Samagi Jana Balavegaya MP Eran Wickramaratne, a member of SJB’s Centre for Economic Policy, outlined practical measures that will propel the limping economy towards a ‘takeoff’ under a SJB Government.
1. Independent but accountable Central Bank
We have witnessed consequences of irrational printing of money and subsequent inflation. Monetary Policy of the CBSL will be independent from the Fiscal Policy of Treasury.
A law was drawn in 2019 – then Secretary to Treasury Dr. R. H. S. Samaratunge, CBSL Governor Dr. Indrajith Cooomaraswamy, Dr. Nandalal Weerasinge, Minister of Finance at that time Mr. Mangala Samaraweera, Eran as the State Minister of Finance and other officials were involved. Eran called upon the current regime to enact this piece of legislation with immediate effect. Alternatively, it will be amongst the first legislation that the SJB Government will enact on assuming responsibility.
2. Anti-corruption measures
Corrupt practices are rampant in every sphere of social and economic life. It is systematic, where politicians, public officials, professional and businesses have been vulnerable. To stamp out corruption, legal and practical measures have to be put in place.
– An act, to make public, the assets and liability declarations of elected representatives and public officials. Eran has submitted a private member’s bill for the disclosure of assets and liabilities and is in pursuit for the government to make the bill a law.
Eran invites the President and the two former Presidents sitting in Parliament to make their asset declarations public, setting precedence and leading by example. He advocates that this will set the tone for Members of Parliament and other public officials in the country to be transparent and accountable to the public.
“Countries do not change only by law-making, on the contrary, countries change by leaders becoming an example” says Eran.
– An act, to give effect to the United Nations backed StAR (Stolen Assets Recovery) programme. Assets illegally acquired, and hidden locally or in foreign jurisdictions can be pursued and recovered.
– An act, to provide for the establishment of an independent and permanent commission to identify and investigate allegation of bribery and corruption. CIABOC to be made independent, which is not the case at this point in time. When a theft is reported, people are tracked down and police officers are appointed by the government to investigate. In the event of a change in government, officials are transferred, disrupting the investigations. A law to make the commission independent from government is a must.
– Create an independent public prosecutor’s office to legally purse corrupt persons. The independent public prosecution office will have no conflict of interest in pursuing allegedly corrupt personnel as opposed to the Attorney General who is advisor to the government ministries.
3. An integrated revenue collection authority
75% or more of Sri Lanka’s revenue comes from three main institutions – namely, Inland Revenue Department, Sri Lanka Customs Department and Excise Department. However, corruption in the said establishments are widely believed to be extreme. Systemic change is a must and SJB proposes a unified revenue collection authority. SJB envisions a digitalised revenue collection authority where assessments are carried out by relevant departments and payments collected centrally with minimal interactions with officials.
4. Establishing a national land bank
Access to land is one of the key obstacles that a business faces when setting up and/or expanding. There are a multitude of government institutions whose approvals are needed, which takes much time. Investors both foreign and local many opt for alternate destinations.
The President recently expressed that a National Land Council will be set up and a national land policy will be adopted. Eran urged the President for the imminent execution of this proposition. Going one step further, SJB proposes the establishment of a National Land Bank.
5. Ensuring uninterrupted fuel and energy
Sri Lanka has significant potential in sustainable energy (solar | wind) and SJB policy direction is that to open up for foreign investment and collaborations in the energy sector. Eran spoke of existing bilateral arrangements between India, Nepal, Bangladesh, Bhutan etc. and envisioned Sri Lanka becoming an energy exporter in the foreseeable future.
6. Ensuring efficient legal and judicial processes / arbitration
Businesses need access to efficient legal and judicial processes to manage disputes and enforce agreements etc.. Despite constitutional guarantees, Sri Lanka has witnessed unlawful expropriation of the private sector. The state has the right to regulate, but not to unlawfully or indirectly expropriate. Fair and equal treatment is absolutely important.
Sri Lanka needs to be seen as a reliable country where local and foreign businesses can flourish. SJB envisions Sri Lanka a centre for arbitration in the region.
7. Centralised facilitator for local businesses
Eran advocates for a centralised facilitator for local businesses similar to that of the Board Of Investments. Streamlining the setup of businesses and providing support services, injecting efficiency to boost the startup culture of Sri Lanka.
8. Increasing Foreign Direct Investment
Our foreign policy is that of an Independent State, a nonaligned Country. Given the proximity, whilst being sensitive to the security concerns of neighboring India, Eran envisages an intelligent approach – says “with the said foreign policy, we don’t care where investment comes from – it is the Rule of Law that will be supreme”. With an empowered BOI, exports will be given predominance in the areas of adding value in high end services, high tech manufacturing etc..
9. SOE – limited government ownership in strategic areas
SJB philosophy is that of limited government ownership in strategic areas such as food, energy and finance. The number of SOEs have risen from 105 to 250 and losses risen to more than a trillion rupees, post 1994. Eran rejects the current management process of SOE’s where institutions are put under different ministries and the ministers directing these establishments through their secretaries similar to that of chief executives leading commercial enterprises.
SJB believes in the private sector and Public-Private Partnership. Government investment will be considered in an institutional model drawing from the lessons of Temasek and Khazanah. A bankruptcy management law will be introduced. Preliminary worked commenced with the assistance of the Attorney General’s Office in 2019.
10. Engaging overseas Sri Lankans
Sri Lankans living overseas are one of the county’s biggest assets. They are largely educated, have wide-ranging vocational experience and capital, with access to technology. Dual Citizenship and Permanent Residence to second generation Lankans born overseas will be offered, opening doors for them and their investments.
11. Ensuring education for all
Two private sector medical colleges were shut down, giving in to protests by left wing political parties against private sector contribution towards education. These ideologically blind political parties have restricted the none government supply of education for decades.
SJB Policy is that every child in the country must have access to higher education, be it university, professional or vocational. SJB advocates that the government need not be the exclusive supplier of education and that the none government and none profit distributing sector and the Private Sector must participate in educating the nation. The responsibility of the government is to increase it’s spend on education and the regulation of the quality of education.
Eran says “We are the logistical hub of the Sub-Continent, we must become Education and Human Resources development hub too. We don’t want our youngsters going abroad looking for greener pasture or shelter in other countries. Our education policy is not only about economy but values, society, and family. We want to preserve our families and society.”