22 April 2016 10:05 am
Therefore, it is imperative that those stolen monies are brought back to correct the macroeconomic crisis situation, and for repayment of loans, development,” he said. The government is increasing taxes ahead of an International Monetary Fund agreement to help improve the country’s reserve position. The reform requirements—focusing mainly on taxation and revenue—attached to the new facility are said to be even more comprehensive than in the past. Vignarajah said that the funds siphoned off were collected through exchange- rate and interest rate manipulations, stock market pump and dump, reduction of public float, de-listing and various purported investments overseas.
It is interesting to note that the present government had leveled wide accusations of this exact nature at the past regime and its associates, but has up to now not covered much ground in bringing the corrupt individuals to justice. “The mafia seems to be yet powerful enough to thwart all the good intentions and promises made by the Yahapalana government. We don’t need to put them for long periods into jail (people’s cost), provided they bring the wealth and income generation spirited away under various ruses,” Vignarajah remarked.
He noted that a competitive rupee, low interest rate and an efficient financial and administrative infrastructure are essential for vitally needed rapid export growth. “Abundance of dollars siphoned away when brought back will finance a glorious revival and a renaissance. Sri Lanka can once again regain its glorious values and prosperity of the late 1940’s and early 1950’s,” he said. He added that converting Chinese loans of the past government into equity in listed companies is the right step to be taken to improve the country’s debt situation