#nssp

Sri Lankan politics is entering another election period, marked by considerable uncertainty about whether the upcoming election will adequately address the country’s socio-political challenges. Socio-political commentators have expressed doubts about whether civil society is prepared for long-term or short-term solutions beyond the immediate electoral remedies. Additionally, Sri Lanka's economic freedom score is 49.2, placing it 149th in the 2024 Index of Economic Freedom. This score represents a decline of 3 points from the previous year, positioning Sri Lanka 34th among 39 countries in the Asia-Pacific region. The country's economic freedom score is below the global and regional averages.

Amidst this political and economic backdrop, the visit of National People's Force (NPP) leader Anura Kumara Dissanayake to Britain has garnered significant interest within the Sri Lankan immigrant community. Many are keenly focused on the economic policies proposed by the NPP. To understand these policies, it is essential to consider the impact of decades of ethno-religious chauvinism, which has systematically undermined Sri Lanka's once-thriving economy and robust public welfare system. Despite this, individuals who have profited from these divisions and mismanagement remain in power. Analyzing the NPP’s economic strategy, therefore, necessitates looking beyond superficial critiques and recognizing the party’s shift towards economic realism.

Anura Kumara Dissanayake and his team emphasize that their economic strategy is market-friendly, open to foreign investment, aligned with the International Monetary Fund (IMF) agenda, and primarily people-centric. However, this does not imply unrestrained acceptance of neoliberal policies. The NPP plans to implement a phased macroeconomic strategy to foster development, balancing market openness with strategic control over economic decisions.

It is unrealistic to expect immediate economic miracles during the NPP's initial term. The party’s approach is grounded in revitalizing the real economy rather than relying solely on an IMF-stabilized financial sector. Over-financialization has historically led to economic downturns and recessions, which neoliberal scholars often mischaracterize as normal trade cycles. These recessions, however, are structural rather than cyclical.

The NPP's initial focus will be on removing artificial market rigidities created by previous governments. This clean-up campaign, aimed at disrupting entrenched economic interests, is likely to provoke strong resistance from those who benefit from the current system. The IMF’s recovery agenda, which emphasizes financial sector strengthening without addressing these rigidities, lacks the specificity needed for genuine reform. Therefore, the NPP's first task will be to dismantle these barriers before restructuring the economy. A development strategy that prioritizes the domestic sector, driven by both market forces and government incentives, should not be misconstrued as regressive or isolationist.

Additionally, the NPP recognizes the need for organizational reforms to combat corruption, tax evasion, and undue influence. Firms engaged in tax minimization schemes must be held accountable. The NPP is the only party that has openly campaigned against these practices and pledged to bring offenders to justice, which is a compelling reason for giving the party a chance to govern. -

Anuruddha Lokuhapuarachchi