Sajith withdraws from Sri Lanka President race
ECONOMYNEXT – Sri Lanka opposition leader Sajith Premadasa said he will not come forward as a candidate for Presidency in a parliamentary vote and his party will back Dullas Alahapperuma.
“For the greater good of my country that I love and the people I cherish I hereby withdraw my candidacy for the position of President,” he said in a twitter.com message.
“SJB and our alliance and our opposition partners will work hard towards making @DullasOfficial victorious.”
For the greater good of my country that I love and the people I cherish I hereby withdraw my candidacy for the position of President. @sjbsrilanka and our alliance and our opposition partners will work hard towards making @DullasOfficial victorious.
— Sajith Premadasa (@sajithpremadasa) July 19, 2022
The focus now shifts to acting President Ranil Wickremesinghe and Allahapperuma.
At least 105 Sri Lanka Podujana Party members have met Wickremesinghe and discussed their grivances including how to replace torched houses reports said.
Sri Lanka’s parliament has 225 members. Over half a dozen members are abroad and may return today for the vote tomorrow.
Sri Lanka Freedom Party, which has around 15 members has said they would stay out of the vote in a bid to push for a consensus candidate.
But least 10 may break ranks, reports said.
SLFP chief ex-President Maithripala Sirisena has alleged that large amount of money was being offered to buy legislators.
Sri Lanka is in a deep political crisis following the worst monetary crisis triggered by the country’s Latin America style central bank in the course of following contradictory money and exchange policies (soft-peg) now called a flexible exchange rate.
Agreement reached between @sjbsrilanka @sajithpremadasa and @DullasOfficial. #SriLanka #SriLankaCrisis #SriLankaProtests pic.twitter.com/6APDuIDHDz
— Harsha de Silva (@HarshadeSilvaMP) July 19, 2022
There have been discussions between the SJB and the Dullas faction of the Sri Lanka Podujana Party in case they take the the reigns of goverment defeating Ranil Wickremesinghe who is backed by the old guard of the SLPP.
SJB legislator Harsha de Silva said in a twitter.com message that representatives backing Alahapperuma had agreed to a common minimum program proposed by the National Movement for Social Justice involving Rohan Samarajiva.
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The common minumum program contains, thoughtfully crafte elements needed to make the economy more efficient and allow for private sector activity. (Sri Lanka economic recovery, a common minimum program)
However it does not contain measures to restrain the central bank’s obsession with printing money to control rates, but suggests enacting a draft monetary law act that gives carte blanche for the central bank to continue soft-pegging (flexible exchange rate or contradictory money and exchange policies) and flexible inflation targeting, a pseudo inflation targeting, in the style of the last 7 years, which has landed the country in three currency crises in a row and default.
The central bank runs a reserve collecting peg and cannot operated a true inflation targeting regime because it has to intervene in forex markets to collect reserves and also has an obligation to be the banker for the government.
Unless the central banks domestic operations and trigger happy open market operations.
The common minumum program has suggested that its fiscal related activities be take away which will also help reduce the tools the central bank has to trigger monetary instability.
Authorities have even recently manipulated bond auctions through a bond auction committee which makes un-announced quantity easing decisions, rejects real money flowing into budgets and forcing very high interest rates later as well as forex shortages.
