Thursday Nov 21, 2024
Thursday Nov 21, 2024
Saturday, 29 April 2023 00:41 - - {{hitsCtrl.values.hits}}
The Main Opposition party, the Samagi Jana Balawegaya (SJB) has expressed its doubts that the Sri Lankan Government will in fact keep its promises to the IMF. Issuing a statement yesterday on the IMF agreement vote in Parliament, Chief Opposition Whip Lakshman Kiriella noted that the IMF staff-level agreement is aimed at restoring macroeconomic stability and debt sustainability while safeguarding financial sector stability, protecting the vulnerability and stepping up structural reforms to address corruption vulnerabilities and unlock Sri Lanka’s growth potential.
“Therefore, it is incumbent upon the current Government to walk the talk on these promises. However, given its previous actions, it is doubtful whether going forward, the Government will fulfil its promises to the IMF,” he said. The MP noted that the last similar program with the IMF was abruptly ended by the present Government when it came into office in 2019.
The MP in his statement also raised serious concerns about the SJB in supporting the Government to win the approval of Parliament for the agreement. The lack of transparency was one issue of contention. Kiriella said it took the Government 200 days to table with agreement in Parliament even after having reached an understanding with the IMF. He said during this time, the Government did not engage Parliament or the Public Finance Committee to discuss the agreement which raised concerns of transparency.
The inequitable tax burden on the working classes was yet another reason the SJB said it could not support the vote. “In order to raise revenue, the Government has agreed with the IMF to take the easy way out by increasing taxes on the working classes most of whom are already in the tax net. Tax slabs have been narrowed and rates increased sharply. These segments of the population are already weighed down by the burden of high inflation, escalation in energy costs etc. There is no commitment to widen the tax net and ensure enforced collection on the higher income groups which have for years evaded taxes. Taxation of the rich via wealth and inheritance taxes are to be introduced only in 2025,” he said.
The SJB said it is also concerned by the Government’s attempts to continue the use of the current politicised process to target relief payments for the underprivileged instead of developing a scientific and foolproof system that ensures leakages are minimised and the deserving beneficiaries are identified. He also said the absence of safeguards to ensure the stability of the financial services sector through the Sovereign Debt Restructuring process is also a matter of serious concern as it could lead to disastrous consequences for the domestic banking sector. The SJB said due to these and other reasons including the many shortcomings of the agreement the party considers it a futile effort to support the IMF agreement. As a result of this, the SJB led by Sajith Premadasa abstained from voting.
