Freebie politics, anti-corruption rhetoric won’t resolve current crisis

Colombo District MP Patali Champika Ranawaka who heads the 43rd Brigade shares his views on the present political situation, local government elections and economics in response to questions directed at him by Dailymirror. Excerpts of the interview: 

Q: The elections to the local authorities have been declared. The government appears to be trying to figure out a way to postpone it. The opposition parties agitate for early elections. What is your view?
The right to exercise franchise is the yardstick that measures the level of democracy and sovereignty of a country.  It is important to have elections in that sense. Likewise, it is important to have elections in the current context to thwart the attempts by Sri Lanka Podujana Peramuna (SLPP), which is responsible for the current economic mess, to cling to power, and to ensure fresh local political representation. 
However, people don’t believe an election at this juncture will find solutions to the current social and economic abyss of the country. 

Q: What is your specific view on elections now?
In the democratic sense, it should be conducted.  But people know they won’t get solutions to their problems.   The depth of our economic crisis is so deep and wide.  When the party in power is unpopular, it can be unseated. Afterwards, the incoming government can proceed.   However, the crisis is different today. The country is declared bankrupt.  There is no certification that the mere change of government will deliver the country out of bankruptcy. 

Q: How are you getting ready for elections?
We have called for meetings with those keen to contest with us. That includes our former supporters and activists of the 43rd Brigade, the movement I spearhead.   There are different views being expressed. No matter what, we intend to contest polls. 

Q: You are part of the Samagi Jana Balawegaya (SJB) in Parliament. Its leaders take on each other. We see SJB leader Sajith Premadasa and MP Sarath Fonseka are openly critical of each other.    How do you see it?
 It is their problem. Both are SBJ members. I am not a card-holding member of the party.  

Q: We read reports about you trying to forge an alliance with other parties in the opposition.   What is the progress?
Of course, we were invited to it by ‘Nidahasa Sabhawa’ led by MP Dullas Alahapperuma and the Sri Lanka Freedom Party (SLFP).  We don’t find major contradictions with them on policies for the development of the country.  Nevertheless, our vote bases are different.  They are part of the mandate given to the SLPP at the last elections.  Our mandate is opposed to it. We believe we can work out a common agenda because there are no major policy contradictions in the programme to develop the country.  We have not come to any conclusion yet.  We are in contact with MPs who defected from the SLPP and the SJB.   We also remain open for talks for those who joined the government.  That is open for even the SLPPers other than the Rajapaksas.

Q: The government seems to be interested in having a presidential election first. What is your response?
It is possible to have a presidential election only in 2024 according to the law.  Until such times, a formal, collective government is the need of the hour.  It should not be a government led by the SLPP according to the dictates of the Rajapaksas. 

We have proposed a pragmatic approach that transcends political and ideological differences.  Any ruler can bring the country out of the current abyss by implementing these proposals

Q: Compared to the first half of last year, there is normalcy in the country. The country is devoid of public protests.  The government has reached out to the International Monetary Programme (IMF) for an agreement to revive the economy. How do you see this approach?

First of all, the current normalcy in the country is a low-level equilibrium. This is an uneasy equilibrium.   That has been achieved in different ways. We were supposed to pay US $ 600 million for debt servicing. Now, we don’t pay loan instalments. Our normal fuel bill stood at US $ 550 million. It has now been cut down to US $ 200 million.  We have saved another US $ 400 million through import restrictions.  We have carefully managed current import requirements using foreign exchange revenue from export earnings, remittances and repurposed financial assistance from lending agencies such as the Asian Development Bank (ADB) and the World Bank (WB).  This is a hard-earned equilibrium.  This can turn topsy-turvy at any moment.  The recession in Europe and North America has posed a challenge to our exports.   Our apparel exports are bound to shrink.   We cannot remain with debt defaults for a prolonged period.  ADB and WB extended financial assistance for us to purchase medicines, domestic gas and agriculture fertilizer.  We cannot expect it from them any further.  As such, the current economic equilibrium can become unsettled at any moment.  This is like walking on a tightrope. 

 We have to address the crisis in the long run. Some people believe the problem will be resolved once the IMF programme is signed. It is not the case.  Greece and Argentina are two countries that struck arrangements with the IMF. They defaulted to the IMF too. This is not a crisis to be resolved only with the IMF’s assistance.    

 We don’t see steps being taken for long-term economic recovery.  In 2023, the real sector of the economy is bound to face headwinds.  That is because of the crisis in our banking, insurance and leasing sectors triggered by the high interest rates.   Treasury Bills are issued at an interest rate of 33 per cent.  A businessman who burrows from a bank has to pay 30 per cent as the financial cost.   Besides, he has to pay 15 per cent VAT, turnover tax and income tax.   Our electricity tariff is much higher than in the countries competing with us.   Fuel and electricity charges do not reflect international cost rates.  The real sector of the economy is in a crisis as a result.  The banking sector is facing a liquid issue. 

