Connect with us

Features

Ranil on what needs to be done

Published

on

Former Prime Minister, Ranil Wickremesinghe, spoke to Pasindu Gunaratne, about the current economic crisis facing the country and the measures that should be taken to help move the country forward.

As many in the country have concerns and questions over the current economic crisis confronting the public, the United National Party invited questions from young people on this subject for the former prime minister to answer.

Responding, Wickremesinghe highlighted the need of going to the International Monetary Fund (IMF) for assistance. But he said the IMF alone would not be able to solve the problems of the country.

Stressing that the IMF would provide a foundation that would allow the country to seek the assistance of other foreign nations, he drew from his personal experience as a member of the 1977 Cabinet when discussing measures taken to revive a failing economy. He urged that new thinking on Sri Lanka’s economy was needed if the country was to develop.

The former prime minister also explained that it was essential that a national consensus was reached on the basic principles that would be followed by the country saying that without a common agreement by all political groups, the country would continue to stagnate.

Text of the interview:

Question – One of the issues discussed last week was the government’s decision to devalue the rupee. Accordingly, the Governor of the Central Bank stated that the value of the rupee against the dollar will be determined by the market. Is this a bad decision?

Answer – In fact, the IMF has given some advice in the Directors’ Guide. There are a number of tips that have been given and one alone is not going to work. We have to come to an agreement with the IMF first. All of these other points are relevant only when it comes to implementation. This is only one aspect They want the program implemented in its entirety. We did the same thing before. We always met with the IMF and discussed the amount that would be provided to the country. Only then did we float the currency.

Twice before we have done this, but on this occasion the Central Bank decided to act ahead of time. The problem that has arisen from floating the currency is that there are not enough dollars to match the demand.

When we go to the IMF we know we have relief coming. So the dollar supply increases. That is what creates stability. However, here the demand for dollars has increased substantially. At that point there were no dollars to meet this increased demand and there was no one to guarantee the supply.

The demand for dollars has really increased here. in this case. At that time there was no supply to meet the demand and besides there was nobody to guarantee it. So now we are reacting to the movement of the market. The banks have to find the money now.

Previously we (the Government) provided assurances for the payments, while the banks were charged with finding the rest of the required money. Now the entire responsibility for this has been handed over to the banks alone. That is what is happening now. I hope that the Government is now aware of this and will implement a short-term program that will provide relief to the public who have been affected by this. At least 50% of the burden can be addressed by such a program.

Question – We have seen that the government has recently announced that the number of foreign tourist arrivals has increased. Accordingly, more foreign currency has started flowing into the country. Do you think the country’s foreign earnings will improve through this?

Answer – In fact, most of our country’s foreign exchange earnings come from the Middle East, from our apparel industry, and then from our tourism industry. About two to three million tourists visited Sri Lanka on a yearly basis, but this has not happened since the COVID-19 pandemic hit. Fr fewer tourists come here now. If we look at the numbers, I do not think even 10% of that number have visited Sri Lanka.

Our tourism sector would not be successful if we do not get at least 50% of the previous arrivals. We also have to recognise that many of the tourists visiting us are from Ukraine and Russia. They pay between US $70 – US $80 per room. From previously charging a US $100 we have now reduced it to US $70. So now those arriving from Europe will no longer pay US $100. The will pay only US $70.

So with this reduced income there are many problems which have arisen. Trained staff such as chefs will now go overseas. When you earn US $1000 here, you can earn US $2,500 – US $3,000 overseas. That is in the Maldives, in the Middle East you will be able to earn more. So there really is no big improvement from this despite a bit of money coming into the country. Another problem that we have is that countries like the Maldives did not reduce their room rates like we did. Our tourism industry is also facing many problems. The Government has not acted to settle the debt faced by the industry. Every year interest is incurred by the industry. At present the interest owed by the industry been provided with a moratorium. The interest has not been abolished. No relief was given, this was just an illusion. We cannot just get out of this.

In fact as the tourism industry grows, the price of our hotel rooms are reducing. We also face a problem of the hotels not having enough chefs and other trained staff.

