Former regime left bankrupt economy

by Lalin Fernandopulle

Former President Mahinda Rajapaksa and his cohorts in the Central Bank and the Finance Ministry plundered the wealth of the country during the tenure of the previous Government, putting the economy in the doldrums and leaving peanuts for senior citizens, Finance Minister Ravi Karunanayke told the media last week, refuting false and petty allegations of Rajapaksa supporters to belittle the present Government.

He said that he is prepared to debate with the former President at any time to prove the huge amount of money squandered by the previous regime and the measures taken by this Government to boost the dormant economy that was left for it to resuscitate.

“I am ready for a debate at any time and unlike members of the former Government, I will not go back on my word.

I will reveal the colossal amount of public wealth amassed by the previous regime and the money wasted on projects that have little benefit to the country.

I call on the former President to stop going from temple to temple making false statements and to come for an open debate and prove his innocence if he could and ask pardon from the country for all the nefarious activities committed by the former regime,” Karunanayake said.

Scoffing allegations by the Opposition that there is a breakdown in the economy with development activities coming to a standstill, the minister said that the Opposition is bankrupt and that’s why it is making petty and bogus allegations that the economy is sliding.

“The economy grew 6.4 percent for the first quarter with the service sector recording a growth of 7.5 percent, industries 6.5 percent and agriculture 0.7 percent.

The stability of the rupee, tax reductions, easing the cost of living burden that was heaped on the people by the former Government and maintaining a robust economy are ample evidence to show the amount of work that the Government has done within a short period,” the minister said.

The GDP for the first three months this year increased to Rs. 912.534 billion while the growth during the corresponding period last year was Rs. 857.497 billion, according to Census and Statistics Department data.

The three main pillars of the economy, agriculture, industries and services sector contributed 10.9 percent, 32.7 percent and 56.3 percent to the GDP in the first quarter of this year.

Karunanayake said the former Government burdened the people and industries with various taxes to cover its outrageous expenses.

The present Government has reduced taxes on many imported items while taking steps to protect local industries.

We have slashed duty on imported dates for the Ramadan season and taxes on essential items will be further reduced.

“The rupee was de-stabilised and as a result import prices rose to staggering rates,” the Minister said.

Social Services and Social Welfare Minister P. Harrison said that former Minister Bandula Gunawardena tried to project himself as a great economist, made a laughingstock of himself by saying that Rs. 2,500 a month is sufficient for a family to live.

“These are the type of economists we had in the former Government. They tried to hoodwink the masses with unrealistic statements.

The senior citizens and the poor masses were thrown from the frying pan to the fire with the peanuts they received,” the Minister said.

He said that the number of social service and welfare beneficiaries was increased to around 400,000 this year and the allocation was increased from Rs. 3,000 million to around Rs. 8,600 million. Senior citizens should be recognised and rewarded for their yeoman service to the country.

“Our government understands the pulse of the poor people and will extend its fullest support to improve the lives of low income families. When journalists queried as to how the Finance Minister could fulfill all the promises when there is a No Confidence Motion against him and the Prime Minister, Karunanayake said that question should be asked from President Maithripala Sirisena and Prime Minister Ranil Wickremesinghe.

The Opposition tabled a No Confidence Motion in Parliament against the Prime Minister and the Finance Minister over the controversial Treasury Bond Issue calling on the present Central Bank Governor to step down from his post.

He said that steps will be taken to trace the money stashed in foreign banks by the former regime and the media should support this endeavour with facts and figures.