“We are heading towards a social explosion” Champika Ranawaka

Samagi Jana Balawegaya (SJB) Colombo district MP Patali Champika Ranawaka who spearheads the ‘43 Brigade’ political movement took questions from the Daily Mirror on his ambitions and the current economic crisis.
Excerpts: 

• Next presidential candidate should be someone competent to rescue the country from current abyss
• If that is Sajith, he will get it, or else somebody else will
• Instead of talking about the next Presidential Elections, we should avert sovereign default of SL
• Nothing can be ruled out under the present crisis

Q You had the convention of your movement called ‘43 Brigade’.  There is scope for interpretation of your true intention. Will you contest the 2024 Presidential Elections?

The country is heading for bankruptcy before the Presidential Elections in 2024. We have to rescue the country from it instead of crowing over the 2024 Presidential Elections. Unless we all get our act together to prevent the country from possible bankruptcy, now, we won’t be able to resuscitate the country from this abyss even for another ten years. For example, Greece, as a country, went bankrupt in 2010. The per capita income of Greece is US $ 23,000 whereas it is less than US $ 4000 in Sri Lanka. Even after 11 years, Greece has been unable to recover despite the backing of Germany as a power. Lebanon had been on the brink of collapse since 2018.  In 2020, it was bankrupt. It is a country with the support of the Arab countries abutting it all around. France backs Lebanon. Still, Lebanon is unable to get over. Instead of talking about the 2024 Presidential Elections we should discuss how to prevent a possible sovereign default of Sri Lanka. There are signs of such a default emerging from all corners. Our food security is at stake. Our energy security is at stake. We are losing our political autonomy.  We are compelled today to compromise on our political autonomy to make borrowings from other countries. At the moment, pre-emption of such a sovereign default is our priority. 

Recently, Finance Minister Basil Rajapaksa launched the programme of 100,000 projects. He expects to spend over Rs.100 billion on it. The government has a capital expenditure of Rs.1000 billion. On the one hand, the government is asking people to economize the use of fuel

QIt is a task that can be achieved with the governmental power only. You don’t have such power to take policy because yours is a part of the opposition. True, you can initiate a public discourse. But, how can you take policy decisions and implement them to avert a crisis? 

We have put forward five proposals. The parties representing Parliament are duty-bound to implement them. The ruling party is also included. We create a public platform for all the political parties to unite bar the Rajapaksa family. That is why we adopted the slogan’ Rescue’. Also, we have unveiled our plan to rebuild the country in the long run under the title ‘Thrive’. We are now focused on the short term plan. 

QAgain, I have to ask the same question. Will the governing party sans the members of the Rajapaksa family agree to it?

Let’s see how it happens with our public discourse in the future! We have evolved a plan which is practical and implementable. It is a pragmatic approach. We discuss it with relevant parties. 

QThere is speculation that a Parliamentary Election will precede the Presidential Election. There is also speculation that a new coalition will be formed within the current Parliament. Is your programme linked to such a target?

Nothing can be ruled out when the crisis exacerbates. It can be a general election or anything.  

QAccording to your political experience what do you foresee?

We have never experienced an imminent sovereign default. We have seen natural disasters-tsunami, landslides, floods and drought. We went through a period of terrorism. We witnessed social upheavals in terms of major strikes by trade unions, uprisings, religious violence and ethnic conflict. Nothing is comparable to the present crisis. We never saw a situation in which the Government was thrown out of office in the past. The government did not collapse because of the JVP insurrection, nor did it because of the tsunami. There were severe debt crises in 1988, 2008 and 2016. Today, a state collapse is imminent. This is the first such experience. So, we have to look at examples elsewhere in the world- Lebanon, Greece Argentina. According to what happened in these countries, nothing can be ruled out. Ultranationalist forces may emerge. Traditional forces may be wiped out. New political classes may emerge. Anything is impossible. In Greece, for example, the two main political forces got wiped out. Two different extremist forces-right wing populists and left wing populists- sprang up. Later, they also vanished from the political scene in the midst of the crisis. Even military rule is possible as in Myanmar. One party rule, like in North Korea, cannot be ruled out.  There may be some groups trying to launch a revolution. We are heading towards a social explosion. 

