We can no longer rely on old economic model - President Ranil
August 5, 2022 11:59 pm
President Ranil Wickremesinghe says there can be no reliance on old economic models any longer and there should be innovative thinking while paying prompt attention to the global changes.
The President made these remarks while delivering the keynote address at the launch of the research reports on Sri Lanka’s economic reforms and the panel discussion held at the Bandaranaike International Conference Hall in Colombo, today (Aug 05).
The Advocata Institute organized this two-day economic forum on the theme “LET’S RESET SRI LANKA”.
President Wickremesinghe pointed out that whether the International Monetary Fund (IMF) proposal is good or bad, whether anyone likes it or not, it should be implemented in order to recover from the ongoing economic crisis the country is facing. He also said that the government has the right to question their proposals if any of them are cause for concern.
The President explained that first and foremost Sri Lanka needs to enter into an agreement with the International Monetary Fund. Secondly, the most important is to secure a sustainable loan, any suggestions on getting the loan could be shared. The President further explained that those proposals could be presented to the Parliament for a decision.
President Wickremesinghe opined that the changes in governments and state policies are fundamental issues that impinge on negotiations with the International Monetary Fund. While warning that many difficulties would need to be faced in the next 6 months, he informed that the International Monetary Fund also acknowledges that attention should be paid to the people affected by the economic crisis.
The President enumerated that the country should focus on the foreign debt issue which is extensive and navigates through it without getting caught into the geopolitics of the Asian region.
He prescribed that the export-oriented economy, the renewable energy sector, and the use of nuclear energy be thought outside the traditional framework. The country’s future cannot be reorganized without developing its economy, and therefore initially Sri Lanka should stabilize its economy.
During the 1997 Asian financial crisis which led to the Thai economic reversal at that juncture, it was the International Monetary Fund that guided the recovery, he said.
When the President recently visited Mahanayake Theros, the Nayake Theros also agreed to provide relief to the people through temples.
Observing that the underprivileged segment has grown in recent times, he regretted that school education has been disrupted due to Covid and the fuel crisis, and should be soon re-established, through which economic and social stability can be established.
The President outlined that modernization of the agricultural and fisheries sectors, use of new technology in production, mitigation of climate change, problems faced by women, housing needs of the people, and poverty in rural areas be given more attention.
He further said that we need to create a competitive economy with high wages and productive capacity and the need to build trade relations with Asian countries which have large growing markets. He referred to the current world economic situation as not being favourable for any country.
Dr. Veerathai Santiprubhop, the former Governor of the Bank of Thailand, commented that there is no colossal financial crisis in Sri Lanka as portrayed in the international media.
He further said that to recover from Thailand’s economic crisis, measures such as privatization of public institutions, protection of the most vulnerable people, institutional reforms, building credibility in the banking sector, appointing economic authorities into the cabinet, dealing with the International Monetary Fund, amending the necessary laws, and seeking the assistance of foreign experts, were measures taken.
United National Party Chairman, Member of Parliament Vajira Abeywardena, Samagi Jana Balawega MPs Dr. Harsha de Silva, Kabir Hashim, Mayantha Dissanayake and the Chairperson of the Advocata Institute Murtaza Jafferjee were also present.