Government has to blame itself for economic crisis - Harsha

Wednesday, 15 February 2012 00:40 - - {{hitsCtrl.values.hits}}

Says Central Bank ‘miserably politicised’; wants change at the top; warns of public, worker agitation

UNP MP and its chief spokesman on the economy Dr. Harsha de Silva yesterday said the Government has to blame itself and take responsibility for the current economic crisis in the country.

In a statement, Dr. de Silva said: “The Government has no one to blame but itself for this predicament and the public would now realise the vituperative attacks made on its critics were of bad taste and unprofessional. Going forward, we hope for the sake of the millions of innocent people of this country that persons knowledgeable in the subject of economics and modest enough to take criticism from others would be handed over the responsibility to manage this nation’s complex economy.”

The UNP MP said that in complete contrast to the picture painted by Governor Nivard Cabraal and subsequently showcased by politicians, the sad reality of the economy of Sri Lanka has been revealed.

“The mismanagement of the problem, particularly ignoring the ballooning trade deficit and under-pricing energy in an artificially-controlled exchange rate and interest rate regime, had no other possible ending other than the one that is unfolding right before our eyes,” lamented Dr. De Silva, who is also a Consultant Economist.

“The domino effect of the erroneous decision making by the miserably politicised Central Bank, resulting in a massive depreciation and an unprecedented increase in energy prices, will be widespread and felt by all. The enormity of the fallout will become clear in the coming days, with people unable to meet their daily requirements, resulting in worker agitations for salary increases, which could even spin out of control,” the UNP MP claimed.

Last week, Dr. De Silva commended Cabraal for making the right moves in addition to urging greater depreciation. He also said market forces must be allowed to determine the true value of the rupee. However, his statement yesterday revealed the repercussions of inaction or delayed action among other issues on the part of the Central Bank.