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Dr. Harsha de Silva - Pic by Lasantha Kumara
By Darshana Abayasingha
Main Opposition MP, Dr. Harsha De Silva yesterday opined all parties and politicians need to stop deceiving people with fairytales in the run up to elections, and work responsibly to ensure growth and stability of the nation.
The Samagi Jana Balawegaya (SJB) parliamentarian said 2024 will be a difficult year for the country in the face of two major elections, and both politicians and the people must understand there is no way forward for the country without effective restructuring in almost every sector. De Silva said he anticipates the general election to take place first.
“During election time there are those who like to hear and believe fairytales. Some say we don’t need the IMF programme. Others say they will catch thieves and bring stolen money home. Then they say there will be no restructuring of state institutions or need for FTAs. These parties claim to have a plan outside such expectations.
These promises are good for the uninitiated. If we lie to the people again and promise to do magic simply to win an election, this country will crash in a short span even just three months. We must all act with responsibility,” De Silva stated.
The SJB Economic Council member noted there is a degree of economic equilibrium in the country, and the Government keeps pointing to the lack of queues for fuel and gas. But the country is in a much different position to where it was pre-crisis. He noted whilst a family required just Rs. 75,000 to survive a month back then, the same family now requires Rs. 175,000 within a short span as pointed out by the department of statistics. De Silva said Sri Lanka is in a despondent state due to pandering to ultra-socialist policies, and had the country followed the footsteps of the late President Premadasa and focused on boosting productivity and industry, the country would have been on a much different footing. He noted most major Indian cities are larger than the Sri Lankan economy, and they had achieved this by opening up and loosening the state’s grip on the economy.
“We are still in a difficult state and we have got to enhance state revenue. People are struggling due to the measures taken to do so. But, on the other side, if we do not push revenue targets and move away from the IMF programme, that too would pose serious challenges. If we steer away from the programme, we have to ask ourselves who might be willing to give us a hand to get up after that? Would any country be willing to help multiple times, when we have not helped ourselves. It is a difficult balance, but we have a plan. There are limits to everything. There is no way we can go forward without restructuring our economy, our state institutions and adopting innovation,” the SJB MP noted.
De Silva pointed out that public consumption will reduce due to high taxes, which would have an impact on the SME sector and even large corporates to create jobs. This will impact economic growth. Whilst the Government hopes to double VAT earnings next year, this would become difficult when people don’t have capacity to spend. However, you cannot manage a country by rejecting all taxes, he mused, pointing to some socialist parties who have rejected the proposed property tax that would target the wealthy. However, sadly much of the country’s tax revenue is directed towards paying for loss-making state institutions.
“Debt restructuring is a key part of the process. The restructuring of Paris Club debt has been agreed, but not signed yet. Then comes International Sovereign Bonds or commercial debt. That can only be done only after the first step. This is like a domino effect; one compliments the other. If someone says the assistance we have obtained through the IMF is illegal, that is a foolish statement. We must also understand that restructuring does not mean sale of state assets. A sale is just one possible aspect. Institutions can be divested at different values based on the sector and requirement. It enhances profitability and productivity and reduces the tax burden on people like it has done in Singapore,” De Silva said.
The SJB MP said the party has already presented two blueprints for the economy at various junctures, and a third proposal would be presented in February next year befitting the current position. De Silva notes the SJB is willing to work with any party at the election that agrees to its economic agenda and is free of corruption.
