No tears for the troika as JVP pivots to fiscal discipline

The present government does not seem to see any alternative to the IMF deal, which they criticised earlier.

Lanka is at a disastrous crossroads. The ruling NPP government promised big while in the Opposition. But now caught up in the reality of ruling a country, has had to come to grips with the realities of our stressed-out economy. We have not as yet paid back our international debts.   

Former President Wickremesinghe initiated an agreement with the International Monetary Fund (IMF) to provide the country with an Extended Fund Facility (EFF) arrangement. Of course, the agreement came with obligations. In Opposition, the NPP condemned the agreement and scolded (for lack of a better term) Wickremesinghe for agreeing to the IMF’s terms, which they claimed hit the poor disproportionately.   

However, on capturing power after the presidential and parliamentary elections, the NPP government has been fulfilling the terms of that agreement to the hilt. Today people are beginning to say, that had the past president been in power, he may have been able to squeeze some concessions out of the IMF.  

However, be that may, today the staunchest supporter of the IMF diktat is none other than a dyed-in-the-wool Janatha Vimukthi Peramuna (JVP) stalwart, senior leader and minister Lal Kantha. At a recently held Special District Development Committee in Kandy, he emphasised that the government’s goal was to meet targets agreed with the IMF.   

He added that the current stability in the country was a result of following that agreement. He stressed that no matter what the Opposition said, these policy decisions of government would not change. The minister in fact promised further price increases in keeping with IMF price calculating methodologies!  

Three cheers to Comrade Lal Kantha –the one-time trade union leader and senior activist of the JVP- who twice led the youth of this country into two bloody revolutions. The revolts lead thousands of young Lankans to their deaths in vain. Perhaps he or some others may write a novel titled ‘No Tears for murdered young militants’ someday.  

Getting back to the present, the present government does not seem to see any alternative to the IMF deal, which they criticised earlier. A point in its favour is that, having accepted the deal, the government is pressing ahead strenuously. Attempting to lighten the blow he dealt, Minister Lal Kantha added that proposals to the upcoming budget were being discussed and he ‘hoped’ this budget would provide more relief than the previous one.  

Oh dearie me, the only bit of relief provided by the last budget was the lowering of electricity tariffs. Unfortunately, this relief was extremely short-lived. In less than a year, that tariff has been raised by a huge 15 per cent. The cost of fuel has likewise been increased by a whopping 12 per cent. Flowing from this (fuel) increase all items and services will go up in price.  

With the recent increase in the price of fuel, prices of food will further skyrocket. Even satellite, a young member of the Rajapaksa clan, was planning to fly to the skies, may not be in a position to track the COL, as prices are now heading for extreme outer space and beyond the distances covered by young Rajapaksa’s satellite.  

Seen in this light it makes ‘us the people’ shiver in our boots or perhaps we should say slippers, as ‘we the people’ can ill afford to buy shoes at present prices.   

We do hope our leaders will not take offence, but today’s prices are way beyond even the wages of middle-class citizens. Just to refresh presidential and ministerial minds, a simple coconut costs around Rs. 250/-. Despite Government rules and regulations, the average market price for eggs is around Rs. 35/-. The price of veggies is moving beyond the reach of the masses. We will not speak of the price of beef or fish.  

With the government setting tax targets for the inland revenue department, officers are now conscientiously taxing each and every item which comes from outside the country, including gifts. Many a citizen now commences praying whenever a family member abroad speaks of sending s couple of gifts, fearing the length of time spent on clearing even the smallest parcel.  

Rather than offering the electorate temporary relief measures which are subsequently abolished, the government needs to create a process where its citizens, both in the public as well as private sectors, are able to earn a decent living and have the ability to save for their future.