BY EDWARD THEOPHILUS

Achieving economic stability is a complicated and compact process for Sri Lanka as it requires recovering the negative outcomes gained during the covid restriction period. The results of recent policy performance show enjoyable results such as reducing inflation, which reflect in many countries. However, it would not provide concrete evidence to express the economy is stabilising. It is required to show signs of stability in all areas of the economy, which may be called macroeconomic stability. The way of ascertaining economic stability is based on a comprehensive study of real outcomes of the growth and development in all sectors of the economy compared to the previous period, such a comparison may be shown a misleading picture that might show a stable growth in a limited area. When there was negative growth in previous years, the ascertainment of stability would be misleading, and the determination of stability needs to consider the many areas of the economy. The statements of politicians who are interested in short-term results may not be vital for consideration because the stability of an economy is a dynamic reflection than short-term consideration.

The growth of an economy is an integral process that is related to wide areas. An economy has links with many areas and it is called dynamic nature. The current statements of politicians seem to pedestal on political purposes that might not be an accurate picture. Sri Lanka requires stability in all variables of the economic growth function, which is a broader and multidimensional process. During 2023, it shows that many who were unemployed during the covid restriction period gained work and such visibility is not concrete evidence to state the economy has been stabilised. Economic stability is a theoretical aspect, but popular opinion divulges a picture, which reflects the visibility that major areas of the economy. 

Politicians in Sri Lanka talk about economic stability by looking at the visible picture than the experience of people and real outcomes. It is useful to the public, and it could not visibly evaluate, but is a mental picture that is possible to use for the enjoyment of the public.  During the current uncertain period, many politicians in other countries are also interested in talking about the economy and considering the factors related to development and growth. Giving a strong feeling to voters about the prosperity and the stability of the economy which are convincing voters they have done the right thing to gain stability in the economy attracting votes in the next election would be the aim of politicians.

It is a vital point for politicians to mislead people expressing about the economy and its stability. People can engage in their work without lamenting about future economic repercussions. In Sri Lanka, many people are not concerned about economic stability if they gain sufficient money for survival. That is what they want and the aim of politicians to show the public.

Many Sri Lankan politicians talk about economic stability without understanding the complicated process of the economy and an uncertain process that is associated with the dynamism in the modern era. The economy is a function of entire factors and it is like a living organism that is contributed by multidimensional process of production and services. Many factors or areas are especially vital for economic stability for convincing the public and the business people to gain support for the government. Many consider that the rapid growth of tourism is displaying a sign of economic stability. It is acceptable at the level about 10% and a half truth, and for economic stability needs an aggregate stable growth of all areas in the input-output function. It must be immutable, in such a situation if the tourism business stabilises then it supports to economic stabilisation of the country by influencing entire areas of the economy. 

Large contributing factors such as agriculture, industry, construction and services should be stabilised at a certain level to consider for stable economic development. Tourism is a small area, but macroeconomic factors directly associated with the service industry and it may be involved with other areas of input-output role, such as agriculture, industry, construction, and services. Macro-economically, government policies need to provide positive support through policy development and innovative actions. The reality in Sri Lanka shows that all factors of the Input-output function have not been stabilised by a sudden increase in tourist arrivals. Tourist arrivals directly related to service area, if they purchase productions of the country, it might considerably support for the economic stabilization.

To achieve economic stability, Sri Lanka needs higher growth in major areas such as agriculture, industry, construction, and services. If it considers the agricultural sector, it has been recorded that subsistence agriculture has a declining trend as young people getting away from engaging in direct subsistence agricultural production activities in farms and related ago-based industries. Industrial investment is lower than expected because the industry sector in the modern era needs innovation and productivity concerning consumer preference, however, such advanced technology is not related to the knowledge, skills and research of the country. For example, mobile phone production and related technology development are concerned with innovations to attract consumers and such advanced technology is not a production and research area of the country. The construction sector strongly associates with foreign investment and although it could see an increasing trend as tourist arrivals that are supported to construct more hotels and related buildings. As visible in the country, other sectors such as services are improving slowly.

When considering the above factors, achieving economic stability is not a simple task as the way expressed by politicians. How could culture be influenced in achieving economic stability in Sri Lanka is also a vital question because in many developed countries, culture supported to economic development and growth. In Sri Lanka many cultural aspects such as rules, regulation and behaviour of religious personnel have concerned activities despite economic development and motives of religious clergy against the teaching of religious leaders. This situation is constraint to economic development and stabilisation of the economy.    Culture is a vital area that needs to discuss and the government needs beginning of open debate on how could culture supports stimulating development tasks.

Culture means rule and regulation and the influence of religion and related institutions should extend the support for economic development, however, conflicts among religions have created violence against development work by spreading useless views affecting development work. The anti-social behaviour of some religious institutions shows that they have no mercy for development tasks which bring or empower the society.

Combine revenue of people in Asian society denote the development and the distribution of the combine revenue has very inequalities, countries like India it can observe that few billionaires and millions of people are in below the poverty line. In Sri Lanka this situation shows quite different.

For stabilisation of economy, policy planners need to consider broader aspects rather than looking at temporary changes.