Former Prime Minister Ranil Wickramasinghe called on the Government to re-evaluate some of the recent decisions taken by the Government in the face of a global recession, there by providing Sri Lankan local industries with the maximum possible financial support.
UNP leader has warned the government that the consequences of the COVID-19 outbreak will be a global recession.
He stressed that the global economy will see a negative growth of -3% GDP, similarly Sri Lanka will also experience a negative GDP growth in the coming months.
Speaking further, he stressed that apparel exports, tourism, and foreign remittances will all be impacted due to the lockdown and subsequent global recession.
Commenting on the government’s recent tax structure adjustments, Ranil Wickremesinghe stressed that the government revenue would also see a reduction.
He urged the government to reconsider the decision to impose a blanket ban on imports,
stating that the domestic market would need to continue to operate in order for government revenue to increase once again.
Former Prime Minister also predicted that with the uncertain financial future as many as
500,000 people could be facing a loss of jobs.
This increase in unemployment will affect all sections of society, from three-wheeler drivers to executives.
Declaring that the government response to the current financial crisis is inadequate, criticising the decision to print Rs. 200 billion during this period Wickremesinghe suggested that it would only lead to a recession.
Commenting on the stimulus package presented by the government, Wickremesinghe
drew their attention to the fact that the Rs.50 billion set aside was only 2% of the GDP,
while other countries have gone as far as contributing 10% of their GDP for financial
assistance.
The Small and Medium Enterprises must be given relief by the government to safeguard jobs.
He urged the government to work with the IMF and address these issues while providing the country with an economic assessment of the current situation.
Stressing that jobs and livelihoods were at stake, former PM called on the government to present the country a credible economic package.