QThe opposition has been maintaining for the past several months that there will be a fuel shortage which would bring transportation to a standstill. They talked about a debt default.  You also talked about an unavoidable debt default by January.  No matter what, the Government settled due loan installments and ensured uninterrupted fuel supply. What have you got to say now?

No. There would have been a debt default by January had India not offered US $ 500 million credit facility. It is an objective reality.  In return for US $ 500 million, India secured the oil tank farm in Trincomalee. For 60-70 years wind and solar power sectors of the country have been sold out to India’s Adani group. Then, the west container terminal of the port was alienated. Is this the way to govern the country? There are no essential medicinal drugs such as panadol for people. There are no sufficient rapid testing kits.  Farmers lament without fertilizer. Consumers have no milk powder, wheat flour and cooking gas in the market to buy. Cement is not imported. Fuel supply is done with much difficulty. The country experiences unannounced power cuts on and off. How long can you keep fulfilling debt obligations while restricting imports to such an extent?

Q In case there is a debt default to save foreign exchange for other imports, won’t it be a serious assault on the country’s image?

There are solutions to it. Debt restructuring is one of them. Ad hoc borrowings from different countries while restricting imports of essential items and alienation of national assets are not the solution. It is also not the solution to leave people suffering without food and electricity. We have to admit the bitter truth. First, fiscal consolidation is important. The budget deficit is huge for us. We need to curtail expenditure while increasing revenue.  To increase revenue, we need to impose taxes. We should no longer tax the ordinary masses. Instead, proportionally calculated direct taxation should be applied. We should tax the wealthy population. Then, we should reduce our capital expenditure.  

Recently, Finance Minister Basil Rajapaksa launched the programme of 100,000 projects. He expects to spend over Rs.100 billion on it. The government has a capital expenditure of Rs.1000 billion. On the one hand, the government is asking people to economize the use of fuel. Cycling is encouraged in this case. There is a suggestion for the closure of schools to save fuel. There are nighttime power cuts. On the other hand, the expressways are built. There is no identification of priority areas.  

As we did during the Yahapalana Government’s period in 2018, the primary balance should be improved enabling the government to cover its routine expenses with routine revenue. Then, the international rating agencies look at us positively. They see Sri Lanka as a country with the ability to services its debt. 

Debt restructuring is important. It does not mean asking for concessions for loan repayment from Chinese Foreign Minister Wang Yi. A similar request was made in India. Debt restructuring is not that.  There are scientific criteria accepted internationally for it. We should indentify an independent arbitrator for us. It can be a powerful country in the world or an international organization. Then, we need financial advisors for arbitration. Afterwards, we should negotiate with our lenders mainly highlighting out inability to settle loans.  

Our international credibility has suffered today as a country with the rule of law not observed. Our judiciary, the Attorney General’s Department and the Police have been demeaned in the international arena. There is ‘Barracization’ all over. People are ordered to act. Farmers are commanded to cultivate their lands. We restore the independence of judiciary, police and public service. We lost it because of the 20th Amendment. Sri Lanka is likely to face heavy action against it in Geneva. We, as a country, risk the possibility of sanctions from the western countries. It is important to project Sri Lanka as a country with a level playing field. The fraudsters loyal to the Rajapaksa family have been allowed to keep monopolies. For example, sugar is expensive today. Previously, there were 69 importers. Now, there is only one importer. He has made undue profits in the recent past. There were 200 people importing floor tiles. Now, there are only two suppliers.  Both are loyal to the Rajapaksa family. There is no room for open competition. 

Today, no investment is coming in. Instead, secret agreements are signed with selected cronies. We have to follow transparent procurement procedures if we want to import gas. Former Minister Malik Samarawickrama signed an agreement in 2017 to develop the Trincomalee oil tank farm jointly with India. This government vowed to scrap it. Instead, they did exactly the same envisaged in the 2017 agreement. 

We have huge potential for wind power generation. Our energy usage is 2700 megawatts. We have the potential to generate 5000 megawatts of wind power. With solar power, we can go up to 6000 megawatts. Only Adani group is to be offered with the contract to realize the entire potential.  We called for tenders to generate 100 megawatts, there were 200 bidders. Adani group is to be selected sidestepping all of them. We don’t mind Adani group being selected through a transparent process. Also, we don’t mind China Merchants being selected through the same process. But, what is done today are underhand mega deals that cannot be reversed. We need a transparent, law –abiding society. 

