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Nalaka Godahewa

30 Oct 2018

By Skandha Gunasekara Senior financial advisor to the Rajapaksa camp, Dr. Nalaka Godahewa said that china would play a key role and asserted that the new government would take swift and decisive measures to stabilize the rupee and revitalize the economy. Below are excerpts of his interview with The Sunday Morning: Q: What action plan does the new government have for the country’s economy? A: We will first stabilize the economy and give confidence to the business community and the investors. We will also give relief to the common man. That’s our key aim. Our plan will be worked out with that intention. Q: What will be the fate of the rupee? Will it be allowed to float or stabilized? A: The rupee has to be stabilized. However, this cannot be done overnight but we have a plan and we will implement it accordingly. Q: During such a tumultuous period, how will you manage investor confidence? A: I think investors will understand that the government that didn’t have a clue about managing the economy is no more, and that people who are far more confident in managing the economy have taken over the reins. Therefore, they must be already having confidence but we will do everything that is required to give them that confidence by having the right policy framework – avoiding this kind of inconsistent decision making and also making the investment environment more conducive. Those are the things that the investors want. We will work towards that. Building investor confidence is an utmost priority for us. Q: What do you plan to do about the high cost of living and tax burden on the people that is currently prevailing in the country? A: To start off, when the former Government came to power in 2015, within three-and-a-half years, they increased taxes by over 100%. That is a huge burden on the people and also the rupee. The rupee depreciation might take a little time for us to stabilize, because that cannot be done overnight; but we will definitely look at what we can do with regard to the heavy tax burden on the masses. A key objective of the government will be what we can do to provide some relief from the high taxation that is currently going on. Q: How will the stock markets be affected by these latest political developments? A: The stock markets will pick up. The poor regulation and the poor leadership of the Securities Exchange Commission (SEC) was one of the biggest hindrances to the processes of the stock market. In 2014, our stock market was rated the best in Asia. Such a stock market cannot come down like this unless something terribly went wrong. There are two key factors: One, is the overall economy of the country, which just kept coming down, the second one is that the people who were regulating it were not managing it properly. They were creating chaos among investors because of their ad-hoc decisions. So we will look at changing this leadership as fast as possible and bring that confidence back to the investors in the stock market. Q: How long can this prorogation of Parliament continue without affecting the image of a stable Sri Lanka for tourism and investments? A: I don’t think it will have much of an effect. For the last three years in this country, nothing happened; so I don’t think another three years will make a difference. Right now, it will be for the stated time period. That is the President’s prerogative. I don’t think there is any reason to go beyond that. However, it is a political decision. That is something that the President must decide, and I don’t see a reason why it should be extended further. Q: Are you to be part of the team that will formulate a new Budget? A: Those issues have not been taken up yet because first of all, the Cabinet has to be appointed. I can’t comment on the Budget as such decisions have to be taken by government officials, and they have not been appointed yet. That will happen after the Cabinet is appointed. Q: Who will be taking over the Finance Ministry and the Treasury? A: I think in Prime Minister Rajapaksa’s team, there are many capable people who can do that – so he will select the right person. Q: What about the nation’s debt servicing and the upcoming debt bunching period in 2019 and 2020? A: That is something we have known for quite some time. We will find a solution. We don’t have to worry too much about it. Q: The Chinese Ambassador met with Prime Minister Mahinda Rajapaksa yesterday; will your Government be looking for international financial support to manage the rupee? A: We have a plan, so let’s wait for it to be implemented. Not only the Chinese, but other ambassadors will also meet with Prime Minister Rajapaksa. Right now, he is the country’s Prime Minister, and all these other countries want to pledge their support; and the Chinese have always had a good relationship with him and are naturally upset about the speed at which things were happening in the past. So that was the purpose of this meeting – to renew that relationship. They will definitely play a key role; not just them, but a couple of neighboring countries too.

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Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Automobile, Mother and Baby Products, Clothing, and Fashion. Additionally, Kapruka offers unique online services like Money Remittance, Astrology, Medicine Delivery, and access to over 700 Top Brands. Also If you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.Send love straight to their heart this Valentine's with our thoughtful gifts!


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