Parliament

‘Country withstood global economic downturn’

Sandasen Marasinghe and Disna Mudalige

Speaker Chamal Rajapaksa presided when Parliament met at 1.00 pm yesterday. After the presentation of papers and oral questions, the House took up an adjournment motion moved by UNP MP Ravi Karunanayake on the Central Bank Report 2012 for debate.

Ravi Karunanayake (UNP):

I move the adjournment motion on the Central Bank report. The economic growth rate has reduced to 6.4 percent of the GDP. What we see is that the people have yet to receive the dividends of peace.

The Ceylon Petroleum Corporation owes a large sum of money to state banks. The depreciation of rupee has contributed to the increase of debt burden of the country. The Central Bank Governor has confirmed this fact.

The report contains detailed information about the tourism industry.

However, the majority of tourists from the total number of 1 million tourists arrived in the country were not accommodated in prominent hotel chains.

The Central Bank report attempts to show that the inflation rates are low. But the real figures imply the rate is rising sharply. What we request from the government is not to consider the national economy in lighter vein. Give a serious thought to economic management.

Dr Harsha De Silva (UNP):

I second the motion.

J R P Sooriyapperuma (UPFA):

The Central Bank is an important and respectable institution in the country. It should not be degraded into the third class level. Don’t tarnish its image. When the Central Bank was founded under J R Jayewardene by the government of D S Senanayake, the country owed Rs 890 million from colonial rulers for the products they purchased from us. So we started as a rich country. But within four years under the J R Jayewardene regime, the country’s status degraded.

Today, the economies in the US and Europe are gradually collapsing. This reality should be understood. We have moved away from the US and European capitalism. China is rising as a world power. Even India has been disintegrated.

Janaka Bandara takes the Chair.

Dr Harsha de Silva (UNP):

The tax evasion has become a crucial problem in the world. This money is owed by the governments. Recently, I revealed facts about stock market manipulations and after that I came under heavy criticism.

We have lost faith in the investigations conducted by the Central Bank and Securities and Exchange Commission. Thereafter, we request to appoint an independent Parliamentary Select Committee to look into these matters.

I have no personal grudge with the Central Bank Governor. What I attempt to do is to point out mistakes for rectification. It was earlier estimated the economic growth rate for 2013 to be 9.5 percent. But the rate for the first quarter of 2013 was announced as 6 percent recently. The reasons for the failure to achieve the target should be examined.

Health Deputy Minister Lalith Dissanayake:

The 63rd annual report of the Central Bank has been presented. This includes economic activities in the Northern Province as well. The Northern Province’s contribution is 6 percent to the national economy. Paddy harvest and fisheries harvest have been increased.

The IMF has accepted that the economic growth rate during the last two years was 8 percent it and is 6.5 percent now.

The IMF representative says that the inflation rate has been reduced to a single digit from a two digit number. These developments are not good for the Opposition.

Sunil Handunnetti (DNA):

Who decided to depreciate the Sr Lanka rupee? It has adverse effects on our debts to other countries. Who instructed to do so? But after giving such instructions, it is no point detailing them in the Central Bank report.

Investment Promotion Minister Lakshman Yapa Abeywardena:

The Central Bank report shows the direction of the country’s economy. The opposition members spoke taking the stance that the Central Bank report is good when they are in government and bad when they are in opposition. But how the common man feels the economy is reflected at elections.

The Opposition is speaking of the drop of the development rate in 2012 in comparison with the 2011 rate. The entire global economy was affected in 2012 due to various reasons. No country could compare the 2012 development rate with the 2011 rate.

The Opposition said with the introduction of the open economy, the development rate was doubled. But the Opposition failed to say the doubled rate never reached 6 percent development rate. The unemployment rate has reduced to 4 percent. The world economic outlook says the unemployment rate in Australia in 5.2, Russia 5.5, South Africa 25.2, Italy 10.6. But it is 4 percent in Sri Lanka. The public service was strengthened. The per capita income has increased to 3000 US dollar from 1016 US dollars in 2005. We hope to increase the per capita income on par with a middle income earning country by 2016. We have pumped money to develop infrastructure in rural areas. For the first time, we could get a 6 percent contribution of the North to the national economy. Poverty in the up country estate sector has reduced. That is the reason for the failure of the recent strike by the Opposition. The people feel the change in their heart. The UNP cannot make a change by removing their members.

Eran Wickramaratne (UNP):

You always worshiped the IMF and took loans from them.

