ECONOMYNEXT – Sri Lanka’s government is faced with the unenviable challenge of balancing sustainable growth with the need to meet growing demands for economic relief, according to State Minister of Finance Ranjith Siiyamaalapitya, as rising electricity tariffs spark protests backed by opposition parties.
“We have a huge responsibility to establish a stable rate of growth. On the other hand, people have massive expectations. Everyone irrespective of industry is struggling, especially low-income earners,” the state minister said speaking to reporters Monday October 30 morning.
Sri Lanka’s welfare allocation for 2024 will have to be 200 billion rupees, he said, compared to the previous budget’s 65 billion.
“These are all challenges. The revenue for this has to be found through taxation. There is strong demand for increases in government worker salaries and pensions. There are poster campaigns. All trade unions we speak to tell us this,” he said.
Government workers in Sri Lanka have launched a campaign demanding a 20,000 rupee increase in salaries amid increased living expenses consequent to an electricity tariff hike and other factors, against a backdrop of the state salary bill dipping by four percent in early 2023.
Related:
“There are 1.4 million state workers. There 600,000 pensioners. That’s 2 million in total. To increase even by 100 rupees, how much money is needed? This, as I said, is the challenge,” said Siyambalapitiya.
“Without pushing the country to the abyss again, we must move on from the policy of an icing-adorned budget. We did that for 75 years and we saw the result. We must go for a budget that will take us to sustainable economic growth,” he added.
The state minister said Sri Lanka must maintain economic stability and continue on its path towards growth.
“We must also look at the people’s plight and recognise their expectations. Taken together, aren’t all of these a challenge?” he said.
“We must go for a budget that facilitates sustainable growth. But that doesn’t mean we can forget the everyday pressures on the public. Resolving all this at once is the challenge,” he said.
The official said the budget for 2023 was instrumental in the current “positive state” Sri Lanka is in, following the currency crisis of 2022.
“Not all problems have been solved but there is a level of progress that has been achieved. We can all feel that. No one can deny it,” he said.
“Now the plan is to go beyond that, to a positive economy through the 2024 budget. If anyone attempts to defeat this, it won’t be a mere budget they’re defeating, it’ll be Sri Lanka they’re defeating,” said Siyambalapaitya.
“Does anyone have a right to defeat our country? I don’t believe there are such people,” he added. (Colombo/Oct30/2023)