A thrilling new year

A NEW year has dawned with new expectations and new goals. For Sri Lanka it is a new chapter to build on its opportunities and realise its potential and the stakes are higher than they have ever been. 

The year 2015 has been inked into history. It started with the most unprecedented of upsets when former President Mahinda Rajapaksa lost early presidential elections. After a decade in power it was almost inconceivable that the common Opposition would edge its way to the finishing line but the people were ready for change and made sure it was achieved in the right way. 

The new president and his Government had much to sort out and achieve. Yet it seemed the year was scripted by an all-powerful hand for their benefit. In August the Sirisena-Wickremesinghe combination prevailed once again and a National Government was formed. The fresh frontier that was formed in politics swiftly spilled over into all other aspects of reality. 

Many members of the public would acknowledge that key pledges made by the Sirisena administration are yet to be fully achieved. The National Government promised an end to corruption, nepotism, politicisation, cronyism and favouritism yet many would insist these goals have not been fully met. Stalwarts of the former administration were absorbed into the new one and business resumed as usual. 

Top politicians of the former regime breeze on with life unscathed by any serious graft investigations. Institutions critical for good governance have been given new faces but have failed to win public confidence. 

The young, dynamic professional and competent people the public hoped would come to the forefront have remained in the shadows. Without the right people, in the right places, putting the right systems in place the Government may not have the competence to take bold steps that are essential for Sri Lanka’s economy.  

Whether it is the Megapolis, liberalising the economy, encouraging foreign investment or forming a new Constitution, it is imperative that the Government finds the right people for the job. Key projects such as Megapolis are at the core of the Government’s development agenda and have to be driven forward with clear goals, agendas and public participation that have been strongly absent so far. Only then can they achieve sustainable development. Appointing officials and companies which lack experience and the common touch could make such projects hollow. 

As a responsible Government there also has to be better economic management. The Government is tasked with the repayment of $ 4.3 billion in debt in 2016 and while it will almost certainly have to borrow more to meet these payments it must also improve its fiscal discipline to protect Sri Lanka from slow growth and volatilities of the global market. 

With 2016 already showing signs of a hard year the Government will have its work cut out to maintain capital investment and public expenditure at the same rates. All indications so far are that the Government will take the easy road of more borrowing and kick the can further down the road. 

On the eve of 2016 the expected rate change did not happen. But much depends on the decision of the US Federal Reserve. If rates increase later this year then the Central Bank may have no choice but to move towards a rate hike that would place pressure on consumption and reduce capital availability for investment. With such high stakes 2016 could prove as thrilling as its predecessor.