Some of the critical challenges facing the AKD Government today are not dissimilar to those encountered in the 1970s. Back then, it was a right-wing government led by President J.R. Jayawardena. We found ourselves grappling with political issues, demanding justice and holding perpetrators accountable.
Looking back over the past 77 years, it’s clear what has gone wrong. Economic growth has been stagnant, or worse, absent. For years, we’ve been living beyond our means, borrowing money and overspending, with a significant portion of the national budget going towards interest on our escalating national debt. However, the most significant hurdle for the AKD Government today is revenues falling well short of expectations, coming in far below forecast.
Yes, it’s only been four months since the new government took office, and we can’t expect miracles overnight. But we must ask: Where are we heading? What direction are we taking?
We should reflect on how we coped, how we struggled, and how we survived during the years of war and hardship.
In the past, two fundamental rules governed our actions:
Rule One: Cut down on income—specifically, the income tax bill. Citizens, especially businesses, found all manner of ways—some clever, some not so subtle—to reduce their tax burden. This included lavish entertainment allowances, company cars, free petrol, and staff sabbaticals or paid holidays abroad, among other schemes. The goal was to keep income tax payments to a minimum, while funnelling as much as possible into employees’ pension funds and building up savings through new business ventures.
For others, the radical approach was to relocate abroad to lower tax jurisdictions for a few years. Yet others sought employment overseas. The aim wasn’t just to reduce income tax payments, but to manage other liabilities as well.
Rule Two: Prevent savings from being eroded by inflation. People invested in assets that appreciated in value—such as jewellery, property, and equities. Those who purchased homes in the 1970s saw their properties increase in value at a much faster rate than general inflation. Amid the relentless rise in prices, there was opportunity for those who knew how to protect and grow their wealth.
The stark message for the AKD-NPP Government today is glaringly obvious: Control inflation. But before that, we must focus on building the wealth of the nation. The true wealth of Sri Lanka lies not in its natural resources, such as its sapphire mines, but in its people.
What went wrong in the past? We discounted the wealth and talent of our people—failing to recognise that they, not our mines, are the true source of our prosperity.
So, what must we do now? The priority is clear: Preserve the wealth of our nation. We must not allow this wealth to be plundered by the few for their personal gain or squandered abroad.
We urgently need a coherent foreign policy—one that remains consistent across administrations and is focused on long-term, strategic interests. No more chasing after fanciful, unquantified projects. We must renegotiate our real interests in terms of practical, measurable outcomes.
Connectivity with all nations is crucial—not just with our immediate neighbours. Connectivity is a mutual benefit that must extend beyond words into real-time projects that deliver tangible results.
Finally, we must prioritise national security—not only in terms of defence but also energy security. These are the pillars upon which our future stability and prosperity depend.
The NPP Government under AKD must act swiftly on these issues if it is to deliver real relief to the people of Sri Lanka. The time for delay has passed. It is only through decisive action that we can restore dignity and hope to our nation in the challenging days and months ahead.
