Differing views on the prevailing situation
An adjournment debate on the “Current Situation of the Country” on Wednesday (21) saw vastly differing views on the prevailing situation and forecasts for the future from the government and opposition MPs.
Moving the debate for the opposition, Kurunegala District Samagi Jana Balawegaya (SJB) MP Thushara Indunil Amarasena questioned whether the Government of President Ranil Wickremesinghe could claim its policies have set the country on a path to economic recovery when ordinary people were still suffering under the immense weight of the economic crisis.
“They (Government) raised taxes to a limit that ordinary people cannot bear. They hiked the Value Added Tax (VAT) to 18%. They raised various other taxes as well. Electricity and fuel prices were hiked astronomically. Electricity tariffs alone were hiked three times. Concurrent to these tariff hikes, the prices of most goods and services increased by as much as 300% compared to what they were in 2020,” said the MP.
He noted that inflation has gone up from 3.4% in November last year, to 4% in December, and then to 6.4% in January according to the Colombo Consumer Index. As per a report by the UN, a family of four needed Rs 63,000 a month to live in 2022. By the end of 2023, the same four-member family needed Rs 76,124 a month. That is an increase of Rs 12,304.
The people’s income has not gone up enough to match these increases, the SJB MP pointed out. Meanwhile, some 263,000 small businesses have already been forced to close down owing to the crisis. All those who depended on those businesses to survive have been dealt a crushing blow by this situation, he said.
“When we took over, the tax ratio was 80% indirect taxes and 20% direct taxes. We have changed that ratio to 70% indirect taxes and 30% direct taxes now. Our aim is to raise direct taxes to 40%. That is why we are talking about everyone over 18 opening a tax file. We are not trying to tax everyone who’s registered,” said State Minister of Finance Ranjith Siyambalapitiya.
He noted that inflation was at 70% when President Wickremesinghe took over with a new government. “We accept that things were, and still are, hard for people. We are gradually reducing this burden but the problem is not over yet. We will never try to claim that people aren’t still finding things difficult. Yes they are hard, but we are trying to find answers. We are facing the challenge. We are not running away and attempting to use the crisis to gain political mileage.”
National People’s Power (NPP) MP Dr Harini Amarasuriya claimed that legislation such as the Online Safety Act and Anti-Terrorism Bill have been designed to prevent citizens from questioning their representatives. She alleged that Government MPs were always lamenting that people are questioning them or ridiculing them or hooting at them, and are insisting that these things should be stopped. That too shows they are in fear, she remarked.
“This ruling class cannot accept that a change is coming. This social transformation will take place whether the ruling class likes it or not. As such, the best decision they can take now is to understand the change that has taken place among the citizens, understand the factors that led to this change and then change accordingly as well. But we do not think the ruling class has that level of intelligence,” she remarked.
Sri Lanka Podujana Peramuna (SLPP) Kandy District MP Mahindananda Aluthgamage noted that Parliament has already held five debates in recent times on the country’s situation. “We have answered every issue you raised during these debates,” he told the Opposition.
He said he had seen meetings organised by the NPP in Kandy where party activists often talk about the cost of living and about the tax burden. “You charged that the Government was trying to delay elections. You spoke of thievery and democracy. We have seen you talk about all these things at your meetings in a manner that reduces the audiences to tears, but did not see you presenting solutions to any of these issues. You have not explained how you intend to reduce the price of goods in your government. You haven’t said anything about how you intend to reduce the tax burden on the public,” Mr Aluthgamage told the NPP.
Dr Amarasuriya shot back that while the debate’s topic was about the current situation of the country, some had made it into a debate on NPP and its policies. “If the government wants a debate on that, we can have that debate on another day,” she quipped.
2½ years ago, Sri Lanka was used as a case study to describe the mistakes that were made, with other countries being cautioned not to repeat what it did. Now however, Sri Lanka is being used as an example to highlight how taking difficult, but correct decisions has set the country on the fast track to come out of bankruptcy, Power and Energy Minister Kanchana Wijesekara said, adding “we have set an example for the world.”
He added that whichever election comes first, the people will have to decide whether they will take the country back to an age of endless queues, where no essential foodstuff and medicines are available, or whether to take a decision to enable the now stabilised country to move further forward.
Parliament reconvenes at 9.30am on March 5.