Features
The debate against seeking IMF assistance was always flawed
by Sanjeewa Jayaweera
Despite the country being amid an economic Armageddon, a few individuals from the “old left” are still talking and writing nonsense. Prof. Tissa Vitarana (TV) and Vasudeva Nanayakkara (VN), both MPs, have expressed their vehement opposition to seeking a financial arrangement with the International Monetary Fund (IMF). It is a fact that neither gentleman represents the voice of the people. One is in parliament through the national list because he was otherwise un-electable and the other also needed accomodation from the SLPP to get returned. They should have gracefully retired from parliament long ago and allowed younger politicians to take their positions. I suppose wielding even limited political power is an aphrodisiac for even the most committed socialist!
A few other armchair writers have also expressed their opposition to seeking IMF assistance and critiquing neo-liberal economic theory. However, I am confident that many of them have never owned or managed an enterprise and been responsible for generating employment, managing cash flow, ensuring the sustainability of the business and other challenges that an entrepreneur has to overcome. What is theorized when not in a position of authority versus the realities when in power are poles apart.
Punish the Gang of Four for their mistakes
It is now widely accepted that the former Governors of the Central Bank, Professor W D Lakshman and Nivard Cabraal, and the Treasury Secretary S.R. Attygalle and P B Jayasundara, the Secretary to the President (Gang of Four), are responsible for the economic catastrophe that we are currently enduring. The so-called “homegrown” solution they spoke about never materialized.
Their policy decisions to reduce taxes, print money, and maintain low-interest rates and a forced exchange rate that was unrealistic are now acknowledged by many as the cause of the destruction of the country’s economy and the immense suffering we are undergoing. They steadfastly refused to seek the assistance of the IMF and restructure the foreign currency debt. Those who argued against such policies were ignored and labeled as “doomsday advocates.” The international rating agencies were criticized for downgrading the country’s credit rating. It is unfortunate that Ali Sabry, the current Finance Minister, is only now acknowledging the many mistakes made by the government. A case of closing the stable door after the horse has bolted.
In my view, the Gang of Four must be charged and prosecuted in a court of law for crimes against humanity. Undoubtedly, they failed as public servants in discharging their fiduciary duties. Unlike our uneducated politicians, they had a formal university/professional education, and as such, their guilt for the mistakes made and for the suffering we are undergoing is inexcusable.
Anura Priyadarshana Yapa, MP, stated in parliament that the decision to float the rupee overnight without having the tools to defend it had been taken unilaterally despite the IMF and other experts insisting that it be done gradually. Whenever there was mention that GOSL was contemplating going to the IMF, Cabraal would issue a Twitter message stating that was not the case. He insisted on paying US $ 500 million of International Sovereign Bonds that matured in January 2022 despite many independent economists and corporate sector leaders saying that the money should be preserved for the people. There needs to be an enquiry as to why the ISBs were settled and why the rupee was floated overnight. In addition, The Institute of Chartered Accountants of Sri Lanka needs to seriously consider debarring the membership of Cabraal for bringing disrepute to the Institute.
Why the President and PM should resign
There is no doubt that the President, Prime Minister, and the Cabinet need to accept full responsibility for the disaster that has befallen the country. Attempting to wash their hands off by stating that the Gang of Four is responsible will not do. Their incompetence and arrogance have resulted in causing so much anguish and suffering to the people. The goodwill and even adulation that existed for the President and the PM for ending the civil war has been replaced with anger and hatred. To believe otherwise would be a monumental mistake.
Many independent experts from inception criticized the decision to ban chemical fertilizers and forewarned the severe consequences. However, their views were ignored and ridiculed. It is not good enough to say, “yes, I agree that I made a mistake”, but “let’s look for the solutions and not who was responsible for the mistakes.”
Many believe that the mistakes made are due to a lack of economic and financial knowledge and incompetence. The need of the hour is to accept responsibility for the errors made and resign so that competent people can take over. Similar to the Gang of Four, politicians too should be subjected to a commission of inquiry and punished for crimes ranging from incompetence to corruption.
Retrenching and re-skilling surplus public sector employees
The debate against seeking IMF assistance in view was always flawed. It is common sense that if your expenses consistently exceed your revenue, you need to reduce the expenditure whether the IMF mandates it or not. When reduced during an economic upheaval, government expenditure is referred to as “austerity”, a dirty word to those on the left. That austerity measures are needed due to reckless spending is conveniently forgotten. Many who have been responsible for managing the bottom line of an enterprise know that if 80 per cent of the revenue is spent on salaries, then there is no other option than going bankrupt unless steps are taken to reduce the expenditure.
