I will initiate an economic revolution in the country

Sri Lanka stands at a crossroad with its political and social landscape characterised by both uncertainty and resilience as the Presidential election is around the corner. But President Ranil Wickremesinghe who is contesting the upcoming Presidential election as an independent candidate has a clear, social, economic and foreign policy agenda. Under his leadership, the Nation has emerged from a severe economic crisis, and he is resolute in his aim to secure another five-year term to finalise initiatives that promote the socio-economic development of the country.

Wickremesinghe, a prominent senior politician in South Asia known for his political acumen and personal charm, expressed his ambition to initiate a comprehensive development initiative across the Nation within the next five years.

Following the footsteps of former President JR Jayewardene, Wickremesinghe successfully implemented significant reforms across nearly all sectors during his tenure as Prime Minister on six occasions and as President, thereby positively influencing the country.

In an interview with the Daily News, the President explored a wide range of controversial topics, encompassing both economic and political matters. He was of the view that the discussions surrounding the abolition of the Presidency and the implementation of the 13th Amendment to the Constitution have emerged in the lead-up to the Presidential election as a means to distract from the pressing issues facing the country.

“After the economy has reached some level of improvement, there won’t be significant discourse within society regarding the individuals occupying the positions of President, Chief Minister, or Minister”, he said.

Following are excerpts from the interview…

Q. What is your focus for the next five years?

A. We have a number of plans aiming at modernising the agriculture sector. The number of tourists visiting the country will be doubled. More focus will be given for the advancement of the renewable energy sector. My intention is to delegate the development projects to the particular Ministries following the example set by former President J R Jayewardene.

During his presidency, former President J R Jayewardene, the Mahaweli Development Project was successfully completed within a decade. Two Export Processing Zones were established, housing schemes were initiated, and significant development was achieved in the Education and Health sectors.

Q.When presenting new proposals for the Budget 2025, is it necessary for them to align with the IMF agreement?

A. The Budget will be prepared in accordance with the IMF agreement. We anticipate generating an income of Rs. 5,227 billion. As outlined in the Budget, the deficit amounts to Rs. 1,000 billion, and we have the option to secure loans from the market. The maximum loan we can acquire is capped at 5 percent of the country’s Gross Domestic Product (GDP).
The JVP has yet to reveal its Budget proposals. The National People’s Power (NPP) has indicated its intention to lower taxes.
Should their manifesto be enacted, the gap between expenditure and income could widen to 11.2 percent of GDP, breaching the IMF agreement, and interest rates might escalate to as high as 25 percent.
Furthermore, if the NPP assumes power, the rupee could depreciate to Rs. 500 against the US dollar.
I am ready to engage in a discussion regarding the economic policy of the NPP and am currently awaiting their invitation. It is important for the public to be informed about their stance.

Q.Has the IMF endorsed your programme?

A. Yes, the IMF’s support is firmly behind the government’s current programme. IMF’s Communications Director Julie Kozak officially confirmed that protecting Sri Lanka’s progress under the IMF programme is crucial for the future development.
The IMF Director has said that achieving the objectives of the IMF programme is crucial to help Sri Lanka emerge from one of the most severe crises in its history. She has said that a lot of progress has been made while stressing the need of safeguarding those hard won gains. She also says that the country is not out of woods as yet. The IMF says that Sri Lanka has come a long way, but the path to full recovery requires on-going commitment to reforms and a focus on economic stability.
The NPP has proposed that Sri Lanka’s income tax-free threshold be increased to Rs 2.4 million a year from the current 1.2 million and to ‘equitably’ amend tax rates and tax brackets.
The NPP has said that there will be changes to VAT and the introduction of a turnover tax. They should tell the world whether these commitments will be enacted. Should these proposals be put into effect, the country will return to the situation that existed in May 2022. People have to be prepared by storing fuel and gas to face such an eventuality, if NPP comes into power.

Q. SJB has said in its Election Manifesto that the party has apprised the IMF about the incentives to be given to the investors. Are you aware of this?

A. The IMF has not received any information regarding this matter. Upon inquiry, the IMF stated that they have not been made aware of any such plans by the Samagi Jana Balawegaya (SJB).

Q. What actions have been implemented to eliminate corruption in the country?

A. We have introduced the Anti-Corruption Act and are working on legislation aimed at seizing assets acquired through unlawful activities. Additionally, a comprehensive five-year anti-corruption strategy has been developed. We are currently in the process of amending existing laws to achieve the goal of eradicating corruption in the country. These laws will be enacted from next year.

Sri Lankan officials will receive specialised training and exposure for the implementation these laws under the financial assistance from the World Bank and the United States. We have strengthened law and law enforcement authorities.

