One of the main slogans of protests held over the present economic conditions refers to Sri Lanka’s Post-Independence history. They call it the “74-year curse”, a reference to the wrong policies and decisions implemented by different Governments over the 74 years since 1948.
All Governments are guilty over this issue to varying degrees. The genesis of today’s economic and even political crises lies in these “wrong turns” taken by various Governments. Moreover, correct decisions have not been taken at the required moments, further exacerbating the country’s myriad problems.
Perhaps the biggest blunder committed by our politicians in the post-independence era is sowing the seeds of the ethnic conflict to gain their own narrow political goals. We all know how this turned into a monster that ravaged this country for 30 long years. Still, some politicians have not learned a lesson from the past and are engaging openly in ethnic or identity politics. The only silver lining here is that today’s young generation will not fall for these divisive tactics.
But that is not the only wrong move taken by our Governments and politicians. The nationalisation of foreign and private enterprises, though in vogue at the time it was done, has cost the country immensely.
Sri Lanka’s fuel stations were operated by multinational companies such as Caltex and Shell until they were thrown out lock, stock and barrel with the nationalisation and centralisation of all Petroleum operations.
This gave birth to the Ceylon Petroleum Corporation (CPC) which today is a highly inefficient, overstaffed and debt-ridden institution unable to provide a steady supply of fuel to the public. Even amidst an overall economic crisis, the fuel supply would not have been so erratic if the original foreign players were still in operation.
A similar story emerges from all other sectors and enterprises nationalised over the years. Perhaps the only two sectors that have done really well under Government control are education and health, which are provided to all Sri Lankans free of charge virtually from the cradle to the grave. This has enabled Sri Lanka to match the developed world in terms of most human development indices.
Although it was also correct to keep utilities such as water and electricity under Government control, as done even in Western countries, these institutions too have become loss-making entities. The Ceylon Electricity Board (CEB) is a prime example, which suffers from much the same problems faced by the CPC. It is well known that a powerful lobby within the CEB had stifled attempts to adopt renewable energy widely, as it has ties to thermal power plant operators. If Sri Lanka had at least 50 percent renewable energy capacity by this time, the power crisis could well have been averted and power cuts avoided. Instead, this goal has now been shifted to 2030. But our power crisis needs immediate solutions, which the CEB seems unable to offer. Quite apart from the machinations of the CEB, Governments themselves have not started any viable power projects for quite some time. The results can be seen clearly now.
In the early days of the Yahapalanaya Government, a decision was taken to reduce import duties and taxes on electric cars to just 5 percent of the vehicle’s CIF value. This was a good move, given that electric cars do not require fossil fuels and led to a massive influx of such vehicles. But the same Government revised this policy barely six months later, raising the taxes beyond 100 percent.
If the authorities continued the 5 percent duty structure, there would have been at least 10,000-15,000 electric vehicles by now on our roads, reducing the demand for fossil fuel by a substantial quantum. Once Sri Lanka gains sufficient foreign reserves and import restrictions on vehicles are lifted, priority should be given to the import of all-electric cars. These cars have now gone mainstream and the premium is well worth it in terms of saving fuel. However, it is advisable to install solar- powered chargers and DC superchargers to avoid draining our mainly thermal powered national grid, which will negate the very purpose of having more electric cars.
Many examples abound to show that even some major mistakes can be rectified. SriLankan Airlines was a great success under its strategic partnership with Emirates, but once it ended SriLankan went back into the red. Prime Minister Ranil Wickremesinghe has rightly called for the privatisation of the loss-making airline. This should be done without delay.
Another example for an organisation that came back into black after such a strategic partnership is Sri Lanka Telecom (SLT) which is now a world-class telecom services provider encompassing landline and mobile telephony, Internet and TV. One can only Imagine its plight if it was not divested – we would still be waiting for months for a telephone connection. The Government should not indeed hesitate to restructure, divest or private all loss-making State-owned enterprises including the CPC.
The politicisation of the public service and the police is another major blunder. This has led to a supine, lethargic and inefficient public service that is apprehensive of working impartially.
The practice of granting jobs to unqualified supporters of the governing party has led to the ruination of many State sector entities. It was also revealed recently that 182 out of the 184 Officers-in-Charge (OICs) of police stations have been appointed on the recommendation of ruling party politicians in the respective areas without considering the required qualifications. Little wonder then that the Police Department is incapable of acting without fear or favour. Sri Lanka indeed needs an immediate course correction that takes all these factors into account.