Question – Last week the Government took another decision, do you think this decision to halt the import of 367 non-essential items will help revive the economy?

Answer – No, if it is a market economy, it could be in Sri Lanka, it could be in England or it could be in China, the Government has the responsibility to provide goods and services according to the demands of the market and ensure their supply if there is a shortage.

All the items that we controlled prior to ’77 are now available on the market. What are they now doing with a market economy? We have now removed 300 items from the free market. With these 300 items being removed from the market, many of our services have halted. Our problem is to earn more money. These people are focussed on limiting the boundaries of our free market.

Prior to ’77 they tried to limit such items; so much so that tyres were not imported at the time. I was only able to find two tyres for my vehicle. A friend was able to find only one out of the two necessary for his motorcycle and had to borrow a tyre from someone else. Can we work like that?

We need to find foreign currency for the economy. This is not something we can split and share. We have to take into account our needs. This can be done if we go to the IMF. It is because we did not go that these problems have arisen. The problem that the IMF will have is that we have limited the import of 300 such items.

Question – In fact, before the power crisis, before the oil crisis, you stated the reason for all this. The Government has said that the dollar reserves in the country are declining. They are saying that due to the pandemic our dollar reserves have dwindled and our economy is facing a major crisis. But we have seen online, especially among the youth in countries such as Bangladesh and Nepal, that their dollar reserves are rising. We are the only country that has seen our dollar reserves reduced. You said from the outset that oil and electricity crises were coming. How was this mistake made by us when other countries in the region have seen record foreign currency reserves?

Answer – First of all we must remember that our markets and Bangladesh’s markets both had problems in 2020. But Bangladesh had foreign reserves while we had lost ours. We had to ask for help, especially from the IMF. If we had gone in 2021 we could have got US $2 – US $3 billion. But we did not go and get the money. Bangladesh had money. Many other countries like us went and got money when the problems arose. But Sri Lanka did not do so, so we were marginalised. Other countries had money for 2020 and 2021, while those that did not went to the IMF for assistance.

We have no money and no aid, that is why we are in this situation. We cannot blame COVID alone because everyone was affected by COVID. We did not stop importing fertiliser because of COVID. Who is responsible for that?

Question – Finally, I would like to ask you, at a time when our economy is in deep crisis, what do you see as the key obstacles we have to overcome this economic crisis?

Answer – We should not think short-term, we must think long-term. A country is not built in a day. In ’77 we built the country, and now we need to build the country for the youth, especially those in their 20s, 30s and 40s. We have to build a new foundation. This old system will not always have the money from the Middle East. Selling our services for US $70 will not help the situation. We cannot go ahead with the garment industry alone. We need to look to the future. We have to look to the future and build the economy to join the future. That work needs to be done.

If you don’t think about that there will be many more problems. If we are to address this then there must be a national consensus on the basic principles needed for this. There is no national consensus in our country. One government changes what the other government did. If what we had started had been taken forward by this government we would not have been in this mess. If we do not look to the future and move forward there will be no future.

Question: So young people, we have learned a lot about this economic crisis and how to overcome it. Finally, I would like to tell you that there is a large group of young people who have high hopes that this is our country. I would like to ask you to give them a message.

Answer: Take the lead and move forward.



Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Features

Sri Lanka’s new govt.: Early promise, growing concerns

Published

on

President Anura Kumara Dissanayake’s demeanour, body language, and speaking style appear to have changed noticeably in recent weeks, a visible sign of embarrassment. The most likely reason is a stark contradiction between what he once publicly criticised and analysed so forcefully, and what his government is actually doing today. His own recent speeches seem to reflect that contradiction, sometimes coming across as confused and inconsistent. This is becoming widely known, not just through social media, YouTube, and television discussions, but also through speeches on the floor of Parliament itself.

Doing exactly what the previous government did

What is now becoming clear is that instead of doing things the way the President promised, his government is simply carrying on with what the previous administration, particularly Ranil Wickremesinghe’s government, was already doing. Critically, some of the most senior positions in the state, positions that demand the most experienced and capable officers, are being filled by people who are loyal to the JVP/NPP party but lack the relevant qualifications and track record.

