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State Minister Dr. Godahewa explains govt economic strategy
State Minister Dr. Nalaka Godahewa told the parliament on Saturday (21) the government launched a pragmatic programme to lift millions of people from poverty. The minister said that when one member of a family under extreme poverty received a permanent employment opportunity, the entire family achieved some degree of economic stability. The 100,000 jobs programme aimed to achieve that objective. Rs. 4,000 grant for vocational trainees also aimed to give opportunities for the youth of poor families, the minister said.
Dr. Godahewa said: “At the time of the 2015 regime change, I was serving as the Chairman of Securities and Exchange Commission of Sri Lanka which regulates Colombo Stock Market. Generally, Stock market is considered to be the barometer of any economy. Because investor confidence and stock market indices have a direct correlation. Typically the market slumps when investor confidence shatters.
During the post war period between 2010 and 2015, market capitalization of Colombo stock market jumped by 535% and as a percentage of GDP it increased from 11% to 36%. All Share Price Index (ASPI) gained 255% during that period. Colombo stock market had even won accolades as the most promising and sustainable stock market in Asia.
The IMF in its report dated 29 June 2014 identified Sri Lanka as one of the fastest growing economies of Asia. International rating agency Moody’s in July 2014 stated that the strength of the Sri Lankan economy is reflected in its increasing per capita income and global competitiveness index rating.
By this time Sri Lanka was holding Asia’s 1st or 2nd positions in almost all key economic indicators. In 2014 GDP grew by 6.8%. Total GDP (Gross Domestic Product) in 2014 was US Dollars 80 Billion and Central Bank of Sri Lanka (CBSL) forecast was Sri Lanka GDP to reach USD 163 Billion by 2020. Per Capita Income of US Dollars 3,654 in 2014 was anticipated to reach USD 7,500 by 2020.
Unfortunately the ones, who are trying to teach us economic management sitting in the opposition benches today, are the same people who came to power in 2015 January. The opposition had similar arguments and criticisms before 2015 as well. But when they came to power, as a group they proved how incompetent they are. Economic growth slumped year after year.
2015 it came down to 5%
2016 it further reduced to 4.5%
2017 3.9%
2018 3.1%
2019 2.1 %
Though we anticipated per capita income to reach US Dollar 7,500 by 2020, it stagnated at USD 3,852 by end of 2019. GDP Per Capita didn’t even gain by US Dollar 50 in 2019.The first finance minister of the Yahapalana government Ravi Karunanayake in 2019 made a public statement that the country was heading towards bankruptcy. With that kind of economic collapse and a trend, the economic growth rate would have been a negative figure with or without Coronavirus pandemic.
Unfortunately, it is such a team of losers who are trying to teach us economic management today in this parliament.
The reasons for their failures are obvious. They didn’t have a common vision or a program as it was just an unholy coalition consisting of ad hoc political groups formed merely to defeat Mahinda Rajapaksa.
Our government’s approach to economic management is completely different. We have a clear economic vision. That is people centric economic policy articulated in His Excellency President’s “Vision for Prosperity and Splendor” framework.
A National budget should be formulated based on a government policy framework. Yahapalanaya had 10 policy statements for their 5 years. Budget speeches were prepared based on the serving finance minister’s will but not based on any stipulated economic policy.
One has to first read the “Vision for Prosperity and Splendor” policy framework in order to understand the crux of this budget that we are debating. Then it would become a no-brainer to understand the concepts behind these budget proposals.
I would like to elaborate a bit more on this.
Vision for Prosperity policy statement has a 10 pillar policy framework. What are those 10 policies?
1.
Priority to national security
2.
Friendly, non-aligned foreign policy
3.
An administration free from corruption
4.
New constitution that fulfills people’s wishes
5.
Productive citizenry and vibrant human resources
6.
People centric economic development
7.
Technology based society
8.
Development of physical resources
9.
Sustainable environmental management
10.
