Garvin Karunaratne, PhD Michigan State University formerly of the SLAS, G.A.Matara

It is reported that the IMF  has approved  the third review of Sri Lanka’s Economic Reform Programme. (AdaDerana:23/11/24)

It is hoped that what is approved will enable the development of the country in  terms of increasing production in agriculture and also bringing about employment opportunities and incomes for the people.

Before Sri Lanka came under the aegis of the IMF in 1977 Sri Lanka had  programmes that enabled the development of the country worked by the Government. Such development was vetoed by the  ruling of the Structural Adjustment Programme that  development was to be done by the Private Sector and not by  programmes  run by the State.

I refer to three major development programmes that brought about development- production and also employment and incomes to the people.

These are

The Divisional Development Councils Programme

The Department for Development of Agricultural Markeing

The Small Industries Department  Textile Development Programme.

These three development programmes played a cruicial role in creating production and thereby creating employment and incomes for the people. In detail, the Divisional Development Councils Programme encompassed the creation of small development projects in the entire island which brought about production in agriculture and industry, training people and providing them with the chance to become productive, earn in the process of making saleable items- creating incomes for the people and also creating what the people needed, items that were imported with foreign exchange.

The Department for Development of Agricultural Marketing  attended to the purchase of vegetables, fruits and cereals including  paddy at reasonable prices from producers,  marketed the produce in connurbations ensuing that produce was available at reasonable prices, and even established a Cannery that made Sri Lanka self sufficient in all fruit produce within three years 1955 to 1958 and even built up an export trade in pine apple.

The Small Industries Department developed an islandwide programme of handlooms and powerlooms that wove textiles out of imported yarn. Sri Lanka thereby produced its own textles. No damsels ever went to Singapore to buy elegant sarees. They dictated the coloures, patterns  and texture to hnadloom specialists and wore exclusive bespoke sarees.  We then produced all the textiles we needed on imported yarn. This function was abolished.

These three development programmes were very successfully implemented. I speak with firm authority as I have been directing the programmes at district and national level during my eighteen years service as a senior hand in the Administrative Service.

What is also important is the fact that no foreign exchange is requited for these three programmes. It is all local money- printed. The theory that some pseudo experts hold that printing money causes inflation is really nonsense. All countries including the mighty giant India runs their  country on entirely printed Rupees. I happened to work as the Commonwealth Fund Consultant to Bangladesh for two years and created the Youth Self Employmet Programme which has today brought employment to over three million youths and is today the most successful employment programme of world stature. entire done with locally printed Taka.  

It is hoped that the IMF will approve the implementation of these three programmes immediately. For the first time our elections have produced an administration that is devoted to development and given a chance will  leave no stone unturned in its attempt at development.

Such a task if ever done will also bring great prestige to the IMF, as since 1977 the IMF has been used to stall development and not to bring about development.

Garvin Karunaratne, PhD Michigan State University

formerly of the SLAS, G.A.Matara

21112024, garvin_karunaratne@hotmail.com