SJB blames flawed Govt. policies for SME sector collapse

SJB MP Kabir Hashim 

SJB MP Dr. Harsha de Silva

SJB MP Eran Wickramaratne

• SJB MP Kabir Hashim says SME sector’s downfall was not due to COVID-19 but stemmed from incorrect decisions made by Govt. 
• Says Govt. cannot absolve themselves of responsibility by blaming collapse on pandemic 
• Emphasises urgent need for Govt. to provide significant incentives to spur economic growth in SL
• SJB MP Harsha de Silva maintains Govt. introduced OSA to censor social media despite denials 
• SJB MP Eran Wickramaratne says SJB will not tolerate any attempts to delay upcoming polls

The main opposition party, Samagi Jana Balawegaya (SJB), this week attributed the collapse of the country’s Small and Medium Enterprise (SME) sector to the current Government and rejected claims that the COVID-19 pandemic had any involvement in the sector’s downturn.

Speaking at a press conference in Colombo, SJB stalwart MP Kabir Hashim emphasised that the sector’s downfall was not due to the COVID-19 pandemic but rather stemmed from the incorrect decisions made by the Government.

“The Government cannot absolve themselves of responsibility by claiming that the SME sector collapsed due to the COVID-19 pandemic,” Hashim remarked. 

He emphasised that SMEs worldwide encountered similar challenges during the COVID-19 period and highlighted that the IMF had planned to offer funds to support affected businesses. 

The MP criticised Finance Minister Basil Rajapaksa for rejecting the offered funds and said other countries such as Pakistan, Bangladesh and even India had readily accepted the aid offer. 

“When the SJB urged the Government to accept the funds provided by the International Monetary Fund, they accused them of misleading the country by stating that Sri Lanka did not need IMF assistance. Ajith Nivard Cabraal announced that Sri Lanka was set to receive $ 10 billion at that time. This situation ultimately led to the collapse of SMEs,” the MP said. 

The MP also emphasised the urgent need for the Government to provide significant incentives to spur economic growth in the country. Drawing attention to the decrease in the interest rate of Treasury bills in the market, the MP called for small industrialists nationwide to benefit from this development. He argued that granting these entrepreneurs access to reduced interest rates could serve as a catalyst for their recovery and contribute to overall economic revitalisation.

“Also, banks should aid small industrialists by revising the parate law. Through this, some change can be made in the micro economy,” he said. According to Hashim, the Government should have followed a similar relief program for SMEs as the Good Governance Government had following the Easter Sunday attacks. 

Meanwhile, also addressing the press conference, MP Dr. Harsha de Silva commented on the Online Safety Act. 

“Even though assurances were given that the provisions agreed upon in the Supreme Court would be incorporated into the Online Safety Act, it has not been implemented as promised. This discrepancy has been highlighted by the Human Rights Commission,” he said. 

He maintained that the Government’s intention through the act is to censor social media, despite its claims of making amendments to the new law as proposed by concerned parties. 

Also joining in, MP Eran Wickramaratne emphasised that the SJB continues to maintain the abolition of the executive presidency as one of its key policies. He said the Government must not be allowed to postpone polls through talks of abolishing the post. 

“If the Presidential election date is to be changed, there should be a discussion about it. Similarly, if the executive presidency is to be abolished, a referendum will have to be held to decide on it,” he said. 

“Abolishing the executive presidency is a complex process. If the executive presidency is abolished, the country will transition to a cabinet system. Consequently, amendments to the electoral system will also be necessary. With the abolition of the executive presidency, numerous amendments will be required, and it will undoubtedly be a time-consuming process,” the MP noted. 

“There is a method to facilitate this process. The SJB will not tolerate any interference in the upcoming elections in the country. Elections must be conducted in accordance with the Constitution. The current President holds power due to constitutional provisions, not by popular vote. Therefore, the President cannot remain in power for even a single day beyond the constitutional mandate,” he said.