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President Ranil Wickremesinghe expressed his pride in witnessing a presidential election centered on the economy, steering away from issues of race, religion, or caste. Speaking at the "Ask Me Anything" special programme organized by the Professionals’ Forum at the Shangri-La Hotel, Colombo yesterday (02), the President highlighted the importance of focusing on economic transformation.
President Wickremesinghe warned that if Sri Lanka's economy is not swiftly reoriented towards exports, the country may face another financial crisis between 2035 - 2040, necessitating continued borrowing. He emphasized that alongside economic reforms, the nation’s social systems must also undergo significant transformation to sustain progress.
The event, attended by a large number of professionals from various fields across Sri Lanka, provided a platform for direct engagement with the President. During the session, President Wickremesinghe addressed a wide range of questions and concerns, offering positive responses and solutions to the issues raised by the participants.
This initiative reflects the President's commitment to transparent dialogue and the active involvement of professionals in shaping the future of Sri Lanka's economy.
President Ranil Wickremesinghe acknowledged the ongoing issues related to the delays in obtaining passports and assured the public that the government is working diligently to address the situation. He apologized on behalf of the government for the inconvenience this has caused.
The President reaffirmed the government's commitment to the ongoing digitization of the passport system. He emphasized that this digital transformation initiative will continue unabated, highlighting its importance in modernizing the country's services and improving efficiency for the citizens.
In a statement about his plans following the presidential election, President Wickremesinghe clarified that he will not appoint a cabinet of his own choosing. Instead, he intends to form the cabinet from among the public representatives elected by the people and sent to the new parliament, ensuring that the government reflects the will of the electorate.
Additionally, the President commented on the support from minority communities, noting that while some leaders of minority political parties may prioritize other presidential candidates, he mentioned that he has the backing of the majority within those communities.
Addressing the professionals President Wickremesinghe further elaborated;
“Today, with the backing of institutions like the IMF, ADB, World Bank, Exim Bank of China, and the 17 OCC nations, we've agreed on debt sustainability, debt relief, and a path forward until 2032. The question now is whether we continue or abandon this path. These benchmarks on government revenue and expenditure cannot be altered. Although tax adjustments can be made, the overall benchmarks must be met. The other parties propose lowering taxes and duties without providing alternative income sources, reducing revenue while increasing expenditure through welfare measures. Are we prepared to repeat past mistakes, as in 2019 when tax cuts led to reduced revenue and excessive handouts, resulting in economic difficulties by 2022?
We must decide if we want to avoid a return to that path. I won't delve into policy details, but you now have an agreement that provides USD 3 billion from the IMF through next year and a debt repayment space until 2040-2042, along with USD 10 billion in interest relief. This is what we have at hand—are we going to squander it? Our country needs a transformation, not irrational change. To overcome this crisis, we can aim for stability by 2042, but if we don't transform into an export-oriented economy sooner, another crisis could arise between 2035 and 2040, as we'll continue to accumulate debt.
However, by evolving into a competitive export-oriented, digital, and green economy, we can achieve a surplus and move towards economic transformation. We have significant assets, like land, and with an expected global population increase of 2 billion by mid-century, we should modernize our agriculture to feed this market. Tourism should also be expanded from 2.5 million to 5 million visitors, with a per capita increase from USD 150 to USD 400. Further, transforming into a digital economy and training our workforce to handle semi-automated manufacturing will help sustain income flow and allow us to decide how to utilize our resources.
Economic transformation is one aspect, but social transformation is equally critical. Our multi-dimensional poverty affects 25% of the population, and we've pledged to reduce this to 10%, addressing health, education, and social care inadequacies. In line with the Article 27.(2)(f) of our constitution's, we're committed to dispersing ownership rather than concentrating it within the state or a few businesses, with plans to grant freehold rights to 2 million permit holders and provide 250,000 freehold apartments for low-income families.
In the plantations, we'll replace traditional agriculture with agro-businesses, offering ownership to those currently living in line rooms. We're also exploring investment opportunities for employment provident funds and trust funds in sectors beyond bonds and debentures, engaging trade unions and employers in the process. Our National Wealth Fund, a cooperative, is set to provide concessional funding for low-income families to buy apartments, continuing the spread of ownership. More remains to be done, particularly for women, who are underrepresented despite being the majority. We've enacted the Women's Empowerment Act, which will apply across public and private sectors over the next few years.
