President Ranil Wickremesinghe said that he seeks a mandate from the people at the upcoming Presidential Election to ensure normalcy and provide a better future for the people.
At present, we have created stability in the economy. If there is no stability, the country will return to the same old situation, as earlier. Hence, we have to make a serious decision whether the country is going forward or backwards.
In this scenario, we should go for an export-oriented economy. As we move towards an export-oriented economy, we need to provide jobs to the youth and make a big improvement. At the same time, steps should be taken to ease the cost of living burden of the people.
Q: Why will people vote for you at the upcoming Presidential Election?
A: That is to ensure normalcy and a better future for the country’s people. We have created stability in the economy. We need to decide whether to confirm it or not. If it is not confirmed, then of course there will be a return to the same old situation, as earlier.
For example, I have been asked to prepare a Budget with NPP proposals for next year. After adjusting all those things, our expenditure and income gap is Rs.4,000 billion. That means 11.9 percent of the Gross Domestic Product (GDP).
In general, we can achieve only 5 percent of the GDP according to the agreement. That means the maximum we can borrow is 5 percent of the GDP. That’s why we formulated the Budget for 5 percent. Now this is 11.9 percent. So at 11.9 percent, how many rupees will be required per dollar? At least Rs.400 to Rs. 425 will be needed.
When the IMF told the other 18 countries that it would be 11.9 percent, they would stop supporting us. Then the dollar will be Rs. 500 instead of Rs. 400. If they want to get money and take more than 5 percent of the market, the private sector will lose the money of the GDP.
At that time, the interest especially went to 25 percent. That’s the difference. We have to make a serious decision whether the country is going forward or going backwards. If that is confirmed, we should go to an export-oriented economy. As we move towards an export-oriented economy, we need to provide jobs to the youth and make a big improvement. At the same time, steps should be taken to ease the cost of living burden of the people.
Q: The most important qualification for your participation in the upcoming Presidential Election is to solve the economic issue. However, the accusation made by the Opposition is that this victory was possible in the past due to non-payment of foreign debt. Would you like to comment?
A: In fact, we have paid the foreign loan interest. What we have obtained from foreign debt, I have paid these in rupees. We have got a grace period to pay the foreign debt. We have paid the interest every year. Now we have to pay back the original amount received and it’s a small amount. We have done all this in rupees. Our debt sustainability means two things. One is we should have money for our expenses. We need to have money to pay our debts. Currently, the IMF has accepted that we are moving towards sustainability. That is why it has signed the agreement.
We are going back to non-bankruptcy. After that, we will get more foreign funds. At that time, we will be able to bring vehicles to Sri Lanka. I don’t understand why those people say that. We have found all we need. It is found from the income of the country. In addition, there are loans. We can pay the debt. According to our existing system, if they want to pay the debt in this manner, they can do it. If it can be done, why didn’t they accept it? Those days they said that this cannot be done. They said that it would be like Greece.
Q: National unity is important for the country’s economy. There is a political problem in the North and the East. What kind of proposal do you offer to solve that question?
A: For the first time in this Presidential Election, there are no ethnic or religious issues. In fact, we have discussed many problems of the Tamil people in the North. They have to be carried forward now. We have also discussed the 13th Amendment. The main component of development should be nine Provincial Councils, not only in the North, but in the time of key development. Provincial Councils should be empowered to carry out the development work. Next, we will provide solutions for land issues of the people. We are going to establish the Truth and Reconciliation Commission (TRC) to address the political issues that exist. The Nawaz Commission is also being implemented. We are currently solving those issues and we are ready to go further. Maybe they can say that we are late but we are working on that. Cremation or burial was one of the key problems faced by Muslims. We have submitted legal drafts regarding that as well. Therefore, those issues do not exist now.
Q: What you and your team keep saying is that if somebody else takes over the country, he won’t be able to continue in office at least for six months and the ongoing economic program will fall apart. Have you made this program so that if you lose it, it will collapse?
A: No. Anyone can implement the program I have introduced. But these people don’t want to show that. The NPP is trying to get out of it and then it collapses. If they go out, it will collapse. We have shown the way. They have to go that way. Anyone can go that way. If they go out of that way, they will fall.