Such politically motivated appointments have already taken place across various government ministries, some state corporations, the Central Bank, the Treasury, and at multiple levels of the public service. There have also been forced resignations, bans on resignations, and transfers of officials.

What makes this particularly serious is that President Dissanayake has had to come to Parliament repeatedly to defend and “clean up” the reputations of officials he himself appointed. This looks, at times, like a painful and almost theatrical exercise.

The coal procurement scandal, and a laughable inquiry

The controversy around the country’s coal power supply has now clearly exposed a massive disaster: shady tenders, damage to the Norochcholai power plant, rising electricity bills due to increased diesel use to compensate, a shortage of diesel, higher diesel prices, and serious environmental damage. This is a wide and well-documented catastrophe.

Yet, when a commission was appointed to investigate, the government announced it would look into events going back to 2009, which many have called an absurd joke, clearly designed to deflect blame rather than find answers.

The Treasury scandal, 10 suspicious transactions

At the Treasury, what was initially presented as a single transaction, is alleged to involve 10 transactions, and it is plainly a case of fraud. A genuine mistake might happen once or twice. As one commentator said sarcastically, “If a mistake can happen 10 times, it must be a very talented hand.” These explanations are being treated as pure comedy.

Attempts to justify all of this have sometimes turned threatening. A speech made on May 1st by Tilvin Silva is a case in point, crude and menacing in tone.

Is the government losing its grip?

Former Minister Patali Champika has said the government is now suffering from a phobia of loss of power, meaning it is struggling to govern effectively. Other commentators have noted that the NPP/JVP may have taken on a burden too heavy to carry. Political cartoons have depicted the NPP’s crown loaded with coal, financial irregularities, and political appointments, bending under the weight.

The problem with appointing loyalists over qualified professionals

Appointing own supporters to senior positions is not itself unusual in politics. But it becomes a betrayal of public trust when those appointed lack the basic qualifications or relevant experience for the roles they are given.

A clear example is the appointment of the Treasury Secretary, someone who was visible at virtually every NPP election campaign event, but whose qualifications and exposure/experiences may not match the demands of such a critical position. Even if someone has a doctorate or professorship, the key question is whether those qualifications are relevant to the role, and whether that person has the experience/exposure to lead a team of seasoned professionals.

By contrast, even someone without formal academic credentials can succeed if they have the right skills and surround themselves with advisors with relevant exposure. The real failure is when loyalty to a political party overrides all other considerations, that is a fundamental betrayal of responsibility.

The problem is not unique to this government. In 2015, the appointment of Arjuna Mahendran as Central Bank Governor was a similar blunder. His tenure ended in scandal involving insider dealing and bond market manipulation. However, in that case, the funds involved were frozen and later confiscated by the following government, however legally questionable that process was.

The current Treasury losses, by contrast, may be unrecoverable. Critics say getting that money back would be next to impossible.

The broader damage: Demoralisation of capable officials

When loyalists are placed above competent career officials in key positions, it demoralises the best public servants. Some begin to comply in fear; others lose motivation entirely. The professional hierarchy breaks down. Junior officials start looking over their shoulders instead of doing their jobs. This collective dysfunction is ultimately what destroys governments.

Sri Lanka’s pattern: every government falls

This pattern is deeply familiar in Sri Lankan history. The SWRD Bandaranaike government, which swept to power in 1956 on a wave of popular support, had declined badly by 1959. The coalition government, which came to power reducing the opposition to eight seats, lost in 1977, and, in turn, the UNP, which came in on a landslide, in 1977, crushing the SLFP to just eight seats, suffered a similar fate by 1994.

Mahinda Rajapaksa came to power in 2005 by the narrowest of margins, in part because the LTTE manipulated the Northern vote against Ranil Wickremesinghe. But he was re-elected in 2010 on the strength of ending the war against the LTTE. Still, by 2015, he was voted out, because the benefits of winning the war were never truly delivered to ordinary people, and because large-scale corruption had taken root in the meantime. Gotabaya Rajapaksa didn’t even last long enough to see his term end.

