- We are opposed to only a part of the Economic Transformation Act
- We are hoping to negotiate without changing the foundation
- PAYE tax is unfair; we are bringing necessary amendments
Q: You say the International Monetary Fund’s (IMF) program will stall if the National People’s Power (NPP) manifesto is put into action?
A. I was the first one to suggest that Sri Lanka should go to the IMF back in August. The NPP and Government laughed when I said that. They said that there is no need to go to the IMF. Then when the Government decided to go to the IMF, we did not oppose it. Now the same people say “There are no other options except the IMF”. Now they say that a single word of the IMF cannot be changed.
We need the IMF to rebuild the country. We understood that from the beginning. But we kept saying that we are discussing to change some things because certain conditions of the IMF are oppressive.
But the Government says those cannot be changed at all. In the NPP’s manifesto it says they will negotiate the foundation of the IMF program. That is where the problem lies. The IMF’s basis is debt sustainability analysis. We went bankrupt because we couldn’t pay our debts. We went to the IMF to sustain debt payments. That basis cannot be changed at all. If that basis is changed, the entire IMF program collapses. We hope to discuss the internal changes without changing the core of the program.
The Government says the President himself, who said that it is impossible to change a roof, but he recently said he is negotiating with the IMF to change these taxes; so what those guys are saying is a lie.
There is a big difference between the stories of the President and NPP. The NPP says that the foundation of the IMF is being changed. But it is difficult to do. It is a program-wide action. You can change the interior without changing the base.
Q: If IMF agreements are renegotiated based on an analysis of debt restructuring, why do you say that the existing extended credit between Sri Lanka and the IMF cannot be continued?
A. The entire program rests on this DSA. That is, the option is based on sustainability analysis. This DSA changes from quarter to quarter. What President Wickremesinghe says is right. Domestic debt restructuring has already been completed. This is a huge and dangerous thing. Anyone can do an optional DSA. Even if it is made, the IMF will not accept it. We challenge. Please show us if they would accept an alternative DSA. This is to deceive everyone or because of ignorance. All this is based on certain assumptions. Anyone can create an alternative DSA; but it is not accepted.
Q: The President called for an open debate regarding the IMF?
A. We are ready at any time. But we have to say this Government wasn’t transparent; they did not show us a single word until after signing the IMF. And now we are invited to debates? We asked for a discussion with the creditors, but that too was not given. Now they know that the people understand what we have been saying so they are asking us to debate.
Q: The Government says that it is not possible to change the terms of the IMF. The President says the country will collapse again if we do.
A. Why can’t IMF conditions be changed? We can change that. Without changing the foundation, we can negotiate certain things that are causing hardship to the people. Although they said that it cannot be changed, now they are negotiating with the IMF to change the taxes. How is it possible now? The same guys said that not a single letter can be changed.
Q: On what terms are you hoping to renegotiate with the IMF under a Samagi Jana Balawegaya Government?
A. We hope to discuss two issues with the IMF. According to the agreement, there are no incentives related to the economy, we have wanted to turn the country into an export economy. While the IMF program is in operation, it has to be done from within. There is no need to change the basis here. We hope to discuss how to provide incentives and how to bring investments. The second issue is the tax related policy. They are unfair. Basically the income tax on working people is unfair. We will bring the necessary amendments to change that.
Q: Parliament has passed five bills to ensure the IMF conditions are not changed
A. We have no objection to some bills. For example, we are not against the Central Bank Independence Act, Economic Management Act, Public Finance Control Act and Anti-Corruption Act. We are only opposed to a part of the Economic Transformation Act.
Q: Because the IMF conditions cannot be changed through it?
A. We are only against the second paragraph. In the second paragraph, it says that the Government cannot change all the matters agreed with the IMF. We are against that part and only want to change that part.
Q: Not just the historic target audience; there are allegations that other people also got relief under this welfare program. Is there a system in place to do these things formally?
A. The problem with insurance is, you pay. We don’t do that. We give but as soon as you get it, you have to rise above. The other thing is that we don’t do it all at once. We are making this method. Until then, we will give Rs. 5,000 for each of the new sixty-six lakhs. It is increased to ten thousand. Rs. 7,500 is given per 100,000 names; That makes Rs. 10,000. Rs. 15,000 will be given for another four hundred and eighty thousand. We are thinking to increase that too. The minimum we do is Rs 10,000.
Q: The NPP says that the executive presidential system will be abolished. What is the SJB’s position on that?
A. We have said that since the beginning. It is not an easy task. It requires a two-thirds majority. We need a referendum. A new Constitution should be brought in. It is complex work.
Q: The NPP manifesto also states that essential goods will be exempted from tax. What are the measures taken by SJB regarding essential goods taxes?
A. You cannot fill a bucket vertically. You have to place it right side up to collect the water. People are under great pressure. They should be given room to breathe. Only after that other things should be done. That is why we continue our work. We understand the suffering of the people at this time.
The prices of essential goods and food cannot be reduced by gazetting. The first thing we want to look at is the price of food, like why is the price of rice so high? There are several reasons. A rice cartel is operating in Sri Lanka, we will break this cartel up so that the farmer and consumer can buy and sell at a fair price.
We will reduce the cost of fertiliser from Rs. 25,000 to Rs. 5,000. A climate-controlled storage complex called Prabhaswara is being built nationwide for potatoes, onions and chillies. But ones we started to build were halted recently.
As stated in the NPP’s manifesto, representation will be limited to 25 Deputy Ministers and State ministerial positions will be abolished.
Q: What is your party’s position regarding representation?
A. We do it logically. There are currently thirty ministerial posts in the Constitution. We will do that within the thirty.
Q: The SJB says poverty will be eradicated in 24 months. How do you do this when the country is bankrupt and we are barely able to raise our head?
A. We don’t just handout money to people. We will help them get a job or build a business so they can do and stand up for themselves.
Q: Does that mean that under a SJB Government, welfare will no longer work?
A. Welfare will be given to a targeted group to do whatever they can for village work or self-employment.
