At a crossroads: on Sri Lanka’s economic recovery

Widespread public unrest in Sri Lanka has taken over dimensions of political revolution of great import. It is clear that it is motivated by popular anger and a collective will that pervades all castes. For a country that was once seen as an irreconcilable ethnic divide, the hope is that people will recognize the true origin of their suffering – a disinterested political leadership that wields great power without much accountability – when they see change and Let’s come together on the streets to demand relief. , People seem to be demanding a change in the wholesale system, not a change. As protests escalate, the administration of President Gotabaya Rajapaksa and the government of his older brother, Prime Minister Mahinda Rajapaksa, seem to have lost the public’s support and the confidence of their political allies. Opposition turns down President’s call for multi-party cabinetKey allies, such as the Sri Lanka Freedom Party, have walked out of the ruling coalition, and the newly appointed finance minister did not consider it prudent to take over. This is an unusual standoff on the political front, as it is clear that nothing less than the resignation of the Rajapaksa brothers will quell public anger; But, at the same time, it is not clear whether anyone will be ready to take charge in the midst of an insurmountable economic crisis. As more than 40 MLAs have walked out of the ruling coalition, the current regime is facing the loss of majority in Parliament. The real question is whether the opposition will be ready to come up with an alternative arrangement.

The urgency of the situation is beyond doubt. The country needs an economic recovery plan to approach international lenders and bring about macro-economic stability. And this requires a related and accountable system. Economists have suggested that Sri Lanka may need a bridge loan while an external debt restructuring plan is implemented, but much depends on whether there is credible leadership. Sri Lanka is at a crossroads. Going aside can lead to a debt trap, sovereign default and potential bankruptcy. On the other hand, the current unrest provides an extraordinary opportunity to change its political and administrative paradigm. A bloated government, excessive security expenditure, extravagant methods of those in power, lack of focus on domestic production and centralization of decision-making have all contributed to the mess. A lot of this needs to change. Majoritarian mobilization should no longer be allowed to cover up political and economic failures. An inclusive approach has to be promoted. People have to realize that voting on emotional issues related to caste and religion only benefits the ruling class and rarely benefits them. Such a significant change at the political and social level would only lead to their economic emancipation.