GOVERNANCE UNDER SCRUTINY

Dr. Jehan Perera reviews the government’s commitment to accountability

The government’s settlement with private international bondholders reflects its commitment to continue on the economic course set by the agreement with the IMF and the larger international community, including creditor countries such as China, India and Japan.

Initially, the National People’s Power (NPP) party’s stance was to reject the agreement with the International Monetary Fund, which was negotiated by the previous government, citing its adverse effects on working-class citizens and national interests.

Critics argued that the NPP’s opposition to it risked plunging the country into another economic crisis. Concerns included fears of currency devaluation, fuel shortages and a recurrence of the dire conditions witnessed during the 2020-2022 economic crisis.

Opponents painted the NPP’s economic policies as reckless and claimed the party lacked viable alternatives to the IMF agreement.

As elections approached however, the party adopted a more pragmatic approach and accepted the agreement’s basic structure while resisting measures such as wholesale privatisation of state enterprises, and undermining public education and healthcare systems.

This nuanced approach reflects the government’s commitment to balancing economic reform with social welfare. Its recent settlement with private international bondholders highlights the administration’s intentions to fulfil the economic road map outlined in the IMF agreement.

Though painful and costly, the debt rework with private creditors was a necessary step under the agreement with the global lender; and this appears to be the best option in an economic world in which Sri Lanka is a small player.

The public’s recognition that this government isn’t responsible for past mismanagement has fostered a sense of cautious optimism. However, the government’s most pressing challenge remains the severe financial constraints, which limit its ability to address urgent issues stemming from shortages of essential commodities such as rice and coconuts.

Public patience has been a crucial asset for the government.

Disillusionment with traditional political parties has led many citizens to give the NPP more time to deliver on its promises. The government’s commitment to accountability, exemplified by the resignation of the Speaker of Parliament over unverified academic qualifications, further reinforces its credibility.

Slow but sure progress in tackling accountability issues, and both financial and human rights from the past, can ensure that its promise of ‘system change’ is sustainable.

The NPP’s election manifesto has outlined ambitious goals ranging from cultural development to economic reforms and good governance. Central to its platform is a commitment to eradicating corruption and upholding the rule of law – demands that echoed the 2022 aragalaya protest movement, which ousted the government of the day.

While fulfilling these promises has proven challenging in the short term, the government’s actions signal its determination to address systemic issues.

Addressing the resignation of the speaker, President Anura Kumara Dissanayake reaffirmed his government’s zero tolerance for misconduct, and pledged decisive action against wrongdoing irrespective of rank.

This commitment underlines the government’s resolve to uphold public trust, maintain accountability and honour the people’s mandate. Dissanayake’s declaration that his government will not compromise on its mandate for accountable governance aligns with the promises made during the NPP’s election campaign.

The anticorruption drive offers strategic advantages beyond political gains.

By enhancing transparency and accountability, the government can create a more favourable environment for business. This in turn will attract foreign investors who have historically been sceptical despite incentives such as tax breaks being offered by previous governments.

Sri Lanka’s ranking of 99 out of 190 economies in the Ease of Doing Business Index in the World Bank’s 2020 report underlines the urgent need for reforms. Pervasive corruption in public administration and regulatory bodies has resulted in delays, unofficial payments and a discouraging investment climate.

Although efforts to streamline processes through digitisation and one stop services have been made, corruption has often evolved into more sophisticated forms rather than being eradicated.

The international community seems supportive of the government’s efforts to combat systemic corruption, hold former leaders accountable and create a more conducive environment for economic development.

Notably, the US’ recent sanctions against two Sri Lankan individuals involved in corrupt practices serve as a global endorsement of the government’s anticorruption efforts.

These sanctions, which target individuals rather than institutions, signal that international partners are willing to support Sri Lanka’s leadership in its pursuit of justice and transparency.