-Colombo, December 10, 2023- Sri Lanka’s much-anticipated 2024 budget, once heralded as beacon of economic revitalization, has instead become a source of concern, unraveling a perilous path for the nation. This analysis delves into the critical aspects of the budget, shedding light on its potential implications for the people and the economy. Taxation Turmoil: Burdening […]
-Colombo, December 10, 2023-
Sri Lanka’s much-anticipated 2024 budget, once heralded as beacon of economic revitalization, has instead become a source of concern, unraveling a perilous path for the nation. This analysis delves into the critical aspects of the budget, shedding light on its potential implications for the people and the economy.
Taxation Turmoil: Burdening the Masses, Enriching the Few
At the heart of the budgetary concerns lies a significant proposal—a whopping 47% increase in tax revenue, amounting to RS. 4.13 trillion. This surge primarily stems from a projected 62% increase in inflationary indirect taxes on goods and services. The consequence? A disproportionate impact on the common citizen, as essentials like fuel and electricity become more expensive. The budget, in essence, appears to favor wealthy owners of government debt, creating a reverse Robin Hood scenario.
Education Erosion and Neoliberal Nightmares
In the wake of economic promises, the budget makes distressing trade-offs. Essential sectors like education face the brunt of expenditure slashes, while funds are diverted towards seemingly unproductive road projects. The introduction of 60 new laws further deepens concerns, as it signifies a fundamental shift towards a neoliberal agenda. With approximately 55.7% of Sri Lankans already classified as multidimensionally vulnerable, the consequences of these decisions on health, education, living standards, and personal security are dire.
IMF’s Oversight: Ignoring Recommendations at What Cost?
The decision to raise the government debt ceiling to RS. 7.35 trillion, a staggering 78% higher than expected revenue, raises concerns about the government’s alignment with public mandate. This pursuit of debt seems to prioritize the privileged class and foreign creditors, potentially leading to a surge in domestic interest rates. The 2024 budget underscores a disconcerting lack of accountability and responsiveness to the broader public.
Interest Payments Soar: A Stranglehold on the Economy
In a startling revelation, the budget showcases a 25% increase in interest payments, reaching Rs. 2.7 trillion. This surpasses the budget deficit, excluding bank recapitalization expenses. The brunt of this burden falls on the common citizen, as domestic rentiers benefit disproportionately. Sri Lanka’s dubious distinction of allocating 77% of government revenue to interest payments in 2023 raises questions about the sustainability of such a fiscal approach.
Debt Dilemma: Prioritizing Elites Over Public Mandate
The decision to raise the government debt ceiling to Rs. 7.35 trillion, a staggering 78% higher than expected revenue, raises concerns about the government’s alignment with public mandate. This pursuit of debt seems to prioritize the privileged class and foreign creditors, potentially leading to a surge in domestic interest rates. The 2024 budget underscores a disconcerting lack of accountability and responsiveness to the broader public.
Unemployment Alarms: SME Closures and Taxation Tensions
Acknowledging the closure of SMEs, the budget reveals a potential 10% island-wide unemployment rate. Proposed tax measures, including the extension of VAT, compound this issue, exacerbating the economic collapse. The shift towards indirect taxes raises concerns about the impact on the foreign debt crisis and the looming threat of a second debt default.
Energy Inequality: Citizens Subsidizing External Interests
Sri Lanka’s energy landscape reflects a stark imbalance between citizen needs and external creditor demands. Approximately 10% of households face darkness due to high electricity tariffs, demanded explicitly by the IMF. This subsidizes businesses, including non-tradable sectors and tourist-oriented hotels, further straining the general population.
A Call for Economic Renewal: State-Regulated Industrialization
In conclusion, Sri Lanka’s economic revival necessitates a fundamental shift towards state-regulated industrialization. The public’s demand for the resignation of the unmandated Ranil-Rajapaksa regime echoes a call for fresh elections, aiming to safeguard democracy and public interest. It is imperative to break free from the clutches of debt and build an inclusive economy where prosperity is shared—a vision that transcends the divisive impacts outlined in the 2024 budget.
Shantha Jayarathne
-Colombo, November 24, 2023- Professional Trade Unions Association (PTUA) had a meeting with Mr Anura Kumara Dissanayake , the Leader , National People’s Power (NPP) on 23 November at the party headquarters , Pelawatta . The meeting was attended by Senior Lecturer Mr Charudaththa Illangasinghe, Media Spokesperson , the Secretary to the University Teachers’ Federation […]
-Colombo, November 24, 2023-
Professional Trade Unions Association (PTUA) had a meeting with Mr Anura Kumara Dissanayake , the Leader , National People’s Power (NPP) on 23 November at the party headquarters , Pelawatta . The meeting was attended by Senior Lecturer Mr Charudaththa Illangasinghe, Media Spokesperson , the Secretary to the University Teachers’ Federation (FUTA) , Mr. Ranjan Basnayake, Secretary Bank of Ceylon Employees Union, and a few other trade union representatives.
