Will economic nerve centres be privatised Under Ranil asks Minister Yapa

THE Office of the Chief Campaign Coordinator of Presidential Candidate Mahinda Rajapakse refuting certain predictions made by UNP Parliamentarian and former Finance Deputy Minister Bandula Gunawardena said the UNP which represented the open Economic system should divulge to the public which institutions it hoped to privatise if its candidate won the next Presidential Election.

This was stated in a press release issued by the Campaign Coordinator Office by the hand of Plantation Industries Minister Anura Priyadarshana Yapa who is media co-ordinator of the 2005 Presidential Elections Operations Committee.

The release: UNP Parliamentarian Bandula Gunawardena who is a former Deputy Minister of Finance has started making predictions regarding changes which may occur in the economy when Prime Minister Mahinda Rajapakse becomes the next President.

Gunawardena argues that there is no such thing called a balanced economy.

Although he is unaware of the economic system operating in India, China and Malaysia everyone who has a knowledge of economics knows what it is.

Although we should sympathise about one's ignorance we could not do so as regards Mr. Gunawardane because he is misleading the people posing as a knowledgeable person.

The JVP and the SLFP together ruled the country for over one year and there was no breakdown of either the private sector or the economy during that period.

The maiden budget of the Freedom Alliance Government offered a large number of concessions to the private sector. Earnings from the Share Market and Treasury Bills were given tax relief. Similarly Investments over Rs. 100 million were given VAT relief.

Banks like the NDB and the DFCC have implemented loan schemes at a low interest of 10 to 11 per cent.

Gunawardene says the Colombo Stock Market has crashed since the JVP-Mahinda agreement was signed.

The Colombo Stock Market has been operating in an excellent manner due to the sound economic management of the Alliance Government and it recorded the highest trading on September 15.

As the chairman of the Stock Market during the time Gunawardena was Deputy Minister was penalised for alleged financial frauds by the Freedom Alliance government one could fathom the state of the Stock Market during his stewardship. Today the branches of the Stock Market at Kandy, Matara and Kurunegala are also operating.

Every Government in the world today has accepted the fact that there should be a certain amount of guidance and systematisation in an open economic system.

This is essential to ensure good governance.

As such the Freedom Alliance government has already given Cabinet approval to three Bills named the Financial Purification Bill, Financial Transactions Reporting Bill and the Terrorist Funding Penalising Bill.

The Financial Purification Bill will to prevent the imbalance caused by the entry of black money to the economy while the Financial Transaction Reporting Bill will take suitable steps against transactions which try to distort the money market.

The Bill against Terrorist Funding will minimise corruption and create transparency.

Even capitalist countries like the USA have pointed out the need to expedite these steps needed to ensure good governance.

Taking these steps does not mean controlling the economy but offering the necessary guidance.

Gunawardena is making ludicrous statements alleging that devotees would not be able to undertake pilgrimages to India and that patients would not be able to go to India for surgeries, the statement alleged.

During their period of rule, they offered tax amnesties purely to legalise black money. The Alliance government revealed these misdeeds.

Gunawardena and the UNP have feared that an administration under Mahinda Rajapakse would further bare these deals and pass regulations to prevent them. They entertained such a fear at the time the UPFA was formed.

As much as such misdeeds did not occur under the UPFA administration people know that it would be so under a Mahinda Rajapakse administration.

The UNP and Gunawardena who are trying to create fear among the people that a closed economy would be created under a Mahinda Rajapakse administration are representing the open economic system.

Therefore we request Gunawardena to inquire from economic theoreticians like Paskaralingam and Charitha Ratwatte and let the people know whether economic nerve centres such as State Banks, CEB and Ports would be privatised if by chance Ranil Wickremesinghe becomes President to the misfortune of the people.