Comments by the Opposition Leader don’t carry any substance:
Basic requirements of people are being fulfilled:
It would be good if the SJB brings a NCM against their own leader:
Decisions did not take a back step due to any interference:
State Minister of Finance Shehan Semasinghe said this is not the time to practise politics but a time to stabilise the economy and ensure that the basic requirements of the people are being fulfilled. The Minister in an interview with the Sunday Observer said this is not the ideal stabilisation and we have a long way to go. We will face the challenge and ensure that we don’t go into an economic distress the way we are now.
Commenting on the Samagi Jana Balawegaya (SJB) sponsored No-Confidence Motion (NCM) against Health Minister Keheliya Rambukwella, State Minister Semasinghe said “In my opinion, it would be good if the SJB brings a NCM against their own leader who has not contributed for the wellbeing of the people especially during the post crisis period.
We have emerged from the crisis. So, the Opposition is really worried about the Government’s actions towards this end. They thought the crisis would be the only opportunity for them to go for a regime change. However, they were offered to accept the challenge. When they run away without taking the responsibility, it is not fair to criticise somebody who has taken the responsibility and shown tangible results.”
Excerpts of the interview
Q: Despite the fact that several countries in the world collapsed due to struggles, President Ranil Wickremesinghe managed to bring Sri Lanka back to normal within a short period of one year. Would you like to comment?
A: It is a matter of adapting to macroeconomic conditions, analysing the threats and challenges and working together with the international community. By doing that, transparency in communication is also very much important. We have done the adaptation required to meet the economic challenges. This was the key factor behind this. Certain decisions were taken timely and correctly. The right decisions did not take a back step due to any interference.
Q: You have said that after 2027, Sri Lanka will not need the support of the IMF adding that Sri Lanka has become an example to the international community as a country that has emerged from the economic crisis. Could you explain?
A: Actually, it is the wish of the IMF as well. The IMF firmly believes if we work together harder collaboration with our creditors and adaptation to the macroeconomic development ensuring the reforms done for the betterment of the country under the four-year program without deviation, the IMF is also of the view Sri Lanka will not need further IMF program as our house will be in super order at that time.
We will gain debt sustainability, economic stability and good governance. This is what our aim is. The IMF alone cannot keep on assisting a Government which derails all agreements once you reach stability. That is a breach of trust among the creditors. This is what we want to achieve and that is the wish of the IMF as well. The IMF is also happy to assist countries when they are in distress and to ensure that they will not return back towards distress.
Q: Inflation in Sri Lanka is expected to come down to 8 percent next month by following the criteria of the IMF. Your views?
A: Inflation in September, 2022 dropped to 70 percent. Now it has dropped to 12 percent. We anticipate it to drop further to 7 or 8 percent in July. By the end of the year, there will be a greater stability in the pricing mechanism in Sri Lanka as the economy is moving towards the right direction. The required inputs for the agricultural sector as well as for an active economic movement are being provided. However, we are very concerned about the SME sector and we seek to bring some relief to it. Even though certain people are very critical of what the Government is adapting, most of them have forgotten the plight of the country in May, June and July last year and what sort of a disastrous year 2022 was.
The difficulties, frustration and hopeless situations that the people faced have been overcome now. It is a collective effort that could bring to a stabilisation of the economy. The policymakers and the requirements of a peaceful and a stabilised economy cannot go in two different directions.
This is not the time to do politics. This is the time to stabilise the economy and ensure that the basic requirements of the people are being fulfilled. That is what the Government is doing but we have a long way to go.
Actually, this is not the ideal stabilisation. We will face that challenge and ensure that we don’t go into an economic distress the way we are now.
Q: The first review of the IMF will be held in September. Has the Government prepared the necessary background to successfully face it?
A: We have not restricted ourselves to reviews of the IMF program. It is a continuous process. If we breach the agreement of the creditors and international financial institutions, it is our responsibility to make necessary adjustments. So, this is going to be a continuous process and it is not going to be limited to a review. You can’t derail at a single point. I have seen certain institutions saying that Sri Lanka has not met the requirements of the IMF and are trying to create a very negative perception among the people about the stabilisation of the economy and the IMF support.
The IMF support means the support from all our creditors because it is an organisation with 190 member countries. Certain people attempt to make this positive perception into a negative perception. Even if you say that certain targets or structural benchmarks have been achieved or not but that has to be related to that particular period. Certain benchmarks or changes will be done in June to December 2023, 2024 and 2025.
If you take the whole program, it is always good for somebody to specify the timelines and publish them. On the achievements of the economic targets, there had been extensive discussions with the IMF by our legal advisors and financial advisors. So, certain information is not known by the third parties. Most of the people who are critical of the economic recovery are the people who didn’t support the Government or the people of Sri Lanka to overcome the challenges that they were facing.