In Sri Lanka, we face this predicament because successive governments gave nonexistent government jobs to party supporters and graduates unable or refusing to fit into the private sector. The inducement for seeking a government job ranges from a lifetime non-contributory pension, poor work ethic and lack of accountability for non-performance.
I came across a research document a couple of years back where it was disclosed that there are 320,000 peons and drivers in the public sector accounting for 17 per cent of the workforce. That the peons are non-productive is a fact as maybe most drivers. It is also stated that of the 1.5 million public servants, the country’s requirement is for only 800,000. In all probability, it could be pruned down further if better productivity is achieved. The question is whether the government will continue to employ the surplus workforce or steps taken to retrench and reskill them in the areas that require them.
During my tenure in the private sector, I was involved in both the manufacturing and retail industries, where there was a significant shortage of human resources. Similarly, the construction and garment industries also face a chronic labour shortage. Those who are surplus and are retrenched and reskilled will need to come to terms with a change in work practices. The need to work shifts requires either reporting to work by 7 a.m. or finishing work at 10 p.m. In addition, they will need to work weekends and even public holidays. The question is, how many of our people are prepared to do the hard grind?
There will also be a need for employers to re-look at the wage structure and raise the minimum wages. That there will be no lifetime pension, but only a provident fund contributed by the employer and the employee accumulated during the period of employment will be another discipline that needs to be learnt. That the provident fund collected on retirement needs to be prudently invested and managed will hopefully enhance the financial acumen of the average citizen.
My comments are based on actual experiences during my working career and discussions with others involved in the business. For example, I recall the owner of a construction company who was building a factory lamenting that he had a daily shortfall of about 150 labourers and that many skilled workers such as masons, electricians and plumbers had given up working in the industry to be three-wheeler drivers.
The folly of not pricing at cost
It is only now that the folly of not pricing fuel, electricity, and gas at least at cost is acknowledged by all and sundry. That the country’s long-term economic well-being was subordinated as politicians feared actions to increase prices would result in them losing the next election was lost among the electorate. Despite spiraling world prices, we all got used to driving our vehicles to the petrol stations whenever we wanted and pumped whatever we wanted. Similarly, we were happy and contented that electricity tariffs were not adjusted for eight long years despite the Ceylon Electricity Board losing billions.
When there was a shortfall of hydro and coal power, we expected the government to supply uninterrupted electricity at whatever cost and believed that a surcharge to recover the additional cost should not be implemented. When gas prices soared, we expected the additional cost not to be passed on to us. The rich and the middle class were happy to accept and enjoy lower income tax rates despite knowing that reducing taxes without an appropriate reduction in expenses would result in a financial crisis. Why worry when it is someone else’s problem!
The mistakes made by us, the electorate, over several decades are now truly upon us. The disclosure by the finance minister in his recent parliamentary speech that the country has only about US $ 50 million usable foreign reserves sent shivers down my spine. That we will need to beg and borrow to just survive from all and sundry is indeed a fact. However, I doubt that many still understand how serious is our predicament. That life will get even more unbearable is as sure as the sun will rise tomorrow. So to all those who still pontificate that we should not go to the IMF, my message is “just grow up.”
Features
The challenge of being positive about SAARC
It was a few years back that a former President of Sri Lanka took it on himself to pronounce SAARC ‘dead’. Since then there have been other sections of Sri Lankan opinion that have joined the critics of SAARC and taken the solemn stance that SAARC has indeed died what may be called a natural death.
Their fatalism is understandable. SAARC has failed to meet at heads of government or state level for the past several years to take the SAARC process notably forward. Regional cooperation has more or less been only an appealing idea. No substantive concrete projects have taken off to make the idea a hard reality. ‘Inner paralysis’ seems to be SAARC’s lot. Hence the fatalism in these circles.
However, being one of the worst cash-strapped regions of the world and a teemingly populated one with people virtually left to their devices, what choices do the ‘SAARC Eight’ have other than to try their best to band together and continue with their cooperation efforts, however small they may be?
There is no escaping the mounting debt trap for many of these countries and bankrupt Sri Lanka is a glaring example, but ‘throwing in the towel’ and abandoning themselves entirely to the diktats of the strongest economies and their agencies will prove a ‘living death’ for many countries in the SAARC fold.
The gains may be meagre but giving-up on SAARC cooperation in full would prove self-defeating for the organization and South Asia. Right now, the collective intention ought to be to salvage what the region could from the tenuous cooperative efforts. Moreover, such initiatives could go some distance to generate a degree of goodwill among the Eight and help in sustaining a dialogue process.