Q. Do you think that lifting the import ban on vehicles will have an impact on the country’s foreign reserves?

A. I think we can bear it. One of our main income sources was the import of vehicles. Following the country’s exit from the status of bankruptcy, we can obtain loans from foreign lending agencies.

We imposed limitations on the import of over 2,000 goods and these limitations were lifted gradually. Our intention is to increase the GDP annually.

Q. You said that SJB leader Sajith Premadasa cannot defeat NPP Leader Anura Dissanayake . What is the basis of your assertion while being a candidate in the same fray?

A. As Opposition Leader, one must prevent others from becoming the candidate from the Opposition. Sajith Premadasa’s failure to do so has only strengthened Anura Kumara Dissanayake’s position.

Q. The NPP in its Election Manifesto has revealed its approach to re-negotiations with the IMF with alternative proposals, if the NPP wins the upcoming Presidential election. What are your comments?

A. They have said in their Manifesto that a Debt Sustainability Analysis (DSA) will be prepared to be presented to the IMF. But they don’t know that DSA applies only to low income countries.

Assessing Sovereign Risk and Debt Sustainability for Market Access Countries (SRDSF MAC) applies to middle income countries like us. The NPP is completely unaware about the IMF processes too.

Q. What would happen if Sri Lanka decides to review the IMF agreement?

A. A team from the IMF is set to arrive in the country two weeks following the election.

Their inquiry will focus on the government’s willingness to adhere to the terms set forth by the IMF. Should the current administration choose not to proceed, the programme will be halted, leading to the initiation of discussions.

These discussions are expected to extend over several months, during which the rupee may depreciate to Rs 500 against the dollar. Such a decision could result in severe chaos in the country, potentially exacerbating the circumstances that were experienced in 2022.

Q. The NPP has said that they intend to address the Budget deficit by seizing the assets acquired by individuals who are purportedly implicated in corruption. What is your view on this matter?

A. Recovery of assets amassed by illegal means cannot be done overnight. The duration required to finalise the judicial proceedings against individuals purportedly implicated in corruption is estimated to be a minimum of five to six years. Then again Court procedure may continue in Court of Appeal over the acquisition of assets too.

Q. NPP is saying that the Adani Power Agreement will be abolished to ensure energy sovereignty in the country and the agreement concerning the West Container Terminal will also be amended for the benefit of the country. Can these agreements be amended unilaterally?
A. The abolition or amendment of these agreements could lead to numerous complications. Former President Gotabaya Rajapaksa unilaterally terminated the agreement for the Light Railway Terminal Project with Japan, and the country suffered in the end. Consequently, we did not receive the anticipated funding.

Q. Ending corruption in the government is the key slogan in the NPP election stage. What are your thoughts on this matter?
A. There are talks about prosecuting those involved in corruption and frauds. But a viable mechanism aiming at ending the corruption has been presented in the ‘Puluwan Sri Lanka’ programme only. Over 400 files reportedly contained details regarding corruption. However, only fifteen cases were filed from these files, rendering the remaining files ineffective. These files contained only names of persons.

There is no issue with regard to the ensuring democracy in the country. We don’t have racial, religious issues and there is no major issue with regard to the 13th Amendment to the Constitution. I have already forwarded my proposals for the implementation of the 13th Amendment to the Constitution. No candidate in the fray other than I have forwarded viable proposals aiming at solving the economic woes of the country.

Q. Will the next election be for Local Government or for Parliament?

A. It is highly likely that a Parliamentary election will take place. Subsequently, a local government election may be conducted. However, a decision regarding the timing of the next election must be made following discussions with the party leaders.

Q. Indian National Security Advisor Ajith Doval engaged in a discussion with you in Colombo. Did he convey any message to you concerning the Presidential election?

A. He arrived in Colombo to participate in the Colombo Security Conclave. India expresses significant concern regarding the situation in Bangladesh. India is equally apprehensive about the current situation in Sri Lanka. Although he did not deliver any specific message, he extended his best wishes to me.

Q. Many parties are talking about the abolition of Presidency and implementation of the 13th Amendment to the Constitution. What is your response?

A. These are the topics that have been brought forward to cover up the prevailing issues in the country People do not express concerns regarding the Executive Presidency. Our primary emphasis is on enhancing the National economy, particularly the economic well-being of families. As the country’s economy improves, numerous pressing issues will be resolved. After the economy has reached some level of improvement, there won’t be significant discourse within society regarding the individuals occupying the positions of President, Chief Minister, or Minister.

Former President JR Jayewardene said that no individual desires to abolish the Presidency once he or she assumes the role of President.

Q. The TNA has made the decision to extend its backing to SJB candidate Sajith Premadasa. Will you not garner the support of the Tamil population in the North during the upcoming Presidential election?

A. Who told you that the TNA is supporting Sajith Premadasa? Majority of People’s representatives in the North are supporting me at this Presidential election.

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