Response to economic revival plan pathetic: Harsha disappointed

By Shamindra Ferdinando

SJB MP Dr. Harsha de Silva yesterday said  that he was quite disappointed that his economic revival plan, or common minimum programme, presented in parliament on 12 August hadn’t received the anticipated response from political parties, represented in Parliament.

The Colombo District lawmaker said so when The Island asked him whether political parties and President Ranil Wickremesinghe reacted to his plan. The lawmaker said that he was not angry but appalled at the way the political parties responded to the deepening economic crisis.

Responding to another query, MP de Silva said that he had the backing of his party though there were some differences of opinion on some matters.   Lawmaker de Silva said that he was ready to discuss the overall plan with those represented in parliament and other stakeholders. The MP emphasized that so far, the government had not presented a roadmap for economic revival.

Addressing the parliament, MP de Silva urged leaders of all political parties represented there to support his proposals. The former UNP State Minister declared that his plan could secure the confidence and support of the public and external entities as well.

The set of proposals has been ratified by the Economic Policy Unit comprising lawmakers Dr. Harsha de Silva, Eran Wickramaratne and Kabir Hashim. It has been endorsed by SJB leader Sajith Premadasa.

The blueprint dealt with (1) debt crisis management (2) monetary and exchange rate policy (3) revenue consolidation (4) expenditure control (5) public sector management (6) energy and utilities reform (7) trade, agriculture, industry and service promotion (8) factor market reform (9) stronger social safety nets and (10) transparency and accountability.

The MP pointed out that though Sri Lanka received USD 4 bn Indian assistance via credit lines, currency swaps etc., this year, ongoing talks with Japan, China, Middle East countries and Russia hadn’t produced the desired results. Declaring that the country was in dire straits, MP de Silva questioned the inordinate delay on the part of the government seeking a consensus on an economic recovery plan.

Referring to emergency assistance provided by the US, Australia and EU, Dr. de Silva said that the much-needed Rapid Financing Instrument (RFI) couldn’t be secured until the government achieved significant progress in what he called debt restructuring talks. Asserting that Sri Lanka couldn’t do without short-term bridging financing from friendly countries such as credit lines for imports, foreign currency swaps or barter trade, Dr.de Silva said that privatization, too, was an option. However, the MP warned against privatization sans proper procedures. The consequences would be catastrophic, the lawmaker added.

Recently, dissident SLPP MP Dr. Nalaka Godahewa accused the government of planning to privatize Sri Lanka Insurance Corporation (SLIC) and Sri Lanka Telecom (SLT). One-time private sector executive alleged the government exploited the current financial turmoil to sell off profit making enterprises. Dr.  Godahewa told The Island that there was broad consensus on the need to restructure loss-making state enterprises but the government seemed to be bent on selling off valuable assets.

Pointing out that Sri Lanka was the only country in Asia to default on foreign debt in half a century, MP de Silva emphasized that unbridled corruption contributed to the deterioration of the national economy over the past several decades to such an extent finally the Governor of the Central Bank Dr. Nandalal Weerasinghe acknowledged Sri Lanka’s inability to service its foreign debt.

The former UNPer called for the enactment of strong anti-corruption legislation and the implementation of the United Nations Convention against Corruption.

Dr. de Silva recently received appointment as Chairman of the Committee on Public Finance (COPF), one of the three parliamentary watchdog committees meant to ensure financial integrity in the public sector. The top SJB official succeeded Kurunegala district SLPP MP Anura Priyadarshana Yapa.