TMC members share feedback on Dr. Harsha de Silva’s talk on the way forward

• Following is the feedback shared by TMC members on Dr. Harsha de Silva’s insightful talk, ‘Ramifications and Implications: The way forward’

TMC Board of Management Vice President Deepal Abeysekera 

Sri Lanka has lived beyond its means. By its people and business equally. Profit generation in the local operation does not provide the capacity for cross-border expenditure to acquire assets. And to secure essentials. With less regard for Balance of Payment issues and concern for widening trade deficit, this accident was inevitable. Populist political ideologies over the decades with no economic sense made it acute. Strategies to improve the negative current account deserved to be a key item in the political agenda. 

Harsha’s effort as an economist overrunning the interests of the familiar politicians we meet around, not ignoring the collective needs and views of the stakeholders is a vital part of the real change people are crying for. 

TMC Board of Management Vice President Trevor Reckerman

The presentation focusing on the immediate short-term response to the financial crisis that has gripped Sri Lanka, is typically a Dr. Harsha approach. Drawing on a finely tuned intellect that aligns the financial meltdown with its political implications, Dr. Harsha lays bare the minimum actions required to be taken by the SL Government on several monetary and fiscal initiatives. His emphasis that the complex debt restructure is incumbent on political stability needed no amplification. 

So, appropriately, he laboured on the complex issues of the entire financial disciplines that are fundamental to the process. While he outlined the redress that is sought from the IMF-led plan, the need for multilateral back-up (Paris Club) and the singular support of China was clearly articulated. Cost management of the public service signified by the irrational allocations to military spending and similar irregularities such as the white elephants based in Hambantota, and the abject management of key SOEs, he stressed, needed to be reined in quickly. 

If there was some ambivalence in the structured model he presented, it was the paucity of a political framework, underpinned by the infighting we see among the political forces in the country. Hopefully, we will see a multi-party or some form of unified governance, otherwise a well-honed economic plan, however well designed, would be severely undermined by divisive alleys of power. The Harsha mantra could work, but it will need a never before seen national unity at all levels.                      

TMC Board of Management Vice President Jude Joseph

After a very long years of waiting, we were privileged to listen to an astute economist Dr. Harsha de Silva, with profound presentation skills and excellent articulative ability. His in-depth views and analysis, enabled the distinguished small audience of management professionals and entrepreneurs to understand and comprehend the current complex economic situation prevailing in our country.

Dr. Harsha de Silva demonstrated his thorough understanding of the economic woes of our country and the responsibilities vested upon the shoulders of the forthcoming interim national Government. He dissected all critical issues with clinical precision, thus making us understand the predicament our country is facing forthwith.

We could all understand his emotional burst, especially with regard to the carelessly mismanaged national wealth, corruption, depletion of foreign currency reserves and sovereign debts which are mainly attributable to incompetent and irresponsible political leadership and the governing bodies.

Despite the well-articulated presentation, we all were reluctantly compelled to return home with many unknowns, raising concerns with a glimmer of hope on the future of Sri Lanka. “Aren’t we all guilty of electing an incompetent Government with our democratic franchise? “The future depends on what we do in the present” – Mahatma Gandhi.           

TMC Member V. Satyendra

The presentation by Dr. Harsha de Silva MP organised by our Club was very timely and informative.

Dr. de Silva was candid in his opinion and enthusiastic in his presentation amongst the gathering of professionals.

The subject, ‘Common minimum program for economic recovery’, a discussion document for relevant stakeholders. A 10-point macro level presentation with strategic direction and action plans under each macro points. Some of the topics presented and discussed in detail included macro-economic stability for IMF way forward, debt sustainability analysis, foreign debt versus domestic debt restructure and if the restructuring of the domestic debt also includes a haircut, the repercussions on local pension funds and bank savings, etc.

A further deliberated point was transparency and accountability. The audience questioned Dr. de Silva vehemently on this point which brought out discussions of several scenarios. Social safety net, to the vulnerable population, the writer questioned the validity of the PUCSL’s view on subsidising power cost of the lower end consumers of CEB against their monthly telephone bills paid by this sector comparatively.

The point on fiscal deficits and public expenditure, including recurrent defence budget was a topic that enumerated several questions from the audience and Dr. de Silva patiently and passionately engaged with them on that subject. Further, the subjects discussed in length by Dr. de Silva included – management of SOEs, revenue consolidation, trade and industry and specialised legislations critical for recovery.

The interesting note was the matrix which elaborated the several proposals made on this subject by numerous stakeholders such as professional think tanks, groups of young economists, NGOs and some political parties. The matrix exhibited the commonalities and agreement in several points between these stakeholders which gave us hope that a well thought out and discussed recovery plan is possible for our country and people.