forming an all-party administration, and the SLPP leaders are doing more of what they did at the expense of the economy. Corruption, waste and the abuse of power continue unabated. Government politicians and their cronies are enriching themselves through corrupt petroleum and coal deals while the economy is screaming. What they are doing to the economy in distress is like the rape of a disaster victim. If the people are made to wait until all other issues are sorted out to exercise their franchise, there will be nothing left of the economy or democracy by the time of the next election. A clean break with the corrupt SLPP administration has to be engineered without further delay. An early general election seems to be the only way out whatever the practical difficulties it may entail.



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Editorial

Desperate political sandbagging

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Friday 26th December, 2025

There is nothing more predictable than surprise in politics. After securing a two-thirds majority in Parliament last year and emerging victorious in most local councils, this year, the JVP-led NPP may have thought that it was plain sailing. But the government now has many unforeseen, seemingly intractable issues to contend with almost on all fronts. The disaster-stricken economy is expected to slow down, with relief and rebuilding costs escalating, and the deadline for the resumption of debt repayment approaching. Vehicle imports are bound to decrease, causing a sharp drop in the government’s tax revenue. The rupee is depreciating fast. As if these were not enough, the government is experiencing serious problems on the political front.

The defeat of the NPP’s budget in the Colombo Municipal Council (CMC), which the JVP/NPP seized control of through extensive horse trading, could not have come at a worse time for the government. The same fate has befallen many other NPP-controlled local councils. Most of all, the NPP has suffered a string of defeats in the cooperative society elections countrywide during the last several months.

Desperate times are said to call for desperate measures. Cyclone Ditwah and the attendant extreme weather events that badly damaged roads, tank bunds and river banks prompted repair teams to resort to sandbag revetment. But there have been many instances where sandbag facings collapsed, unable to withstand the intensity of floods and slope failures. The government politicians who boasted of having carried out swift restoration work have been left red-faced; they have failed to assess the severity of the problems they are trying to solve.

The NPP government has resorted to a method similar to sandbag revetment in a desperate bid to consolidate its control over some local councils which cannot secure the passage of their budgets for want of majorities. Its members have gone to the extent of setting the clock forward in such institutions, meeting in advance of the regular start time and declaring their budgets passed before the arrival of the Opposition councillors. What the NPP did in the Horana Urban Council the other day is a case in point, the Opposition says.

The NPP is accused of having inflated the number of votes for its Galle MC budget amidst a howl of protests from the Opposition and declared victory. The Opposition councillors prevented the council secretary from leaving the auditorium, put the budget to a fresh vote and defeated it. The Opposition has threatened legal action against the Mayors/Chairpersons and the state officials for violating the law. The government is likely to employ a similar method to have the CMC budget passed when it is put to a vote again next week. The JVP has no sense of shame, just like all other political parties that have been in power.

All self-righteous politicians, given to moral grandstanding, lay bare their true faces when their interests are threatened, and they face the prospect of losing their hold on power. The JVP/NPP is now without any right to be critical of its rivals who did not scruple to undermine democratic principles and traditions to retain power.

Gaining control of hung local councils is one thing, but running them to the satisfaction of their members and the public is quite another. The non-majority councils that the Opposition parties have gained control of could face the same fate as the CMC. This situation has come about because the country is without patriotic leaders. Ideally, the political parties that obtained pluralities in the hung councils should have been allowed to control those institutions, and they should have adopted a conciliatory approach and sought their political rivals’ cooperation to serve the public.

The shameful manner in which the NPP acted during the Galle MC budget vote is not unprecedented. One may recall that in January 2024, the SLPP-UNP government did something similar to secure the passage of its despicable Online Safety Bill. The then Speaker Mahinda Yapa Abeywardena stooped so low as to make use of a brawl in the House and declare the Bill passed. Interestingly, the SLPP and the UNP are among those who are raking the NPP over the coals for undermining democratic principles and traditions. So much for the self-proclaimed messiahs and their critics.

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Editorial

Christmas spirit, relief and pledges

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Thursday 25th December, 2025

Christmas has dawned while Sri Lanka is reeling from the cumulative impact of multiple disasters which snuffed out hundreds of lives and destroyed many homes and livelihoods. It is a time of hope. Its ethos, which emphasises hope, compassion and giving, could not be more relevant in these difficult times when the task of looking after a large number of disaster victims and helping rebuild their shattered lives has become a top national priority.

Santa came here the other day, as it were. There was no magical flight of a sleigh pulled by reindeer across the night sky. Instead, a jet landed at the BIA, and out stepped Indian External Affairs Minister S. Jaishankar. He unveiled a generous disaster relief and reconstruction package from India and flew back. This noble act of giving exemplifies the spirit of Christmas as much as good neighbourliness.

The best way the Sri Lankan rulers can show appreciation for generous assistance from India and other nations is to uphold accountability, rationalise disaster relief and ensure that it is distributed in a transparent manner. There are disturbing reports about political interference with the disbursement of funds among disaster victims. A high-level probe must be conducted into these allegations.

