Sri Lanka must look at embracing sustainable value creation to prevent fallback: Treasury Secretary

• Stresses need to move away from addressing issues temporarily
• Points out changing long-standing rigid structures requires careful pain management and broad public support
• Says SL far from being saved from the grip of this crisis, more work to be done

By Shabiya Ali Ahlam

In an effort to not fall back to a situation similar to that faced in 2022, when the economic crisis reached its peak, Sri Lanka must look at ways to embrace sustainable value creation by better managing costs and expenditure in government agencies, Treasury Secretary Mahinda Siriwardena said.

As several measures have been taken since the height of the crisis to ensure the island nation moves towards a sustainable recovery and growth agenda, he expressed confidence in the efforts resulting in better policy and balance of public expenditures, which will eventually drive sustainable value creation in the economy.

“By emphasising sustainable value creation, the government can work towards building trust, improving efficiency, and enhancing the public perception of the public sector in a way that will continue to benefit the country and its citizens in the future, rather than merely addressing the issue temporarily,” said Siriwardena.

He presented his views while delivering the keynote address at one of the sessions of the CMA Sri Lanka National Management Accounting Conference 2023 yesterday.

During his speech, Siriwardena provided a snapshot of the reforms and measures taken by the government, from improving fiscal discipline, firming up tax administration, State Owned Enterprise (SOE) reforms among others, that are expected to contribute to the broader efforts by the government to restore fiscal data and macroeconomic stability.

He noted that the measures taken thus far can help improve public investments in crucial sectors such as; education, health care, public transport, water, housing, digitalisation, the green economy, and other priorities, which will be essential to drive economic recovery and growth in the medium to long run.

The treasury secretary acknowledged that bringing about the much-needed change to the long-standing rigid structures requires careful pain management and broad public support.

For the efforts to be successful, it is crucial that all stakeholders - the government agents, the society, the private sector, and academia, work together and ensure that Sri Lanka does not go back into the worst economic crisis that the country has endured over the last two years, he said.

“We as a country are far from being saved from the grip of this crisis. While the country has seen a notable improvement in economic stability for the last 18 months or so, the government is still in the process of addressing the structural issues that led to the crisis. There’s a long way to go to complete this process,” said Siriwardena, highlighting the realities of the situation.