• Nawa Sihala Urumaya prez candidate Sarath Manamendra opines that SL should get loan/debt repayment extended to 2034 while decentralising mgt. of export-centric nat’l econ. sectors

Instead of continuing to control or maintain a monopoly in sectors that the Government has failed to protect and improve, these institutions should be given to the private sector or through public-private partnerships, and the Government’s fruitless control on these sectors needs to be ended. 

Noting this, Nawa Sihala Urumaya’s presidential candidate Sarath Manamendra expressed that such partnerships have proven to be effective, and that it is time to be honest about the Government’s capabilities and allow the private sector or such partnerships to handle all sectors that the Government is under-resourced to manage.

Manamendra believes that except service-providing public entities, all money-making public institutions should be subjected to the stringent assessment about their capabilities. If he is to become the President, he says that the management of all loss-making public institutions will be changed. 

Speaking to The Daily Morning, he said that this will not only reduce the economic burden on the Government and the tax-paying people, but will also increase the performance of public institutions and State revenue.

Following are excerpts from the interview:

What is your economic recovery policy, and how do you plan to continue or amend the existing agreement with the International Monetary Fund (IMF) in a manner that is beneficial to Sri Lanka?

I think that Sri Lanka should hold talks with the IMF and extend the debt repayment period. The IMF wants Sri Lanka to start the repayment of debts in 2032. However, the Government changed it to 2028, and the intention was to obtain more loans. But, this is likely to make the management of debt, especially repayment, more difficult. If I were to receive power, I will discuss with the IMF and extend the repayment period to 10 years, which means that Sri Lanka can start repaying debt in instalments in 2034. 

We should give priority to bilateral loans, including those obtained from countries such as India and China, and should extend the repayment period to 10 years. We should hold the necessary talks through the IMF as well as directly with the respective countries. That would be my first step.

At the same time, thus far, we have been begging for loans from various countries. We commenced fake development projects, and while only around 30% of the loans have been utilised for projects, the remaining 70% has been embezzled. I don’t intend to take loans from various countries and entities. Instead, what I will request from them is that Sri Lanka be given direct investments. When we have investments, we can benefit from them even after years, and it reduces the need to take loans. 

An export-centric national economy needs to be developed, and tourism needs to be centralised and fully developed in tourist destinations. The management of these sectors needs to be decentralised. For example, the tourism sector is not something that the Government should have a monopoly on. Local and foreign parties should be allowed to develop and manage it. Infrastructure facilities such as basic sanitary needs are a huge concern. Reaching some tourist destinations is a huge struggle, which does not help to attract tourists. If the Government does not have the resources to develop these, the private sector should be allowed to invest and manage them. The private sector should be allowed to develop and manage the transport sector as well, because this is a burden to the Government.

Sri Lanka has many goods such as coconut water, fruits, and handicraft which are yet to be methodically developed and promoted as export products despite the high demand at the international level. I will pay attention to developing these sectors. In terms of technology, I will take measures to assemble vehicles and aeroplanes in Sri Lanka. Through this, we can develop the next generation’s technical knowledge while also supporting the economy to expand. Instead of begging for money from other countries, I will pay attention to all underutilised resources such as natural resources and earn money.

What sort of solutions do you propose to resolve the national ethnic issue? What is your opinion about the devolution of power?

I am a former military official, and during the war period, I have been to almost all the areas in the North. Ordinary people (in the North and the East) are not asking for a separate land. What they are seeking is the development of infrastructure facilities, schools, and other services such as water. Police and land-related demands come mostly from politicians. No ordinary citizen is demanding power. It is the politicians that want power. I will not allow the devolution of power. Instead, I will centralise power. The North is facing the same issues as the South.

However, I think that the North and East Police stations need to recruit Tamil-speaking Police officers, and these officers need to be recruited from the respective areas. Attention also needs to be paid to training suitable Tamil persons as teachers from those areas to serve in those areas. Regarding land, land that has been registered under the names of people of the North and the East should be given to those people, and the Government should keep its land. I will support those farming in their land in the North and the East.

Dividing the country as the North and the South is not what the people of the North and the East want. There is no power issue in the North, but a caste issue. Tamil leaders want to create a situation where they can oppress others (in those areas). I will not hold any discussion with the Tamil parties. Instead, I will talk with the Tamil people.

How do you think the State and public sector should be reformed?

I will not sell public institutions. However, the State sector is burdened with too many employees, and the proper management of the State sector workforce is a necessity. We cannot sell service providing institutions. However, when it comes to institutions engaged in businesses (the sale of goods or services), the management of all loss-making institutions will be changed to include successful business persons in the management structure. Some institutions need to be restructured with the support of the private sector. The intention is not to sell these institutions, but to make these institutions profitable or at least to prevent losses.

How do you propose to strengthen the rule of law in Sri Lanka?

Our laws are outdated, and many existing laws have been enacted in the colonial era. Those laws need to be amended immediately to suit modern-day needs. Motor traffic laws and criminal laws are among the laws that need to be changed.

When the Supreme Court issues a verdict, everyone from the President must adhere to it, and without such adherence, it would be difficult to continue the country’s affairs and uphold the rule of law. If ordinary citizens also begin to follow in the footsteps of the President when the President says that he/she cannot accept a Court verdict, that creates chaos. 

I will certainly enforce the death penalty for four types of crimes, namely, illegal drugs, organised crime, rape, and child abuse, and I will do this regardless of who opposes this move. If the death penalty was enforced, the crime rate would drop drastically. These criminals (while in prison) are maintained by public funds, and many of them engage in organised crimes after being imprisoned, which is unacceptable.

The Government has paid significant attention to increasing the State revenue, so what steps are you planning to take in order to alleviate the tax burden on the public?

While improving the State revenue through exports, small and medium enterprises, foreign direct investments, and other development projects, I will take steps to restructure the tax system. With adequate income through such methods, indirect taxes imposed on the people can be reduced. Taxes are imposed on the people mostly because we keep importing goods instead of prioritising revenue-generating methods including exports. If we pay attention to these income earning methods, the need to impose taxes will reduce. For example, the Value Added Tax can be reduced to about 5%. Direct taxes however, need to be increased based on income, properties, and the nature of the tax-payers’ business or income source.

Taxes are necessary to run a country. But, the priority should be to systematically increase direct taxes, which depends on how much one earns, and decrease indirect taxes, which affects every person regardless of their income.