Deputy Chairman of Committees Murugesu Chandrakumar takes the Chair

When the IMF criticizes the Sri Lanka Economy, the government says their statistics are incorrect. Though the government says the economic development rate dropped to 6.4 percent, the calculations of other institutions say the rate is lower than that. The per capita income has not increased but actually it has dropped.

Social Services Minister Felix Perera:

This is the first time that we take up a full day debate on a Central Bank report. We have given that chance to the Opposition. We have invested a large sum of money for infrastructure. The road network of the country has been upgraded. The benefits of these projects are for the people. The number of pensioners has also risen. The government has to spend a large amount of money to provide them with pension.

We have a free health system. The government invests a lot to maintain the standards in the health factor.

The data and statistics in the Central Bank report have been made in accordance with the international standards. There are one million credit cards in the country. We have a blooming economy and not a stagnant one.

Sajith Premadasa (UNP):

There are many loopholes in the calculations of macro economic statistics. The IMF had also asserted this fact.

We cannot have faith in the statistics presented by the government on the economic growth. We see no qualitative growth in the economy. We only see a growth in figures presented by the Central Bank. This is a statistical manipulation. This deprives the country of foreign aids and assistance. The country does not receive adequate investments.

The state income is decreasing day by day. It is only 11 percent of the GDP. The debt burden of the country is rising. The trade deficit and budget deficit are also widening.

Shriyani Wijewickrama takes the Chair:

Education Minister Bandula Gunawardena:

The Central Bank report analyzes the macro economic factors in the country. The statistics and analysis presented in the report are made maintaining due standards. There is nothing to doubt the veracity of this report. The experts in the field provide their contribution to compile this report.

Due to the economic recession which spread thought the world, many countries failed to achieve the stipulated growth rates. It was practically impossible.

With the eradication of terrorism, arable lands in the North and the East were cultivated. This harvest also added to the national production. Today, vegetables and fruits cultivated in the North and the East are being transported to Colombo.

Electricity and water supply have been expanded in those areas.

The country has been progressing in every sector. There are hardships and difficulties to manage the economy. We have faced these challenges confidently. The national production has widened.

The quality of education cannot be evaluated by the amount allocated to education but by the quality itself. Only 19.5 percent of students could pass O/L before 1994. But it is 65 percent by now.

Dayasiri Jayasekara (UNP):

We have spoken of the Central Bank report for several years. The government has to defend the false predictions of development by the officers who instructed the government. The government has taken 85 percent of loans from the banks in the country. It means that 15 percent of those banks’ loans to the private sector and the people. So how could the economy of the country be developed?

Janaka Bandara takes the Chair

Ajith P Perera (UNP):

A large percentage of children pass maths at the O-L examination as the pass mark has been lowered. The government does not need to invest on education.

The casinos clubs are to be built in Colombo. In most other countries, such businesses are conducted in distant areas where many people don’t have access to.

A H M Azwer (UPFA):

To attack Ajith Nivard Cabraal is pointless. They are baseless criticisms by the Opposition. Minister Sarath Amunugama is a clean negotiator.

He goes to IMF and other countries for monetary matters related to Sri Lanka. Sajith Premadasa is suffering from Mahinda Chintana phobia.

International Monetary Corporation Minister and Finance and Planning Deputy Minister Sarath Amunugama:

The Opposition always says the economy of the country would collapse and the government would be toppled. That is one of their slogans.

The Opposition says the economic growth rate dropped from 8.5 percent to 6.5 percent. When we consider the economic growth rate in the region, the rate of India dropped to 4 percent in 2012 from 8.4 percent in 2010. In Pakistan it is 3.7 percent. The effect of the global economic recession has left our region. However, demand for productions reduced. Sanctions on Iran too is felt by the economy. America is recovering. But such signs are not seen from European.

When we consider the agriculture sector in 2012, it had a drawback compared to the previous year due to adverse weather conditions. But agriculture, as a whole, is developing. Cultivations in the North and East are developing. The Opposition did not speak of it. The vegetable cultivation helped reduce the inflation rate. We are self sufficient in rice and attempts are taken to be self sufficient in potatoes and may other crops.

The main challenge before the leaders of developing countries is providing jobs for the people. The USA, Spain, Portugal and Italy also face this issue. But we reduced the unemployment rate from 15.9 percent to 4 percent from 1990 to 2012. Should we invest on useless projects?

