It is no secret that the country’s economic and political stability is facing its worst fiasco since independence. Subsequent to a long period of uncertain proclamations by the Central Bank, the recently appointed Governor has declared the precise situation and the possible repercussions if the situation is not taken under control immediately.
This time around, the Governor, the newly appointed Minister of Finance, and the monetary board have initiated important, swift actions to face the imminent threats.
The new Finance Minister made a sensible statement after he and the team of Central Bank professionals were appointed. He said that when a ship is in the process of sinking in the middle of the sea, the people on board must not ignore that everyone on board will drown with it.
Captain
Hence, just because they dislike the captain, they must not let the ship sink. He said that first the ship must be secured and taken ashore, and then the oppressors could take any action against the captain. The ship is sinking now, and a united effort is needed to prevent it.
Obviously, the protestors who gathered at the Galle Face Green have succeeded in achieving a better result than any political protest staged during the past many decades. They paved the way for the entire Cabinet and the Governor of the Central Bank to resign, readjust portfolios, and make many other changes in the Government.
They have given a long-awaited clear message to the entire political fraternity that dishonest political manipulations will no longer be tolerated. Regardless of the individual political ideologies, everyone in the country, except perhaps politicians, will hail this new philosophy as one of the best victories achieved by the people.
However, as the Finance Minister says, can a responsible citizen let the ship sink because he or she does not accept the captain’s behaviour? The most certain answer is that no one can let that happen without going down with the ship themselves. Hence, it is time for the general public to get together in some form of mutual understanding and pull the country out of the deep crisis.
Regretfully, the Parliament that represents the entire country does not show any sign of consensus. They are divided into several factions. Everyone is trying to make their voices heard instead of proposing an acceptable solution. This shows how self-centric Sri Lankan politicians are.
Every single political party, both governing and opposing, knows that they cannot produce the magical 113 votes needed to take over and form a new Government. Even if that happens, with the vast differences of opinions, the sustainability of such a Government is a big question. Also, none of those parties is willing to take a step backwards, even when they know that they are in a lose-lose position if they do not declare peace with each other.
As usual, most politicians demonstrate their opportunistic, selfish, and shallow mentality. Not a single one of them has come up with a viable proposition where the current crisis can be solved. Instead, even in this grave situation, they furiously fight with each other.
Mud
Also, these politicians, both from the Government and the Opposition, utilise the majority of the all-important debating time in the sittings to contest each other or sling mud. It is clear that the intention of most is to fish in troubled waters.
The country has witnessed many temporary, short-time postponements during the past weeks. Although these Parliamentary sittings burn millions of rupees of public funds, even at this most gruesome time, very few Parliamentarians show genuine interest in addressing the burning public issues.
Therefore, everyone must work in unison to force the Parliamentarians from both sides and those who are independent to ward off petty party politics and find a solution to establish political stability. Foreign lenders, donours, and well-wishers will almost certainly not look favorably on Sri Lanka if the political crisis remains unresolved.
The State cannot function without a Cabinet of Ministers, as it is an important originator of legislation. The Ministers are responsible for the day-to-day management of the Government as well as responding to sudden events. Hence, even in this politically calamitous situation, the Government was compelled to form a new Cabinet in the aftermath of the mass resignation of the previous Cabinet.
A section of the general public, particularly the protestors, vehemently refuse to accept the new Cabinet that largely consists of youngsters. Nevertheless, others say that some of those who were State Ministers have proven how proactive they were as State Ministers. Therefore, even as a temporary measure, they must be given adequate time to perform and prove themselves.
On the economic front, the Government has sent a competent delegation that comprises the best brains in economics, headed by the new Finance Minister, to initiate discussions with the International Monetary Fund (IMF). Even though the action is far too tardy, this was the last, best solution considering the current dire state of affairs.
The Government has decided to temporarily suspend all foreign debt installments until the situation improves. According to the new Finance Minister, the total debt repayments till the end of July are around US $2 billion, and the Government has no resources to service them. Announcing from Washington, the Finance Minister said that they have presented their case to the IMF. The IMF has clearly stated that they will come up with a favourable outcome as early as possible.
However, the IMF will undoubtedly come up with a number of strict conditions that can affect the entire citizenry. A substantial increase in Government revenue, better management of State expenditure, closure, privatisation, or restructuring of loss-making state-owned enterprises (SOEs), and strengthening of Government audit mechanisms to minimise corruption and waste will be some of them. Also, they will likely request the Government to control or stop new employment in the already overcrowded public service.
Meanwhile, according to the Minister, until the IMF solution becomes operative, other global financial institutions such as the World Bank and Asian Development Bank that grant loans and grants to middle-income countries have expressed their willingness to assist Sri Lanka. The World Bank has already allocated an amount between US $300 million and $600 million for immediate essential public needs.
The Minister also said that the discussions with India have been an enormous success and they have readily allocated US $500 million for the purchase of fuel. Also, a further US $1 billion is under consideration at the request of the Sri Lankan Government. He also said that the debt restructuring program is also in progress with lenders and bondholders who invested in International Sovereign Bonds (ISBs).
The participants of ongoing protests, rallies, and demonstrations have no clear idea of the situation if the incumbent President leaves office. None of them realises that if the prevailing Government ceases to function, the situation will go from bad to worse with unfathomable bad repercussions for the entire citizenry.
Opportunists
They must be informed that the change of the presidency or Government must occur through a democratic process. However, the youth who spearhead the protests are impulsive and demand change in the Government overnight. The protesters must be on the lookout for the opportunists who have crept in, subtly instigating youth with misinformation to gain cheap political mileage.
While external support is compulsory, the path to economic recovery seems long and hard. The ongoing political turmoil may delay the involvement of international lending institutions and friendly countries that genuinely want to assist Sri Lanka. In particular, they will closely monitor the current social unrest.
Hence, it is the obligation of the protesters to restrain themselves and keep the prevailing peaceful atmosphere without being unruly. On the other hand, the Government must make sure that they do not use unwanted power to control crowds. One single spiteful incident or reaction will damage all ongoing processes in obtaining financial assistance from the world, and the country cannot afford such an occurrence at this point in time.