Disciplined , law abiding and value based society
If these budget proposals are thoroughly analyzed, one could realize that the due attention has been paid to all ten areas. Each and every budget proposal is allied to one or more policies.
If I take a simple example, the increasing of retirement age in the private sector to 60 years comes under “a productive citizen” policy. Re-forestation programme and 2 million trees planting along the roadways come under “Sustainable Environmental Management” policy. Rs.20,000 million allocation for national security is due to its utmost importance. Allocations of Rs. 10,000 million for technology parks and Rs. 8,000 million for digital infrastructure are based on our “Technology based society” policy. 100,000 kilometers of rural road construction with an investment of Rs. 20,000 million and allocation of Rs. 8,000 million for improving rural schools is due to our priority policy for the “Development of physical resources”.
Since we are debating national budget proposals, for a moment let’s explore what is meant by people centric development. After receiving a historic mandate, His Excellency in his inaugural speech in this parliament articulated 4 priority areas of his economic policy.
Firstly, finding solutions for the eradication of poverty
Secondly, creating equal opportunities for everyone to prosper
Thirdly, ensuring an administration free from corruption
Fourthly, encouraging and strengthening local entrepreneurship
In some cases the reason for poverty is the landlessness and in turn, their inability to cultivate economic crops. As outlined by the President in his address to the nation yesterday, the objective of giving one acre each for 20,000 families is to achieve this objective. Everyone should have an opportunity to prosper in a people centric economy and it is the responsibility of the government to remove roadblocks for the same. Higher education doors should be opened to all youth and we should create a conducive environment to produce more and more entrepreneurs amongst them.
That’s why we have paid special attention to expand the capacities and reform curriculums in universities and vocational training institutes in this year’s proposals. City campuses are being initiated based on these objectives. This budget has provisions to increase the intake for vocational training institutes from 100,000 to 200,000.
Today many countries have leveraged technology to uplift the productivity of the government. Hence a special attention has been paid in this budget to foster the technology usage in the government sector. Online tax administration process and e-filing of corporate taxes are good examples.
Private sector has a vital role to play in the economic development process. This budget has several proposals to uplift the local entrepreneurs. Special tax concessions have been granted for agriculture and fisheries sectors. Students who enroll for vocational training are encouraged to start a business by offering Rs. 500,000 loan at concessionary interest rates.
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Construction of Accident and Emergency unit at Mannar District General Hospital begins under President’s patronage
Construction work on the Accident and Emergency Unit at the Mannar District General Hospital commenced this morning (16) under the patronage of President Anura Kumara Dissanayake.
The Accident and Emergency Unit, which is being constructed at a cost of Rs. 600 million with a grant from the Government of India, will be equipped with all modern facilities and will further expand healthcare services for the people of Mannar. Construction is scheduled to be completed in the first quarter of 2028.
Upon completion of the project, the people of Mannar will be able to receive emergency trauma care and other specialised healthcare services without having to travel to Colombo or other major cities. At the same time, the Government has taken steps to provide the Mannar District General Hospital with the medical equipment and staff required to support these services.
President Anura Kumara Dissanayake, who attended the commencement of construction work on the Accident and Emergency Unit, also engaged in a cordial conversation with members of the hospital staff.
Addressing the ceremony held thereafter, Minister of Health and Mass Media Dr. Nalinda Jayatissa said that as the Mannar area, which is expected to make an important contribution to the national economy, develops, this project will help ensure quality healthcare services for its people. The Minister further emphasised that, in creating a “A Thriving Nation – A Beautiful Life”, the Government is committed to ensuring healthy and disease-free lives for all 21.7 million citizens of the country.
Further remarks by Minister of Health and Mass Media Dr. Nalinda Jayatissa
“The Mannar District is an area that is expected to make an important contribution to our national economy. A large number of local and foreign tourists will visit this area both now and in the future.
With the development of transport facilities, Mannar will experience further economic growth. In such a context, upgrading the services of the Mannar hospital will be important in ensuring quality healthcare services for the people of this area as well as those who visit the region.