QYou talked about the need for the reduction of the budget deficit mainly by curtailing expenses. The Government spends mainly for payment of salaries and welfare measures.  Expenditure reduction means curtailment of these services. Won’t it have an impact on society then?

We talked about capital expenditure reduction. It amounts to Rs.1000 billion. That has to be limited. We do not advocate pay cuts. But, the Government should save five percent of its other expenses such as utility bills. 

QThere is a commonly accepted fact that the public service has expanded beyond the means of the country at the moment. What is your view?

We cannot send public servants home now. The present Government is critical of the public service, but recruited 150,000 to it. We can amalgamate the state institutions. For example, three institutions have been set up to develop coconut cultivation. We can amalgamate them into one. We have to do a management audit of the public service to identify the ones to be amalgamated or retired.  SriLankan Airlines is one of the state enterprise to be closed. It is a body with liabilities amounting to US $ 1 billion. 

QYou mean to say that there is no need of a national career?

There is no use of having a national career without milk powder for people, fertilizer for farmers. What is needed is to sort out priorities. 

QOpposition Leader Sajith Premadasa who is the SJB leader appears to panicked after your political initiatives. He is casting aspersions at you. What is your response?

What did he say?

QMr. Premadasa challenged anyone aspiring to be a leader to prove himself by action and not words. It was a remark targeting you. Wasn’t it?

What he said is irrelevant to me. The country knows about my performance. I have held ministerial posts since 2007. I ensured financial independence for the institutions that remained under my purview. We took innovative steps setting an example to the country. Today, you do not find garbage piles in Colombo. We started a project for waste recycling to generate electricity. We established the scientific landfill in Aruwakkaru in Puttalam. Today, we don’t see daytime power cuts. That is because we introduced rooftop solar panels in 2010. We add 400 megawatts in this manner. We introduced energy efficiency through demand management. When I ran the Ceylon Petroleum Corporation, there was no dollar issue. In fact, I reduced fuel prices. I made the Urban Development Authority a profit making institute. The Committee on Public Accounts (COPA) judged our ministry as the best in 2018. I don’t advocate nepotism. I have proven how to run ministries. I did not display my framed photos in the ministry office. But, my image is etched in the hearts and minds of ministry employees. Nobody can find fault with us as far as financial discipline is concerned.  

QHowever, the rise of the Opposition Leader against you is an affront to realise your presidential ambition.  How do you overcome it?

I don’t think he will rise against me. This is a democratic country. When deciding on the presidential candidate, the country should make it a point to select someone competent enough to rescue it from the present abyss. He should be able to win over public confidence. If Mr. Sajith Premadasa has it, he will get it. Or else, somebody else will get it. 

QThe Janatha Vimukthi Peramuna (JVP) has also launched a political campaign. How challenging will it be for you?

JVP is not a new political movement. It has been there since 1964. We have to admit that the JVP has a set of talented people. It is a party with discipline. But, its policies are not new to the country.  Those policies have been tried, tested and failed in countries such as Cuba, Venezuela, and North Korea. Those are invalid. The JVP has not declared whether it will abandon its revolutionary policies. The JVP has never said it has done away with Marxism and Leninism. Therefore, its policies are outdated and incompatible with the modern world. It lives in an ideology belonging to the past.  Yet, there is some opening for the JVP because both the previous government and the present government became unpopular in the span of a short time. The JVP is seen as a party that is not yet tested in governance. But, it is not always the case. The JVP controlled the students ‘unions of most universities. It controlled Tissamaharama Pradeshiya Sabha. It ran ministries. 

The JVP has to dispense with its outmoded Marxist ideology and open a dialogue on open market traditions based on the principle of equality. 

 
QThe Government has also launched a political programme with the introduction of 100,000 projects. What is your view?

Some measures will not yield. This is a country on the brink of a collapse. People have no essential drugs. They witness power cuts. There is no cooking gas for people. Farmers have no fertilizer. Then, they cannot win over public support by conducting road developments for its henchmen can make commissions.