Cash strapped Lanka between a rock and a hard place

Making Lanka’s position worse was the country’s refusal to join the boycott of Israeli premier’s speech at the UNGA

Gone are the days when Lankan leaders were able to hold their heads high and take principled stands on men and masters. In the field of foreign relations, ours was always principled. One cannot forget the late J.R. Jayawardene standing up for defeated Japan in the aftermath of World War II at the 1951 Japan Peace Treaty Conference in San Francisco.

As part of her election campaign, Ms. Sirima Bandaranaike promised to close down the Israel embassy in Sri Lanka in support of the Palestinian cause. Once Bandaranaike was elected to power, the Israel embassy was closed despite several threats by lobbies in the United Kingdom to boycott ‘CeylonTea’.

In 1979, the Sri Lankan cricket team refused to play its match against Israel in the 15-nation qualifying competition in the 2nd Prudential World Cricket Competition in England because of continuing Israeli Human Rights violations in Palestine.

But those principles are now ‘events’ of the past. Whilst paying lip-service to issues of justice, it appears the legacy of our country’s recent bankruptcy has taken toll as far as principles are concerned.

At the ongoing sessions of the United Nations General Assembly (UNGA) most countries used the session to condemn the ongoing genocide being committed on the Palestinian people by the state of Israel. Even Israel’s closest supporters with the exception of the US blamed it for the genocide and other war crimes committed on Palestinians.

Sadly, though our own President  Dissanayake touched on the subject of Palestine in his speech at the UNGA, he failed to mention the State of Israel being responsible for the commission of war crimes and crimes against humanity in Palestine. Making Lanka’s position worse was the country’s refusal to join the boycott of Israeli premier’s speech at the UNGA.

The strange behaviour of our present government is lending credence to the theory that it is the International Monetary Fund (IMF) which decides both Lanka’s foreign and local policy. In only one area –- cracking down on corruption- that the government seems free of IMF diktat. 

Even in this field,  the handling with kid gloves so-to-say, of former President Wickremesinghe’s corruption charges seem farcical. After Wickremesinghe was taken into remand custody,  he was next taken to the prison hospital, from thence to the National Hospital and subsequently granted bail.

Many Lankans excuse these twists and turns in government actions as the bidding of the IMF. 

However,  after a year since the NPP-led government was voted into power, it has not been able to keep a number of its pledges. For instance the monthly expenses for a family of four (father, mother and two children) remains at Rs. 100,000/- or more. Yet the monthly wage for over 25% of the worker population remains less than Rs. 110,000/- per month, even if both parents are employed!

Wages of state sector workers have been increased marginally. However,  large sections of workers in the private sector have seen no improvement. Among the worst affected have been salaries of workers in the plantation sector. Yet,  for generations it is these workers who have brought in much of the foreign exchange needed to keep the wheels of Lanka’s economy turning.

Young people are leaving the country in droves. Departures for employment from our country has increased significantly in recent years. Over 310,000 people left in 2022,  and nearly 300,000 in 2023. Data from the Sri Lanka Bureau of Foreign Employment (SLBFE) indicates around 40% of all migrant workers in 2023 were aged 18-35, suggesting a large proportion of these departures are young people. 

One of the reasons for younger people fleeing the country is wages not being in keeping with rising costs, thus causing a breakdown in a social net to care for the workforce when they reach the age of retirement. Those who remain are the very rich and those too poor to leave the country. 

However people are still ready to forgive the government for its lack of progress on the social front as they welcome its crackdown on corruption. But this will not last forever. The government needs to introduce measures to ease the burdens of the socially down trodden. 

Else,  this regime too will face the same fate of the now defeated political elements.