Accordingly, construction of this Accident and Emergency Unit will be completed and the facility will be made available to the public in the first quarter of 2028. In addition, staff quarters for doctors at the Mannar District General Hospital are being constructed in a four-storey building at a cost of Rs. 243 million. These construction activities are also expected to be completed within one and a half years. Construction of the new Paediatric Unit, being built at a cost of Rs. 230 million, is also expected to commence within this year.
Similarly, the CT scanner that you have been continuously requesting will be provided to you by around February next year. It is worth approximately Rs. 250 million. While these building facilities are being developed, we will also provide the staff required by the hospital. You have also received intern medical officers for the first time in the history of this hospital. Several more intern medical officers will be assigned to you this October. At the same time, steps are currently being taken to address the shortage of specialist medical officers.
On 31 October, we will recruit 2,600 new nurses, and a portion of them will be assigned to this hospital. Personnel required for the allied health professions are also currently undergoing training. Once their training is completed, the services of several of them will be made available to this hospital. In addition, we will recruit 1,100 Public Health Midwives, a portion of whom will also be assigned to this area.
This Government is taking numerous measures to provide people with healthy lives. Through these initiatives, we hope to improve the health and quality of life of the people in this area.
More than Rs. 600 billion has been allocated to the Ministry of Health over the past two years, and the President continuously monitors all its projects. Going beyond that, I am deeply grateful to the President for joining us today.
We have received the support of the Government of India for this project. I extend my special appreciation to the Government of India, including the Prime Minister, and its people, as well as to the High Commissioner of India and his staff, who have been committed to coordinating these activities and ensuring the success of this project.
Among district hospitals, the Mannar hospital is one with very limited facilities. Despite these shortcomings, I appreciate the dedication of all members of the staff, including the doctors, who remain committed to providing the best possible service to the people. I also consider the President’s visit to be a recognition of your service.
Two years ago, on 21 September 2024, the people of this country gave a clear mandate to create a “A Thriving Nation – A Beautiful Life”. That mandate was further strengthened in November 2024. Under the mandate to create a “A Thriving Nation – A Beautiful Life”, we have been entrusted with the responsibility of ensuring healthy and disease-free lives for all citizens of this country.
Your area of residence, profession, wealth or ethnicity is of no relevance to us in this regard. The Government’s objective is to create a beautiful life through healthy and disease-free living for all 21.7 million citizens of Sri Lanka.”
High Commissioner of India Santosh Jha:
“The agreements for the emergency unit in Mannar and the medical ward complex in Mullaitivu were signed under President Dissanayake’s leadership. I am happy to see these commitments transitioning smoothly into swift implementation.
His Excellency the Prime Minister of India, Shri Narendra Modi, has said that the development assistance extended by India to Sri Lanka comes with a deep sense of responsibility, a duty that one naturally feels for one’s family member.
We remain firmly committed to working closely with the Government of Sri Lanka and the people of Sri Lanka for the well-being and prosperity of all communities across the island. As neighboring countries and close partners, we will continue to walk together this shared path toward lasting progress and development of our peoples.”
Secretary to the Ministry of Health and Mass Media Dr. Anil Jasinghe
“For several decades, injuries and accidents have been the leading cause of hospital admissions in Sri Lanka. As Mannar is geographically somewhat isolated, it is extremely important for the district to have access to quality, free healthcare services without delay.
The assignment of intern medical officers to this hospital commenced this year. Arrangements are also currently underway to purchase a CT scanner for the Mannar District General Hospital. The hospital is expected to receive improved radiology facilities by the end of this year or the beginning of next year.
I must say that, during my 36 years in public service, last year was the only period during which I did not face any financial difficulties in carrying out my duties. The prudent macroeconomic management of the current Government, including President Anura Kumara Dissanayake, has created the fiscal space required to develop the country’s health services.”