Q: Do you have a bigger challenge from Sajith or Anura?
A: I am ready to face both. There are three main candidates. Namal Rajapaksa is also there. I am ready to face anyone. The challenge is that their principles cannot be implemented in this country. We are currently going steady. Now look at the Maldives and it is heading towards a big economic crisis. Bangladesh is also losing its control. Should we also go to that level? Or continue this way? Neither Sajith nor Anura will answer them. Both of them follow the same old politics. I am going into new politics. I want to create a new methodology and that is somewhat revolutionary.
Those people don’t have such a program. They have become prisoners of the politics that created this crisis. They must come out of that old politics.
Q: At a recent political rally, you said that Anura Dissanayake emerged due to the ineffectiveness of Opposition Leader Sajith Premadasa. If this was not the case before, there would have been only two political camps in the country. Because of that, you urged the people not to vote for Sajith. Do you mean that there should only be two political camps in the country?
A: Generally, there are two main political camps in any democratic country. Some countries have three such political camps. At present, there are nearly 39 such camps in Sri Lanka. In our country, there was a camp led by the President or Prime Minister. The other camp was led by the Opposition Leader. Dudley Senanayake was the Leader of the Opposition in late sixties. Sirimavo Bandaranayake also held the Opposition Leader portfolio. Even though J.R. Jayewardene faced some issues, he did not allow anyone to go against him. Mahinda Rajapaksa also followed the same line. The Opposition Leader should know to take his leadership from others. So if he doesn’t know this, what can we do? Anura Dissanayake saw the opportunity and went ahead. That is the weakness of the Opposition Leader Sajith Premadasa’s leadership. If all parties are treated equally, this issue will not arise.
Q: Have you read the two political manifestos of the Samagi Jana Balawegaya (SJB) and the National People’s Power (NPP)? According to your economic program, what is the difference between the two manifestos?
A: There are two SJB manifestos, ‘A win for all’ and Economic Blueprint3. After they introduce all that, Sajith Premadasa goes and promises something free or he says that the price of goods will be reduced further. So, they don’t know what it is. When I talk to them, they say they don’t know and they promised this today. One of the SJB manifestos says that farmers will be given loans and subsidies. That is not mentioned in the other SJB manifesto. There are contradictory facts about the tourism industry. When it is said that there is an issue here, the Opposition Leader promises another one. Now he says that a Ranaviru Department will be set up. So, all these are new expenses.
I also read the NPP manifesto. It took a whole night to read its 232 pages and it is not an easy task. Its economic policy is not clear. The biggest question is whether to go to an export-oriented economy or not? Former Agriculture Minister Anura Kumara Dissanayake said in Kelaniya that it will be an export-oriented economy. Now here is something else. It says the free trade agreements will be cancelled. So, if free trade agreements are cancelled, they can’t go for an export-oriented economy. The third point is that Sunil Handunneththi and Dr.Suriyapperuma expressed their views against the Economic Transformation Bill and said that an export-oriented economy is against the Constitution. So, there is a contradiction. When looking at this the goals of the IMF are all different and not by 0.5 percent but on a large scale. They have to say how to do that work. In this context, money has to be printed. If money is printed, this system will collapse and I don’t see any benefit from it.
Of course, I am ready for a debate with Anura Dissanayake. But he has to tell me whether they are in the export-oriented economy or the import-oriented economy. Then we can talk to the IMF. Right now, we can tell the IMF about our issues and then we can have a debate.
Q: You continue to address NPP Presidential Candidate Anura Kumara Dissanayake as “my friend”. Is Anura really a friend?
A: So, he is a friend. When speaking in Parliament, we always say ‘My Good Friend’. Anyway, he says not to call him friend. I think there was a big issue at their politburo. So, I have to call him the former Minister of Agriculture. Now he says not to say that because if you say former Agriculture Minister, it is seen that he is also a part of the Government and it’s not a difference. What should I call him now?
Q: Recently, Sajith Premadasa and Anura Dissanayake have accused you of using Government funds and Government officials for your election campaign activities. Is there any truth in that?