Christmas is also the season of giving and forgiving. The irony of Minister Jaishankar meeting President Anura Kumara Dissanayake, who is also the leader of the JVP, may not have been lost on keen political observers. If the JVP had acted wisely, heeding religious tenets, and pursued its political goals without resorting to violence, in the late 1980s, tens of thousands of precious lives and state assets worth billions of rupees could have been spared. India has forgiven the JVP, which it even helped gain international legitimacy and shore up its electoral chances in the run-up to last year’s presidential election. India has also helped Sri Lanka manage its worst-ever economic crisis and the impact of natural disasters. The people of Sri Lanka have also forgiven the JVP, despite its past violence, as evident from its impressive electoral victories last year. Sadly, the JVP is not willing to forgive its political enemies. Its General Secretary Tilvin Silva himself has said so. It ought to soften its stand.

All political leaders in this country usually issue well-written Christmas messages, extolling the core Christian virtues, such as giving, forgiving, compassion and peace-making. If only they lived up to the ideals they claim to cherish, at least while the country is struggling to recover from a series of natural disasters. Unfortunately, their post-disaster political battles are intensifying apace, and one wonders whether their focus is actually on helping disaster victims or furthering their political interests. They are not willing to sink their political differences for the sake of the disaster victims crying out for relief.

Meanwhile, the government leaders ought to go beyond issuing Christmas messages if they are to prove that they actually care about the believers in Jesus Christ. They ought to fulfil their pledge to serve justice for the victims of the Easter Sunday terror attacks (2019), which claimed more than 275 lives.

About seven years have elapsed since that tragedy which could have been prevented if the then government had heeded intelligence warnings, and the country has had four Presidents and three governments. But the promises made by the political leaders to bring the masterminds behind the Easter Sunday carnage to justice have gone unfulfilled. Those who are desperately seeking justice pinned their hopes on the current leaders who vowed to trace and prosecute the terror masterminds expeditiously.

The present-day leaders, too, have chosen to remain silent on their promise at issue; they are impervious to calls for justice, just like their predecessors. Let fulfilling their pledge to serve justice for the Easter Sunday terror victims be one of their Christmas resolutions.

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Editorial

Time to pursue climate relief more vigorously

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Wednesday 24th December, 2025

Climate change has upended long-held theories about cyclones in the equatorial regions, and Sri Lanka, which was once considered reasonably safe from such severe weather phenomena, is becoming increasingly vulnerable, as evident from the devastating impact of Cyclone Ditwah. All signs are that the worst is yet to come, and the need for a multi-pronged national strategy to prepare the country to face future natural disasters linked to climate change cannot be overstated.

The government of Sri Lanka has been in overdrive, seeking assistance from the international community for its post-Ditwah rebuilding programmes. The World Bank has estimated the losses caused by the recent disasters at USD 4.1 billion. Foreign assistance is coming, but in dribs and drabs. There have also been loans for rebuilding, but such borrowing is bound to make the country’s efforts to achieve debt sustainability even more uphill. This has caused much concern to international experts.

A group of internationally renowned economists, including Nobel Laureate Joseph Stiglitz, has called for the “immediate suspension of Sri Lanka’s external sovereign debt payments, and a new restructuring that restores debt sustainability under the new circumstances”. Other members of the group of eminent economists urging the international community to help Sri Lanka are Jayati Ghosh, Thomas Piketty, Martín Guzmán and Kate Raworth. They have said: “This environmental emergency is poised to absorb – and potentially exceed – the extremely limited fiscal space created by the current debt restructuring package. Additional external debt is already being obtained from the IMF, and more lending to deal with the impacts of the disaster is likely.” These economists deserve praise for their concern for a disaster-stricken nation mired in debt, but whether international creditors will take a sympathetic view of Sri Lanka’s predicament and agree to another round of debt restructuring is in doubt.

Another debt default is something Sri Lanka needs like a hole in the head. Hence the need to explore other avenues to raise finance for rebuilding.

Leader of the United Republic Front and former Cabinet Minister Patali Champika Ranawaka argued in an interview with Derana TV on Monday night that Sri Lanka should leverage its situation as a victim of climate change to gain access to international climate financing to cover at least part of the cost of post-disaster rebuilding, instead of depending on loans. He said that obtaining such climate relief should be part of Sri Lanka’s recovery strategy, and some debt relief should be sought from the carbon-polluting industrialised nations among its creditors.

There is a growing corpus of literature about the pathways vulnerable states can use to seek climate aid. The countries affected by climate change can gain access to international aid and relief through established climate finance mechanisms, humanitarian channels, and multilateral institutions. A dedicated Loss and Damage Fund is now in place to channel resources to vulnerable nations. There have been instances where some vulnerable nations, especially those of the organisations, such as the Small Island Developing States (SIDS), have successfully accessed international climate change finance, relief and legal avenues for support. Tuvalu became one of the first Pacific island nations to access climate finance from the Green Climate Fund. However, UN reports show that SIDS still receive only a fraction of international climate finance relative to their vulnerability. There’s the rub.

Another method the victim nations can adopt to raise funds is ‘innovate finance’, which has been defined as “creative use of financial markets and partnerships with international finance institutions to support adaptation and resilience in a climate-vulnerable nation”.

What Ranawaka has proposed by way of easing the country’s rebuilding burden to some extent deserves serious consideration. It is hoped that the government will take such views on board at this crucial juncture.

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