By Rohan Samarajiva
The National People’s Power (NPP) released a document entitled ‘Rapid Response to Overcome Current Challenges’ to some fanfare late in December. It is quite progressive in aspects other than economic, as is shown below. But it is described as a rapid response, and must be judged in those terms. None other than the multiplying economic problems demand a rapid response at this time. Therefore, the emphasis here is on the economic aspects of the 26-page document.
The NPP’s document is not a rapid response to the unprecedented economic crisis that is enveloping the country. This is a document written in the style of a conventional election manifesto.
Response to the crisis
The Government’s story that assigns sole responsibility to the pandemic is losing traction. It is not accepted by the NPP. However, the NPP’s narrative converges with that of the government on the roots of the debt crisis. The NPP, along with the Sri Lanka Podujana Peramuna (SLPP), downplays the immediate and obvious causes, namely the profligate commercial borrowing since 2007 and the exacerbation of the fiscal deficit by the massive tax breaks granted to the rich shortly after the President assumed power in 2019. To assign responsibility to all governments since independence is to diffuse responsibility. It will result in distorted solutions.
What does the NPP offer as a rapid response?
- A commission of experts will be appointed to conduct a thorough investigation and audit of all current foreign debt
- Develop a formal plan for the next five years showing how to improve the level of foreign reserves
- Work diplomatically with counterparts to restructure debt repayment and obtain debt relief
- Provide a reliable and transparent mechanism for our overseas workers, and members of the diaspora to remit foreign exchange and invest in new entrepreneurial ventures in Sri Lanka that are needed to bring foreign exchange to the country.
- A health system that provides all citizens with necessary treatments by constantly monitoring their health
- A quality health service to all citizens without discrimination on the grounds of gender, income or social status, profession, etc.
- A set of actions to reduce the percentage of the income of a family unit allocated for healthcare
- A minimum of 5% of Gross Domestic Product (GDP) on healthcare
- Taking measures to increase the active and healthy lifespan of a citizen