SL has been on champagne diet with kasippu income, top economist quips

27 July 2022 08:18 am - 13 - {{hitsCtrl.values.hits}}

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Former senior CB official highlights need for better targeted social welfare programmes
Calls on authorities to rethink the social safety nets that have been offered for decades
Asserts the need for an exit mechanism for the social safety nets rolled out
Says must rationalise the social safety net administration and delivery

By Shabiya Ali Ahlam
The status of Sri Lanka’s fast-crumbling economy has been attributed to many factors, but the key reason for the downfall of the island nation is that it has been on a ‘champagne diet with a kassipu income’ for a bit too long, according to a top economist in the country.

Former Central Banker and economist Dr. Anila Dias Bandaranaike did not mince her words when she deliberated on the crisis status of the economy last evening where she asserted the need to rethink the social safety nets that have been offered for decades.

Dr. Anila Dias Bandaranaike

The expectation from the government to come to the aid of people ever so frequently has impacted the country’s productivity for decades. The outcome of the welfare handouts has not helped the country to realise the objectives of the programme rolled out, instead the economy is today faced with a staggeringly high public expenditure with little or no return in terms of outcome.

“What we have been doing all these years is being on a champagne diet with a kasippu income. We are so used to expecting support
from the government.

The issue is that while the welfare efforts must be extended towards the poor, the poor are not targeted at all,” said Dr. Bandaranaike at a webinar hosted by the Central Bank, yesterday. While the government must take responsibility for offering services and products at low prices that have led to State-owned enterprises (SOEs) continuing to make losses, the people have got accustomed to living with such benefits. “We the people have been happily and complacently using these resources,” she pointed out.

Dr.Bandaranaike stressed the need for social safety nets to recognise the country’s bankruptcy and move forward from that point of acknowledgment.

It is imperative for the relevant authorities to adopt a targeted approach when extending safety nets so that a much more efficient allocation of funds can take place, she said, while stressing the need to have in place an exit mechanism as well. At present, Sri Lanka performs poorly in exiting welfare programmes. This has led to the vulnerable population becoming increasingly dependent and expectant of handouts instead of actively coming out of the hardships faced. “We need to ensure that by the end of the period of support they have a rod to fish and that we are not permanently giving them dry rations for six months and expect them to recover.” Dr. Bandaranaike also highlighted the need to rationalise the social safety net administration and delivery, while removing all price anomalies to reflect costs. Furthermore, efforts must be taken by authorities to create decent work with livable wages, and social security that is linked to productivity. “Donor-dependence must reduce overtime,” she stressed.

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Comments - 13

bandu abey Wednesday, 27 July 2022 09:07 AM

They have never listened and will never be listened to anybody with honest opinion on the way country is dragging down. Because that's exactly what the corrupt leaders, politicians, their acolytes and subservient bureaucrats want to achieve, so that they can get every drop of rupee and dollar to their own deep pockets. It will take determination and courage for any patriotic ideas to inject into enslaved and feudal mentality of common man, who repeatedly, knowingly elect the same corrupt and abusive politicians into power. It may need a somebody of Napoleonic stature, like that happened in Europe, centuries ago.

Arjuna R Wednesday, 27 July 2022 09:12 AM

I have my highest respect for Dr Anila DB, but CBSL too should take fair share of the blame where she was employed before For that matter all of us are to be blamed!!

TS Wednesday, 27 July 2022 09:16 AM

In my opinion Central Bank Governors and Deputy Governors present and past should be responsible for the country's Forex situation and they cannot only blame politicians alone.

Sokrates Wednesday, 27 July 2022 09:18 AM

Only have to coppy the social net of western countries.

Cloy de Silva Wednesday, 27 July 2022 09:20 AM

What she has brought up are facts. Especially the middle class spend lavishly with the money that all govts earn through loans. That is the core problem. Having doing for decades we just cant go under the banner "give our stolen money back" and wash our hands.

Cam Kay Wednesday, 27 July 2022 04:40 PM

SL needs a “Pirabhakara”....from the Majority community.

Thiru Wednesday, 27 July 2022 05:16 PM

Vanity. The people can’t blame only the government.

sss Wednesday, 27 July 2022 05:20 PM

Do not take it personally, but rupee rich professional like you is one of the reasons. Professionals which huge rupee salaries are demanding luxury items which are paid for by meager dollars earned by blue collar workers like housemaids. more than 100 years of higher education has contributed nothing to the economy

Sheriff Abdul Rahuman Wednesday, 27 July 2022 05:56 PM

What she says is a hackneyed comment. Dr NM Perera said “we are on a whisky diet on an arrack income”. He tried to correct it but wasn’t allowed to . This country will never develop until not just corruption is eliminated but also the corrupt are punished. This too will not happen because a party will govern only for 2 periods max. Once the the crooks are put to jail and the govt. changes in 10 yrs. The new govt will “ nidhos kote nidhahas” and pay them compensation too claiming political victimization. The dumb electorate will let this happen. So how will we develop the economy!!!!!!

Dimitri Ramaneshwara Wednesday, 27 July 2022 06:43 PM

All she says now is correct ...but , why did she wait till now to make tbis statement? We needed this years ago when she might herself have been lost enjoying the luxeries! Like all other economists in sri lanka she too has been useless in communicating to prevent a disaster... Also, i dont know if she was at the central bank when arjuna mahendran did a number and sent millions to perpetual treasuries , if she was then.....

Ari Wednesday, 27 July 2022 07:10 PM

It is very easy to analyze and explain facts after the event with 20/20 hindsight. The question is what were the so called central bank experts doing all these years earning million rupee salaries, this doctor included.

Punchi Thursday, 28 July 2022 06:41 AM

We have been funding protection for our self induced insecurities like 400000 security personnel out of 1.5 million public employees

Sakuntala Parasaran Thursday, 28 July 2022 09:12 PM

Where is our hero Nivard Gab -real. The wanted man in history. The Genius of CB with all the malpractices. SL soon to be vanishing from world map.

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SL has been on champagne diet with kasippu income, top economist quips

Comments - 13

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