-Colombo, November 18, 2023- In the aftermath of recent revelations, the urgent question echoing across Sri Lanka is whether it’s high time to establish comprehensive legislation mandating Full Disclosure for policymakers and bureaucrats. Recent events have peeled back the layers of governance, exposing a web of conflicts of interest, questionable affiliations, and a concerning lack […]
-Colombo, November 18, 2023-
In the aftermath of recent revelations, the urgent question echoing across Sri Lanka is whether it’s high time to establish comprehensive legislation mandating Full Disclosure for policymakers and bureaucrats. Recent events have peeled back the layers of governance, exposing a web of conflicts of interest, questionable affiliations, and a concerning lack of transparency that has penetrated the very core of our political structures.
Conflict Unveiled: A Senior Police Officer and COPE Chair on the Payroll
In the past weeks, disconcerting truths have emerged, with a Senior Deputy Inspector General (SDIG) being revealed as part of the controversial Sri Lanka Cricket (SLC) payroll. Adding to the dismay, reports surfaced about the Chairman of the Committee on Public Enterprises (COPE) sharing a similar payroll connection while purportedly investigating alleged misdeeds at SLC. The evident conflict of interest came to light when COPE Chair Ranjith Bandara’s affiliation with SLC was flagged by third parties.
Symptom of a Deeper Malaise: Culture of Non-Disclosure
The failure of a senior police officer and the COPE Chair to voluntarily disclose their affiliations until external intervention underscores a pervasive issue in Sri Lanka. This lack of transparency is emblematic of a larger problem — one that fuels the rampant influence and corruption within our governance structures. It reflects a pattern where those in high offices conveniently sidestep the ethical imperative of disclosing affiliations that could compromise their impartiality.
Consequences Unfelt: The Unyielding Grip of Corruption
In most accountable democracies, revelation of such conflicts of interest prompts resignations from implicated individuals. However, in Sri Lanka, the refrain seems to echo the sentiment that “Even though that happens in England, it doesn’t happen in Sri Lanka.” Neither the SDIG nor individuals involved in investigations have taken the ethical step of resigning or distancing themselves from the processes they are embroiled in. This failure to address conflicts of interest perpetuates a culture of corruption and raises serious questions about the integrity of our governance.
Political Dynasties and Transparency: A Call for Reform
Recent calls for an investigation into affiliations further amplify the urgency for reform. The lack of disclosure regarding consultancy work and continued roles during inquiries points to a systemic flaw that requires immediate attention. The promise to “look into it and report back” only underscores the need for a more robust and accountable system.
The Need for Vigorous Vetting: International Best Practices Ignored
Unlike many democracies, Sri Lanka lacks a vigorous vetting process for those appointed to high office. In countries like the United Kingdom, comprehensive vetting examines potential officials’ conflicts of interest, affiliations, criminal records, and political leanings. This thorough approach ensures that individuals with questionable backgrounds or conflicting interests do not assume positions of influence. Unfortunately, Sri Lanka persists in an ineffective and corruption-riddled governance culture, lagging behind international best practices.
Beyond Individuals: A Call for Full Disclosure on National Policies
The call for full disclosure extends beyond personal affiliations to encompass national policies. The questioning of the President’s failure to disclose details of the proposed Value Added Tax (VAT) increase underscores the need for transparency in governmental financial matters. Full disclosure about the items affected by the VAT hike is not just a responsibility; it is a democratic right that the public is entitled to exercise.
A Mandate for Change: Shaping a New Sri Lanka
As the layers of non-disclosure unravel within our governance structure, the undeniable urgency for change takes center stage. The call for full disclosure legislation transcends a mere plea; it stands as a mandate for a reformed, transparent, and accountable Sri Lanka. The public’s right to know is not negotiable; it is an essential pillar upon which a thriving democracy stands.
Sri Lankans must acknowledge that expecting such reforms from the current rulers, who have perpetuated this system, is futile. This corrupt political culture sustains them, as they have no existence without such a system. It is imperative to break free from the chains of this corrupt political narrative and embrace a different path.
