Tennakoon says economy cannot be saved by printing money alone

‘Rs 6.65 bn printed on Dec 31; Rs 678 bn in 2021’

By Shamindra Ferdinando

Former Governor of Uva, Southern and Central Provinces Rajith Keerthi Tennakoon says that the ailing national economy cannot be saved by printing money.

Civil society activist Tennakoon quoting official figures claimed that Rs. 6.65 bn had been printed on Dec 31, 2021, just 48 hours after the Central Bank claimed official reserves reached USD 3.1 bn.

One-time executive director of polls monitoring outfit Caffe, Tennakoon said that the current dispensation had quite conveniently ignored the real challenges experienced by the national economy. “Some apparently believe that printing money is a panacea for the economic crisis. Unfortunately, the SLPP leadership is obviously on the wrong path,” Tennakoon said.

Tennakoon said that according to available official records the government during 2021 had printed a staggering Rs 678.33 bn and the trend was certain to continue in the new year.

In spite of the national economy being in such a bad shape, government leaders issued public statements as if everything was in order, Tennakoon said. The government was aware of further worsening of the situation as a result of disruption of supplies and possible food shortage ahead of the Sinhala and Tamil New year, Tennakoon said.

Responding to another query, Tennakoon said that police headquarters recently issued a statement regarding long queues outside the retail shops of the Pelwatte Dairy Industries Ltd located near Jubilee Kanuwa in Mirihana.

The statement followed recent social media posts of police harassment and undue interference, Tennakoon said, drawing the attention of the police that queues were common sight all over the country, not only at Mirihana.

Tennakoon said that in spite of repeated assurances that LPG gas supply would be normalized, there were queues in the City and its suburbs. The activist urged the Opposition to vigorously take up the issues at hand or face the consequences. Current challenges couldn’t be overcome by proroguing Parliament or postponing election, Tennakoon said. He was referring to the moves to put off Local Government polls scheduled to be held before March 20, 2022 by one year.