Good news claimed by Govt. yet to be seen in the flesh: SJB

Thursday, 18 July 2024 05:13 - - {{hitsCtrl.values.hits}}

SJB MP Dr. Harsha de Silva shows off the Daily FT issue of Tuesday at the media briefing yesterday – Pic by Lasantha Kumara

Says external debt restructuring deal yet to be tabled in Parliament
Warns delays could impact IMF program
Claims public still pressed with economic hardships

By Darshana Abayasingha

The main Opposition, Samagi Jana Balawegaya (SJB), yesterday charged that despite Government claims the worst of the economic crisis is over and external debt restructuring measures have made significant progress, no such good news seems to have come.

Addressing the media yesterday, SJB MP, Dr. Harsha De Silva, said despite claims that bilateral restructuring deals have been reached, no such agreement has been tabled before Parliament. If debt restructuring deals are further delayed this could impact the IMF deal, De Silva warned.

In addition to the lack of clarity surrounding debt restructuring, the SJB said that several market surveys have shown that over 91% of the population are forced to spend more than they earn.

Citing Tuesday’s Daily FT Guest Column titled “IMF forgotten the SL housewife?” by Rohantha Athukorala, the SJB MP said following the economic crisis, poverty in Sri Lanka more than doubled with over seven million people now living below the poverty line, whilst urban poverty grew by 18%, then 36% in the periphery and 51% within the estate sector. They added that items that cost Rs. 100 in 2021 now cost over Rs. 246. The Middle Class has been burdened with excessive income tax of over 36%, rendering most houses unable to manage their finances, and needs serious reconsideration, the SJB MPs said.

“How do we bring PAYE taxes down to more manageable levels, and at the same time stay within our revenue targets. They should come down to about 24%. The SJB policy team is looking at these aspects very deeply, as all sections of society are pressed by the prevalent conditions,” De Silva added. “We will have to work within the framework the President has agreed with the IMF. Nonetheless, we are committed to negotiate with the IMF and achieve some structural changes over the short to medium term,” he said.

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