Ceylon Today Editorial

Can so much be done with so less?

27 August 2016

Aiming at the Olympics of 2024 Sports Minister Dayasiri Jayasekara has plans to do scientific tests on 375,000 school children. These tests, it is hoped, would reveal which sport a particular student is naturally best suited for. Then 50,000 of the most excellent of them will be selected and recruited to the programme 'Kreeda Shakthi' for training to take part in the 2024 Olympics. These probably will make up the contingent for the 2024 Games.

The plan in theory is workable to gain knowledge of the probable athlete, but in eight years to win gold medals or even a bronze would be a miracle. It is quite an adventurous project that Sri Lanka wants implemented where even countries which have already been there and done it, plan it differently to get further ahead. They must ensure all races are taken into the flock of athletes that are in the programme. Countries in the Middle East are adopting the easy way out system buying over athletes to compensate for the time lag of training them.

Great Britain rewrote its Olympic history and beat China to become number two in the medal list at the 2016 Rio Olympics. They were number thirty six in the 1996 Atlanta Games and came to be the number three country in the London Games. This was so well planned where they spent money on events likely to bring them medals and reduced expenses of the events thought to be lesser rewarding.

By counting an athlete's level as being elite, they are the ones known for their ability to become podium material and they were rewarded in addition to the funding by the sports' governing bodies. The British success at the recent Olympiad can be taken into consideration by nations planning to get ahead in their quests to conquer Olympic heights. They are a country of mixed races that compete for the glory of one nation. They have probably taken the cue from the USA where the medals tally is borne mainly on the shoulders of minorities.

The United States of America who were in the modern Olympics from its inception in 1896, won the most number of gold medals in the inaugural games. The period to follow was one that USA was to rule. They were the leaders of the track and field events, the glamour events of the Games. Their interest in the other areas grew with the entry of the Soviet Union into the Games in 1952.

The Soviet Union although in the first Olympics made a bold attempt to beat the US and came second in the overall medal tally with 71 medals to 77 by the Americans. The Chinese who joined the Olympics in the same year have now moved up to be a top contender among countries. Both Russia and China put value on sports other than track and also some field events and depend more on other disciplines.

India a country close to Sri Lanka with billions, also has the problem of winning medals and a recent Chinese article said that India's problem is poverty that prevails in their villages. Those people do not even get to dream about sports. They went with some sort of a plan this time and managed to get only a silver and bronze for their trouble.

The above is a description of how some of the leading nations came to top positions in the Olympics since its inception in 1896. With Sri Lanka gaining two silver medals in the period from 1948 it is a tough call to think of winning many medals at Olympic level as soon as the year 2024.

It is something that can be achieved as planned, but money and expertise are things to not forget in the achievement of this. The local expertise we have is something we have to consider more seriously; that of track and field is something we know of and cannot recommend. But others such as shooting, archery, beach volleyball, weight lifting, boxing, badminton and even fencing are some of the areas to be considered with proper foreign experts handling the local talent.

Daily News Editorial

Developing the economy

 27 August 2016

With Budget 2017 looming on the horizon, State revenue has become a hot topic. In the midst of global and local economic challenges, Government revenue has increased by 21.7 percent during the first six months of this year compared to the corresponding period last year. This is a creditable achievement, given the challenges faced by the Government in this regard.

State revenue was Rs. 857,922 million for the first six months of 2016 against Rs.704,055 million in the previous year. As expected, three of the biggest contributors to this record revenue were the Inland Revenue Department, the Excise Department and the Sri Lanka Customs. Another factor that led to the higher income was the introduction of a more efficient tax collection system, despite the problems over the Value Added Tax (VAT).

The performance of the Inland Revenue Department is noteworthy in a situation where only a relatively few business ventures and individuals pay income taxes. The authorities need to widen the tax net to have more direct tax payers. Then it will be possible to reduce the over-reliance on indirect taxes such as VAT which everyone, rich and poor, has to pay equally. On the other hand, more rich people should be paying direct taxes. In most other countries, at least 30-40 per cent of the population pays direct taxes, but in Sri Lanka this is not so. In the meantime, the Government will have to rely on VAT and other indirect taxes to some extent. The present impasse over VAT is costing the economy heavily and the Government will have to evolve a better VAT strategy that balances the concerns of the Treasury and the consumers.

The Excise Department is another vital arm of the State that can perform better. It has to contend with the problem of smuggling of tobacco and alcohol, which deprives the State of millions of rupees in tax revenue, apart from the manufacture of illicit moonshine. All smuggling avenues and loopholes must be closed, but this is easier said than done due to the porous nature of our sea borders. The Navy and the Coastguard cannot be omnipresent and the Customs still lacks advanced detection equipment to track certain contraband items. There is also a proposal to raise tobacco taxes up to 90 per cent which is under consideration.

The Customs too will benefit if certain duties and taxes can be streamlined and some steps have already been taken in this direction. Although the recent changes in taxes on several varieties of vehicles created a huge controversy, the market finally seems to have adjusted to the new scenario. The re-introduction of concessionary duty permits has also given some relief to prospective buyers. The new Customs Act in the offing must take note of the latest trends and pave the way for enhancing Customs revenue.

