Chanaka Bandarage

After the WW II the Western Europe was in utter shambles. Most of the countries were bankrupt. US President Truman introduced the Marshall Plan to develop Western Europe. The US gave them aid in the tune of $ $13.3 billion (equivalent to $173.8 billion in 2024). The biggest beneficiary was the UK (26% of the total aid).

The Western Europe took the chance and developed themselves. Today they are all advanced economies.

What is important is that they were direct aid not loans.

For Sri Lanka to come out of this gigantic economic mess we need a similar Marshall Plan.

The only recipe for our survival – injection of a large chunk of US dollars into our economy.

We need direct aid at least in the tune of US$ 7.5 billion. Also, we must receive substantial debt cuts for  the existing (frozen) loans.

In the 2003 Tokyo summit aid in the tune of US$ 4.5 billion was pledged for Sri Lanka. Owing to the change of government we missed it out.

Who can effect a Marshall Plan for Sri Lanka? The writer believes out of the all political parties SJB is best equipped.

The SJB has already stated that upon winning the government it will convene a World Donor Conference. They are geared to seeking active economic support from the West (US/Canada, UK/Europe, Australia/New Zealand). Then, Japan, South Korea China and India.

Out of all the political parties, SJB has the best economic team – Harsha D, Eran W and Kabir H. They are very versatile, articulate  people.  They have an in-depth knowledge about both local and international economics. They are not ‘frogs in the well’. Then, they have – Nalin B, Sujiva S, Kavinda J, Rehan J, M Marikkar, Thushara I etc, all very capable people. Hopefully Sajith can give them good leadership.

The NPP failed in the recent IMF talks (see our article, 10/10/24). It seems they do not have capable persons who can sit in equal footing with international teams. Now they say they are going to invite the Prime Minister of a certain Latin American Marxist state to visit Sri Lanka as the first head of state after the NPP has come to power. This poor country has enormous economic problems. They have  very long food and fuel queues. Recently they encountered non-stop power cuts.

Rajapakse government boasted that it had excellent foreign friends. Who were they? Very poor African nations. People wise, they are very nice, but they cannot  help us. They are in deeper economic pit than us. They do not have money even to feed their children.

The writer has previously stated that Sri Lanka should be the ‘Hong Kong’ of India. For saying this he  was severely criticised.

The writer never articulated that we should become a satellite state of India.  What he stated was that since India is now a global economic powerhouse, we must become a hub for them – supply them goods and services. When China was growing under Chairman Deng, Hong Kong was the main provider of chips for  China’s computer manufacturing industry. True, Hong Kong – an ex-British colony, was always rich; but thanks to Capitalist China it became richer.

Though the writer suggested this, no government was keen to embark on it. Now we hear that Bhutan has succeeded in becoming a hub for India – for certain goods and services. Mr Modi has reciprocated to Bhutan’s request positively.

But, we must not give up.

India did not help Ranil much. Perhaps Mr Modi favours Sajith over Ranil?

India did give aid to Ranil’s government but they were of rudimental nature. India now has deep pockets. If wants, it can give us substantial aid (and loans/credit swaps).  

Given the NPP’s close affinity with communist nations, it is not sure whether or not India will be  generous to Anura K.  Let’s wait and see.  Anura K is scheduled to visit India later next month.

We, the electorate want our country developed. We are not concerned about party politics.

What we want is to see Sri Lanka becoming a 1^st world nation within our own lifetime. Under good leaderships this is a possibility.

It is really good that Anura K is determined to end bribery and corruption. There is no doubt that he is genuine about it. But, that itself is not enough.

During his first month of power, sadly he has failed to show good economic results/progress.

Like Ranil, the NPP government seems to rely on raising taxes to generate revenue. This is disastrous for the people, especially the poor and the middle class. The government selling treasury bonds/bills non-stop means the rise of the country’s debt burden.

Our leaders lack new ideas.

 Can a SJB government under Anura K’s (NPP) presidency take Sri Lanka to prosperity? A possibility.

It is true Maithree/Ranil combination was a disaster. The two of them went in two different roads.

But, if the NPP government is incompetent (sadly this seems to be the case), a Anura K/Sajith P combined government will be the only way out.

The two of them must not be selfish and greedy to stack the government with their own henchmen/favourites. This is what happened in the Maithree/Ranil government. In any case, the number of cabinet positions must not exceed 30.

Again – we desperately need assistance from rich nations – US, UK, Canada, EU,  Australia, India, Japan, China, etc.  A huge injection of funds into the economy in the form of aid (grants) is a must. Otherwise, we would never come out of this mess. The current debt burden (about US$100 billion) is too big. Only a government that can be diplomatic/friendly with the West, Japan India and China can bring us these benefits. SJB is the best to do this.