TNA: Budget needs to be consistent with IMF economic reform program and macroeconomic framework

TNA MP M.A. Sumanthiran told Parliament that the Government must rethink its priorities and address the needs of the lower income classes of the country. Sumanthiran pointed out that the Government, despite promises, has not allocated funds to provide the promised subsidy for kerosene but is making essentials necessary for the country’s middle class and upper-middle class readily available.

“The Government is making petrol and super diesel available but there is a shortage of diesel and kerosene. The priority must be the other way around. The needs of those who need the support most must be prioritised,” he said. The TNA MP said he believes the Government has taken this course of action in a bid to silence the protests of the country’s middle and upper-middle class. “The Government is doing this because it thinks by silencing the dissent of the middle and upper-middle class it can get away with blue murder,” he accused. According to the MP, the interim Budget has only further burdened the lower-income classes of the country. “Hoping to supply the Budget deficit through local revenue is not the answer,” he said. Sumanthiran pointed out that many shootings and killings are taking place across the country. “Police are not investigating these crimes and are instead being deployed in the thousands to stifle genuine protests by the people. Around 1000 policemen are deployed to stop a protest march of just 500 people. Earlier tear gas and water cannons were used on protestors and now the Government is using the Prevention of Terrorism Act to repress them as well,” he noted. He also questioned if the President is attempting to appeal to some sections of the country. “The President signed the recent detention orders in Sinhala, whereas he usually signs in English.

Is there a sudden change of personality? Is he trying to appeal to certain sections of society by signing in Sinhala?” he asked. The MP pointed out that the International Monetary Fund (IMF) has announced the Staff-Level Agreement with Sri Lanka but based on several conditions. “Even as it was announced the IMF released this statement and I quote – ‘the new Staff-Level Agreement is subject to the approval of IMF management and the Executive Board in the period ahead, contingent on the implementation by the authorities of prior actions including financial assurances from Sri Lanka’s official creditors.’ In other words, this is contingent on something that has not been done yet. We hope the Government sees to this,” he said. But the MP also pointed out that to fulfil these obligations the Budget needs to be consistent with the economic reform program and macro-economic framework underlying by the IMF. Pointing out Japan’s denial of hosting a debt restructuring conference on Sri Lanka contrary to President Ranil Wickremesinghe’s claims, Sumanthiran said the people must be told the whole truth. “People are being told what they like to hear,” he said.