Given this backdrop it proved ‘a stich in time’ for the Regional Centre for Strategic Studies (RCSS), Colombo, to recently host the SAARC Secretary General Ambassador Md. Golam Sarwar to a round table discussion on the unifying potential of SAARC and its future possibilities, besides other related issue areas.
Held on June 24th and moderated by RCSS Executive Director and former ambassador Ravinatha Aryasinha, the forum brought together a vibrant, wide ranging audience comprising academicians, diplomats, senior public servants, civil society activists and many others. Following the presentation by Ambassador Golam Sarwar titled, ‘Reigniting SAARC: Achievements, Challenges and the Way Ahead’, a lively Q&A followed.
The above forum could be described as an act of lighting the proverbial ‘candle’ rather than ‘cursing the darkness.’ It surely is a ‘darkness’ that could be seen as daunting considering that the region’s pivotal powers, India and Pakistan, are failing to act in a spirit of accord but are engaged in bitter finger-pointing on a number of questions of vital importance to SAARC.
On the other hand, what is the rest of the region doing to bring the above sides together? It is disappointing that to date the rest of SAARC has failed to launch a major diplomatic drive to bring peace between the feuding regional heavyweights. It needs to act without delay and establish its earnestness and this effort would need to prove SAARC’s staying power in the unfolding months and even years.
In assessing SAARC’s seeming failure local opinion in particular has failed to factor in what could be described as weak leadership. Since Sheikh Mujibur Rahman of Bangladesh, the founding father of SAARC, the region has failed to produce a visionary leader who could advance the SAARC cause with charisma and drive.
Among other reasons, weak leadership accounts considerably for the faltering and stuttering status, as it were, of SAARC. Badly needed are leaders who could go the extra mile, think less of narrow national interests and work diligently towards the collective well being of the region but SAARC’s millions of ordinary people have been made to wait in vain for leaders of such stature. Instead, they have been burdened with politicians who seem to be relishing the apparently moribund state of SAARC.
Looking back, it could be said that it was the dynamic leadership factor that led to the launching of the Non-Aligned Movement and for its sustenance for a few decades. True, it could be seen in some quarters that NAM is no more, but as in the case of SAARC, the former too has been unfortunate to be burdened over the years with politicians who lack the vision and drive to unflaggingly advance the fortunes of the South. NAM and SAARC lack the dynamism and vision of leaders of the stature of Jawaharlal Nehru, for example, to give them the required guidance and intellectual depth.
The reasons are complex for there not being among us currently political leaders with the vision and the steadfast commitment to advance the legitimate interests of the South. However, it could be stated with conviction that the majority of Southern leaders have too easily caved in to the demands of the global North and its financial agencies.
These leaders have failed to see, for instance, that the largely market economy oriented Northern governments would not view with favour a centrist economic model that attaches priority to the interests of the dis-empowered publics of the South. This realization ought to have dawned on the current government in Sri Lanka, for instance, some while ago but it has no choice but to abide by IMF dictates since economic survival at present is unthinkable without the latter’s succour.
Accordingly for SAARC this should be the time for some soul-searching. Priority needs to be attached to ending the feuding between India and Pakistan since at present the material fortunes of the region hinge largely on these regional giants giving peaceful relations among them a try. This is no easy challenge to meet but some daring, visionary diplomacy needs to take hold among the rest of SAARC.
There is some sense in SAARC bringing the peoples of the region together through programs that address their best collective interests. A meeting of minds among SAARC nations could enable SAARC and its agencies to build a region-wide people’s movement for progressive political and economic change that could in turn lead to the region’s political leaders sensitizing themselves more to the neglected needs of their publics.
However, the time is ‘now’ for the initiation of these progressive changes and the voice of SAARC well wishers would need to drown out those of their critics.
Features
OPA seminar examines Sri Lanka’s economic recovery, resilience and growth pathways
A seminar, “Sri Lanka’s Economic Crossroads: Navigating Recovery, Resilience and Growth” was recently held by the Organisation of Professional Associations of Sri Lanka (OPA) at the OPA Auditorium, bringing together economists, OPA members, and professionals from diverse fields for an insightful discussion on Sri Lanka’s economic recovery and future growth prospects.
The event was held under the patronage of Jayantha Gallehewa, President of the OPA, and was jointly organised by the National Issues Committee (NIC) and the Seminars, Workshops and Programmes Committee of the OPA. The event reaffirmed the organisation’s commitment to advancing professional excellence, fostering insightful intellectual engagement, facilitating interdisciplinary knowledge exchange and creating a constructive platform for informed dialogue on issues of national importance.
