Ask the Minister: Matters of Public Interest 

A chat with Ravi Karunanayake, Minister of Finance 

Some of our readers will be very interested in getting to know the progress of the present government and the future plans of the Ministers. With the endeavour of creating awareness in this regard, Daily Mirror Life met up with some Ministers and asked them a few questions. Their answers will be carried in this weekly column. This week, we speak to Ravi Karunanayake, Minister of Finance. 

All Ministries have come up with massive projects, how are you planning to fund all these projects other than with the revenue from taxes? 

With an economy which is plagued of debt, and no economic return, we are basically devising systems. And you will see through the budget, how we have managed to finance it without putting pressure on the people. There are five areas that you can get revenue from. First is printing money, which we least want to do, second is getting Grants from overseas which is less, that comes in. Third is to ensure that you go into the debt market and create things to spend, then it comes to the total limits that are there, then the profits that come off from institutions that we have put money before and the profits we get from there. Fifth one is raising taxes. So these are the five areas that we can get revenue from. 

It’s a good idea to have the Financial City, but haven’t we lost billions of dollars by stopping the project and keeping it on hold for almost two years? 

When any government comes in and wants to have a good governance, they have to protect the interest of the people. The way it was done previously, it was free for all and the government had absolutely no control over it. Agreements and contracts were just signed by the Ports Authority not knowing what exactly it was. So we had to get it corrected. At the end of the day, even though it took a little time it was way better than going through with a bad project. It took maybe 15 months but that is very much better than going through with the wrong deal for our state. We had to go over those areas and correct it otherwise it would have been detrimental for the sovereignty of the country. 

What about the debt burden of the country? Is resolving this matter happening as planned by the Yahapalanaya government? 

Yes, it is. As we stated when we took office, we had no idea of the concealed amount of debt that the country was burdened with, but today we have opened it up and brought it up front and are able to show the people the true picture. We certainly can’t write off the past, but we are in the process of settling those debts as it has to be honoured. 

How do you propose to bring down the cost of living which the people are complaining about? 

The people are complaining, but let them take their minds back to the period before the 8th of January 2015. We have brought down the prices of so many things including petrol, diesel, kerosene oil, gas, milk powder, sugar, dhal, sprats, canned fish and so many other essential items. So I really don’t understand why they are complaining. Is it not good enough or is it that they were expecting something completely different? These are reductions that are visibly seen. Some things have gone up in price, but tell me which country in the world doesn’t have any increases in some items. We have got to be realistic about these things. 

Renewable energy such as solar power, wind power, liquid gas etc., is this one of your major strategies for income generation? 

Certainly, but the least expected from the CEB as they don’t want to consent to this. However we are doing our best to ensure that renewable energy will come in as it will help to reduce cost of generation and it is also environmental friendly. We are pushing for it. 

What are your strategies to lure local and foreign investors? 

The budget will certainly be packed with attractions for local and foreign entrepreneurs and local and foreign partnerships. Our main objective is generating jobs, being able to have a financial vibrancy in the country and import substitution. These three areas would help to ensure that we lure foreign investments into the country. 

What would the main difference of your 2017 budget be from the 2016 one? What is the theme? 

The main theme is job creation, self-employment as well as investment orientation. Our exports have not diversified. We need to diversify products as well as markets and pave the way forward through this area. 

Shouldn’t we formulate a more advanced concept of BOI since our projects are more diverse now? 

Yes, that is why we have amalgamated the BOI, EDB and the Tourist Board. Now these Boards are under one umbrella. 

What’s your position on the Sri Lankan Airlines and Mihin Lanka merger? Are you getting a foreign partner to revamp the struggling airline? What about the staff? 

When Mihin was started we said that it is a waste of money. What we told then has come to pass. Yes, we are looking at foreign partners. We have called for tenders and are checking on the best options. With regard to the merger of Sri Lankan and Mihin, in operational terms – yes. We also need to ensure that the best strategy goes on. There is some cynicism in the system also. When we try to correct it, they are questioning and criticising us. 

Any good staff will be retained. Like any other entity that loses money they’ll be given a golden handshake and they will have to go. Wherever possible we will try our best to protect the staff. I have seen certain posters that have been put up, saying ‘Is this good governance?’ Yes obviously this is good governance. Mihin was a bad economic decision and when it is shut down, it is a part of the process of good governance. 

Will you be implementing more advanced methods to monitor and standardise our social security? 

Yes. We’ll be digitalising the economy. We’ll be having unique numbers for each recipient and there will be direct debit from the government to the person without going through a third party. So that’s the way we will take it forward with regard to the payment system. That will be brought under social welfare. 

The Cope report on the Central Bank issue has been completed. But what about the Greek Bond issue that took place during Nivard Cabraal's time? Is it under investigation or what is the situation regarding that? 

Though it seems like nothing is happening, we are definitely on it. We will be expediting the Greek Bond issue soon. 

What is the message you would like to give the youth of our country? 

We are looking forward to the younger generation coming forward and teaming up with us, instead of cursing in the dark. I invite them to light the candle and bring about a sense of togetherness. The younger generation is waiting for that opportunity. We will spark that off and give them all the necessary support and guidance. I think what is most necessary is the attitude change because right now they prefer to stay at home and get Rs. 100/-  rather than work and earn Rs. 10,000/-.  Now, that mentality must change. 

The UNP government came into power in 2001 in somewhat the same backdrop, but lost power within two years. What measures have been taken to prevent that kind of thing happening again? 

We formed a National Government and ensured that we got a 2/3 majority in Parliament. Also the 19th amendment does not permit dissolution of Parliament till four years of its term. 

Did you know? 

• He was educated at S. Thomas' Preparatory School, Kollupitiya and Royal College Colombo. 
• He is married to Mela and has three daughters Onella, Shenella and Minella. 
• He is a ‘family man’ and spends considerable time with his family. 
• He believes that he is a multitasking and target-oriented person hence able to keep systems afloat and prevent crashing.