Creating an indigenous economy, Govt’s aim - Dr. P.B. Jayasundera

President Mahinda Rajapaksa met all stakeholders in the country including farmers, fishermen and three-wheeler drivers prior to the preparation of the Budget, Finance and Planning Ministry Secretary, Dr. P.B. Jayasundera said in an interview with SLBC Chairman Hudson Samarasinghe.

“We met farmers in all parts of the country and their inputs were used in the preparation of the Budget. The Government's aim is to create an indigenous economy based on a 10-year plan implemented by the Government by 2016. The Budget is aimed at promoting Sri Lankan production to compete with imported products. The country is striving to be self-sufficient in B-onions, dried chillies and potatoes,” he said.

He said the country can save US$ 250 million if it succeeds in becoming self-sufficient in these crops. Dr. Jayasundera said the B-onion farmer received a higher price for his crop. “What the President wants is to increase production.”

He said the President has told farmers that he would impose tax on imports on these items to stabilise the price in the market. This decision helped farmers receive higher prices for their products, Dr. Jayasundera said. He said the President has decided to grant a certified price to farmers for their produce despite price fluctuations in the world market and in the local market.

Dr. Jayasundera said the Government has not imposed a levy on bread or taxed any other locally produced item. He said over 70 percent of the people in the country are still living in rural areas. “These people are involved in some sort of production.”

“The Budget is aimed at encouraging local production while ensuring consumer protection.

He said the people are using more rice flour. The Government has no need to impose a tax on wheat flour as the country imports wheat as seeds and processes it here and imports it to other countries. Tax is imposed by the Government only to protect the local farmers. The price of B-onion and potatoes stabilised recently.

Surplus of rice

Sri Lanka has a surplus of rice after many decades, Dr. Jayasundera said. The President decided to grant a stock of 50,000 MT of rice to the World Food Program. Sri Lanka was donating its food crops to people suffering from the lack of food.

“Poultry farmers requested the President to provide them facilities to export their products,” he said.

The Government is also implementing irrigation schemes to provide water for drinking and irrigate many districts, he said. Over 30 irrigation schemes including Moragahakanda, Deduru Oya, Upper Kotmale and Rambaken Oya have been implemented in the country.

“These projects are aimed at providing water to the dry zone in Puttalam, Anuradhapura, Polonnaruwa, Kilinochchi and Jaffna districts,” Dr. Jayasundera said. The Moragahakanda project is aimed at feeding tanks in the Anuradhapura district and the Iranamadu reservoir.

He said the people in Jaffna and Kilinochchi districts will receive potable water through a massive water supply scheme for which the Government will invest US$ 400 million.

“The Jaffna and Kilinochchi water supply scheme is a US$ 400 million project. We have obtained credit for this project. The Moragahakanda project also generates 30 to 40 MW of electricity.”

He said government ventures will not be privatised under the leadership of President Mahinda Rajapaksa. “The President is strengthening public ventures instead of privatising them. The Ceylon Electricity Board (CEB) has been turned into a profitable entity,” he said. The President started new power generation projects. Power transmission lines were upgraded to reduce wastage. Over 11 percent of wastage was reduced, he said. The Secretary said the President believed in CEB employees. “They are the people who provided electricity soon after the Forces liberated the area,” he said.

Increase in efficiency

Dr. Jayasundera said the country experienced droughts, but there were no power cuts. “The Government has provided power 24 hours a day. It provided electricity 24 hours to all households, factories and hospitals. This helped increase efficiency,” he said. The CEB is making profits today. “Today, 900 MW is produced through coal power.”

The Secretary said he has worked under various presidents and the incumbent President is the only leader who is working with a vision. “He has never stopped projects for lack of funds.”

Dr. Jayasundera said the country faced a shortage of poultry products three years ago.

“There is no shortage now. Poultry farmers are seeking government help to export their products.”

He said over 100 small-scale storage facilities have been built at village level in Galewela to store B-onion production in the area and farmers in many districts have started cultivating B-onions.

The Government is making every effort to be self-sufficient in three main items. The items are B-onions, dried chilies and potatoes. These items will be cultivated in several districts including Polonnaruwa and Moneragala. He said farmers receive a better price for their produce.

Farmers in the Galewela Divisional Secretariat Division received Rs. 90 for a kilo of B-onions. They sell B-onions at Rs. 90 per kilo.

Seventy percent of the people in the country live in villages. The President has placed emphasis on promoting the economy of the people at grass roots level, Dr. Jayasundera said.

He said the Government imposed a tax of over Rs. 100 for imported milk powder. “The country meets 40 percent of its milk requirement locally. What the President is aiming is to make it 100 percent.”

The Government expects to bring 20,000 head of cattle. “We expect 1,500 litres from a cow. We now get only 400 litres.”

Privatisation is not necessary since State institutions have been developed. Many Government institutions are growing rapidly, achieving their goals in accordance with the policy of the President, he said.

No power cuts

“Electricity has been provided to 95 percent of the population and people do not experience power cuts today. All sectors in the country were affected by power cuts in 2002 and 2003. Our main aim is to provide a continuous power supply rather than providing electricity for all,” Jayasundera said.

“The President has paid attention to drinking water issues. He has launched development programs with a proper vision. This vision strengthens the forward march of the country,” he said. Measures have been taken to bring a permanent solution to the kidney disease affecting many. A methodology and policies aiming at preventing kidney diseases will be implemented. Top priority has been given to launch pure drinking water supply projects as a preliminary measure. The Budget focuses on many other sectors such as health, education and irrigation, he said.

“Capital is needed to meet those requirements. The Government obtains loans for development activities. Loans are obtained for the benefit of the country, especially for development activities,” Dr. Jayasundera said.

He said, “CHOGM was the main event held recently. We must think about the long-term benefits of CHOGM. Various sectors received vast publicity through CHOGM. The tourism sector benefited much. The tourism sector has seen progress after the eradication of terrorism. Tourist arrivals have increased,” he said.

Dr Jayasundera said the country's economic position is sound. “We have maintained a healthy economic growth rate while controlling inflation. Inflation has been confined to a single digit. Plans have been taken to strengthen the agriculture and self-employment sectors.

“The Divi Neguma program is being carried out countrywide as an initial step. Farmers are motivated through the Divi Neguma competition conducted in every Divisional Secretariat Division,” he said.

He said vast development is seen even in terrorism-affected areas.

“About 5,000 new houses will be constructed in the North. The country will rise to a better position with these measures. The foundation has been laid for large-scale development under this budget,” Dr. Jayasundera said.