`People swept away by economic tsunami’ -Eran

The main opposition SJB says that Sri Lanka is the only country in the world that has faced unprecedented price increases of essential commodities such as gas and fuel.

Addressing the media at the SJB office in Kirulapone, SJB MP Eran Wickramaratne on Sunday said that during the same period Sri Lanka degenerated into a dangerous situation with regard to its foreign exchange reserves.

Wickramaratne said even the countries in the Asian region had recorded a positive GDP growth, FDI and foreign reserves.

Before the start of the press conference, Wickramaratne observed a two-minute silence in remembrance of the tsunami victims, where over 35,000 Sri Lankans were killed 17 years ago on Boxing Day 2004.

Wickramaratne said that Sri Lankans were looking for solutions brought forward by an individual, a President, which had been greatly disappointing. As a result, the country had plunged into an Economic disaster through autocratic policies and family rule.

“In a society problems are complex and there are no easy solutions. There is a need for a wise leader who should have the support of a team who are honest and have proven expertise and experience in governance and economic management. People’s belief in an individual’s ability to steer the nation has ended in disarray ushering autocratic family rule. Higher officials take no responsibility for decision-making as their views and opinions are often disregarded.”

“Because of this family rule, the higher officials say they were not part of the decision-making process even though they were present at such discussions. Even the Cabinet of Ministers claims that they were not aware of Cabinet decisions, even though the Cabinet secretary has publicised those decisions. It proves the decisions are taken by a closed coterie, and the ministers have become just on-lookers. Recently, the Agricultural Ministry Secretary, who is an agricultural scientist, was removed from his position as he warned of the possibility of starvation due to the decision not to import chemical fertiliser. The Secretary had pointed out that it was due to ill advice and a dead rope given to the President by people who did not know the subject,” the former banker turned politician said.

Elaborating further, the MP explained that the promotion of myths and lies made people believe in an individual or family being able to rescue the nation. Speaking on corruption that had engulfed the country, he pointed out that millions of dollars had been paid for unseen aircraft and unseen fertiliser.

He said that Sri Lanka was an exception where revenue from exports, foreign direct investment had gone down due to economic mismanagement rather than the Covid pandemic. Almost all countries were affected by the pandemic, but not a single country was as badly affected as Sri Lanka, because of better economic management in those countries.

“The people of this country are being swept away by the economic tsunami just as they were swept away by the tsunami in 2004,” he said.

The MP referred to the irrational management of the exchange rate and forcing Sri Lankan workers overseas to convert their Dollar remittances at banks at Rs 200 per Dollar while the gray market was over Rs 250 per Dollar. The overvalued Sri Lankan Rupee logically encourages exporters to under invoice their exports in Dollars. Poor exchange rate management has caused foreign reserves to plunge to dangerously low levels.

Over 1.5 trillion Rupees of money printing by the Central Bank has been the main contributory factor pushing inflation into double digits within a short period. The average inflation rate of 2014-2019 of 3.5% has shot up to an average inflation rate of over 10% in 2019-2021. The inflation rate in November has exceeded 11%, Wickramaratne said.