The time has come for the people to think differently, to choose a political force that has demonstrated through action a commitment to change this corrupt political culture. Sri Lankans should seize this opportunity to uproot an extremely corrupt system at the first available instance. Let this be the rallying cry for a Sri Lanka that boldly embraces openness, integrity, and a governance system truly worthy of its people.
Shantha Jayarathne
-Colombo, November 17, 2023- Today (17th) in the afternoon, there was a meeting between the leader of National People’s Power, Comrade Anura Kumara Dissanayake and Indian High Commissioner Mr Gopal Bagle was at the Indian High Commission today (17th). There was a long discussion about the current political situation in Sri Lanka and the economic […]
-Colombo, November 17, 2023-
Today (17th) in the afternoon, there was a meeting between the leader of National People’s Power, Comrade Anura Kumara Dissanayake and Indian High Commissioner Mr Gopal Bagle was at the Indian High Commission today (17th).
There was a long discussion about the current political situation in Sri Lanka and the economic crisis that Sri Lanka is facing.
Mr Eldos Mathew, the First Secretary of the Indian High Commission, and Comrade Vijitha Herath, the National Executive Member of the National People’s Power, also participated in this meeting.
-Colombo, November 16, 2023- Women representatives from National People’s Power submitted a letter to the United Nations Human Rights Office and the Office of the High Commissioner of Human Rights (OHCHR) today, urging the UN to take actions for an immediate ceasefire in Gaza. The letter also appealed to take necessary actions against the violations […]
-Colombo, November 16, 2023-
Women representatives from National People’s Power submitted a letter to the United Nations Human Rights Office and the Office of the High Commissioner of Human Rights (OHCHR) today, urging the UN to take actions for an immediate ceasefire in Gaza. The letter also appealed to take necessary actions against the violations of the rights of women and children in Palestine, complying with International Humanitarian Law, and to collaborate with all stakeholders immediately.
Dr. Harini Amarasuriya (Member of Parliament, NPP), Samanmalee Gunasinhghe (Member of Executive Council, NPP), Dr. Swastika Samaradiwakara (Member of NPP) presented the letter to Mr. Raghu Menon (Senior Human Rights Advisor) today at the UN premises in Colombo.
Further, a discussion on the current socio-economic and political context in sri lanka including the impact of austerity measures taken by the Sri Lankan government on women and children and the reduced budgetary allocations for women and children’s social protection also took place.
-Colombo, November 10, 2023- In a parliamentary debate held on October 9, NPP Member of Parliament, Mr. Vijitha Herath, voiced his concerns about the genuineness of the Minister of Sports during discussions about the removal of the Sri Lanka Cricket Board. The motion, jointly presented by the opposition leader and the Minister, Nimal Siripala de […]
-Colombo, November 10, 2023-
In a parliamentary debate held on October 9, NPP Member of Parliament, Mr. Vijitha Herath, voiced his concerns about the genuineness of the Minister of Sports during discussions about the removal of the Sri Lanka Cricket Board. The motion, jointly presented by the opposition leader and the Minister, Nimal Siripala de Silva, aimed to address alleged malpractices and misappropriation of funds within the Cricket Board.
Despite the Minister’s move to dismiss the Cricket Board and appoint an interim body led by former National Cricket Team captain, Mr. Arjuna Ranathunga, the Court of Appeal restrained the interim body from functioning as the administrative body.
Towards the end of the debate, when the possibility of a vote was raised, government MPs influenced the Speaker to forego the vote, leading to the unanimous passing of the motion.
While endorsing the Minister’s efforts to cleanse cricket administration, Mr. Herath criticized the appointments made to the interim body. He questioned the inclusion of Mr. Arjuna Ranathunga, a vocal critic of the present administration, expressing concerns about potential confrontations. Mr. Herath also raised questions about the appointments of Mr. Rakitha Rajapasha, attorney-at-law and son of Minister Wijedasa Rajapaksha, as well as the inclusion of Governor Mr. A.J.M Muszamil’s son.
Mr. Herath highlighted his doubts about the genuineness of the Minister in these appointments, calling attention to what he perceived as questionable decisions.
During the division, with 83 members from the government side and 59 members from the opposition, a vote was deemed unnecessary due to the joint nature of the motion. The two NPP members present in the morning left as there was no agreement at the Business Committee to call for a vote.
Chief government whip, Prasanna Ranathunga, and Minister Raoshan Ranasinghe attempted to cast doubt on the NPP’s credibility, insinuating their alleged benefit from the corrupt cricket board. The debate concluded with the impression that, beyond addressing cricket board issues, the joint effort of the opposition and the government seemed to discredit the NPP, which has garnered significant public support.