We are also considering the establishment of a Social Justice Commission to address lingering feudal elements such as caste and race. As President, I am proud to oversee an election process where economic concerns transcend race, religion, or caste—all of our pockets have been impacted equally. This is a time for us to unite, address social disparities, and tackle issues like childcare and domestic violence. We've introduced women's and children's desks at every police station, but further measures are necessary.
Lastly, our political system requires transformation. The collapse of our economic system has similarly impacted the political framework that supported it. When other parties revert to outdated economic models, it's like witnessing the dead attempting to rise again. This can't continue; our political parties must evolve into stable entities governed by uniform laws, as seen in Germany or other European countries. Anti-corruption efforts are also essential; although there's much discussion around it, effective measures are needed. We've requested the IMF's guidance on an anti-corruption agenda, which includes new legislation like the Anti-Corruption Law and Proceeds of Crime Bill.
It is also essential to take decisive action against corruption. While some have displayed around 400 files related to corruption and spoken at length about it, they only found 15 people to prosecute and nothing else. Although many talk about tackling corruption, effective measures are what truly matter. Since I assumed office, we have sought the support of the International Monetary Fund to address this issue. We are now implementing an anti-corruption agenda, which includes new legislation such as the Anti-Corruption Act and the Proceeds of Crime Bill.
MPs must be accountable to the House, and proposed changes, including the Parliamentary Standards Bill similar to the UK model, will help ensure that. So let's transform the political and social systems alongside the economy. This comprehensive transformation will secure a brighter, more stable future for younger generations. I often reflect on the 1991 conversation with the Vietnamese Industry Minister about attracting foreign investment. If we don't adapt quickly, we might find ourselves seeking his advice on national development. I appreciate your attention today and encourage you to keep these thoughts in mind as we approach September 21st.”
Minister of Power & Energy Kanchana Wijesekara,
“Last year, when we began the rebuilding process after the reform phase, I noticed that the president wasn’t focused on his personal ambitions or the next election. When it came to implementing policies and making decisions, some of which were very challenging, there were moments during cabinet meetings when certain members voiced their concerns to the president. They advised, "Sir, please don’t pursue this now. You’re heading into an election next year, a presidential election, and taking these actions might hurt your re-election chances, forcing us to face early exits." The president responded firmly, stating, "Decisions must be made regardless of the election cycle."
At one point, a cabinet colleague recounted an incident where former President Mahinda Rajapaksa had promised the premiership to six individuals before an election, but none of them received it even though he was elected. The president, however, consistently told us to press on, saying, "Continue with the program. Do not delay the bills that need to be presented in Parliament." Even just before the presidential election announcement, critical reforms, such as the economic transition bill, the electricity reform bill, and the public finance management bill—long discussed by many governments and in several IMF programs—had yet to be completed. It was the president’s steadfast leadership and unwavering policy implementation that created a clear path for Sri Lanka, ensuring that any future government would need to follow these established reforms.
Additionally, the president's vast experience has greatly impacted our efforts. Many people think the IMF agreement was an easy negotiation, but it was far from it. The process involved complex negotiations, not just with the IMF but also with the international community, development agencies, and various lending institutions. The work and dedication required to secure the IMF agreement were immense.”
Former Minister Faiszar Mustapha P.C.
“President Wickremesinghe has demonstrated profound expertise and a remarkable ability to make difficult decisions, as Hon. Kanchana highlighted, even in the face of adversity. His resolute approach has steered our nation towards stability. While it might be tempting to attract voters with short-term promises and lofty dreams, President Wickremesinghe remains committed to a long-term, realistic plan aimed at transforming Sri Lanka into a first-world country by 2048. I deeply respect you, sir, for resisting the urge to make false promises, especially when popularity is crucial in an election. Unlike others who sell dreams detached from reality, you have laid out the truth, no matter how challenging it may seem. The dreams offered by others lack a foundation in real numbers, genuine experience, or a realistic vision. Their policies, devoid of fiscal discipline, would jeopardize our ongoing economic recovery, and their inexperience at this critical juncture could cripple our economy beyond repair.”
The event was attended by a notable assembly of distinguished individuals, including Prof. Maithree Wickramasinghe, Minister Nimal Siripala de Silva, State Minister Lasantha Alagiyawanna, Members of Parliament Duminda Dissanayake, Presidential Senior Advisor on Climate Change Ruwan Wijewardene, and Presidential Senior Advisor Neranjan Dev Aditya. Former ministers Manusha Nanayakkara and Ravi Karunanayake, along with other civil society representatives, social activists, scholars, and professionals, were also present, adding to the significance of the occasion.
