As much as the saying that there are neither permanent friends nor permanent enemies in politics is true, the same truism applies to policies. The world’s two leading lending institutions the World Bank and the International Monetary Found (IMF) were pariah organisations for many in the ruling coalition – the United People’s Freedom Alliance (UPFA) when they were in opposition, some blaming them for all the country’s economic ills but today they have become the saviours who have come forward to help stabilise the country’s ailing economy.
The government’s sudden affection for the IMF has to do with the emergency loan of $1.9 billion that it is seeking from the Fund to weather the global financial crisis. This in turn has given those in the UNP the perfect opportunity to hit back at the government side for badgering the UNP when it was in power for its dependence on the WB and the IMF for financial assistance.
The IMF loan was the focal point last week when Parliament held an extra day of sittings to debate seven tax bills that needed approval prior to the end of the financial year on March, 31.
UNP Kegalle district MP Kabeer Hasheem who opened the debate on behalf of the Opposition said, the IMF was an obscene word for the government six months ago but it is now seeking a massive loan from the Fund. “The UNP did not hide its agreements with the lending organizations but this government hides behind the cloak of patriotism and closes secret deals. What are the conditions the IMF has imposed to grant this loan?” asked Mr.Hasheem.
He said the government’s promises of an economic stimulus package using the money to bring down the cost of living and assist the common man was a farce saying only top corporate heads dine with President Mahinda Rajapaksa at Temple Trees while the “Kiri Bandas” who voted him into power are forgotten. “If the UNP was granting this loan, it would first set conditions which would include grounding Mihin Air, cutting down the number of ministers and reducing their perks and restoring good governance by stopping waste and corruption,” he said.
Opposition members also made references to claims by some government legislators a few months ago that the global economic crises would not touch Sri Lanka due to sound economic polices set in motion under the “Mahinda Chintanaya.” “Government members said that the “Mahinda Chintanaya” policies are rock solid and that our economy is sound. The reality is the country is now bankrupt,” UNP MP Lakshman Kiriella said.
Ironically former JVP MP Wimal Weerawansa who is now embedded on the government side who in his heyday promised to remove the World Bank plug once in power decided to keep mum when prodded by UNP members about “unplugging the plug”. Instead he chose to take an optimistic view of the country’s economic woes. “When everyone said terrorism could not be defeated militarily, we did not give up and paved the way for it to become a reality. In the same manner I say the economic war too can be won using the resourcefulness of our people,” he said. As usual, his speech was high on military-success oriented rhetoric, but failed to address the issue of tax increases or the pending IMF loan. The reality must have sunk in for the once fiery JVP Propaganda Secretary that making passionate speeches opposing government policy while in opposition was not sustainable when occupying government benches.
Deputy Finance Minister Sarath Amugugama explained to the House the niceties of the IMF loan saying that it is unlike the traditional loan facility that is granted to needy countries but one that has been especially formulated to assist nations to weather the global financial storm and would be granted on more favourable terms.
“The IMF wrote to us saying such a loan is on offer and asking if we were interested. The Governor of the Central Bank wrote back expressing interest and the IMF team is here in the country for discussions on the issue. No conditionality has been discussed so far,” he said.
Parliament also discussed the political situation in the eastern province during an adjournment motion introduced by JVP Trincomalee district MP Jayantha Wijesekera. He said that the Eastern Provincial Council (EPC) headed by a former LTTE cadre Chandrakanthan Sivanesaturai alias Pillayan was being run in a dictatorial manner. “None of the opposition members in the Council are consulted on any of its activities,” he lamented.
Newly appointed Minister for National Integration and Reconciliation Vinayagamoorthy Muralitharan alias Karuna who has distanced himself from the Eastern Province Chief Minister said he had brought to the attention of the President some of the misdeeds taking place in the EPC and said the President was keenly looking into them.
He also reiterated the position he has maintained of opposing the granting of police powers to the Eastern Province saying such a move would only create unnecessary problems. |
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