It is obvious that people are in distress and they must see the light at the end of the tunnel. In order to create that confidence the government must bring in an environment which has Stability, Sanity and Rule of law

It has been my practice to write an article about Late Laith Athulathmudali on his birth anniversary. However this year I feel compelled to write during this economic debacle  as to what would have been  Mr. Athulathmudali’s  strategy to put the country back on track. You need a TEAM TO ACHIEVE THIS. We have to understand that the resurrection of this ailing economy will hopefully come later. In order to move the country forward what would be 
his thinking?

Gain Confidence Locally and Internationally

It is of utmost importance to gain confidence both locally and internationally. It is obvious that people are in distress and they must see the light at the end of the tunnel. In order to create that confidence the government must bring in an environment which has Stability ,Sanity and Rule of law. This is extremely crucial for any resurrection. I do not have to elaborate, what is going on now is neither stability nor sanity. Whether we like it or not, the ‘Aragalaya’ people have to be met by the Government. Let’s not forget that it is because  of them, that a new President has come in. Youth unrest is a serious concern , suppression is not the way out. In this day and age, what goes on in Sri Lanka are being shared globally. We must ensure sanity in this country so that local and global confidence and  support will come our way.

Foreign Currency Crisis

We all need to understand that our Foreign Currency EARNINGS are fundamentally from Exports, Remittances from overseas employment and Services  and Tourism,these earnings could be used for consumption plus we need to save to pay back our International Debt . In the past, it appears that we utilized borrowings from ISB’s to fund consumption !!!! , because when inflows started drying up , and tourism dropped drastically, we never ever took proper precautions, but happily kept on borrowing, we still do not know who and who were responsible for this crisis,  so that they could be held accountable. It is crucial that we do a forensic audit on Foreign Currency earnings and disbursements for at least  the last 10 year period. 

Selling off our Assets , is it Prudent ?

We fail to comprehend that in most SOEs, two main issues have been identified as the root cause for losses. They are Over staffing and Procurement, until these aspects are addressed, we will never turn them around. But the solution is certainly not selling or use a different terminology “restructuring”. In the name of restructuring, they will address those two main issues. Why don’t the Political Leadership  have the political will to do that without losing the asset ???

Export or Perish

Exports is vital for our Economy , because it brings in much needed foreign currency to our country, this is reason why Mr Athulathmudali came out with the above phrase far back as the 80’s. We need to strive to achieve an Export led growth strategy for our country. Exports of raw material without substantial value addition should be banned over a period, and insist on a value addition policy gradually. The exporters forum that was in existence in the  80’s  is unheard of in today’s context , which gives all of us the impression of the capacity and standards of our current politicians.

Social safety net

It is evident that the poor have become poorer in this economic crisis. Therefore establishing a social safety net is very a good move. However, this country has always depended on handouts and therefore there should be checks and balances on how effective this safety net is 
going to be.

The SME Sector

For decades, the rulers have failed to understand the importance of the SME Sector. The SME sector has to be looked after in any type of economy as they as a collective contribute hugely to the economy. SMEs provide a lot of employment to people and can be a huge support. If you are not protecting the SME, you will be in trouble. I am certain that Mr. Athulathmudali would have focused on this.

Tourism improvement

We are a nation that is dependent on Tourism. In order to attract more tourists, the country must introduce proper facilities for them to travel around the country. The question is do we have the environment to attract tourists. Tourism attraction and Stable environment are intertwined. Are we sending  positive messages to the outside world?  

Urgent establishment of Systems of Governance 

This would have been the number one concern for LA. You have to get the systems done in double quick time and this has been a requirement for the country for the longest time. Right now, we have an “ideal opportunity” to have systems in place at all levels, which is a  fundamental role of Parliament.  

Public Service

Mr. Athulathmudali would have wanted to bring Permanent Secretaries back to the forefront to deal with today’s crisis. It has been stated that the quantum of people under the Public sector is 1.8 million. This is due to the erratic hiring into this sector done by politicians. It is high time we start an operation to reduce this number and bring it to a manageable number. This cannot be done overnight. A plan is needed for over a 5 year period. We can fundamentally reduce the work force by 30-40% if we start now. Because we are in crisis, we must do 
this now.

Bring back plundered money 

Every citizen in the country has one thing in mind. Plundered money must be got  back. Every effort should be made to bring back plundered money. Why not bring in new laws to achieve this.

The Budget

Since the budget has been presented by the Executive, it is nothing but correct to share what would have been Mr. Athulathmudali’s views on this matter. I will not go into details or do an in-dept analysis. We need to understand that you are trying to increase revenue by taxes which may not be the answer. Maximisation of tax per se may not be the answer as the targets are not realistic. The State has to rationalise expenditure. This has never been  thought of by successive governments.