Q: You head the parliamentary committee on economic stabilization. Have you brought it to the notice of the government?
 We identified key areas – finance sector, debt restructuring, health and nutrition, food availability and affordability, energy, public transport and social security network.  We conducted numerous rounds of talks with the stakeholders.   In our report, we pointed out what should be done.  We will submit our second report this month.  We have proposed a pragmatic approach that transcends political and ideological differences.  Any ruler can bring the country out of the current abyss by implementing these proposals.  These proposals are a result of collective discussion, not my own initiative. 

We should not decide on politicians based on their individual achievements in their previous fields.   We should not go by their achievements as former cricketers or on the war front. We should not get carried away by the physical outlooks of actor-turned-politicians

Q: What is the response of the government to these proposals?
President Ranil Wickremesinghe informed me in writing that these proposals would be referred to the relevant Cabinet Ministries for implementation.  Speaker Mahinda Yapa Abeywardena promised to have a debate on them in the House and approve them. 

Q: You sounded negative about prospects in the real sector of our economy. But, Central Bank Governor Nandalal Weerasinghe is positive. He said macroeconomic fundamentals would shape up this year.  What is your response?

We recognize the attempts by the Central Bank governor to achieve the present equilibrium.  The Finance Ministry Secretary is also not a political henchman.  It will be important to hand over the banks, the State Pharmaceutical Corporation, the Ceylon Petroleum Corporation and the Ceylon Electricity Board to be run by professionals like Mr. Nandalal Weerasinghe without political interference.    One may have well-meaning ideas. But competent people are needed to realize them. The country will not survive if frauds prevail in every deal such as purchasing pharmaceuticals, coal and gas.   
Professionals should be appointed to run key strategic institutions.

Q: What will be the political repercussions of the current crisis?
 A change in the government will not be the solution.  Greece, as a country, went bankrupt in 2010. In 2012, the mainstream traditional parties were wiped out.  Then, populists took over.  They also failed. 

Q: Do you see such a possibility in Sri Lanka?
It can happen in any country that is bankrupt.  In such countries, populists come up with simple, attractive solutions. People gather around them. In the end, they fail.  Finally, some form of stability has been achieved in Greece only after a right-wing party captured power. 

In Sri Lanka, some people believe a leader with empathy can deliver. They believe in freebie politics. There are others campaigning on an anti-corruption drive.  They have even given the impression that expatriate workers will send more remittances if parliamentarians are stripped of their pension benefits.  According to them, there are three million Sri Lankans abroad.  If each of them sends US $ 500, the crisis can be resolved.  It is the empty rhetoric being trotted out.   

There are merits and demerits of freebies for people.  Today, ‘freebies’ has emerged as the buzzword in the backdrop of the economic crisis. To do freebie politics, we need revenue.   If it is a non-merit freebie, it will be damaging to the economy.  From Janasaviya to Samurdhi, we have introduced non-merit freebies.  People never came out of their miseries from these programmes. Still, politicians talk about them as solutions.  They promise to hand out jobs, houses etc.   

It is a sine qua non to root out corruption. It alone does not suffice for wealth generation. We can cite Cuba which is the model country of the parties like the JVP as a classic example.  No one in the Cuban ruling class has indulged in corruption. Still, there are public queues in Cuba. It has been unable to generate wealth.   Freebie politics and anti-corruption rhetoric won’t deliver.  It is simple rhetoric that the country will flourish once corruption is rooted out and those involved are punished.  We need a plan for it. For example, we have to address our requirement of pharmaceuticals. What is possible should be manufactured locally. We have to manage our hard-earned foreign exchange.  We import 15,000 medicines.  Yet, we can do away with one-third of them.  We have to evolve a mechanism with the help of experts to decide on vital and essential medicines only.  We need to achieve food security.  Again, it is important to have energy security. We should explore new energy sources. 

Q: You criticized freebie politics and anti-corruption rhetoric.  Are you trying to attack SJB leader Sajith Premadasa and JVP leader Anura Kumara Dissanayake through innuendos?  

We find populist talks.  The media highlight populist politics.   We need to import 5,000 buses for the public transport sector.  We should not decide on politicians based on their individual achievements in their previous fields.   We should not go by their achievements as former cricketers or on the war front. We should not get carried away by the physical outlooks of actor-turned-politicians.  Also, we should not go by the oratory skills of politicians.  We should not judge politicians based on the performance of their fathers in politics earlier.  We should go by managerial skills of politicians only.