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Putting the economy back on track

Living off borrowings - this is Lanka's true condition. While we need to spend Rs. 327 billion annually on loan instalments and the corresponding interest, our yearly earnings amount to only Rs. 278 billion. For many years the Government lived well beyond its means and therefore had to borrow heavily to make ends meet. While debts grew at 18.5 percent, the Lankan economy grew at only five percent.

These are the more prominent features of the economic crisis facing us and we are glad that Prime Minister Ranil Wickremesinghe has been very frank and forthright about them. If at all a beginning has to be made to set things right, there needs to be an honest recognition of the truth and the Prime Minister proved that he has the capacity for critical appraisals of this nature, in his address to the nation on the economy on Thursday. We are also glad that Prime Minister Wickremesinghe didn't insult the intelligence of his listeners by tracing the entirety of today's ills to dark misdeeds of past governments, despite the country being dragged into its worst post-independence economic recession last year.

Governments are given the thumbs down by voters and others voted into office instead of them, mainly for the purpose of putting the country back on the road to prosperity. Foisting present ills on past governmental failures is unlikely to impress the people who just want the government of their choice to pick up the pieces and get on with the task of development.

It is encouraging to note therefore, that the Government has already in place a comprehensive economic plan which it hopes to launch in the days ahead. To facilitate "Operation Economic Development", which contains time-bound targets some 20 new Bills will be passed in Parliament during August.

So far so good. However, an economic recovery program of this nature requires the unstinted cooperation of all sections of the body politic, particularly that of the Opposition. As to whether our sad legacy of adversarial politics would enable this to happen is an open question.

However, there is a new dimension in our socio-political situation which shouldn't go unaddressed. This is the growing maturity of the Lankan electorate. If there is widespread support for the peace process, this is mainly because the people are weary of war and discord. Over the years they have seen the utter futility of efforts to resolve the conflict through the force of arms. Besides the bloodshed and misery, they have seen mints of money being virtually flushed down the drain in the name of war.

So, the chances are that any more calls to arms would have very little takers among the people. Nor are the people likely to back street shows and demonstrations which would prove both money and time consuming. The Opposition would do well, therefore, to be constructively critical of the Government rather than attempt to sabotage its economic recovery plans which would bring benefits to all.

The Government, on the other hand, should prove that it could translate rhetoric into action. A concerted and serious attempt should be made by it to root out corruption and waste, which are imposing severe burdens on the people. Corruption in some public sector institutions assume scandalous proportions. So are the lifestyles of some who wield power. Public life should be cleansed of these ills if we are to witness progress.

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