Mannar District Bishop Rt. Rev. Gnanapragasam Anthonipillai, Northern Province Governor Nagalingam Vethanayahan, Members of Parliament representing the Mannar District, Secretary to the Ministry of Defence, Air Vice Marshal Sampath Thuyacontha (Retd), Chiefs of the Defence Services, officials of the Ministry of Health, officials of the High Commission of India in Sri Lanka, Consul General of India in Jaffna Sai Murali S. and officials of the Indian Consulate in Jaffna, among others, attended the occasion.
[President’s Media Division]
News
Special Cabinet Subcommittee and Officials’ Committee appointed to address El Niño Climate Impact meet
The Special Cabinet Subcommittee and Officials’ Committee appointed to take necessary measures to address the impact of the El Niño climate phenomenon met for the fifth time at the Presidential Secretariat on Monday (14) afternoon , under the chairmanship of Minister of Environment Dr Dhammika Patabendi.
As the El Niño climate impact is expected to transition from the current dry conditions to wetter weather over the next two months, the committees held an extensive discussion on measures to address the anticipated change in weather conditions.
The committees decided to raise public awareness on potential disasters, including floods and landslides that could occur due to increased rainfall. Attention was also given to conducting disaster preparedness drills to familiarise the public with the appropriate measures to be taken in the event of such emergencies.
It was instructed that initial preparedness drills be conducted in the districts of Kandy, Badulla, Matale and Nuwara Eliya, which are considered vulnerable to landslides and that the necessary measures be taken without delay.
The meeting also decided to implement a public awareness programme through electronic and print media. Discussions were also held on the importance of preparing the public in advance by establishing operational centres at Divisional Secretariat level.
In addition, the committees reviewed the progress of relief measures already being implemented for people affected by the prevailing El Niño conditions, as well as the progress of the planned measures ahead.
Minister of Housing, Construction and Water Supply Dr Susil Ranasinghe, Minister of Plantation and Community Infrastructure Samantha Vidyaratne, Secretary/Convener of the Special Cabinet Subcommittee, Chairman of the Officials’ Committee and Chief of Staff to the President Prabath Chandrakeerthi, Secretary to the Ministry of Agriculture, Livestock, Land and Irrigation D. P. Wickramasinghe, Director General of the Department of Meteorology A. L. K. Wijemanne, Director General of the Disaster Management Centre, Major General Sampath Kotuwegoda (retired), Director General of the National Building Research Organisation Dr Gamini Jayatissa, General Manager of the National Water Supply and Drainage Board Engineer T. Bharatheedasan and officials from the relevant institutions were also present at the meeting.
[President’s Media Division]
News
Where is Gnanasara Thera?Police pass buck to court
by Norman Palihawadane
Bodu Bala Sena (BBS) General Secretary Ven. Galagoda Aththe Gnanasara Thera’s whereabouts have remained unknown since the Supreme Court, on Monday, annulled a presidential pardon granted to him in 2019.
Prison officers visited the Thera’s temple in Nawala, Rajagiriya, to take steps to return him to prison to serve the unexpired portion of his six-year sentence. However, monks at the temple had reportedly informed the officials that they were unaware of his whereabouts.
Police spokesman ASP F.U. Wootler said a separate court order was required for the police to trace the Thera, or assist in taking him into prison custody. No such order had been issued so far, he claimed.
Meanwhile, sources close to Gnanasara Thera said he was expected to attend a book launch in Colombo tomorrow (17),
The development follows the Supreme Court declaring the 2019 presidential pardon granted to Gnanasara Thera, by then President Maithripala Sirisena, null and void.
A three-member Supreme Court bench held that the pardon had been granted arbitrarily and violated public trust and principles of natural justice.
Gnanasara Thera had been serving a six-year prison sentence for contempt of court when the then President Sirisena granted him the pardon, in May, 2019. He had served only about nine months of the sentence at the time.
With the pardon annulled, the original sentence remains in force and the Thera is now required to serve the balance of his six-year term.
The Supreme Court ruling has raised questions over the procedure to be followed to return him to prison, with police and prison authorities yet to take custody of him.
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