The responsibility of public financial control is assigned to Parliament. Parliament has the responsibility to investigate the affairs of public institutions since public institutions operate with public money, said Prof. Ranjith Bandara, Chairman of Parliament’s Committee on Public Enterprises (COPE) in an interview with the Sunday Observer.
Excerpts
Q: Are you happy that you have entered the political arena?
A: Yes. Many of us are dissatisfied with the behaviour of politicians and political culture. My thinking is not exceptional. Even as a student at university, I aspired to be involved in politics. However, I had several dreams in my life. My dream was to be a senior academic. As I was interested in politics behind the scenes, I knew getting into politics was tricky. As everyone knows, to compete in the electoral system, you need a lot of money. As I was not in politics, I chose a different path, which was to help form a new political party. I was involved in the early stages of creating the Sri Lanka Podujana Party (SLPP). Basil Rajapaksa invited us to come and help him with the party.
I am delighted to have played a role in promoting democracy and the multi-party system. Even though I went to Parliament through the National List, I feel like I should do something for the people of Kandy as I have a lot of gratitude as Kandy played a crucial role in the person I have become. The way I do politics is different. I spend 80 percent of my time on social work and 20 percent on politics. This is how we could change the image of a politician. Politicians are not superhuman beings; they should be ordinary people, taking people’s issues first.
Q: How do you view the appointments to COPE, COPA and COPF?
A: The Committee on Public Enterprise, the Committee on Public Accounts, and the Committee on Public Finance are the committees which govern public finance through Parliament. Article 148 of the Constitution says, “Parliament shall have full control over public finance.” I previously served on the Committee on Public Accounts. However, now I serve as the Chair of the Committee on Public Enterprise and as a member of the Committee on Public Finance.
I was not chosen but instead elected by the COPE committee members. There were 26 members, including prominent members such as Patali Champika Ranawaka, Dr.Harsha De Silva, Anura Kumara Dissanayake, Eran Wickramaratne, Dr. Charitha Herath, Jagath Pushpakumara and many other seasoned politicians. There was an election, and I received 15 to 7 votes, which resulted in my election as COPE’s Chairman.
Q: What role do you envisage for the Diaspora in the future of Sri Lankan people?
A: Sri Lanka is such a small island with limited resources that we must consider who is willing to help resolve the current crisis. Whether you like it or not, research from Peradeniya University’s Economics Department shows that 41 percent of the population requires government assistance to overcome the current crisis.
Another World Bank study found that 3.7 million people need food assistance. Those are families and they multiply by four. It’s a significant number. At least 10-15 percent of this number is in this category. There are some 1.8 million Samurdhi beneficiaries. There are about 500,000 people on the waiting list. There are 600,000 pensioners and 1.5 million public employees.
All families with incomes of under Rs. 100,000 are hard hit. You can’t imagine how poor the poor are. As a result, President Ranil Wickremesinghe has demanded that every possible agency come to our aid.
The disparity between the rich and the poor is widening. That is why people protested for a change. It’s a huge dilemma. Unless we address this, we are heading towards another crisis like those in 1971, 1983, and 1987.
We must proceed with caution as politicians. People are pointing fingers at politicians. Politicians, on the other hand, are powerless because the State runs the system and state employees run the State. There is no public justice if the state system is inefficient in delivering goods.
There are numerous reasons why, even after 75 years of independence, we remain a third-world country.
Q:How is your party’s policy towards China?
A: The Sri Lanka Podujana Peramuna (SLPP) advocates a non-aligned foreign policy. We follow a similar approach. China has been a good friend of Sri Lanka as they have helped us in our development and at times of crisis in the past.
Q: What is your solution to the current political situation in Sri Lanka?
A: The current political situation is natural, like in any country with multi-party politics, as every party is eager to seize power.
The SLPP has won three elections in a row as a young party. We know how we gained the people’s trust as there was a massive void in the Government of “Yahapalanaya.” We believe that we have a duty to the public as Members of Parliament.
There are different kinds of political parties in Sri Lanka. Some parties represent Parliament, and some don’t; for example, the Frontline Social Party can attract 5,000 university students and supporters but hasn’t ever won a single seat.
Some trade unions, for example, protest for illogical reasons; however, none of their members have been elected. This is because it is the people’s choice of whom to appoint to the Legislature. However, a country has to be politically stable to move forward.
Q: What policies are being implemented to reduce the interest rates in Sri Lanka?
A: I accept that it is excessive. The Treasury Bill rate is now higher than the bank interest rate for the first time in history. The Treasury Bill rate is typically much lower than the bank’s interest rate. If you are wondering why there was so much money in the market, the value changed during and after Covid-19. The productive system is disrupted and inoperable.
It is natural to have high inflation with more money and fewer commodities.
We are experiencing a high inflation in the country. The Central Bank uses one of its mechanisms, which is to have a higher rate of interest to attract more money to the traditional banks and financial institutions and to invest in Treasury Bills to contain inflation. You can’t continue to have a higher rate of interest that affects your investment.
We need to have an investor-friendly rate of interest. Otherwise, your financial system will collapse. And there will be a severe liquidity shortage in time to come.
Banks are discouraging people from investing. After all, they know they will default because they cannot cope with this interest rate and the liabilities. The Central Bank must decide sooner or later to lower the interest rate and make it more appealing to investors.
Q: What is your vision of Sri Lanka’s economy?
A: Sri Lanka missed quite a few opportunities. During ex-President Mahinda Rajapaksa’s period, we had a steady growth. We were investing in infrastructure, which was necessary. We opened new lands for investment and invited investors to come. But the 2015 Government change ruined everything.
When ex-President Gotabaya Rajapaksa took over, the economy was in terrible shape. It is unfair to blame a single person for the current crisis. The recent report by the World Bank highlights that by the time Gotabaya Rajapaksa became the President, the economy was in bad shape and with the Covid-19 pandemic, whatever opportunities we had were gone.
The whole world became isolated. There was no tourism and no remittances and, on the other hand, trade union actions and civil unrest. Due to excessive tax cuts, the Government’s revenue suffered a lot. But now we are settling down. We have to consider this as a country instead of looking at it politically. The tourism sector or remittances alone can’t solve the problem. We need to encourage more exports and more investors. We need to remove red tape. It takes a year and a half to get approval for a foreigner to invest. Let the Board of Investments be more vibrant.
Q:What’s your take on the malnutrition situation in Sri Lanka?
A: The Minister of Health accepted a two percent increase in malnourished people in the country. The Government is trying its best to have committees look into the problem. We promote a culture that will take care of each other and each other’s interests irrespective of the colour of their skin and other differences.