A: Where are the Government funds I used? Tell me where I used it. Then I will respond to that. What they just say is useless. It means that I increased the salaries of Government employees. Is that a crime? I did not raise my salary to put it in my pocket. Some of the people who increase salaries won’t even vote for me. Do they say it is a crime to increase the salaries of Government employees? So because they couldn’t do it, they don’t let others do it either.
Q: You said that the salaries of Government employees will be increased. Three or four months ago, when the Government employees asked for a salary increase of Rs.10,000, the Secretary to the Ministry of Finance said that to do so, the VAT collection would have to be increased. How are you going to do this at this time to earn money?
A: The Udaya Seneviratne report will be implemented in 2025, 2026. There was no money this year. If there was, the salary could have been increased. Because the economy has been managed properly, there will be money in the coming year. This year we could give only Rs.10, 000 allowance to the Government employees. We have money next year. Our administration is proceeding properly. So what happens if this system is broken?
Q: SLPP Presidential Candidate Namal Rajapaksa has said that you were also a part of the ‘Aragalaya’ (Struggle). What do you have to say about it?
A: I am not against a struggle to change the country’s political and social system. I am against doing it, resorting to violent acts. That’s why I stopped it. If we want to change the political, social and economic system of this country, we need to bring in an export-oriented economy. I am here to do these transformations. However, all these activities should be carried out peacefully, with a mandate from voters. I am against violent activities. I came forward because there was no one to protect the law and order situation at that time.
Q: There is a new name in your manifesto called Theravada trade economic system. How does the Theravada economic system differ from the open economic system or the liberal economic system?
A: Theravada countries have used a trade economy. It started during the Rajarata era of Anuradhapura, Sri Lanka. Anuradhapura and Polonnaruwa had a large trade economy. The people came from the West and the East and conducted their trade activities. At the same time, food items were also exported. That was something done due to the influence of Theravada Buddhism. Myanmar also had this system. Trade economy can be done in various forms. Accordingly, I signed a free trade agreement with Thailand. There is a relationship between Buddhism and trade. It’s only in my manifesto which mentions Buddhism.
Q: The North and the East and plantation votes will be decisive votes at the upcoming Presidential Election. Recently there was a talk that India is influencing the leaders of Tamil political parties. What do you think about the votes of North, East and upcountry plantation areas?
A: I’m going to get those votes. The voters have already decided on that. I have no doubt about it.
Q: What is wrong with people doing a new experiment and trying to make a new change regarding voting?
A: We have done various experiments in Sri Lanka. That’s why we never move forward. It is said that the other is better than the existing one. It is being given to the NPP and it is being tested now. The income and wealth of the people have decreased. We want to increase the wealth of the people. That’s why the Urumaya program was introduced and it will benefit 2 million people.
They will get a right that was not available before. These two million deeds have been included into the capital of the ordinary people. Perhaps it was not those who gave the deeds lost the capital. There is no point in doing this until you increase your income. Otherwise, they become bankrupt. That’s all.
Q: What are your solutions to the social and economic problems of the upcountry plantation workers? In the matter of daily wage, the payment of Rs.1,700 has been stopped at Rs.1,350. Your views?
A: Rs.1,700 comes with other allowances. That work is done according to allowances. What has been increased now, let’s continue to implement this. The elders in the line rooms are given Aswesuma benefits. The line system will be done away and the village system will be introduced. Land will also be given to the needy people. Instead of the plantation economy, the agribusiness economy will be introduced.
Q: Repayment of the loan should start in 2028. There is also US$ 12 billion borrowed from bonds. Many intellectuals say that after 2028 debt payments start, the country will be stuck again. What is your view in this regard?
A: In 2022, our GDP was US$ 76 billion and it was US$ 84 billion in 2023. Now there is even more. So, year after year, when the GDP increases, the debt has to be repaid. We can’t be beggars all the time. Experts say to go begging. We need to know how to develop the economy. Countries such as Korea and Vietnam that are poorer than us do this. Why can’t we do this? Our people are smart. If they get into work, they will deliver the results. We could complete the Mahaweli project within 10 years. Sri Lankans can work and fulfill their task well.
Q: Is it possible to renegotiate the IMF agreement like other candidates are promising?
