Establishing a solid foundation for all students to master the English language
Read more
Mr. Asela Fernando, Secretary of the National Bank Employees Union, criticized the manifesto of the Jathika Jana Balawegaya (JJB) Party, describing it as impractical and lacking clarity on financial provisions and methods for generating the necessary funds to implement its policies. He emphasized that the manifesto fails to address how the government would compensate for the billions of rupees in lost revenue if taxes were reduced as proposed. He noted that VAT was reduced in a similar manner during Gotabaya Rajapaksa's regime.
Mr. Fernando made these remarks at a press conference held today (27) at President Ranil Wickremesinghe's political office in Flower Road, Colombo. He further highlighted the inconsistency in the party's stance, noting that while the leader of the Jathika Jana Balawegaya Party previously argued that the sale of the telecom company posed a threat to national security, they now suggest that bringing in an investor would not be an issue, revealing a contradictory position.
Mr. Asela Fernando, continuing his remarks, stated:
Upon reviewing the manifesto of the Jathika Jana Balawegaya, we felt it could be more accurately titled "Dream Paradise – Many Billions." The document suggests an idealistic vision but lacks clarity on the financial provisions required to fulfill its promises or the methods to secure such funding, creating a sense of wishful thinking rather than a practical plan.
President Ranil Wickremesinghe has announced that the proposal to raise the minimum salary of public servants to Rs. 55,000 will be included in the 2025 budget, along with an increase in the cost of living allowance to Rs. 25,000. These measures align with the demands previously made by the JJB trade unions during their strikes.
However, it is puzzling that the manifesto of the Jathika Jana Balawegaya, which represents numerous trade unions, does not address the issue of public service at all.
Furthermore, the President has already submitted a comprehensive proposal to the International Monetary Fund (IMF) concerning the reduction of personal income taxes, which can be implemented upon receiving the IMF's recommendations. However, the manifesto suggests raising the threshold for personal income tax from Rs. 100,000 to Rs. 200,000. While this might seem like a favourable proposal at first glance, it fails to explain how the government would recover the Rs. 68 billion in lost revenue. Their response suggests that this shortfall would be made up through the collection of overdue taxes.
As of December 31, 2023, the total outstanding tax amount in the country is approximately Rs. 1,068 billion, of which Rs. 878 billion are currently under appeal. Due to the lengthy legal process involved, collecting these tax arrears quickly and easily is not feasible. The previous Gotabaya Rajapaksa administration also reduced VAT in a similar manner, which led to an economic collapse within a few months and sparked civil unrest. Therefore, we question whether the country is at risk of facing another period of unrest like the "Galle Face protests."
Additionally, President Ranil Wickremesinghe invited both presidential candidates, Sajith Premadasa and Anura Kumara Dissanayake, to discuss with the IMF. However, 48 hours have passed since this invitation, and neither candidate has responded. As a result, the people of this country have yet to hear their stance on negotiations with the IMF.
Moreover, several policies and proposals included in the current government's policy statement appear in their statement as well. For instance, the statement mentions establishing a new bank to support microfinance and small and medium enterprises (SMEs). However, as per the Central Bank's recommendations, a dedicated unit for this purpose already exists in every commercial bank. The statement also claims that interest rates will be stabilized, but as banking professionals, we want to inform the public that the country's policy interest rates are already stabilizing further.
They also propose recapitalizing state banks, but President Ranil Wickremesinghe has already allocated a reserve of Rs. 450 billion for the recapitalization of both state and private banks. This proposal seems to be made in that context.
The manifesto also discusses investments. Since 1977, the JVP has not allowed any foreign investment to come into the country and has instead been involved in organizing protests and strikes to prevent it. It is ironic, yet encouraging however, that this year's JJB manifesto includes a chapter dedicated to investment.
Furthermore, the JVP-led Jathika Jana Balawegaya has consistently argued that selling the telecom company would threaten national security. However, their leader now claims that bringing in an investor for Telecom is not an issue.
This apparent contradiction raises questions about their inconsistent policies. President Ranil Wickremesinghe believes that private enterprise is essential for the effective management of government institutions.
The manifesto also mentions providing Rs. 10,000 to poor families in place of the ‘Aswesuma’ benefits, with insurance benefits available under several categories. Families in severe financial hardship will receive Rs. 15,000. If that is the case, we question whether the JVP-led JJB intends to provide Rs. 10,000 to families already receiving Rs. 15,000? As outlined in the policy statement, this could result in a reduction of support for those in the most difficult economic circumstances. Additionally, the manifesto does not specify how this funding will be secured.
In fact, upon closer examination of this manifesto, it is clear that it is merely a collection of impractical proposals. Therefore, we urge the public to carefully review the document and assess whether its proposals are feasible and realistic. It is well known that President Ranil Wickremesinghe has strengthened the nation through an economic policy tailored to the country's unique circumstances and needs. The choice is yours: to continue supporting this program to further develop the national economy, as well as our personal livelihoods.
Mr. Gamini Senanayake, Retired Senior Bank Manager,
The program introduced by the IMF outlines a plan to stabilize Sri Lanka's economy by 2028, following debt optimization. The government is currently implementing this program. If any party decides to withdraw from it, the country could face another economic crisis, potentially leading to an unrecoverable situation.
It should be noted that the policy manifesto presented by the JJB yesterday includes proposals for legal, institutional, and administrative changes. However, it primarily contains measures that could undermine the government's current revenue of Rs. 3,074 billion.
What Sri Lanka needs at this critical time is a leader committed to advancing the ongoing economic recovery program, not merely the appointment of a party leader. This is why the country still requires the leadership that has successfully rebuilt the economy by effectively implementing the IMF program and gaining international recognition.
