SJB welcomes liberalisation of fuel, stresses need for good governance

SJB MP Dr. Harsha de Silva and Eran Wickramaratne at the media briefing yesterday – Pic by Lasantha Kumara

• Opines new players will boost efficiency and investment
• Stresses IMF must press Govt. for better transparency

By Darshana Abayasingha

The Main Opposition, Samagi Jana Balawegaya (SJB), yesterday welcomed investor interest in Sri Lanka's petroleum sector, and said it will send a positive signal.

SJB MP, Dr. Harsha De Silva told journalists that  Sri Lanka cannot be developed through constant debt and foreign aid, and said the country must embark on an aggressive program of reforms to attract new investments and industries.

“The entry of new players to the petroleum sector will increase competition within the sector and enhance efficiency. This in turn will benefit consumers in terms of price and distribution. The liberalisation of the industry will boost investments. The Government cannot afford to keep borrowing to maintain loss-making institutions or those that carry heavy overheads. The restructuring of CPC has been on the cards for a long time. We are a progressive Opposition and we view these developments positively,” De Silva said. The former Chairman of the parliamentary committee on public finance noted the Government was able to reduce the price of fuel due to drop in global fuel market prices and the appreciation of the rupee against the dollar.

He recalled the fuel price formula presented by the late Mangala Samaraweera, which he described as a transparent and progressive mechanism that would have benefited consumers, and said the Government must consider establishing a security fund to protect against sudden movements in the global price of oil.



This would help manage local prices and provide a degree of relief to Sri Lankan consumers, he said.

De Silva also touched on the IMF agreement and package with Sri Lanka, and stressed on the need to ensure governance and accountability. Following the disbursement of the first tranche, the IMF must work closely with the Government and ensure there is accountability, he stated. An IMF team is currently doing research on how to ensure good governance of programs in Sri Lanka, he said, adding that the SJB too during its engagement had committed to the IMF program, but has stressed on the need for better transparency and accountability from all sides. The IMF agreement has not been presented in Parliament despite repeated assurances, De Silva said.

“The IMF too has a great responsibility to hold the Government to account on its responsibilities. We expressed our strong objection to the IMF on the lack of transparency on the Sri Lanka agreement. We agree there must be reforms, but we don’t agree with all its details and we would like to see some changes where possible.”

SJB MP, Eran Wickremaratne, stressed the importance of maintaining the independence of the Central Bank of Sri Lanka.

“A Bill on the CBSL has already been submitted to Parliament. The dates for its debate have not been set yet. The Central Bank of Sri Lanka should be made independent from the Government, but it should be a responsible Central Bank and be accountable too. One of the main reasons Sri Lanka is facing the crisis is that the Central Bank of Sri Lanka was unable to act independently.”

Wickremaratne added that according to the provisions of the new Bill, the opportunity to print money haphazardly has been done away. However, he pointed out that this Bill also contains some negative aspects. In addition to the monetary board, which usually performs a major function of the Central Bank, a governing board has also been appointed and those members have also been added as monetary board members. This may be an ulterior motive of politicizing the Central Bank, he said.