The Opposition is suffering from China phobia. Sri Lanka is on the top among developing countries that can get funds within a shortest period of time for projects.

The Opposition does not speak of them.

With the construction of Mattala Airport, six other Air Services have agreed to come to Sri Lanka. The inflation has been maintained at a single digit rate for four years.

Parliament was adjourned until 1 pm today.

UPFA surpasses UNP in women’s representation in Parliament – Dinesh

Sandasen Marasinghe and Disna Mudalige

Chief Government Whip and Water Supply and Drainage Minister Dinesh Gunawardena yesterday told the UNP to follow the UPFA if it is concerned about women’s representation in Parliament. He made this observation in Parliament yesterday in response to a question raised by UNP MP Sajith Premadasa on women’s representation in Parliament, as against the percentage of the current population in the country.

Minister Gunawardena said the UPFA has always been fair by women on the question of Parliamentary representation.

“We produced the first woman Prime Minister in the world as well as the world’s first woman President.”

He said the government implemented the law to provide for a fair representation of women in Parliament. The minister said the UNP members should request their own leader to increase the nomination of women at elections and not from the government.

Gunawardena said the representation of women in Parliament is six percent now.

Celestial Towers to become luxury hotel complex

Sandasen Marasinghe and Disna Mudalige

The Celestial Towers owned by the Ceylinco Investment Group of Companies will be developed into a luxury hotel complex for the Commonwealth Heads of State General Meeting, said Investment Promotion Minister Laxman Yapa Abeywardena yesterday.

He made these observations in Parliament in response to a question raised by UNP MP Ravi Karunanayake. The minister said the Celestial Towers will be developed into a luxury hotel with 475 rooms.

He said the project has been assigned to the Urban Development Authority. The hotel will be leased to the Canvil Holdings Pvt Ltd for 99 years, which was set up with the shares of the Sri Lanka Insurance Corporation, Public and Private Institutions.

Duminda Silva in parliament after 18 months

Sandasen Marasinghe and Disna Mudalige

UPFA Colombo District MP R Duminda Silva attended the sittings of Parliament yesterday for the first time after 18 months leave.

Parliamentary sittings commenced at 1.00 pm and MP Duminda Silva was seen entering the chamber at around 1.06 pm.

He was injured during a shoot-out in Mulleriyawa on October 8, 2011 during the Provincial Council Election.

He was absent for Parliamentary sittings as he was obtaining treatment overseas and in the country.

Parliament approved three months leave for MP Duminda Silva for the first time on March 9, 2012 and leave proposals were presented in every three months’ time.

Tamils will rise against Uthayan - Kanakaratna

Anushika Ranadewa and Rakshana Sriyantha

In another false allegation, the Uthayan newspaper has stated that if the current situation continues in the country, there is a great possibility that the country will be divided.

It stated that this division will be headed by the Western powers and the Opposition.

Former SLFP Member of Parliament S Kanakaratna expressed his views about this statement.

According to Uthayan, the government is not taking any precautions to stop this.

Kanakaratna said this allegation itself disrupts peace and harmony in the country. Kanakaratna added: “ Mahinda Chinthana policy framework is working towards promoting peaceful development while ensuring unity among all ethnic groups in the country.

Everyone knows that Technology and Research Minister Tissa Vitharana, with all party representatives held wide discussions over this issue and worked towards providing recommendations.”

“Apart from this, the government renewed its call to the so-called ‘main Tamil party’ TNA, to join the Parliamentary Select Committee to discuss the issues but the TNA is craftily avoiding the discussions,” added Kanakaratna.

The government is currently in the process of exchanging views with the international community regarding this issue, said Kanakaratna.

Moreover, Kanakaratna said according to experts, it is important to get the majority view and it is practical to hold public discussions through various public organizations for this.

The government has provided ways in which this can be a reality.

Kanakaratna added that any person can understand the massive Northern development carried out by the government. The North is obtaining more benefits than the South at present. Several international delegates and even the Indian delegation who visited Jaffna recently described Jaffna as “an eye-opener,” noting the development work that has taken place.

Therefore, Uthayan has zipped their mouths about Northern development and trying to arouse unnecessary tension among communities. This is directly affecting the Tamil community as well. “It is with great disdain that we deny allegations made by Uthayan.

It is clear that it is the Uthayan that is trying to drag the country into a separation. Uthayan is carrying out morbid media practice,” said Kanakaratna.

Kanakaratna added that the Tamil community rising against Uthayan is not far.