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The grave economic mismanagement of the Gotabaya Rajapaksa Presidency resulted in the declaration of bankruptcy by the government. The consequence of such misgovernance has impacted every citizen in the country in some way or another, making day-to-day life increasingly difficult for the large majority of the citizenry.

The knock-on effect it has had on different sectors of the economy has left the government struggling to cope. Last week’s announcement that the International Monetary Fund’s second tranche of US$2.9 billion will have to await further review of the agreed programme is an indication of the uphill task that the government is facing in this regard.

According to the Sectoral Oversight Committee on National Economic and Physical Plans, the Treasury is deprived of Rs. 500 billion annually due to the failure of three institutions, namely the Inland Revenue Department, Sri Lanka Customs, and the Excise Department.

The Parliamentary Committee’s chairman, Mahindananda Aluthgamage, told the Daily Mirror that as much as 86 percent of revenue collected by the Inland Revenue Department originated from only 464 clients.

In the face of this shortfall in revenue collection, the government will be hard-pressed to meet IMF targets in the short term unless it intensifies its efforts to do so from the three main revenue-generating sources.

The government has little or no space to increase rates of taxation in any sector to meet the revenue targets set by the IMF.

The high rates of personal taxes imposed by the government have had a devastating impact on professionals, as a result of which many are looking for opportunities for employment abroad. Responding to the pleas of professionals to reduce the rates of taxation, the government hinted at providing some relief in January next year, but whether it can do so now after the setback following last week’s review by the IMF is doubtful.

Meanwhile, the exodus of Sri Lankans abroad continues apace, with at least two sectors facing the brunt of the brain drain.

Two of the worst hits seem to be the health and aviation sectors, with many having already found alternative employment abroad in the last year.

Sri Lanka’s public health sector, which was known to be one of the best in Asia, is hard hit by the exodus of medical personnel, compelling the Ministry to seek the services of retired doctors. The Government Medical Officers Association (GMOA) has warned that the situation is so bad that some hospitals might have to face the possibility of closure, which in turn will have a negative impact on the poorer sections of society.

It is reported that the government is considering recruiting foreign doctors if the situation becomes critical.

The state-owned SriLankan Airlines too has faced the impact of the brain drain, as the national carrier suffered an exodus of pilots last year following the economic crisis.

According to media reports, nearly 60 pilots have left the airline during the course of the year. According to these reports, the airline has already got approval from the government to recruit foreign pilots if necessary.

The recruitment of doctors and pilots from abroad will pose an additional burden on the government, although the government may not have many options open to it.

The subject of the country’s brain drain has become such a serious national problem that a debate on it is due to take place next week in Parliament. One hopes that the exercise will be fruitful and will throw up useful ideas that can be the basis for a possible way out of this pressing national issue.

That there is some confusion in government ranks is apparent when one hears references to foreign remittances that will come into the country as a consequence of professionals seeking employment abroad. This is to lose sight of the fact that such an exodus will amount to the cream of the intelligentsia being lost to the country and its rebuilding efforts.

Additionally, it will also be an impetus for the youth to look for greener pastures abroad.

The country cannot afford to lose the services of such a number of its best brains at a time when it is seeking to come out of the worst economic crisis since independence. (javidyusuf@gmail.com)