In December, Minister of Finance Ravi Karunanayake announced that foreign investment would pour into the country this year as he named 2017 as the ‘advent of an economic battle’.
The minister said that the country would get nearly USD 4 billion in foreign investment this year.
However, despite these claims certain individuals have been continuously doubtful of the government’s capability in attracting sufficient foreign investment as the unity government had previously promised the public. All such doubts will in due course be put to rest this year.
Every community in the country made great sacrifices in a joint effort to restore democracy at a time where human rights were being violated indiscriminately. Democracy was denied to the people of Sri Lanka which in turn resulted in being marginalized by the the International Community during the time period.
In this backdrop, January 8, 2015 became a turning point in the political history of this country when the unity government led by President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe was formed to uplift the already collapsing economy and heal the wounded social fabric.
Today, the right of speech has been re-established as well as the freedom to protest demanding ones needs. Therefore, it is up to the public to realize that such a conducive environment was created as a result of the formation of the unity government. While various elements have attempted to create divisions within the government, it is clear that the objective of all such rival elements is to push this country back to the previous era of darkness.
Despite attempts by various politicians to propagate racism and sacrilegious ideas among the general public it is clear that a new opportunity for all has dawned. Therefore to make the best of such opportunities, we should rally round one objective, irrespective of differences.
As the 20th Minister of Finance in this country, Ravi Karunanayake has not hesitated in preparing policy plans to rebuild the economy of the country. It is a well known fact that popular decisions cannot be taken in one’s attempts to rebuild an economy. Necessary decisions have already been taken under a long term plan to take the country forward despite some not being agreeable to certain factions.
Currently the government is compelled to bear colossal maintenance charges on unprofitable institutions such as the Hambantota Port and Mattala International Airport. In addition, repaying exorbitant loan installments for colossal foreign loans obtained to build these institutions is another crisis existing before the government a fact not understood by the general public today.
The public also must note the record numbers of revenue collected by the Department of Customs after the current government gained power.
The government was able to increase the Department of Customs revenue to Rs.787 billion in 2015 against Rs.575 billion in 2014 while the Inland Revenue Department was able to increase its revenue up to Rs.421 in 2015 from Rs.366 in 2014. At the same time, the revenue generated by the Excise Department rose up to Rs.105 billion in 2015 against Rs. 69 billion in 2014.
These institutions were able to collect a recorded income under a two year period as a result of its systematic economic policy planning.
During this time period the European Union (EU) also lifted its ban on fisheries exports from Sri Lanka due to its confidence in the new government. In addition, GSP+ concession too will also be restored shortly as the required foundation has already been laid by the unity government. An economic victory of this nature was impossible during the previous regime and the reason for their failure should be debated and analyzed separately. It is well known that some of the government’s strategies have taken center stage and is currently attracting public criticism. But such decisions were in fact taken to convert white elephants created during the previous regime profitable ventures. Hambantota Port is one such controversial white elephant.
The government has therefore already taken decisions to make it a profit making venture with the Chinese government expecting to invest USD 8 to 10 billion in the entire project. It is also expected that a large number of employment opportunities will be generated through the Hambantota Special Economic Center is built. It is also expected that a large number of vessels which currently sail to India or Singapore for refueling will divert to the Hambantota port for refilling, once the new oil refinery is built in Hambantota.
However, Finance Minister Ravi Karunanayake is of the opinion that the country today is in dire need of foreign investment rather than foreign borrowings. The Minister believes that a large number of foreign investments from leading countries in the world will pour into our country in 2017 accordingly due to the conducive environment created.
In addition, another objective of this government’s economic plan is to set up a 500 MW Liquefied Natural Gas (LNG) plant in Hambantota. The government expects to increase its current power supply capacity 98% to 100% after the completion of this power plant.
The Mega polis development scheme, several major road construction projects to ease existing traffic in the city, other major development projects earmarked to be launched in 2017.
One of the fundamentals of the economic policy planning of this government is to free the country from the burden of foreign borrowings first.
Therefore, patriots should recognize commitments made by the government and be aware of the happenings during the dark era before January 8, 2015. Then, not only will this year become a year full of new hope, but also a year which will transform such hopes into realities.
Sisira Wijesinghe,
Media Secretary, Ministry of Finance.