Opposition Leader responds to Government’s economic reading

Opposition Leader responds to Government’s economic reading

4 December 2020 08:09 pm

The House was debating on two important ministries namely the Ministry of Industries and the Ministry of Trade, when Leader of the Opposition Sajith Premadasa noted that it is significant to focus on the national financial issues. 

He referred to a whole economic exposure which was presented to the House by State Minister of Finance Ajith Nivard Cabraal as a response to several questions regarding the downgrading of the Fitch indicators.

"As usual with his all 'bullishness' the State Minister of Finance went on essaying on the financial and economic policy of our country. I was restricted in replying to him because of the staining orders. I want to take this opportunity to articulate the present situation of our economy," Premadasa told the House, reminding a series of opinions which Cabraal previously raised.

The Opposition Leader added: "The present administration has failed in their duty to present the country the second and third quarters of figures for the economic growth rates. We all know that the Census and Statistics department announced that in the first quarter we have a negative growth ( -1.6 % growth). It is incumbent upon the statistics department and the government and the present administration to put out these economic figures 75 days of the conclusion of that particular quarter."

The government has failed to provide relevant figures to the country and Parliament, the Opposition Leader went on, adding that hence a negative impression has been created in the financial markets about the economy.

"The government took a ludicrous decision to cut down taxes to benefit the rich in our country. Rs. 600-800 billion of the government revenue were given as handouts to the rich society of the country," he alleged. 

"What was the theory behind it?" he went on, "the entrepreneurial class of the country would invest those savings that they received through those tax cuts, to ensure that speedy economic activities take place in our domestic economy. If that was the theory of the government, it's no different to the liberal neo economic theory of trickled down economics. Through these tax cuts, this government has named themselves as super neo-liberalists in the world."

Premadasa further noted that all these tax cuts had led Sri Lanka's economy to become a failed bankrupted economy.