Lending agencies must be alive to people’s suffering: Eran

Monday, 20 March 2023 03:15 - - {{hitsCtrl.values.hits}}

SJB MP Eran Wickramaratne– Pic by Lasantha Kumara

Warns contracting economy will worsen job crisis
Insists Govt. must detail plight of people to donors
Calls for prevention of war between haves and have-nots

By Darshana Abayasingha

Whilst welcoming reports the IMF aid package to Sri Lanka would be finalised today main Opposition SJB MP Eran Wickramaratne yesterday said it was imperative lending agencies also give attention to safeguard vulnerable groups.

Addressing the media Wickramaratne said the country was still in the dark on the modalities of the IMF agreement, and noted some of the proposals are likely to cause a contraction in the economy that could lead to unemployment and loss of earnings. Pointing to the recent hike in electricity tariffs, he said the revision of rates was excessive and heaped immense hardships on poorer segments.

“The IMF package is worth $ 2.9 billion over four years, so we will receive about $ 600 million an year, which is very little. But it is important we obtain this program as it gives confidence to the rest of the world that Sri Lanka has an agreeable plan of action with regards to its economy.

“However, the Government had a duty and responsibility to protect vulnerable groups during these negotiations. There are concerns with regard to the implementation of some proposals that can impact the poor and the working class more than others,” Wickramaratne said.

The MP noted the Sri Lankan economy reportedly contracted by 8% last year, and will continue to contract as a result of some of the austerity measures that come as part of the IMF package. Wickramaratne pointed to the health sector as one vital segment that has been severely impacted, and lamented its impact on human health and public welfare.

He said oncologists had pointed out that Sri Lanka needs over 22 new radiotherapy machines, and only nine older machines are presently available.

“The health sector is severely impacted. Some say that once the IMF agreement is done things will improve but that is not the case, there is still a long way to go.”

Alongside healthcare, Wickramaratne pointed to malnutrition as a serious problem with suicide rates also creeping up amongst youth due to economic despair. Much of the Sri Lankan public have been pushed against the wall, he said.

“Government must be aware that you cannot measure an economy by numbers alone; it must become sensitive to public sentiment and confidence. The Government must not create a war between the haves and the have-nots. The tax-free slab must be raised to Rs. 200,000.

“This Government has no real mandate and that is a concern, they are detached from the people. Where is the social protection? Government must inform donors of the real situation on the ground, and the international community needs to take that into consideration,” the SJB MP added.