With the new Government and Parliament now established, the milestone marker on Sri Lanka’s political history is firmly set. However, the manner in which Sri Lanka is governed over the next five years will show, if the milestone is also a turning point for the small Indian Ocean island nation. 

The President and the Government shoulder the aspirations of a nation, with the commencement of the 10th Parliament yesterday (21). The public expectation is that it will also mark a new chapter in the island’s political culture. 

President Anura Kumara Dissanayake making his throne speech yesterday, stressed on many key areas of governance which needs to be changed or improved for Sri Lanka to evolve into the country which its citizenry aspires it to be. Dissnayake stressed that moving forward his administration will not allow racism and religious extremism to grow in Sri Lanka. He pledged to rebuild public faith in the Parliament and the State, stressing that the NPP Government will ensure that law, order and justice will be applied to all equally, with none above it. Further, the President noted that this is a golden opportunity to strengthen unity amongst communities in Sri Lanka, and kit a stronger Sri Lankan tapestry. He also acknowledged that the Parliament and his Government must serve all Sri Lankans. It was heartening to hear him say that his administration will not be that of a ‘one-party rule’ and that he expected sound Parliamentary discourse on issues at hand. Such is important for good policy formulation and for policy longevity. Something Sri Lanka has long lacked, in terms of national policies.  

The Daily Morning had long advocated that Sri Lanka stays within the framework of the International Monetary Funds (IMF) $ 2.9 billion Extended Fund Facility (EFF) which the nation signed on to during one its darkest periods in 2022, as it was the best available bailout plan. The National People’s Power (NPP) originally didn’t support the move, like many others. However, gradually they realised that the programme which Sri Lanka has committed to needs to be adhered to, given the circumstance the island is facing.  President Dissnayake and his rebranded leftist party has mellowed in their stance. During his throne speech, Dissnayake said: “We are optimistic that by the 23rd, we will be able to finalise and will be able to sign an agreement with the IMF staff level, marking a critical step in our journey with the IMF. This is a crucial step in moving forward with the International Monetary Fund (IMF). Additionally, the debt restructuring programme agreed upon with the IMF has faced some challenges. When we assumed power, we had already reached an agreement on the restructuring of bilateral debt. We also had already started discussions on international sovereign bond debt in the commercial market. We recall that these discussions were publicly announced through the media, with the final agreement being made just two days before the Presidential Election. As a result, we were not given an opportunity to revisit discussions on debt restructuring. The negotiations had already been on-going for more than two years. If we were to restart discussions on the restructuring programme for an extended period, it would be impossible for us to move the economy forward without completing the debt restructuring process. When we assumed office, the discussions on debt restructuring, which had been on-going for nearly two years, were in their final stages. At this juncture, debating whether the proposed restructuring plan is good or bad, advantageous or disadvantageous, serves no purpose. This is the reality we are faced with. Based on this, we have reached a common understanding regarding bilateral debt. We are now prepared to quickly formalise agreements with individual countries accordingly. On the other hand, with regard to international sovereign bonds and commercial market debt, we have reached a preliminary agreement. We anticipate that this process will be completed by the end of December. Consequently, we believe that the debt restructuring programme with the International Monetary Fund can be successfully concluded before the end of this year. Additionally, we expect to secure staff-level agreement for the third review of the programme this week, which will provide a credible foundation for rebuilding our economy.” 

The realisation of how the world looks from a governance point of view, must be a sobering feeling, and one that this Government will quickly have to learn from. There is much to be done. 

And as the President said Sri Lanka does not have the luxury of making mistakes, especially in relation to the economy. President Dissnayake has indicated that he is ready to adapt, for Sri Lanka to prosper. Time will tell how effective he will be and how much support he will get from within his rank and file, and from across the floor in the house to keep Sri Lanka heading in a better direction. The need of the day is for sound policy-making, implementation and for better statesmanship within the Parliament.