A: We have a debt sustainability agreement. If they want to know other debt sustainability agreements and what they are, they can put them on the IMF website. If they stay within it, they can do it. But some parties want to go outside that. Debt sustainability format for middle income countries and emerging market countries are all there in the setup. So, you have to go by that format and they are not going to change it. Some political parties are misleading the people regarding this. Some candidates say they will change the IMF agreement. Now there is an agreement. If we break the agreement, this ongoing program will be stopped. We have to get US$ 300 million for the next quarter. It will be given only after looking at the progress and being satisfied with the implementation.
The six-month review is given. If they say, we will change this agreement. The IMF will say ok, but they cannot give US$ 300 million and let’s talk again. It will take at least six months or a year to talk about all this. Who gives money in that period? How can we work when those assurances are stopped?
Q: You started the direct tax system. There are still too many indirect taxes and the people want to reduce taxes. The next thing that the other candidates say is that they will reduce taxes and VAT. What is your plan regarding these taxes?
A: It is not a matter of reducing the amount of taxes, but if the income from taxes decreases, it becomes a problem. If the tax is reduced, it has to be increased from another place. If VAT is reduced, many other taxes will have to be increased. If they can reduce taxes without reducing income, then they can talk to the IMF. But it won’t happen. I will give an example.
We expect to collect Rs. 5,117 billion as income. Our difference is Rs. 1,700 billion and it is 5 percent. So, we can get it from the loan market. Because the tax is to be reduced by the NPP, the amount will be Rs. 4,900 billion. It will also pave the way to create the gap of Rs.4000 billion. When taxes are reduced and the income-expenditure gap increases, this is a difficult task. The prices of goods had also decreased in some sectors. That is not enough. There is no other way next year. It cannot be done by reducing taxes. When this was done in Greece, the VAT went up from 13 to 23 percent.
Q: Major businessmen have avoided paying income tax. The Opposition says that you are protecting them. Your views?
A: We are continuing with IMF support. It takes about three years. Digitalisation has also been made. We cannot expect that alone. Let’s face this question. The only way to do this is to increase the GDP and our exports to fulfill this task. Other sectors should also be improved.
Q: In the same way as the Aragalaya in Sri Lanka was faced in the past, Bangladesh is going ahead. A world-renowned economist has taken charge of Bangladesh at this time.
You also came to power in Sri Lanka to end this struggle. But the governance of Sri Lanka and Bangladesh sees some difference. You did to a certain extent than Bangladesh. What was wrong in Bangladesh? If we got it right, what was the right place?
A: I took over as the Prime Minister and later took over the Presidency and worked. The country was peaceful a week before electing me as the President through a vote in Parliament. That was not the case in Bangladesh. They said that the President should be expelled and then an election should be held. Parliament was dissolved before an election was held. Now they are not in a position to hold an election. We also had some scholars. Someone named Sajith Premadasa said that there is a need to hold an election. Learn now. That’s what caused this mess.
If Bangladesh Prime Minister Sheikh Hasina was to quit, someone else in the Government could have taken over and then transformed it. It didn’t happen. Now people are being killed and set on fire. After a while, the investors will leave Bangladesh. However, I blame myself for not doing this. Then they call me Ranil Rajapaksa. Now the Rajapaksas are not with me either. I maintained the law and order situation in the country. We created the environment to hold an election; otherwise no one got the chance to hold an election.
Q: There is a talk about a new Constitution. Will it have any effect on the 13th amendment?
A: I have said to pass a Constitution within a year in the new Parliament. We are talking about the Constitution. It is possible to rebuild the economy and lead the country despite the shortcomings of this Constitution. These are not the important things for us. What is important is to rebuild the economy. We have moved forward with the shortcomings of this Constitution. This was not changed after talking. After President J.R. Jayewardene retired, these people were talking about abolishing the Executive Presidency but none of them elected to Presidency fulfilled that pledge.
Q: The Opposition Leader says that there is a secret deal between you and Anura Dissanayake. Your comments?
A: Can such a person be made President of this country? If he considers the election a joke, what is the purpose of conducting the election?
Q: Is there any personal grudge between you and Sajith Premadasa?
A: It is I who saved his father President Ranasinghe Premadasa from the impeachment. I was there when he was assassinated. I always protected him. But the son has not learned from the father.
