President Ranil Wickremasinghe has been “dictatorial” in discussions relating to the International Monetary Fund’s (IMF’s) Extended Fund Facility (EFF) instead of engaging in proper negotiations, along with the Parliament, claimed Samamgi Jana Balawegaya (SJB) MP Dr. Harsha de Silva yesterday (27) during a press conference.
Dr. de Silva said: “This is a matter concerning the country. He (the President) has to be willing to ‘give and take’ and not insist on ‘my way or the highway’. We have to have a consensus. This is how it should be done – give and take.”
He reiterated that the Government is yet to discuss these matters in Parliament despite the Committee on Public Finance’s (COPF) request, while President Wickremasinghe had stated “take it or leave it”, which Dr. de Silva said is “dictatorial”.
Explaining the repercussions if Sri Lanka is unable to receive the EFF – a sum of $ 2.9 billion granted by the IMF – he noted that the IMF is needed to regain the lost trust in Sri Lanka among other countries. Through the IMF, it can be ensured that financial management in the country will be carried out efficiently and responsibly in the next four years.
“Prior to Ranil Wickremasinghe entering Parliament through the National List, we (SJB) have stressed to the Government (of Sri Lanka) regarding this matter (referring to approaching the IMF). It is because the financial markets function based on trust, or else its functioning fails. When borrowing, a signature from someone, such as a government worker or a relevant professional, has to be provided to guarantee that the borrower will pay the loan,” Dr. de Silva said.
Accordingly, the World Bank (WB) and the Asian Development Bank (ADB) have assured that if Sri Lanka comes into an agreement with the IMF, they are willing to grant further fund facilities. Japan has also assured that under such circumstances, Japan-initiated infrastructure projects that have been halted in Sri Lanka will be recommenced, explained Dr. de Silva emphasising the importance of the agreement with the IMF.
Dr. de Silva also warned that if the IMF fund facility does not make its way by March, Sri Lanka, without doubt, would be “stuck”, highlighting that his views on this are not merely political speech.
He added that the SJB has already expressed their stance on the tax policy that has been presented to the IMF by President Wickremesinghe and Dr. de Silva reiterated that such “should be changed”. He added that the SJB is prepared to engage in discussions with the IMF in presenting a tax policy that generates the same amount of revenue.
Moreover, the SJB expressed their disagreement towards increasing tax rates from 15% to 30% for exporters. Instead, he said the SJB would be able to provide alternatives to encourage an export-oriented economy.
Speaking about the recent electricity tariff hike, he said though the increase was bound to happen, the amount is “unjustifiable and abstract”, adding that these are merely three examples of what the SJB is against, regarding which the party is willing to discuss with the IMF to come up with alternatives.