LSSP leader Prof Tissa Vitarana, in Parliament, on Friday, said that if the present government handed power over to a suitable interim government of good people, chosen from Parliament, and the administrative service, at the helm, and properly execute the above policies, and some others, it would be possible to find a solution to the present major crisis confronting the country.

Text of Prof Vitarana’s speech in Parliament:

“The people of Sri Lanka are suffering due to the high prices and the shortages of essential items which leads to queues lasting several days. The shortages of Imported items, like fuel, gas, milk powder and other food items, and medicines, is causing great suffering and a threat to life. For instance, the Sri Lanka Medical Association (SLMA) and Government hospital staff are publicly protesting about the suffering of patients due to this. The lack of electricity is another major problem. The Government has allowed traders to sell goods at any price without any controls. A system should be developed to ensure that the benefits of any concession given by the Government only goes to the ordinary people, especially the poor, and not to the rich. The consumers have to go hungry and more than 60% of the population, who are below the poverty line, have to manage with one meal a day.

“The Government has promised to supply some or all of these items in the near future, but no precise dates are being given. I call upon the government to inform the people when these essentials will be made available at a reasonable price. The government must stick to these dates and times, and not fool the people any longer with false promises.

“The government must address the causes of the people’s suffering and lead by setting an example. All ostentatious lifestyles of political administrative leaders of the country should be done away with so that the people will regain some confidence in the government’s promises. For instance, the tax system should be revised, as I always said. It is absurd, at a time of crisis, to have the upper limit of personal tax at 14% and the upper limit of company tax at 18%, to help the super-rich.

The tax system should be drastically revised as indicated in Table 1.

Table 1– Income tax System

Income bracket                     Percentages

< 100,000                               No Tax

100,000-200,000                     20

200,000-400,000                     30

400,000-1,000,000                  50

Over 1000,000                        75

 It was absurd for the government to increase VAT by 2% in the recent past, which was an indirect tax which affects every person, however poor he may be. There should be no increase in indirect taxes, like VAT. The large amount of money which, will be obtained from the super rich in this way, can then be used to give a parcel of dry rations to the hungry people on a weekly basis.

The above situation has arisen due to the lack of dollars with the government and with the private sector in the country. Our Foreign Exchange Reserve (FOREX) which normally average between USD 7 to 8 billion has now dropped to less than USD 1 billion (probably around USD 500 million). The government is deeply in debt to foreign creditors, and has to pay more than USD 6 billion this year. A part of this has been already paid and a payment of more than 3 billion dollars is due in May this year. This must not be done.

I recommend that the government should not go out of its way to repay these amounts on time, but ask for a moratorium on our debt for about five years. This means that for the next five years, Sri Lanka does not repay any of the debt which it has accumulated over several decades, which amounts to about USD 30 billion. During the next five years this money could be used to provide what the people are now lacking and suffering. Some development of the economy can also occur.

The Government must actively intervene to control prices. The Cooperative Movement, both producer and consumer, must be revived and function properly by direct purchase between the two. The major cause of the price increases is the huge profit made by the traders, which can be eliminated. This will ensure that both the producer and the consumer get a reasonable deal. All loss-making institutions, both government and private, should be run under the Solidarity principle. As an example, the privately run plantations which claim that they are running at a loss and therefore are not paying the promised Rs.1000/ daily wage, could be made into highly profitable institutions. The basic principle is that the ownership of the plantation is given to employees, who in addition to their regular salary get an equal share of the profits. This is no pipe dream. This has succeeded marvelously in many countries like Kerala, India, where the 66,000 hectares of tea–plantations are now running at a huge profit. Thus if the present Government hands power over to a suitable Interim Government, of good people, chosen from Parliament, and the Administrative service at the helm, and properly execute the above policies, and some others, it would be possible to find a solution to the present major crisis confronting our country and its people.