SJB doubts President’s projections, says no plan to tackle China

SJB Parliamentarian Dr. Harsha de Silva

SJB Parliamentarian Eran Wickramaratne

• MP Dr. Harsha de Silva says plans envisaged are unrealistic 
• Affirms SJB will support implementation of 13A 
• MP Eran Wickramaratne says President made no mention of reducing State cost, only of boosting income via taxes burdening people

By Darshana Abayasingha 

The main Opposition, Samagi Jana Balavegaya (SJB), yesterday charged that the Government is yet to present a plan on how it will tackle the issue of restructuring bilateral debt with China, insisting the regime together with the President must ensure implementation of the Constitution. 

SJB MP Dr. Harsha De Silva, cast doubts on some of the projections made by the President in his policy speech in Parliament on Wednesday, adding that neither the President-led Government nor the leftist parties have a workable solution to tackle the issue of debt. 

“President said if we could sustain this trend and weather the hardships over the next six months, Sri Lanka could see some progress by the third quarter and interest rates can come down. He said after three years revenue will go up by about 75%. Now that is a serious statement. So, how do we get there? What is our program of action? Now that is unclear.”

“President added persons earning over Rs. 100,000 must be taxed, and that if the PAYE tax is removed, we will lose Rs. 100 billion in earnings. I like to ask the 

President how that figure was arrived at. We say you cannot earn Rs. 100 billion from PAYE tax – that never happened. The relevant question now is how much should PAYE tax be? Both the private and Government sector says they are willing to pay tax, but it is unfair at the current rate of 36%,” de Silva said.

The MP also said the President remarked inflation had reduced to 54% from 70%, but it appears a new methodology had been employed for the calculation. Both should be run concurrently for a period of two years, so we can really measure how inflation is, he said. 

De Silva also made light of the directive to exempt non-cash benefits from PAYE tax, as this would have no impact on the public. 

“President in his policy statement said he hopes to build a country where everyone can live peacefully, and one that no one wants to leave. There is no reason for anyone to oppose that statement. But the question is how will it be done? We think that the President does not have a mandate from the public to do it,” the MP added. 

It was revealed the IMF could still lend assistance to Sri Lanka despite the lack of assurance from China through a Lending into Official Arrears Program. But despite that, the question of how the Government can sustain that programme will still arise, and there is no direction or assurance given by anyone on how bilateral debt with China will be tackled, de Silva lamented. 

However, the SJB has a plan, he pointed out. 

SJB MP Eran Wickramaratne, joined the discussion and said his party believes the Government and the President must implement the details of the Constitution, and that the 13th Amendment could be implemented within a unitary State and without division of the country.

“The President says the Missing Persons Office will be strengthened and that is a good thing, alongside moves to investigate persons who have been imprisoned on allegations of terrorism but without charge. 

“He said they will distribute power under a unitary State. We need the provincial councils, municipal councils and divisional secretariats we cannot do this from Parliament alone. The SJB says let’s enact the Constitution. We will not allow this country to be divided, but implement the constitution,” Wickramaratne stated. 

The MP also said the President in his speech to Parliament made no mention of reducing State expenditure, in the backdrop of reports that loss-making State-owned enterprises have cost the Government Rs. 800 billion. 

He remarked President only spoke of increasing earnings through taxes, which will burden the public.