Daily Mirror (Sri Lanka)

INFUSION OF CAPITAL TO GOVT

- ANTON ABEYESEKER­A

Our Foreign exchange reserves have been depleted due principall­y to our enormous expenditur­e on Covid, the drop in the income from tourism and exports. Manufactur­ing activities locally are restricted due to the lockdown, imports have been curbed which results in drop of revenue to the Government. Further the daily wage earners, and the small time businessma­n are also affected due to the current situation and unemployme­nt is rising every day. To add to the woes of the Government, we find ourselves in a situation where the cost of living is at unpreceden­ted heights. Hot on the heels of all these problems there are demands from teachers and Health workers for higher emoluments and this could escalate to other unions as well. There is no doubt that the country is facing a very critical downward trend in Capital infusion and circulatio­n of cash and the question is how do we address this problem which is of astronomic­al dimensions.

Some sections of the opposition have suggested that we persuade the IMF to bail us out, but the CB Governor has quite rightly referred to the other obligation­s we will have to face by way of stringent conditions which will mean further depletion of our resources. The need of the hour is infusion of capital and the time has come where our private sector should raise their hand, be counted, and come to the aid of the country and its people. It is suggested that all Chambers of Commerce in the country should get together and initiate a Fund raising campaign from the local private sector businessma­n. There is no doubt that local businessme­n, small and large companies have made enormous profits over the years. When one reads the accounts of the different companies, their profits and reserves add up to phenomenal levels and coughing up a portion will not impact their balance sheet. In addition there are business entities which under value the export price and stash the balance away in their private accounts overseas, and I am sure, the Government will provide an amnesty if necessary.

Indiscrimi­nate taxation of Companies will only result in further increase in the cost of living and will be deemed to be unfair and undemocrat­ic. It is in the light of all the above facts stated that we call upon the private sector to voluntaril­y share a portion of the gains they have made over the years as the country and its people need their interventi­on. This clarion call is made as the situation which has arisen is of a unique and global nature where an unseen enemy has launched an attack on all countries and their people and thus requires an innovative solution.

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