Dr. Harshana Suriyapperuma, a key member of the National People’s Power (NPP) economic council offers his perspectives on critical national issues, ranging from state-owned enterprise reforms to ongoing discussions with the International Monetary Fund (IMF). Speaking to the Sunday Observer, Dr. Suriyapperuma elaborates on the NPP’s approach to tackle corruption and the Government’s socio-economic plans, He also addresses pressing concerns about transparency, the need for efficient governance and the future of the National Economy under the NPP.
Q: The recent decision not to privatise the National Carrier has sparked debate. Can you elaborate on the approach to reforming State-Owned Enterprises (SOEs)?
A: This is an ongoing discussion and it fits into our broader approach to SOE reform, which was stated in our manifesto before the elections. We need to assess the strategic importance of each institution. Some SOEs may need recapitalisation, while others could benefit from Public-Private Partnerships (PPP) or private investment, both local and foreign. However, no final decision has yet been made. After the General Election, there will be a more thorough review to determine which SOEs should remain under State control and which could benefit from PPP arrangements or external investment.
Q: A major criticism of keeping the National Carrier under State control is the potential for corruption and lack of transparency. How will the Government address these concerns?
A: You’re absolutely right. Our focus now is on creating a transparent, accountable and KPI-driven culture in these SOEs. Some institutions may not be profit-driven, but they need to have a mechanism to recover costs and operate efficiently to avoid unnecessary burden on the Treasury.
By introducing clear rules, procedures and policies, we aim to give officials the independence to run these institutions without political interference. This will reduce, if not eliminate, the burden on the public and create examples for future generations to follow. Well-managed Government institutions can add value to the economy and society, rather than being a drain on resources.
Corruption and mismanagement have been longstanding issues in State institutions, largely due to political interference. But the problem isn’t always with the enterprises themselves; it’s with how they have been managed. Many of these institutions have capable officials with extensive experience, and the Government has already invested significantly in their education and training. The Government has played a huge role in developing these Human Resources; therefore, we must also see that we don’t forego investments.
Q: Does the NPP plan to expand the Government workforce or do you intend to downsize it? If you are downsizing, what are your targets?
A: Our direction has been clear. We don’t plan on expanding the Government workforce unnecessarily. In essential areas such as education and healthcare, the Government may increase capacity, depending on the need. In other sectors, we aim to implement digitisation to improve efficiency and transparency while managing natural attrition caused by retirement and migration. Over time, this will allow us to have an optimum workforce without compromising delivery. Our goal is to optimise Government institutions, remove corruption and provide officials with the freedom and independence to perform efficiently under the right leadership.
Q: You have expressed a desire to renegotiate the DSA with the IMF. Do you believe that the professionals at the Central Bank failed to secure a favourable outcome? If so, what caused this? How long do you think this process will take?
A: I wouldn’t frame it that way. Professionals at the Central Bank just like other Government officials, operate under the direction of the country’s leadership. If the leadership did not prioritise the national interest during these negotiations, the officials would not have a reason to deviate. It’s not about blaming anyone individually but understanding that a lack of proper leadership led us here, not just in terms of the DSA but in other areas as well.
The reality is that an agreement was reached with the IMF just before the Presidential election and as a Government, we now can’t disregard it. However, since President Dissanayake took over, we’ve had several discussions with the IMF, World Bank and ADB teams to explore better outcomes for the country. We’ve been in these discussions for over a year and continue to engage with all stakeholders to see how we can bring more relief to the people, given the severe hardship they are facing.
Q: What kind of relief are you looking to secure?
A: We are seeking additional relief for the people because nearly one-third of the population is now living below the poverty line. Many families struggle to put food on the table. Our aim is to ease their burden. However, this conversation with the IMF revolves around balancing relief with alternatives for revenue generation. We are exploring whether existing thresholds can be relooked but we also need to stabilise the economy to inspire confidence in both local and international investors.
Q: Will this process take a long time?
A: No, we don’t foresee it taking too long. We are not derailing from the original program which is crucial to maintain confidence in the process. Instead, we are looking at what provisions we can work within to achieve better outcomes. Continuous discussions with the IMF are ongoing and we are confident we can reach finality without major challenges.
Q: So, can we expect a renegotiation of the DSA?
A: I would describe it as discussions rather than a renegotiation because just before the Presidential Election an agreement with the ISB holders has been reached. Therefore, discussions with the IMF and other stakeholders will continue to ensure the best possible outcomes for the people, businesses and investors. It’s about working within the agreed framework and exploring maximum avenues for the country’s benefit, rather than deviations.
What specific measures are being introduced under the new socio-economic plans to tackle corruption and ensure transparency at both governmental and institutional levels? One of the main measures to be introduced is a strict zero-tolerance policy for corruption. Everyone acknowledges that bribery has become commonplace in both giving and accepting and the plan aims to change that political culture. A key tool in this fight is digitisation. By shifting many public services online, it will reduce the need for face-to-face interactions, which often lead to corrupt practices. For instance, if properly digitised, citizens from the northern or eastern areas will no longer need to travel to Colombo to get things done and officials could process requests based on merit rather than on how much someone can pay in bribes.
