By M D P DISSANAYAKE, CPA, FCMA, CGMA, PhD

The political inexperience of President Gotabaya had been exposed, providing a platform for anti-Sri lankans to attack him in a ruthless manner.  President Gotabaya appear to be vulnerable  and far too flexible in the jungle of politics in Sri Lanka.  The media is having a field day with the President.

To politically eliminate the President Gotabaya, the protestors need to eliminate Mahinda Rajapakse from the equation in the first place.  This movement  well supported by Diaspora and international financers, are eagerly waiting to re-coup the draw backs they have suffered since the days of former Premier Mrs Sirimavo Bandaranaike.

The foreign exchange crisis will not be averted by the intervention of Maha Sangas.    (Upul Shantha  Sannasgala  seems to be looking into the treasures of  Places of Worship.)  They have put forward political solutions, which they have done in so many previous occasions.  We need a financial solution.    To provide financial sanity,  Sri Lanka need a reform agenda, to focus on productivity rather than short term appetisers.

Sri Lanka had very few Profit Centres  to generate local and foreign inflow of funds.   But  over the years, Sri Lanka had accumulated Cost Centre, simply to eat the funds generated by few Profit Centres.

Any new team must agree to undertake a massive reform and restructuring  programme that will reduce the burden on the economy.   The main areas the New Team  need to agree should include:

1.      Elimination of free education at University Level:   The undergraduates must be called upon to pay for the cost of their Courses upon graduation and securing employment,  including  a concessionary interest rate;

2.      Free Health: Need to be restricted to lower, middle income earners, disabled, pensioners and those who are sick.  Private health fund must be launched by the State,  with tax deductibility for premium payments;

3.      Utilities:  The Petroleum Corporation and Electricity Board are making massive Cash Losses.  The two institutions generate cash flow  by selling its products to private sector.   The provision of fuel oil and electricity to ordinary citizens and government institutions are heavily subsidized.  This chrismas party need to come to an end.

Since GR  presidency, the 5 year plan has been commissioned to generate 5000 MW renewable  energy, of which 1750 MW adding to the grid capacity within next 9 months.  The new Minister of Power and Energy Mr Kanchana Wijesekera, has recently carried an excellent TV interview explaining the Work in Progress and cost benefits.  In the recent past, no other Minister was able to communicate a complex issue in simple language, thus proving his skills as a great communicator and fast learner.   We need many more Ministers of the caliber of Mr Kanchana.

4.      Elimination of Poya Holidays ( except Wesak and Poson), scrapping 7  annual holidays, increase working hours to 40 hrs per week, restrict Overtime to a maximum of10% gross wages for essential work, elimination of short leave.  Office Canteen hours to open only for one hour, prohibition of sick leave  to support Trade Union demands. 

5.      Reduce salaries of MPs and Ministers to 50%.

Practically, none of the politicians currently in the ring will agree to above proposals.    The IMF  and other financial institutions, will be very vary to rescue the economy as they have no trust that  the loans will be paid back.  Sri Lanka is a high risk country to lend  money and  undertake investments, unless and until a massive reform agenda is undertaken  to revamp the  Cost Structure.

The change of leadership to appease protestors, religious leaders will further erode the economy.