The Hon. Sajith Premadasa - Leader of the Opposition

¶ 01 Hon. Speaker, I raise this question under Standing Order 27(2).

¶ 02 Understanding a country’s national economic policy framework and its practical implementation should be available not only to economists but also to the general public. It is stated that the Government manages the economy fully within an IMF agreement framework. However, amid external and internal economic and political volatilities, the economic pressures, which show higher risks in our country, are most felt by ordinary people. Therefore, I expect precise answers to the following questions:

¶ 03 01. Does the Government acknowledge that Sri Lanka’s national economic policy primarily rests on fiscal policy and monetary policy?

¶ 04 02. What are the instruments currently employed under Sri Lanka’s fiscal and monetary policies, what are their targets, and which institutions are responsible for achieving those targets?

¶ 05 Hon. Speaker, we especially raise this because we learned even yesterday of a serious rift between the Central Bank, which conducts monetary policy, and the Treasury, which conducts fiscal policy. The Treasury passes the ball to the Central Bank; the Central Bank passes it back to the Treasury. Particularly regarding the issue of the US dollars 25 million that went missing or was allegedly hacked or vaporized—call it what you will—there are conflicting opinions. That is why I ask this.

¶ 06 03. How do the agreements and understandings with the IMF, the World Bank, the Asian Development Bank and other international institutions affect the implementation of these monetary and fiscal policies? In particular, how do concepts like the primary balance and revenue targets align with and affect these policies?

¶ 07 04. What is the Government’s policy framework for operating fiscal and monetary policies in a coordinated, mutually consistent manner, as opposed to in isolation?

¶ 08 This is vital, Hon. Speaker. Repeating again, at a time when the Government’s fiscal and monetary policies should operate with a degree of coherence, the Central Bank rejects the Treasury’s interpretations and the Treasury rejects the Central Bank’s interpretations. On the US dollars 25 million disappearance—hacked or vaporized—various views are expressed. That cannot happen in a country; it would gravely harm the country’s economic policy.

¶ 09 05. What are the main obstacles, risks, and strategic challenges currently faced in implementing effective fiscal and monetary policies?

¶ 10 06. What measures has the Government taken, or plans to take, to minimize those obstacles and ensure economic stability?

¶ 11 07. Has the Government conducted an assessment of the impact over the past two years of its fiscal and monetary policies on inflation, interest rates, the exchange value of the rupee, investment, employment, and the cost of living? If so, what are the details?

¶ 12 Hon. Speaker, in April it was stated that Rs. 17,000 per person is sufficient for 30 days. A new report for April states Rs. 17,000 is adequate. I ask the Ministry of Finance whether Rs. 17,000 is actually sufficient for a person to live for 30 days—that is, whether that amount is adequate for food and non-food expenses.

¶ 13 08. What specific programmes are in place to alleviate the economic pressures on the middle class, professionals, MSMEs, farmers, the fishing community, and low-income households, arising from increased tax burdens, restrained public expenditure, and interest rate policies? The silent majority is distressed and pushed to the brink. What special measures are you taking for them?

¶ 14 09. What steps will the Government take to further strengthen parliamentary oversight and public accountability in the implementation of monetary and fiscal policies? In particular, the Treasury has reportedly produced a report regarding the missing US dollars 25 million tranche. For everyone’s awareness, why has that report not been tabled in this House?

¶ 15 Hon. Speaker: Conclude, Hon. Leader of the Opposition.

¶ 16 I request the Hon. Deputy Minister to kindly table, right now, the hacker report on the US dollars 25 million.

¶ 17 Thank you.