The Government will focus on enforcing existing laws against corruption, which have not been properly implemented in the past. Many corrupt individuals have escaped punishment but the new administration intends to ensure that these laws are applied effectively. Where gaps in the legal framework exist, necessary amendments will be made to empower law enforcement agencies to tackle corruption head-on.
The administration also aims to bring about a cultural shift, engaging the public in rejecting corruption. We believe that raising awareness and educating people about the long-term harm of corruption will build public support. The Government is confident that with the society’s backing, they can succeed in creating institutions that are transparent, accountable and fair.
Q: Gotabaya Rajapaksa’s initial economic reforms were met with optimism but ultimately led to public unrest and his ousting. How will Anura Kumara’s socio-economic plans differ to avoid a similar fate?
A: The main difference lies in the team behind President Anura Kumara’s socio-economic plans. While Gotabaya Rajapaksa’s Government sidelined many knowledgeable individuals, favouring political allies and cronies instead, President Anura Kumara is focusing on implementing policies created by a large group of experts across various sectors. Over 400 professionals contributed to the formulation of these plans, which include everything from education and health to defence and energy policies. This expert-driven industry participatory approach ensures that decisions are based on sound advice and research, rather than political expediency.
Another key lesson learned from the past is the importance of maintaining integrity within the team. During previous administrations, corruption took root because individuals lacking competency were placed in positions of power for personal or political gain. AKD’s administration is determined not to repeat that mistake. We plan to seek a clear mandate from the people to elect honest and capable individuals to Parliament and have made it clear we will not tolerate corrupt politicians.
The NPP’s actions so far have demonstrated a commitment to these ideals. We have consistently refused to allow party-hopping for political advantage and have maintained a strong ethical stance.
Q: What is your growth rate projection for Sri Lanka for the next five years? Can you also give a GDP target?
A: While we haven’t projected an official growth figure, we opined that the Business Chambers’ projection of 6.5% GDP growth was agreeable. We also have done extensive consultations with the business community across sectors such as tourism, IT, agriculture, fisheries and manufacturing. They have shown confidence in growing the economy, with many of them operating well below capacity. By fully utilising existing capacity, they believe they can contribute significantly to the national GDP.
The industries have proposed an ambitious target for exports, aiming to grow from the current $17.9 billion to $45 billion by 2030. This represents over 100% growth, and we are confident that, with the right facilitation from the Government, we can achieve these goals. Our primary role is to create the right platform for businesses to thrive, whether it’s through financing, advisory services or opening new markets.
While challenges such as global uncertainties exist, for example as in the Middle East, we believe that by working cohesively and implementing a clear strategy, we can overcome them. If we provide industries with the right opportunities, take corruption out of the equation and improve efficiency in Government institutions, we should be able to reach these targets.
Q: What are the key projects to be implemented for rapid growth in the export industry?
A:Industries have an ambitious plan to significantly boost exports. We are looking at value-added exports to generate more revenue. Our research and development (R&D) policy is aimed at enhancing the value of traditional export products and breaking into new international markets. Our focus is to facilitate such aspirations for example in the Tourism sector; we aim to facilitate the current $4 billion revenue to $8.5 billion, doubling both capacity and revenue. In the IT Sector: The goal is to expand from $1.2 billion to around $5 billion, focusing on driving foreign currency earnings.
Agriculture and Fisheries: These sectors have massive potential, with many businesses operating below full capacity. We aim to increase production and expand exports. Mineral Resources: There are untapped mineral resources that can contribute significantly to exports, provided we resolve existing issues such as corruption and facilitate new investments.
Q: What is the NPP’s seat target at the General Elections?
A:We are confident that we will win because the people have seen how we’ve delivered within the limited space we were given. Our efforts are not aimed at popular politics for the sake of the election, but rather doing what’s right. For example, the Supreme Court gave an order regarding the Visa issue and the previous administration did not honour it. That shows the dilapidated state of law and order in this country, where officials disobey a Supreme Court ruling.
Our goal is to restore proper governance and ensure the right decisions are made for the benefit of the people. For instance, high cost of living could also be addressed by tackling corruption in areas like the poultry industry, where allegations prevail that certain politicians made money off deals that limited the supply of animal feed. By removing these corrupt practices, we’ve allowed the market to settle fairly. We aim to reduce energy costs next, which will benefit both consumers and the manufacturing sector.
We’re also focused on lowering financing costs for industries to boost production, creating opportunities for new businesses to enter the market and encouraging foreign investments. Political instability drove some foreign investors out of Sri Lanka, costing jobs.
Our plan is to create a stable, conducive environment that attracts foreign businesses and supports local investors.
Ultimately, we’re confident about winning because the people will see that we’re delivering the right results, not just making promises for the election. We expect more people to support us and while I can’t give an exact number, we believe we will cross the line with confidence.