Now, this government, too, is showing early signs of the same decline.

The ideological contradiction at the heart of the NPP

There is another challenge: though the JVP presents itself as a left-wing, Marxist-socialist party, many of those who joined the broader NPP coalition, businesspeople, academics, professionals, do not hold such ideological views. Balancing a left-leaning party with a centre-right coalition is extremely difficult. The inevitable tension between the two pulls the government in opposite directions.

The silver lining, however, is that this has produced a growing class of “floating voters”, people not permanently tied to any party, and that is actually healthy for democracy. It keeps governments accountable. Independent election commissions and civil society organisations have a major role to play in informing these voters objectively.

In more developed democracies, voters receive detailed candidate profiles and well-researched information alongside their ballot papers, including, for example, independent expert analyses of referendum questions like drug legalisation. Sri Lanka is still far from that standard. Here, many people vote the same way as their parents. In other countries, five family members might each vote differently without it being a scandal.

Three key ministries, under the President himself, all in trouble

President Dissanayake currently holds three of the most powerful portfolios himself: Defence, Digital Technology, and Finance. All three are now widely seen as performing poorly. Many commentators say the President has “failed” visibly in all three areas. The justifications offered for these failures have themselves become confused, contradictory, and, at times, just plain pitiable.

The overall picture is one of a government that looks helpless, reduced to making excuses and whining from the podium.

A cautious hope for recovery

There are still nearly three years left in this government’s term. There is time to course-correct, if they act quickly. We sincerely hope the government manages to shed this sense of helplessness and confusion, and finds a way to truly serve the country.

(The writer, a senior Chartered Accountant and professional banker, is Professor at SLIIT, Malabe. The views and opinions expressed in this article are personal.)

Continue Reading

Features

Cricket and the National Interest

Published

on

The appointment of former minister Eran Wickremaratne to chair the Sri Lanka Cricket Transformation Committee is significant for more than the future of cricket. It signals a possible shift in the culture of governance even as it offers Sri Lankan cricket a fighting possibility to get out of the doldrums of failure. There have been glorious patches for the national cricket team since the epochal 1996 World Cup triumph. But these patches of brightness have been few and far between and virtually non-existent over the past decade. At the centre of this disaster has been the failures of governance within Sri Lanka Cricket which are not unlike the larger failures of governance within the country itself. The appointment of a new reform oriented committee therefore carries significance beyond cricket. It reflects the wider challenge facing the country which is to restore trust in public institutions for better management.

The appointment of Eran Wickremaratne brings a professional administrator with a proven track record into the cricket arena. He has several strengths that many of his immediate predecessors lacked. Before the ascent of the present government leadership to positions of power, Eran Wickremaratne was among the handful of government ministers who did not have allegations of corruption attached to their names. His reputation for financial professionalism and integrity has remained intact over many years in public life. With him in the Cricket Transformation Committee are also respected former cricketers Kumar Sangakkara, Roshan Mahanama and Sidath Wettimuny together with professionals from legal and business backgrounds. They have been tasked with introducing structural reforms and improving transparency and accountability within cricket administration.

A second reason for this appointment to be significant is that this is possibly the first occasion on which the NPP government has reached out to someone associated with the opposition to obtain assistance in an area of national importance. The commitment to bipartisanship has been a constant demand from politically non-partisan civic groups and political analysts. They have voiced the opinion that the government needs to be more inclusive in its choice of appointments to decision making authorities. The NPP government’s practice so far has largely been to limit appointments to those within the ruling party or those considered loyalists even at the cost of proven expertise. The government’s decision in this case therefore marks a potentially important departure.

