Chanaka Bandarage
We need dollars; pretty desperately.
The government does not seem to have any idea of earning new dollars.
We are US$100 billion in debt (one of the highest per capita debt ratios in the world). And, we are bankrupt.
The economy is stagnated. The cost of living is sky rocketing. The youth and the middle aged are leaving the country in doves. They are our workforce. The country’s citizens have not seen a new car for 5 years. Even poor African countries import vehicles.
The government continues to rely on conventional methods like income tax, raising tariff on imported goods including food, selling treasury bonds/bills to raise revenue. Even then, what they raise is SL Rs, not dollars.
One best trick to come out of this mess is the urgent injection of a large amount of dollars to the economy. As we cannot print them, the best solution is to seek them from our wealthy Western and Asian friends (countries, institutions and businesses). Such money will give confidence to the government, businesses and people. The market will be energized and start to grow. Having more money, consumers will spend them; enabling the production/surplus to rise. The country will have a healthy GDP with low interest rates. Foreign investments will start to pour in. We will be able to start paying off debts.
Perhaps late Mr Ronnie De Mel was the most successful person in securing us foreign aid. He brought-in to Sri Lanka millions of dollars as aid (yes, he also secured low interest foreign loans).
SJB, who has the best economic team has the idea of convening a ‘Marshall Plan’ type World Aid Conference. They have lots of bright, capable people – surely they will succeed. If we manage to raise USS $7.5 billion from such a Conference, that will go a long way in solving our problems. Ranil raised US 4.5 billion in 2003 (Tokyo Conference). But, as the war continued, that money never materialized.
The SJB is confident that it can get the IMF terms varied, obtain significant haircuts in foreign debt reconstructing and waive off some loans. Good luck to them! The previous government was hopeless in achieving these.
It is sad that the government’s efforts to vary the current IMF terms and conditions failed. Their IMF team was unimpressive.
Clearly the NPP seems lacking people who can make polished presentations to foreign governments/organisations/businesses. SJB and the Cylinder Party have capable people. Ranil talks about the need to have experience. This is a valid point.
The NPP has stacked its Nominations List with professionals – doctors/lawyers/school teachers/former top public servants, university academics (scores of PhDers), retired tri forces/Police officials, trade unionists etc. More than 80% of them has a university degree or similar tertiary qualification. But, most lack grassroots level experience. They have not worked on land/street levels but inside buildings.
Whether they are qualified or not, all candidates must be honest, decent, well-disciplined and well-motivated people. Again, ideally they must be grassroots level workers (R Premadasa is a good example) or must possess experience in closely associating grassroots level people. Such people have real life experience – mingling with the poor. We must not forget that 50% of the country is poor.
The grassroots levels know the meaning of suffering. They know how to solve people’s problems best. They have the desire to alleviate poverty. Some of the NPP’s good grassroots level candidates: Ambiga (tea plucker), graduates such as Vrai, Rizvi (medical Dr), Vijitha H, Samantha V , Nalin H and Wasantha S. The President, Anura KD is reported to have worked as a farm worker when young. The JVP Secretary, Tilvin S was a hospitality labourer. He is a formidable, very pragmatic man. Looking at the SJB and Gas Cylinder lists, very few have come to politics on merit. Most have come thanks to nepotism, cronyism and big-time money.
The government boasted that upon its coming to power the Sri Lankan diaspora will start sending new dollars. This is childish talk (of course, they will keep sending their normal remittances – about US$ 5 billion a year).
The NPP promised to return to government coffers of stolen money (dollars) by former and present corrupt politicians. This is puff.
The government keeps too much faith in tourism. Of course, it is a cock that lays golden eggs. But recent incidents (Easter attack, now Arugam Bay) shows that the cock could suddenly get wiped out. It is wise for the government to bear in mind – ‘do not put all eggs in one basket’.
The government is ambitious on increasing exports. For this, they say productivity will be increased. Also, the government talks about streamlining exports (eg. graphite, phosphate, mineral sands etc): sending them in a new value-added way. All this is good, but they take long time.
After the 14 November 2024 a NPP government will be formed. It must declare to the world that ‘Sri Lanka is Open for Business’. Our embassies/High Commissions should market this campaign heavily. For this, the relevant state departments must be ready to answer all quiries about foreign investment promptly, swiftly and efficiently.
The Port City must be only for foreign investment. Currently plots therein are sold/leased to local businesses at rapid pace (not initiated by this government). These locals come with their corrupt/prejudicial mindset; they can destroy the Port City. They do not bring overseas dollars. What we need is ‘new dollars’. Foreign multinationals/other leading companies bring not only big money (investments must be of over US1 billion) but new ideas/know how, new technology, innovation and skilled foreign white-collar staff. Being an island nation, we need this interaction badly (Gota threw the Indians (doctors and medical staff) out of Apollo, it is a stagnated hospital now).
The government’s recent actions have raised doubts whether or not they could even hit the local targets well. Eg. it reduced fuel prices but the bus fares are still very high for the poor commuter. The 3-wheeler fares (Uber/Pick Me) instead of coming down went up. It gave big subsidies to fishermen, but the fish price is still the same (instead of money, they should have been issued with diesel). The government must practice Enterprise Bargaining. The government struggles in controlling the price of essentials – rice, eggs, coconuts etc. Despite the fact that we have received new passport stocks, the queues at the Immigration Department have become longer.
After the November election, irrespective of their political differences, if they genuinely love Sri Lanka, both Sajith/Ranil (the latter will not be in the parliament) must help/advice the NPP government in good faith especially in relation to attracting foreign investment. The two of them are seasoned veterans, they well know the importance of having new dollars coming to the country.
We must all get together and build Sri Lanka; our small, beautiful island nation. The purpose of these articles is that. Where it is necessary to constructively criticise anyone/entity, one must not be afraid to do so.
Thankfully, we now have a strong anti-corruption government; the country never had such a leadership in its 76-year political history. They are a very disciplined/hardworking lot. For such and other reasons, we must protect it.
It is good that the NPP government will not sell state assets like the Sri Lankan Airlines, Telecom, Sri Lanka Insurance and land to foreigners. We can run all of them profitable – they were all profitable ventures once.
විදේශ කටයුතු අමාත්ය විජිත හේරත් මහතාගේ ප්රධානත්වයෙන් ජාතික මැණික් හා ස්වර්ණාභරණ අධිකාරිය විසින් සංවිධානය කරන ලද Gem Sri Lanka 2025 ප්රදර්ශනය” හඳුන්වාදීමේ වැඩසටහනට ඊයේ(29) දින රුසියානු තානාපති ලෙවන් ධගාරියන් මහතා සහභාගී විය.
Dr. Nandalal Weerasinghe