The biggest obstacle to the economy is the debt servicing component. With the previous Government running a debt burden in excess of US$ 65 billion, most of the Government revenue goes back to debt servicing. The Government is faced with the challenging task of raising local revenue for debt servicing, since foreign aid cannot be used for that purpose. The downside is that this limits locally available funds for development and welfare.

One must not forget the expatriate workers’ contribution to the economy. They remit more than US$ 6 billion back home annually, which is perhaps the bedrock on which our economy runs. It is lamentable that when pampered people’s representatives get a duty free car permit worth US$ 62,500, our expat workers get only a duty free allowance of US$ 1,750 even if they have worked abroad for 10 years. Their efforts to strengthen our economy should be recognized more widely. The Government should strive to find more employment opportunities for our youth abroad. The Diaspora is also keen to invest in Sri Lanka post-war.

Sri Lanka has a huge import bill driven mainly by oil on which around US$ 6 billion is spent. Serious thought must be given to import substitution of certain products. For example, if Sri Lanka can produce at least half of its annual sugar requirement of approximately 600,000 tonnes, the country can save around Rs.10 billion. Exports are the other side of the coin – the Government has set an ambitious target of US$ 50 billion per year from exports in the medium term. Sri Lanka has the potential to achieve this target with export diversification and new markets. The signing of trade pacts with several countries and the Financial City initiative will also reinvigorate the economy.

Loss making Government enterprises have been a drag on the economy, with the Treasury compelled to inject funds to some of them afloat. The Government plans to restructure these entities without resorting to privatization. This is the best way to prevent further losses to the economy. All these measures are likely to drive up State revenue and an even more positive picture could emerge by this time next year.

The Island Editorial

Who guards the guards?

27 August 2016

In a turn of events replete with irony Minister Lakshman Yapa Abeywardena has told the media that legal action will be instituted against those who make allegations of corruption against President Maithripala Sirisena. Obviously, an allegation of graft two leading Australian newspapers have made against the President has sent the government reeling and its spin doctors are doing their damndest to shore up the crumbling image of their administration. But, what moral right do the members of the ruling coalition have to issue such a threat?

President Sirisena and the UNP fought the last presidential election and parliamentary polls respectively on an anti-corruption platform. They made various allegations, claims and pledges and managed to capture power by promising to enthrone good governance. Sirisena, while he was in the presidential race, accused the Rajapaksas of having in their possession Lamborghinis and even ‘a golden horse’ bought from Buckingham Palace, among other things. The Rajapaksas had stashed away as much as 18 billion—yes, billion—dollars in offshore accounts, the then Opposition bigwigs told us, vowing to bring the money back post-haste.

The former rulers are no angels and the general consensus is that they helped themselves to a great deal of public funds and lined their pockets with kickbacks unconscionably. Everything became a deal for them. Therefore, those who voted for Sirisena and the UNP thought the ill-gotten wealth of the Rajapaksas would be recovered, confiscated and utilised to ameliorate the economic woes of the country as well as the public. But, nothing of the sort has happened and cases are being filed against the grandees of the former regime for buying galvanized pipes of all things!

More than one and a half years have elapsed since the change of government last year, but the Sirisena-Wickremesinghe administration has failed to fulfil its main election pledge. It must prove its allegations against its predecessor as a national priority because the public has a right to know the truth and if its claims can be substantiated the culprits must be hauled up before courts.

Interestingly, the bigwigs of the incumbent dispensation now stand accused of being involved in crooked deals and shielding crooks of all sorts. Opposition activists and sympathisers are being arrested in their dozens for offences such as abusing cars belonging to the state and keeping baby elephants without permits, but the man responsible for two bond scams which have caused a loss of billions of rupees to the state coffers is seen freely moving about in the exalted company of the powers that be. So much for the rule of law!

Worse, the government worthies are threatening their critics not to do to President Sirisena what they did to President Rajapaksa to topple the last government––hurling wild allegations!

The bane of this country is that none of its leaders have been statespersons. They have all been mere politicians ready to abuse power and stoop to any level to feather their nests and retain or regain power.

A head of state must be like Caesar’s wife; he or she must be above suspicion. Sadly, the self-appointed guards have become lawbreakers themselves. Who guards the guards—quis custodiet ipsos custodes? Nothing describes the situation we find ourselves in better than the pithy local saying, which roughly put into English means: Whom can we turn to when the ridge and the fence ‘eat’ rice plants?

The need for a real statesperson has been long felt. Self-proclaimed messiahs who secure popular mandates by condemning others and promising to turn this country into a utopia plunge into the cesspit of partisan politics and indulge in corruption after being ensconced in power. This, we have witnessed before and after last year’s regime change.

So, one is left with no alternative but to light a lamp and search, in broad daylight, for a statesperson capable of hoisting the country from the morass of lies, deceit, corruption and abuse of power it finds itself in.