The panel of speakers comprised Dr. Harsha Aturupane, Lead Economist and Programme Leader for Human Development at the World Bank for Sri Lanka and the Maldives; Dr. Achinthya Koswatta, Senior Lecturer in Economics at the Open University of Sri Lanka, and Anushan Kapilan, Lead Economist at Verité Research.
In his welcome address, the President of the OPA emphasised that Sri Lanka was at a critical juncture in its economic recovery journey where sustained reforms, effective implementation, and collective national commitment are essential to achieving long-term stability, resilience and inclusive growth. He noted that the country had experienced one of the most severe economic crises in its history with the economy contracting by 7.8 percent in 2022 and a further 11.5 percent in 2023, resulting in significant economic and social challenges.
Delivering his introductory remarks Bhanu Wijeyaratne, Vice President of the OPA and Chairman of the National Issues Committee, underscored the need to move beyond short-term economic stabilisation towards a comprehensive agenda of structural transformation. He observed that the economic crisis had revealed deep-rooted weaknesses within the economy, including persistent fiscal pressures, rising public debt, foreign exchange limitations, and insufficient diversification of the export base. He stressed that addressing these challenges through strategic reforms, institutional strengthening and long-term economic planning would be essential to establishing a more resilient and competitive economy.
While acknowledging recent positive developments, including improved inflation management, tourism recovery and signs of economic stabilisation, Wijeyaratne stressed the need to advance reforms aimed at strengthening fiscal discipline, enhancing productivity, improving competitiveness, developing human capital and reinforcing governance and institutional effectiveness.
He further highlighted the important role of professionals, businesses, academia and other stakeholders in contributing to evidence-based dialogue and supporting Sri Lanka’s journey towards a resilient, inclusive and sustainable economic future.
Delivering the keynote presentation, Dr. Harsha Aturupane provided a comprehensive assessment of Sri Lanka’s economic prospects within the broader context of global economic transformation. He argued that Sri Lanka functioned as a small open economy whose performance is significantly influenced by developments in the global marketplace. External factors could not be controlled, and the country must strengthen its domestic capacity and resilience to respond effectively to international economic shifts, he noted.
Tracing the evolution of global economic systems, Dr. Aturupane highlighted the transition from ideological divisions between state-controlled and market-oriented economies towards increasingly pragmatic approaches focused on growth, competitiveness and development. He noted that Sri Lanka’s own economic journey reflects a similar evolution, with contemporary policy debates now centred on practical solutions for sustainable economic progress.
The presentation also examined the transformative impact of globalisation. Dr. Aturupane observed that global economic integration had enabled several East Asian economies, including South Korea, Singapore, Taiwan and Hong Kong, to achieve remarkable economic advancement through export-led growth strategies. Sri Lanka similarly benefited from this process through the expansion of its apparel industry and increased integration into global value chains.
Turning to Sri Lanka’s recovery programme, Dr. Aturupane emphasised that the ongoing stabilisation process should be viewed as a national programme supported by the International Monetary Fund rather than solely as an IMF initiative. He observed that strong worker remittances, improved tourism earnings, enhanced government revenue mobilisation and prudent import management have contributed significantly to economic stabilisation.
Despite this progress, he cautioned that rebuilding foreign exchange reserves and meeting future debt obligations remain major challenges. He underscored the need to strengthen export performance, attract investment and generate sustainable foreign exchange earnings to ensure long-term economic resilience.
The discussion also focused on monetary stability, inflation management and exchange-rate policy. Dr. Aturupane stressed that maintaining price stability was fundamental to sustainable growth and household welfare, while sound monetary policy remains essential for preserving economic confidence.
Looking beyond stabilisation, he argued that Sri Lanka must transition towards a broader economic transformation agenda. Sustainable growth, he noted, will depend on expanding productive capacity through investment, technological advancement, innovation, skills development and structural reforms.
Among the key constraints identified was the high cost of energy, which continues to affect competitiveness and investment attractiveness. Dr. Aturupane emphasised the importance of improving efficiency and affordability within the energy sector to enhance Sri Lanka’s business environment.
He further highlighted the social dimensions of the crisis, noting the rise in poverty and economic vulnerability among households. Strengthening social protection systems and ensuring inclusive growth, he argued, must remain central components of the national development agenda.
Another critical challenge identified was Sri Lanka’s demographic transition. With an ageing population, outward migration and evolving labour market dynamics, the country is increasingly confronting labour shortages in several sectors. Dr. Aturupane suggested that greater automation, increased labour-force participation and strategic workforce planning would be necessary to address these emerging realities.
Concluding his presentation, he emphasised the need to improve governance, strengthen institutions, enhance competitiveness and create an enabling environment for private sector investment. Sri Lanka’s future success, he noted, will depend on its ability to move decisively beyond crisis management towards a development model founded on resilience, innovation, productivity and inclusive growth.