National Interest

There are areas of public life where national interest should transcend party divisions and cricket, beloved of the people, is one of them. Sri Lanka cannot afford to continue treating every institution as an arena for political competition when institutions themselves are in crisis and public confidence has become fragile. It is therefore unfortunate that when the government has moved positively in the direction of drawing on expertise from outside its own ranks there should be a negative response from sections of the opposition. This is indicative of the absence of a culture of bipartisanship even on issues that concern the national interest. The SJB, of which the newly appointed cricket committee chairman was a member objected on the grounds that politicians should not hold positions in sports administration and asked him to resign from the party. There is a need to recognise the distinction between partisan political control and the temporary use of experienced administrators to carry out reform and institutional restructuring. In other countries those in politics often join academia and civil society on a temporary basis and vice versa.

More disturbing has been the insidious campaign carried out against the new cricket committee and its chairman on the grounds of religious affiliation. This is an unacceptable denial of the reality that Sri Lanka is a plural, multi ethnic and multi religious society. The interim committee reflects this diversity to a reasonable extent. The country’s long history of ethnic conflict should have taught all political actors the dangers of mobilising communal prejudice for short term political gain. Sri Lanka paid a very heavy price for decades of mistrust and division. It would be tragic if even cricket administration became another arena for communal suspicion and hostility. The present government represents an important departure from the sectarian rhetoric that was employed by previous governments. They have repeatedly pledged to protect the equal rights of all citizens and not permit discrimination or extremism in any form.

The recent international peace march in Sri Lanka led by the Venerable Bhikkhu Thich Paññākāra from Vietnam with its message of loving kindness and mindfulness to all resonated strongly with the masses of people as seen by the crowds who thronged the roadsides to obtain blessings and show respect. This message stands in contrast to the sectarian resentment manifested by those who seek to use the cricket appointments as a weapon to attack the government at the present time. The challenges before the Sri Lanka Cricket Transformation Committee parallel the larger challenges before the government in developing the national economy and respecting ethnic and religious diversity. Plugging the leaks and restoring systems will take time and effort. It cannot be done overnight and it cannot succeed without public patience and support.

New Recognition

There is also a need for realism. The appointment of Eran Wickremaratne and the new committee does not guarantee success. Reforming deeply flawed institutions is always difficult. Besides, Sri Lanka is a small country with a relatively small population compared to many other cricket playing nations. It is also a country still recovering from the economic breakdown of 2022 which pushed the majority of people into hardship and severely weakened public institutions. The country continues to face unprecedented challenges including the damage caused by Cyclone Ditwah and the wider global economic uncertainties linked to conflict in the Middle East. Under these difficult circumstances Sri Lanka has fewer resources than many larger countries to devote to both cricket and economic development.

When resources are scarce they cannot be wasted through corruption or incompetence. Drawing upon the strengths of all those who are competent for the tasks at hand regardless of party affiliation or ethnic or religious identity is necessary if improvement is to come sooner rather than later. The burden of rebuilding the country cannot rest only on the government. The crisis facing the country is too deep for any single party or government to solve alone. National recovery requires capable individuals from across society and from different sectors such as business and civil society to work together in areas where the national interest transcends party politics. There is also a responsibility on opposition political parties to support initiatives that are politically neutral and genuinely in the national interest. Not every issue needs to become a partisan battle.

Sri Lanka cricket occupies a special place in the national consciousness. At its best it once united the country and gave Sri Lankans a sense of pride and international recognition. Restoring integrity and professionalism to cricket administration can therefore become part of the larger task of national renewal. The appointment of Eran Wickremaratne and the new committee, while it does not guarantee success, is a sign that the political leadership and people of the country may be beginning to mature in their approach to governance. In recognising the need for competence, integrity and bipartisan cooperation and extending it beyond cricket into other areas of national life, Sri Lanka may find the way towards more stable and successful governance..

by Jehan Perera

Continue Reading

Features

From Dhaka to Sri Lanka, three wheels that drive our economies

Published

on

Court vacation this year came with an unexpected lesson, not from a courtroom but from the streets of Dhaka — a city that moves, quite literally, on three wheels.

