President reiterates need for unity and putting national interest before self

• Stresses there is no alternative path to reconstructing economy other than current program

President Ranil Wickre-mesinghe yesterday in yet another special address in Parliament urged for unity with all putting the nation’s well-being first before personal interest.

“I reiterate once more: there exists no alternative path to reconstructing our economy. No other program rivals the efficacy of the one currently in place, nor does any other plan offer a viable alternative. 

This underscores the critical need for a unified agreement and consensus on our economic reform program,” the President told the House.

He said achieving consensus extends beyond the representatives within Parliament. “ It necessitates a unified consensus which is not solely the responsibility of public representatives in Parliament, but also falls upon religious leaders, trade unions, professionals, the business community, non-governmental organisations, various opinion leaders, individuals with social influence, and every citizen. By advancing with agreement and consensus, we have the potential to swiftly elevate our standing as a developed nation on the global stage,” he said.

“Otherwise, prioritising personal interests over the nation’s well-being during this critical juncture, could mark the onset of significant devastation. We implore everyone to recognise these perils and strive towards a unified agreement and consensus for the greater good of the country.

Let’s seize this opportunity to contribute to the recovery and betterment of our country for the benefit of future generations. Together, let’s nurture this endeavour to propel the nation. Our actions today will shape the judgement in the future,” the President told Parliament.

“Will we be labelled as traitors to our nation, or will we get recognised as a group that genuinely cared for our country? That is the decision we must make today,” Wickremesinghe stressed.

In his speech the President also said the following.

I have consistently emphasised the necessity of implementing a continued and long-term program that garners widespread consensus to address the crises facing our nation and prevent recurrence of such tragedies. It is noteworthy that the Opposition has provided crucial support for the economic reforms we have undertaken thus far.

Continued support will be crucial to sustain the momentum of the reform process into the future. Despite facing various challenges, the people have demonstrated their backing for the government’s economic reform program over the past two years.

As a result of the strides made in transitioning from a struggling economy to one that is now stable, our country has surpassed its position from two years ago. Despite the progress, there are certain groups that, unable to tolerate this advancement, trivialise our journey by likening it to an interval in hell. Allow me to address this notion.

Indeed, we found ourselves in a state of economic turmoil akin to hell. However, through meticulous planning and strategic measures, we are gradually emerging from this dire situation. It’s crucial to recognise that deviating from our current trajectory, driven by short-term and narrow objectives lacking a long-term vision, could lead us back into the depths of economic despair. Should this occur, we would all endure a prolonged period of profound hardship and adversity.

It’s encouraging to witness rival political factions increasingly recognising the success of the programs we’ve implemented thus far. Recent observations during the New Year period, reflected in social media comments, indicate a growing trend of cooperative income on the rise, as evidenced by images depicting people flocking to cooperative stores.

While those pictures and comments may have been posted with political intentions, they inadvertently reflect a truth: the improved conditions of the people compared to two years ago. Somewhat more promising than before.

Wickremesinghe also said Sri Lanka has stabilised under the International Monetary Fund (IMF) program but the country has to complete debt restructuring and continue on a reform path to ensure strong growth.

President Wickremesinghe expressed confidence in concluding the foreign debt restructuring process by mid this year. He disclosed ongoing discussions with the Official Creditors Committee (OCC) regarding the proposed memorandum of understanding (MOU) to be signed. Additionally, he mentioned discussions in progress with the Exim Bank of China.

Based on the trajectory of economic growth in 2024 and the corresponding increase in Government revenue, reconsideration of public sector salaries next year is a realistic possibility.

Leaving the current economic program could lead us back into a huge disaster. We have realised several positive outcomes through the program initiated under the IMF’s guidance since September 2022.

It is imperative to exceed mere economic stabilisation and recovery efforts and transition our economy onto a sustainable path. Implementing a formal and swift program to achieve this transformation is essential.

As a small economy heavily reliant on foreign transactions, we must pay more attention to exports. Additionally, we must focus on transitioning towards a green economy while safeguarding the environment. New technical dimensions, including information technology, must be incorporated into economic tasks.

Without these measures, an economy cannot be sustained over the long term. Establishing a social-market economic foundation, ensuring the equitable distribution of benefits from economic reforms across all parts, is crucial.

To boost our economic prowess, we must pursue a trajectory of swift economic expansion. Heightened economic growth will alleviate our debt burden and reduce the cost of living.

Our economy cannot sustainably support loss-making state enterprises that weigh heavily on the people. The Government has presented an alternative procedure to address this issue.

If private sector intervention can effectively manage government enterprises, those entities burdening the people with taxes and losses should be re-evaluated.

The Economic Transformation Bill encompasses provisions for the establishment of key entities such as the Sri Lanka Economic Commission, Investment Infrastructure Corporation, International Trade Institute, National Productivity Commission and Sri Lanka Economic and Trade Institute. The Economic Transformation Bill incorporates a range of measures intended to guide the government’s actions over the long term.

Irrespective of which government assumes power in the future, it is imperative that the provisions outlined in the Act are upheld to prevent the economy from descending into turmoil once more.

He told Parliament this forecast is supported by multiple domestic and international financial institutions. Wickremesinghe noted that inflation has significantly decreased to 1.5% and additionally, the primary account balance, previously in deficit for several years, turned into a surplus of 0.6% of GDP in 2023.

 “For the first time in many decades, a surplus in the current account of the balance of payments was achieved in 2023. Furthermore, interest rates decreased substantially, reaching levels as low as 10-13%,” he said.

Expanding on Sri Lanka›s economic transformation, the President highlighted that tourism has experienced a resurgence and remittances from foreign workers have notably increased. He further noted that by the first quarter of 2024, the exchange rate had fallen to less than Rs. 300 per US dollar, and foreign exchange reserves had surpassed US$ 5 billion, indicating a positive trend towards economic stability.