SLPP rebels, too, prescribe debt restructuring as pressure mounts

Review Yugadanavi deal

Probe sought on massive scams, proposals to strengthen state revenue

By Sirimantha Ratnasekera and Shamindra Ferdinando

A group of rebel SLPP MPs, yesterday (02) urged the government to initiate talks with relevant parties to restructure debt immediately or face the consequences.

The group stressed that the proposed foreign debt, except sovereign bonds (debt securities) issued by Sri Lanka to raise capital for spending needs should be restructured.

The government has repeatedly rejected the Opposition’s calls for debt restructuring over the past two years.

Pointing out that the loans obtained from international capital markets, at a higher rate, comprised 47 percent of the total debt, the grouping urged the government to desist from repeating the mistake. Instead, loans should be sought from foreign governments, the grouping said, at the unveiling of their road-map meant for economic recovery at the Monarch Hotel, Sri Jayewardenepura, Kotte.

The Democratic Left Front, the Lanka Sama Samaja Party, the Sri Lanka Freedom Party, the Communist Party of Sri Lanka, the National Freedom Front, the National Congress, the Pivithuru Hela Urumaya, the Sri Lanka Mahajana Pakshaya, the Vijaya Dharani Jathika Sabhawa, the Eksath Mahajana Pakshaya and the Yuthukama civil society organisation, endorsed what the SLFP leader, former President Maithripala Sirisena, called National Declaration.

Except for Ven. Atureliye Rathana Thera, who represented Ape Jana Bala Pakshaya in Parliament, all others were constituents of the SLPP. However, State Minister Vidura Wickremanayake, who had been quite critical of failures and shortcomings on the part of the government, attended the event.

The rebel group emphasised the need to be transparent in the releasing of foreign exchange required for imports, priority for the import of raw materials for industries here, and curbs on issuance of duty free vehicle permits for a five-year period.

Among the proposals that had been made, with a view to consolidating the national economy, was an appeal to reconsider the controversial agreement with the US-based New Fortress Energy company to transfer 40 percent shares of the Yugadanavi power station.

Ministers Vasudeva Nanayakkara, Wimal Weerawansa and Udaya Gammanpila, who backed the petitions filed by several parties, including the Samagi Jana Balavegaya and the Janatha Vimukthi Peramuna, against the Yugadanavi deal, addressed yesterday’s gathering.

The rebel group made several specific proposals to overcome the daunting challenges in the energy sector that would be necessary to address foreign currency issues.

Referring to the disruption of life, due to the foreign currency crisis that had deprived Sri Lanka of a continuous supply of petrol and diesel, Energy Minister Gammanpila said that unless tangible measures were taken to address these issues expeditiously, no one would be able to prevent riots.

Minister Weerawansa said that the destabilisation of the country, due to the developing crises, could pave the way for external interventions.

The dissident group also called for far reaching and specific measures to curb waste, corruption and irregularities as part of the overall efforts to enhance public sector revenue. Reference was made to the massive scams in duty on sugar and coconut oil imports, and required amendments to the Bribery Act to enable fresh proceedings in respect of Treasury bond scams, in terms of the Presidential Commission of Inquiry findings.

The group also called for an immediate end to relief provided to importers of sugar, coconut oil, flour, milk powder and the introduction of a suitable pricing formula. Duty/taxes should be imposed in a way that wouldn’t be detrimental to local producers, and not a burden to the consumers, as well.

Alleging that the government hasn’t implemented 57 recommendations made by the Parliamentary Oversight Committee on Defence, the rebel group asked for tangible measures to implement them all. The group made specific proposals in this regard.

The group proposed resumption of import of fertiliser to meet the requirement.

While underscoring the need to consolidate and further strengthen state revenue, the dissident group proposed that direct and indirect taxes should be 30 and 70 percent, respectively.