Above the traffic, a modern metro line glides past concrete pillars and crowded rooftops. It is efficient, clean and frequently cited as a symbol of progress in Bangladesh. For a visitor from Sri Lanka, it inevitably brings to mind our own abandoned light rail plans — a project debated, politicised and ultimately set aside.

But Dhaka’s real story is not in the air. It is on the ground.

Beneath the elevated tracks, the streets belong to three-wheelers. Known locally as CNGs, they cluster at junctions, line the edges of markets and pour into narrow roads that larger vehicles avoid. Even with a functioning rail system, these three-wheelers remain the city’s most dependable form of everyday transport.

Within hours of arriving, their importance becomes obvious. The train may take you across the city, but the journey does not end there. The last mile — often the most complicated part — belongs entirely to the three-wheeler. It is the vehicle that gets you home, to a meeting or simply through streets that no bus route properly serves.

There is a rhythm to using them. A destination is mentioned, a price is suggested and a brief negotiation follows. Then the ride begins, edging into traffic that feels permanently compressed. Drivers move with instinct, adjusting routes and squeezing through gaps with a confidence built over years.

It is not polished. But it works.

And that is where the comparison with Sri Lanka becomes less about what we lack and more about what we already have.

Back home, the three-wheeler has long been part of daily life — so familiar that it is often discussed only in terms of its problems. There are frequent complaints about fares, refusals or the absence of meters. More recently, the industry itself has become entangled in politics — from fuel subsidies to regulatory debates, from election-time promises to periodic crackdowns.

In that process, the conversation has shifted. The three-wheeler is often treated as a problem to be managed, rather than a service to be strengthened.

Yet, seen through the experience of Dhaka, Sri Lanka’s system begins to look far more settled — and, in many ways, ahead.

There is a growing structure in place. Meters, while not perfect, are widely recognised. Ride-hailing apps have added transparency and reduced uncertainty for passengers. There are clearer expectations on both sides — driver and commuter alike. Even small details, such as designated parking areas in parts of Colombo or the increasing standard of vehicles, point to an industry slowly moving towards professionalism.

Just as importantly, there is a human element that remains intact.

In Sri Lanka, a three-wheeler ride is rarely just a transaction. Drivers talk. They offer directions, comment on the day’s news, or share local knowledge. The ride becomes part of the social fabric, not just a means of getting from one point to another.

In Dhaka, the scale of the city leaves less room for that. The interaction is quicker, more direct, shaped by urgency. The service is essential, but it is under constant pressure.

What stands out, across both countries, is that the three-wheeler is not a temporary or outdated mode of transport. It is a necessity in dense, fast-growing Asian cities — one that fills gaps no rail or bus system can fully address.

Large infrastructure projects, like light rail, are important. They bring efficiency and long-term capacity. But they cannot replace the flexibility of a three-wheeler. They cannot reach into narrow streets, respond instantly to demand or provide that crucial last-mile connection.

That is why, even in a city that has invested heavily in modern rail, Dhaka still runs on three wheels.

For Sri Lanka, the lesson is not simply about what could have been built, but about what should be better managed and valued.

The three-wheeler industry does not need to be politicised at every turn. It needs steady regulation — clear fare systems, proper licensing, safety standards — alongside encouragement and recognition. It needs to be seen as part of the solution to urban transport, not as a side issue.

Because for thousands of drivers, it is a livelihood. And for millions of passengers, it is the most immediate and reliable form of mobility.

The tuk-tuk may not feature in grand policy speeches or infrastructure blueprints. It does not run on elevated tracks or attract international attention. But on the ground, where daily life unfolds, it continues to do what larger systems often struggle to do — show up, adapt and keep moving.

And after watching Dhaka’s streets — crowded, relentless, yet functioning — that small, three-wheeled vehicle feels less like something to argue over and more like something to get right.

(The writer is an Attorney-at-Law with over a decade of experience specialising in civil law, a former Board Member of the Office of Missing Persons and a former Legal Director of the Central Cultural Fund. He holds an LLM in International Business Law)

 

by Sampath Perera recently in Dhaka, Bangladesh 

Continue Reading

Trending