Sri Lanka’s Presidential election: The debate and the issues
There were four men up on the stage and all four took the podium to belt out their plans for a future Sri Lanka. While two spoke with numbers one preferred to labour on an old vision and the last one picked the easy way out by just bashing up the rest.
Sri Lanka is heading to the polls come September and the main contenders sent their main economists to talk economics to the business community in Colombo at an event titled ‘The Debate’ organised by the Ceylon Chamber of Commerce (CCC) on Wednesday that was effectively moderated by CCC Chairman Duminda Hulangamuwa and Board Member Kasturi Chellaraja.
Audience. Pic by Priyanka Samaraweera
State Minister of Finance Shehan Semasinghe representing Presidential candidate incumbent President Ranil Wickremesinghe spoke of the government plans and the way forward.
Mr. Semasinghe highlighted the progress made by the government in ending the long queues, shorting power cuts.
He also noted how the budget deficit of 5.7 per cent of GDP in 2021 moved to a surplus of 0.6 per cent in 2023 and the increased improvements recorded in foreign reserves and the exchange rate.
MP Dr. Harsha De Silva representing the Samagi Jana Balawegaya and Opposition Leader Sajith Premadasa spoke of the debt crisis management and the need for improved transparency.
He also believed there needs to be amendments that need to be worked out within the current IMF Debt Sustainability Analysis (DSA).
He proposed not to remove the S-VAT as the Suspended VAT “makes sense”; tax free threshold will remain with 24 per cent for income upto around Rs.500,000 and 30-34 per cent for the rich.
Expenditure controls will be carried out with military spending will have to re-thought; the LRT project to be implemented and excess funds used to pay teachers. Public sector salaries will increase.
He noted that they hope to incentivise growth and one of the measures to bring down the price of rice is to break the rice mafia. Provide for a strong social safety net with about 7 million people in poverty but the monies will be doled out under a policy similar to the Janasaviya programme where people will have to work to earn.
Prof. Ranjith Bandara representing the Podujana Peramuna candidate MP Namal Rajapaksa highlighted the 10 year plan with an immediate relief package that will be brought on through a revised extension of the Mahinda Chinthana policy that will look at a sustainable integrated growth strategy.
He spoke of spearheading the economy from US$90 billion to $180 billion with a growth of 7 per cent and ensure a per capita income of Rs.4000 to be increased to Rs. 8000.
Affordable fertiliser, 100,000 jobs, prioritising the state with protecting the national interest and a new idea of ensuring economic, political and cultural and social freedoms are being considered, he said.
Dr. Harshana Suriyapperuma representing National People’s Power candidate MP Anura Kumara Dissanayaka called for a change of culture in Sri Lanka.
Highlighting the problems that led to the economic crisis in the country, he pointed out that their vision is to ensure effective implementation of the Rule of Law, take away impunity given by politicians, zero tolerance for corruption and this could be achieved through digitalisation.
Debating the issues
Queried on how the government will achieve the said goals, Mr. Semasinghe pointed out that they hope to reach about 4 per cent growth this year and pointed out that the Economic Transformation legislation would ensure the country will not return to a crisis.
While growth is important he noted that stability is vital and highlighted ideas like agricultural modernisation; land ownership among others.
Dr. De Silva reminded of their commitment to the IMF plan from the beginning but insisted that they called for amendments to be carried out. “We are one of the most closed economies in the world,” he said adding that growth should be linked to tradeable growth.
Prof. Bandara continued to delve on the same plans and a future of freedoms on all fronts under the Mahinda Chinthana policy framework.
Dr. Suriyapperuma noted that while the DSA is necessary they would have to negotiate this based on the country’s projections. Asked to detail this plan, he noted that they will do their own DSA and submit it adding that “we are still finalising it but we will not derail from the IMF programme.”
He called to prevent the revenue leakages from various institutions to be curtailed in a bid to ensure they could generate the required revenue to run the country.
Dr. De Silva noted that establishing digitalisation would be the way forward and pointed out that currently there were many evading paying taxes and underreporting.
Prof. Bandara pointed out that nothing is possible without the people’s support but interestingly made the assertion; “All of a sudden some people have overnight become rich” that led to the audience breaking out into a roar of laughter.
NPP representative Dr. Suriyapperuma insisted that they were the ones with an “unblemished record of corruption” compared to other political parties. He noted that the NPP also had a team that is experienced in working with the public sector, private sector and even overseas.
Question time
The representatives of the respective candidates were given a round of questioning any person of their choice and interestingly Mr. Semasinghe, Dr. De Silva and Prof. Bandara posed their questions to Dr. Suriyapperuma.
Queried on their policy of negotiating with the IMF, Dr. Suriyapperuma pointed out that they propose to address the key concerns in a new culture having already seen 16 failed programmes due to corruption. “We indicated it is not a derailment of the IMF programme.”
Asked about their policy on the independence of the Central Bank, the NPP representative noted that not just the Central Bank but they expect to allow all state institutions to function independently. To which Dr. De Silva pointed out that then why did they not support the bill when it came before Parliament.
Dr. Suriyapperum stated that what is relevant is to appoint persons with credibility and allow them to function independently within the state institutions and without interfering.
He also pointed out that the matter pertaining to the influencing of interest rates is a policy that they will have to consider by discussing with the state institutions. But this was met with raised eyebrows on how they could influence interest rates and still allow independence of the Central Bank.
Dr. De Silva responding to a query noted that they were aware of an impending crisis and had appointed a responsible person in Dr. Indrajith Coomaraswamy to the job of heading the Central Bank. He noted that back then the IMF had already been approached and they had stated that even by November the debt was sustainable.
He noted that the ISBs were brought in at that time to sustain the reserves but subsequent measures taken by the next government did not allow for this stability to be retained. “We knew the problem and the crisis and were working on it – but people went for false promises.”
Dr. De Silva pointed out that they speak with responsibility and do not just dish out the figures.
A few quips
During the debate the representatives came out with the history of promises gone wrong like the Volkswagon project that was brought up by Dr. Suriyapperum to which at the end Dr. De Silva called out to the organisers to share the comments from the German Ambassador on what happened back then.
Dr. De Silva was miffed when Dr. Suriyapperum did not address him by name to which Dr. De Silva insisted “This is nothing personal and you can call me by my name.”
The entire session was light entertainment on a Thursday morning with many in the audience enjoying the good show from which they hoped to learn more on what’s in store!
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