Dismissing rumours of his joining a “national unity government” with the Rajapaksa administration to address Sri Lanka’s fast-deteriorating economic situation, former Prime Minister Ranil Wickremesinghe said there is “no question” of such a formation now, and it is “national consensus” that can help the country tide over its current challenge.
Amid an unprecedented economic meltdown, Sri Lanka is facing acute shortages of fuel, power, gas, and other essentials, including medicines. The Sri Lankan rupee has depreciated to 260 against a U.S. dollar, while the inflation rate has accelerated over the past few months, hitting 15.1 % in February 2022, a 13-year high. Prices of all basic commodities are soaring, forcing working people to ration their meals to cope. “Even the middle class is badly hit. And in the rural areas, many could fall below the poverty line. It is going to take a very long time to lift them out of poverty,” Mr. Wickremesinghe told The Hindu on Monday.
From the time the pandemic struck, Mr. Wickremesinghe has been advocating for a coordinated regional response to mitigate its impact. In his view, it is not too late to set up a regional research centre in India, perhaps in a city like Pune, to continue studying pandemics, to share knowledge and advance medical training, and strengthen medical care in the region. “This is not only about COVID, we have to be ready for other pandemics too. We must come up with a SAARC programme to deal with this.” While India has been supplying vaccines to its neighbours, “not enough” is being done as a region, he said. Moreover, most countries were preoccupied with their own pandemic waves last year. “But we should work out a scheme now.”
On the economic front, Mr. Wickremesinghe had earlier suggested that countries from the Global South, as a collective, approach the London Club, an international grouping of private creditors, to negotiate their foreign debt. In the absence of such an initiative, countries had to devise their own ways, seeking support from different sources, including bilateral partners and international agencies.
At present, an International Monetary Fund (IMF) package is Sri Lanka’s “only option to bail itself out” of its dire state, according to him. “The IMF certificate will enable us to get more support from other sources, he said” accusing the Rajapaksa administration of failing to make “rational choices”.
“It is one thing to have a parliamentary majority, another to have the capacity to handle the economy,” he said, accusing the government of lacking the latter. While sections within the government have denied exploring IMF assistance, the Cabinet on Monday decided that Sri Lanka will hold talks with the international lender, signalling a shift in its position, as pressure mounts from citizens and political opposition.
“Fragmented opposition”
While citizens’ protests are growing, and opposition parties are challenging the government – the main opposition SJB held a large rally on Tuesday – it may not be easy channeling the widespread anger and disenchantment into a real political challenge to the Rajapaksas, Mr. Wickremesinghe admitted. The country’s opposition is “fragmented”, he said, coming up with “competing campaigns”.
In the 2020 general elections, the United National Party (UNP) he leads was reduced to one seat in parliament, which he now holds. The break-away Samagi Jana Balawegaya (SJB or United People’s Force), led by his former deputy Sajith Premadasa, emerged the main opposition party, with 54 seats in the 225-member legislature. The rest of the Opposition includes the leftist Janata Vimukthi Peramuna (JVP), and various Tamil and Muslim parties, holding a handful of seats. Asked why the opposition could not unite, Mr. Wickremesinghe cited “personality issues” as reason.
Indian assistance
On Indian assistance to Sri Lanka during its economic crisis and criticism from some that New Delhi was “diplomatically blackmailing” Colombo to swiftly move on bilateral project agreements, Mr. Wickremesinghe said: “In fact, India has not been given the items that we had signed [agreements for], and agreed on,” referring to the LNG terminal in Kerawalapitiya near Colombo, and the East Container Terminal at the Colombo port.
“India is of the view that Chinese investment should not be there in Sri Lanka, and that it must have greater investment here, and that’s what they have done [now],” he said days after India’s National Thermal Power Corporation (NTPC) signed an agreement with Ceylon Electricity Board (CEB) to set up a solar plant in the eastern Sampur town, and the Adani Group inked deals to set up renewable energy projects worth about $ 500 million in the Northern Province.
Russia-Ukraine crisis
Weighing in on Russia’s ongoing war in Ukraine, Mr. Wickremesinghe said Asian countries, except Japan and South Korea, took a neutral stand because “firstly, it is a European conflict”, and “secondly the feeling that Russia also had legitimate demands”.
“What Russia did to Ukraine is an invasion, no one can challenge that, but in the background of how it happened, most of us decided that we are not going take part in it.” The Sri Lankan government, he said, took the “correct position”, asking all parties to exercise maximum restraint.
“Our job should be to look at how we can bring this to an end. Not merely ending the conflict but see that the West and Russia don’t have these clashes. The West should not push Russia, and similarly Russia should not go for such invasions anywhere else, and withdraw from Ukraine … I think that is the role many of us can play,” he said.
Further, Mr. Wickremesinghe observed that many Asian countries would like to continue trading with Russia, a major producer of chemical fertilisers that many in the region import. “So, if the West tries to carry on [with the sanctions], after the war is over, there will be a backlash from Asian and African countries.”
