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Losing the plot

21 Aug 2022

The Minister of Urban Development came out with a gem last week. In all seriousness, he said that the cost of the damage caused to the grass at Galle Face due to the recent protests must be recovered from the protesters. Rich indeed, coming from a man recently convicted by a court of law for extortion and sentenced to two years’ rigorous imprisonment suspended for five years and a fine of Rs. 25 million. In any other self-respecting democracy, the likes of the Minister concerned would have been instantly thrown out of public office on the mere strength of the conviction, but not in sunny Sri Lanka, where even convicts are made ministers who then pontificate on how people should conduct themselves.  The Minister, who holds a senior Cabinet rank, and his fellow travellers in the present Government epitomise the very essence of the recent protests and as to why they were so critically essential. It is incomprehensible that after everything that has happened – with people openly expressing their disgust at the manner in which the nation was being governed – the Minister appears to be completely oblivious to public sentiment. At the very minimum, it embodies the gaping disconnect between the political leadership and citizens and, more importantly, the urgent need for comprehensive change in the quality of leadership.  We are quite positive that the protesters numbering hundreds of thousands will be more than willing to oblige the Minister and pay for the damaged grass, on the condition that he and his fellow Cabinet ministers who were collectively responsible for bankrupting this nation and thereby causing the need for the protests lead the way in paying for the damage they have collectively inflicted on this country and its 22 million people. Needless to say, it is this type of dim-witted thinking that has got this country into this sorry state. Having been driven to bankruptcy, deprived of basic essentials, and with starvation staring them in the face, people finally woke up to the reality that they deserve better. But even though they managed to change the head, the rest of the body appears to be very much intact, as depicted by the Minister. The liability of these individuals in the nation’s economic destruction is now a matter before the Supreme Court, thanks to litigation by a group of civic-minded citizens. For the information of the Minister, the only thing that the people demanded through the protest movement that apparently damaged the grass at Galle Face was a better Sri Lanka – a nation free of corruption, governed by untainted and competent politicians and professionals accountable to the people. This is what the real struggle was all about and if the price for it was some damaged grass, so be it. It is about time that the present administration took off its shades and faced the reality that these demands still hold true.  The administration must also remember that the post-Aragalaya Sri Lanka is very different to the one that existed prior to it because on 9 May, 9 June, and 9 July, ordinary people set the benchmarks and the parameters for those elected to either perform or depart. In doing so, they also showed the power of a united people – united in the search for a better tomorrow. Further, it was the youth who paved the way for this unity and it is the youth who will continue to drive the sociopolitical agenda in this country into the foreseeable future.  Therefore, each passing day serves as confirmation that the administration is slowly but surely losing the plot. Instead of focusing on the core issues critical for the nation’s recovery, it is intensifying a witch hunt on youth involved in the protest movement in the guise of law enforcement, while the issues that require investigation are being shoved under the carpet. In the same vein, the investigative zeal shown by the Police in ‘investigating’ popular personalities involved in the recent protests has been absent in investigating the Central Bank scam, Easter Sunday attacks, and the dozens of other corruption investigations.  Meanwhile, unmitigated corruption continues to be the order of the day, with even the Energy Minister having to personally file a complaint with the CID on the questionable conduct of the CPC management. It will be interesting to see how the Police, which has been super-efficient in pursuing youth protesters, goes about this investigation. Meanwhile, the use of the draconian Prevention of Terrorism Act by the Police to detain three youth activists for a prolonged period of 90 days for ‘questioning’ following a protest by university students last week has understandably drawn widespread condemnation from international and local human rights groups – the worst possible scenario in the run-up to the UNHRC sessions in Geneva next month, where Government representatives will be hard-pressed to justify the use of this extreme wartime measure on unarmed youth protesting against the cost of living. What is becoming clear is that personal vindictiveness seems to be overshadowing national interests. As for how long the people will tolerate the status quo, only time will tell, but with the economic situation not likely to improve any time soon despite claims to the contrary, the administration will have to keep praying that the grass at Galle Face will remain undisturbed. The Central Bank is expecting the economy to shrink by a whopping 8% this year and the fallout of that is beginning to show in many key sectors, most notably the IT sector, which has been earmarked as the next big thing in the country’s largely-stagnant export sector. Already many firms in this particular sector are struggling to retain talent, putting an estimated $ 1.2 billion worth of export revenue and 80,000 plus industry dependents at risk. As per industry data, ICT is now the nation’s fourth highest forex earner with significant growth potential, but with a brain drain now in full flow, its projected growth prospects are under a cloud. Adding to the exodus are skilled workers, professionals, and even State sector employees, under a special programme in order to ease the State sector salary bill. While on average around 60,000 individuals left the country for overseas employment in the first six months of 2020 and 2021, so far this year that number has doubled to around 120,000. The Government must take note of the fact that every individual choosing to work and live abroad is a vote of no confidence in the political leadership, both past and present. The danger is that this growing loss of confidence in the nation’s leadership, especially among the youth, will bode ill for long-term recovery prospects, as the young professionals who choose to leave are unlikely to return mid-career. Therefore, the loss of their professional expertise to this nation will in all probability be permanent. The impact of this mass-scale loss of professional expertise, essential for any developing country, will be felt only after the lifespan of our ageing political leadership. By seeking greener pastures, our youth are already voting with their feet. It is therefore unfortunate that, to date, the Government has shown no urgency in reversing this trend and nearly five months after officially declaring bankruptcy, no recovery programme has been forthcoming from the Government. It is in such a backdrop that Opposition MP and economist Dr. Harsha de Silva has placed his recovery map on the table for public discourse. The comprehensive document titled ‘Blueprint: Out of the Debt Trap and Towards Sustainable Inclusive Development,’ is a 10-point common minimum programme that appears to be a workable and practical way out of the current crisis. In the absence of any other plan even at this late stage, it merits consideration by the Government and other stakeholders. Even though the Central Bank is optimistic of IMF assistance towards the latter part of the year, that optimism is not shared by the institution, which is insisting on a debt sustainability plan with the nation’s creditors, ahead of a visit by a staff-level delegation expected in the country later this week. Adding to the already-substantial concerns, the President caused ripples in financial circles last week when he hinted at the prospect of the domestic banking sector taking a hit in the event of domestic debt restructuring, as most commercial banks have significant exposure to rupee-denominated bonds and Treasury bills. However, within hours of the President’s statement, the Central Bank stepped in to calm frayed nerves that such an eventuality was not in the equation at this juncture. Notwithstanding such an assurance, given the precedents of Cabraal and company, restructuring of the rupee-denominated domestic debt cannot be ruled out and should it come to that, its consequences will be profound to the extent that it will not only affect the banking sector, but compromise the entire financial system. Sri Lanka’s total outstanding domestic debt stood at around Rs. 12 trillion as at end March this year, on top of external commitments of around $ 52 billion. Therefore it is high time that the administration caged its hound dogs and unleashed its economic whiz kids to tackle the real issues for the sake of this and the next generation.


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