The people were more determined than certain political parties and certain people who are critical of the recovery. Basically, we urge the people to be fair in their publications and we are certainly happy to accept any constructive criticism and correct them. However, unreasonable criticism will only take the country backwards.
Q: On completion of the Domestic Debt Optimisation (DDO), international credit rating agencies will reveal their official position on Sri Lanka. What is the progress with regard to the DDO?
A: Actually, it is not only domestic debt optimisation, the bilateral restructuring is also very important. So, both of them will go together. We will complete our bilateral restructuring optimisation of domestic loans by September to ensure that we are out of bankruptcy. Therefore, we will be out of bankruptcy by September.
Secondly, we have taken all measures with the legislation passed in Parliament on Wednesday to be a corrupt free country, basically introducing the Anti-Corruption Law which didn’t exist in Sri Lanka.
These are the main criteria for any country to execute transparency of public administration and appropriation of public funds.
The DDO was presented to Parliament and approved on July 1 and it was not expected by many people. They all thought we will go for a haircut of bank accounts and all 5.7 million bank accounts will get affected and there will be a rate cut as well.
They also thought the Superannuation Fund also anticipates a haircut eventually which will erode their balances. Our efficient optimisation process ensured that financial system and banking system stability and the balances of bank account holders as well as well as Superannuation Fund are secured.
Q: Concerns have been raised on a series of shortcomings of the ‘Aswesuma’ program. Has assessments commenced on the appeals and objectives made on the ‘Aswesuma Program’?
A: There could be shortfalls or shortcomings because we are stepping into transparent and proper targeting after more than two and a half decades. The welfare benefits in Sri Lanka never had a transparent system and the people who require welfare benefits were out of the net.
The people who were not qualified to receive welfare benefits were within the net. This is an inclusion correction and exclusion correction that the Government is doing. So, I have to agree with you that there could be shortcomings. But we will ensure that every person who requires social benefits will be taken into consideration.
However, that cannot be done by looking at the political perspective. You can’t select people on an adhoc basis and it has to be a transparent process. The only assurance the Government can give is we are effecting the change after 25 years so that there are challenges.
At present, there are over one million appeals and 100,000 objections. We will review them and ensure that all are being addressed and nobody is left behind. We will ensure that they will get their welfare benefits within this month and once the review process is completed with the August payment, we will adjust the payment of July.
Q: The main Opposition Samagi Jana Balawegaya (SJB) has decided to bring a No-confidence Motion against Health Minister Keheliya Rambukwella after a series of shortcomings occurred in the health sector. Is the Government confident of defeating it in Parliament?
A: Raising concern on important areas either by the Opposition or the Government is a good practice. However, trying to derail things is a different approach rather than resolving the issues in Sri Lanka. Unfortunately, the SJB leadership is very weak. In my opinion, it would be good if the SJB brings a NCM against their own leader who has not contributed for the wellbeing of the people especially during the post crisis period. We have emerged from the crisis. So, the Opposition is very worried about the Government taking steps to emerge from the crisis. They thought the crisis would be the only opportunity for them to go for a regime change. However, they were offered this challenge. So, it is not fair for them to be thinking against the Government and the President.
President Ranil Wickremesinghe was the only person who accepted the challenge. When the option was given to Opposition Leader Sajith Premadasa, he ran away without taking that responsibility. When the Central Bank Governor and Finance Ministry Secretary briefed the Opposition Leader about the economic condition of the country at that time, that could have been the time where he could have decided that he will never take the responsibility because he is not capable of delivering.
Then some other names were also proposed at that time. When they run away without taking the responsibility, it is not fair to criticise somebody who has taken the responsibility and shown tangible results.
Q: The Opposition has also decided to appoint a committee to inquire into the actions that led to the economic crisis. However, Chairman of the Parliamentary Selected Committee MP Sagara Kariyawasam has said that the Opposition appointed committee will not serve its purpose as it doesn’t have the power to summon relevant officials and call for relevant State documents for an inquiry. Your comments?
A: Agreeing on the committee appointed by the Parliament legislatively whether you agree with its Chairman or not is a different matter. If you are unparliamentary, you can do anything. However, within the parliamentary system, there is no room for the Opposition Leader to appoint a committee on his own and function.
Of course, he has all the right within the party to have a different mechanism. The SJB is different from Parliament or the Government. Within the party, the Opposition Leader has the right to conduct inquiries and review matters and inform the public.
But what he proposes is unconstitutional and there is no such practice. It is a violation of Standing Orders and that will be a namesake committee. I think what he should do is to have a committee within his party and see what he could reveal to the country instead of just commenting. Unfortunately, most of the comments by the Opposition Leader don’t carry any substance.