Sri Lanka cannot afford to get distracted by upcoming elections: Dr. Coomaraswamy

• Former CB Governor Dr. Coomaraswamy asserts the need for SL to do things differently this time around
• Says any distraction will result in a crisis much worse than the current
• Asserts SL must not allow the gains made to be reversed through policy reversals

By Shabiya Ali Ahlam
 

As Sri Lanka appears to be gearing up for elections in the coming year, strong efforts must be made to stay within the path charted for reforms, or else the country would once again face

dire consequences, former Central Bank Governor Dr. Indrajit Coomaraswamy cautioned. 
He asserted that unless Sri Lanka chooses to do things differently this time, it will not be able to get out of the prevailing challenging situation and move towards sustained recovery.
“One thing I must say is this time around if we allow the elections to distract us from the path of stabilisation and recovery, and then sustained growth, the crisis that will hit us will be worse than anything that we’ve had in the past,” cautioned Dr. Coomaraswamy.

Dr. Coomawaswamy presented his views while addressing a virtual conference hosted by CAL, a Colombo-based investment banking group last week.
Pointing out that the potential crisis could be worse than what Sri Lanka has witnessed for the past 18 months, he stressed the need to remain focused.
“We need to change the mold, whereby economics is not undermined seriously by the electoral calendar. That has to change. If it doesn’t, we will lose what we have gained so far,” he said. Every time Sri Lanka has had an election, the country’s macroeconomic policies become “indisciplined,” he pointed out.  No sooner an election is announced, any progress achieved is reversed due to political agenda taking over. “I hope we don’t have the same thing again next year (with the elections). We must not allow the gains that we’ve made to be reversed through policy slippage,” said Dr. Coomaraswamy.

He highlighted the upcoming elections as among the numerous risks that could potentially hinder Sri Lanka’s path to recovery.  Additionally, he pointed out other significant risks, including climate-related challenges and rising geopolitical tensions, which underscore the need for a more transparent and cautious approach to external relations.
 Observing that the global landscape has become increasingly tense, he emphasised the importance of Sri Lanka taking a proactive stance and developing contingency plans to effectively navigate the uncertainties that lie ahead.