Future economic growth requires political reforms today

The NPP government is under criticism for being slow to move forward with its election promises.

- BY JEHAN PERERA

The Opposition political parties have criticised it for not delivering on its promises with regard to renegotiating the IMF agreement to be more people-friendly. The government seems to have accepted the IMF targets for revenue collection and restricting government spending to the letter. Civil society groups are critical of the government for not repealing the Prevention of Terrorism Act (PTA) and Online Safety Act (OSA) which bolster the repressive potential of the government, and which the NPP had promised to repeal. The problem with the delay in implementing promised political reforms is that it not only undermines the government's credibility but also has the potential to undermine Sri Lanka's economic recovery.

Sri Lanka has received a breathing space of three months to negotiate with the US government regarding tariffs to be imposed on Sri Lankan exports to Sri Lanka's largest export market. The country faces a similar challenge to protect its export markets with regard to the EU, its second largest trading partner and potentially its largest, which is currently favouring Sri Lanka with its GSP Plus tariff concession. This trade concession (or incentive) provides Sri Lanka with duty-free access to the EU market for over 6,000 product lines, including textiles, garments, and seafood. The continuation of GSP+ benefits is contingent upon Sri Lanka's adherence to 27 international conventions related to human rights, labour rights, environmental protection, and good governance. It needs to be borne in mind that the GSP Plus facility was withdrawn in 2010 due to the government's failure to meet human rights standards.