Dr. Achinthya Koswatta reiterated the importance of policy consistency and predictability in fostering investment and industrial development. She observed that frequent policy changes create uncertainty and discourage long-term investment decisions, whereas stable and coherent policy frameworks build confidence and support sustainable economic transformation.
Meanwhile, Anushan Kapilan highlighted the substantial progress achieved in restoring macroeconomic stability following the recent crisis. He noted significant improvements in fiscal performance, including increased government revenue, reduced reliance on debt financing and a historically low fiscal deficit.
He further observed that public debt levels are declining faster than anticipated, economic growth has exceeded expectations and inflation has been brought under control more rapidly than forecast. Nevertheless, he cautioned that the recovery remains uneven, particularly within the industrial sector and that many households have yet to experience a meaningful improvement in living standards.
The seminar was expertly coordinated by Eng. Chamil Edirimuni, Vice President of the OPA and Chairman of the Seminars, Workshops and Programmes Committee, while the technical moderation and interactive discussion session were facilitated by Bhanu Wijeyaratne, Vice President of the OPA and Chairman of the National Issues Committee.
The event was attended by Tisara De Silva, President-Elect of the OPA, Eng. Ravi Rupasinghe, General Secretary, Past Presidents, members of the Executive Council, representatives of the General Forum and professionals representing a wide range of disciplines.
The seminar concluded with a vibrant exchange of ideas and perspectives, reaffirming the importance of evidence-based policy dialogue, institutional collaboration and collective national commitment in advancing Sri Lanka’s economic recovery, resilience and sustainable growth.
Features
Her roots run deep in Sri Lanka
Yes, for UK-based presenter and artiste Samantha Kay, home is where the heart – and the roots – are. And her roots run deep in Sri Lanka.
In an exclusive interview with The Island, Samantha says “I’m proud to be Sri Lankan. My mum is from Kandy and my dad is from Colombo, so Sri Lanka has always held a very special place in my heart.
“Whenever I visit Sri Lanka, I love spending time on the beautiful south coast, especially Hikkaduwa and Mirissa. It’s somewhere I always feel connected to my roots and completely at peace.”
Now living in Bournemouth, on the south coast of England, where, she says, she is lucky to be close to some of the UK’s most beautiful beaches, including the iconic Sandbanks, Samantha has built a career that refuses to fit into one box.
She is a radio presenter, podcast host, singer-songwriter, personal trainer and life coach.
“I genuinely love the variety because every role allows me to connect with people and, hopefully, make a positive difference in someone’s day.”
Of course, music has taken her far.
One of her proudest achievements, she says, was releasing a song with 90s music icon Angie Brown, which reached No. 9 in the UK Club Charts.
She also reached the final stages of The X Factor and performed at Wembley Stadium in front of thousands.
Beyond music, Samantha competed in bikini bodybuilding across the UK, winning several titles. “It taught me discipline, resilience and self-belief,” she recalls.
Today, her focus is on radio, podcasting and coaching women. Her podcast encourages people to live life on their own terms rather than feeling pressured to follow society’s expectations.
Says Samantha: “Whether someone is single, changing careers, travelling solo or simply trying to find their purpose, I want them to know that it’s never too late to create a life that feels authentic. If you’ve ever felt like you don’t fit into the box, maybe you were never meant to.”
Samantha Kay also spent a year in Dubai, performing at five-star hotels, including FIVE, and coaching at the iconic outdoor gym on Palm Jumeirah.
“I taught strength and conditioning classes, and hosted wellness retreats, combining my passion for music, health and inspiring others.”
However, with family matters calling her back to the UK, she made the choice to return. “Family comes first,” she says.
Looking ahead, Samantha plans to grow her radio and podcast work, release more music, and expand her wellness retreats.
“My biggest passion is helping people, especially women, build confidence and believe in themselves,” she says.
“Wherever my career takes me, I hope to continue inspiring others to live with courage, kindness and authenticity, while never forgetting my Sri Lankan roots.”
-
News7 days agoHerath warns prospective migrant workers not to get fleeced by racketeers
-
Features5 days agoPrison riots and politics: NPP’s biggest challenge and Sri Lanka’s biggest opportunity
-
Editorial6 days agoWhat’s the world coming to?
-
Foreign News7 days agoTensions erupt in Indian state after 11-year-old raped and murdered
-
Features7 days agoDevanesan Annan – in Memoriam
-
Editorial7 days agoPunishment in hellholes
-
Features2 days agoDirty Money
-
Editorial5 days agoMuch ado about crime: Fish or cut bait
