Government’s about change following Wickremesinghe’s footsteps

Meanwhile UNICEF reports in 2025, the organisation anticipates disruptions to nutrition support services for at least 14 million children globally

After the fall of the Gotabaya Rajapaksa regime, the single United National Party (UNP) representative in parliament–Ranil Wickremesinghe- was elected by a majority of members in the House of Representatives as President of this country. The country itself was in turmoil with rampant shortages of the most necessary goods and services.Worse, Lanka was bankrupt with an outstanding foreign debt running into billions  of dollars.

Using his political acumen and help from our neighbour India, Wickremesinghe was able to negotiate an Extended Fund Facility with the International Monetary Fund (IMF) which helped steady the ship of state. Limited amounts of goods appeared in shop shelves-albeit at a price-limited amounts of petroleum and fuel became available in fuel depots and limited stocks of medicines were available in hospitals and pharmacies.

However the IMF deal came with stringent conditions and the cost of living in the country continues to rise. The IMF agreement also envisaged privatising loss-making state institutions and increasing levies on essentials like electricity and water tariffs. 

Malnutrition was widespread, joblessness drove thousands out of the country in search of greener pastures. However, while the country’s people continued to suffer, those in political power continued to steal state resources for their private benefit.

Wickremesinghe, perhaps because he needed the backing of these corrupt individuals to continue his presidency, avoided prosecuting these individuals. After two years of Wickremesinghe rule the country reached a somewhat stable situation and in 2023 presidential and national elections were called.   

On the campaign trail, our present leaders from the National People’s Power (NPP) ably led by President Dissanayake, were quick to claim the hardships forced on the population stemmed from the IMF agreement struck by President Wickremesinghe. They claimed the deal placed unfair heavy burdens on poorer sections of the community. 

The party promised to renegotiate the IMF agreement to lessen the burdens on the people.They assailed the sale of what the party termed as state assets, promised to lower the cost of living and take action against corrupt officials. 

At the election held last year the NPP won both the presidential and parliamentary election –the parliamentary election by a 2/3rd majority.Once elected into power however the new government is finding out there is a big difference between agitating and governing. Today government has embraced the IMF agreement signed by Wickremesinghe. While prices continue to rise, government asks the people to bear up -as they (government ministers) are making sacrifices! At the same time, while costs continue an upward spiral, government has announced the price of electricity tariffs will be raised as of this month.  

Meanwhile UNICEF reports in 2025, the organisation anticipates disruptions to nutrition support services for at least 14 million children globally. In Sri Lanka,  the situation is complex and data from 2025 isn’t available. However, 2022-2023 data indicates a worsening trend in malnutrition, particularly in wasting and stunting. In another volte face, on Sunday (1st June 2025) government spokesperson Nalinda Jayatissa announced it would be selling a failed hotel project –a state-owned enterprise set up in 2011. This marks its first privatisation in line with the IMF’s bailout condition.

How many more are to follow? 

According to information obtained through the Right to Information (RTI) Act; 20 state-owned enterprises are now operating at a loss. According to the Department of Public Enterprises out of 52 state-owned enterprises, 20 incurred a combined loss of Rs. 8,51,786 billion within 2018-2022 period. The Department has stated that data for 2023 is not yet available.According to the RIT report, efforts to make state-owned enterprises profitable have so far failed. There are 20 loss-making SOEs employing a total of 36,468 workers.The largest number of employees (23,205) working at the Ceylon Electricity Board. 

Having led opposition to the IMF deal including the privatisation of loss-making state owned enterprises, the present JVP/NPP regime faces a conundrum. How does it justify its sudden about turn on nearly all of its objections? 

Moral of the story: before opposing a plan or idea, it is best to have an alternative in mind -a strategic approach that can enhance one’s ability to influence outcomes and avoid being perceived as solely negative or obstructive.