Treasury coffers empty in Sri Lanka, biz group says

Taxes paid by the business community helps the government to pay salaries of state employees and implement budget proposals without any hinderance. But today the country is bankrupt and fallen into an abyss. “We have only US$50 million in the Treasury just sufficient to import a shipment of gasoline. Bankruptcy has led to a state where people cannot even purchase essential goods for their needs. The present government elected by the people is responsible for causing such an economic mess in the country,” said the Vice President of the Kandy Sinhala Welada Peremuna Yasas Chandrasekera on the topic ‘Restart Sri Lanka’ at a media briefing held at Hilton Colombo Residencies this week.

He said most of the tax proposals submitted by them were abolished by the present government creating a loss of revenue to the tune of Rs. 700 million annually. To avert such a loss in revenue the government started printing trillions of rupees to cover the shortfall. This has resulted in creating a vicious cycle of inflation in the country. Top economists here and abroad including the trade chambers urged the government to restructure the debt payment but the then Governor of the Central Bank Nivard Cabraal said the government is able to pay foreign debts without a problem at all. “But the flow of USD into the country stopped creating a balance of payment deficit. The other factor that led to the USD shortage was holding on the rupee instead of floating it. The government has also failed to boost forex inflows to the country,” he added.

Chairman, All Ceylon Bakery Owners Association N. K. Jayawardana said that around 2000-2500 bakeries scattered in the country have closed due to non- availability of raw materials and due to a 300 per cent increase in their products. Only around 50 per cent of bakeries function today and the present government is responsible for the state of affairs which has severely impacted businesses. Political parties in the country have ruined businesses in Sri Lanka.

“Bakery owners in the country have not participated in any form of strike action. So please do not pave the way for us to participate in strike action as it will have severe repercussions in the country. The irony that had befallen in the country is that when one political party is aiming to capture power in a crisis situation the other political party aims to consolidate their power base at all costs,” he said.