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Lend an ear; make essential reforms easier

Lend an ear; make essential reforms easier

03 Jan 2023

Although 2022 is fated to be remembered as a year of crises, it was merely the year of the breakout of unexpected socioeconomic issues. As many critics have pointed out, Sri Lanka should brace itself for many impacts of the solutions to the economic crisis, many of which are to be implemented this year, as such could be more difficult to manage than the crisis’ direct impacts.

The Government remains hopeful that these solutions, or various reforms, would alleviate the burden of the economic crisis, and will expedite economic recovery. In his New Year message to the nation, President Ranil Wickremesinghe stated that 2023 will be a critical year, during which the Government plans to turn the country’s economy around, and that the proposed social, economic, and political reforms aimed at building a prosperous and productive Sri Lanka in the coming decade must therefore be boldly implemented. He went on to appreciate all who have prioritised their commitment to the country, and further thanked them for their patience and courage as the Government took critical initial steps to stabilise the economy.

Among these reforms are the already-implemented income tax reforms, proposed electricity tariff hikes, and the ongoing State owned enterprise (SOE) reforms, such as changes to the minimum retirement age, which have already attracted public criticism. 

As the President acknowledged, the reforms that are necessary for economic resuscitation are not easy. While these reforms could be justified based on the present economic situation and could be beneficial in the long run, the fact that they intensify the existing economic hardships should not be ignored. The rulers and authorities must not forget that they are expecting the people to support the country’s overall economy at a time where the public’s individual and household economies have also been dealt a severe blow.

However, despite the severe and direct impacts of the so-called solutions to the economic crisis on the people, especially on the country’s workforce, they have not received a fair opportunity to have a say in these reform plans. Almost all these reform plans and discussions on those plans are led by the Government, with little to no involvement of the public or their non-Governmental representatives, nor the working people or the trade unions that represent them. In fact, in arguments on the proposed electricity tariff hike, the Government even appeared to be ready to disregard the opinion of the Public Utilities Commission of Sri Lanka (PUCSL), which is an alarming situation.

There is no denying that the Government holds the prerogative of leading and deciding on these reforms, and that it should take difficult yet necessary decisions to revive the economy. 

However, if the Government is serious about improving the economic situation and quality of life for the people, it cannot ignore the impacts of these reforms on the people, and should therefore help the people acclimate to the hardships that are to come this year. The least it can do is allow the people or their representatives to be involved in the Government’s decision making process concerning economic and other forms of reforms. 

Such steps would not only widen the Government’s definition of reforms, but will also give the people the opportunity to have a say in these key decisions that will affect them greatly.




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