Create decent work with livable wages, and social security that is linked to productivity.
Former Central Banker and economist Dr. Anila Dias Bandaranaike recently out lined the reasons behind the ailing Sri Lanka economy which is reproduced in a nutshell below She highlighted the dependency mentality of the country and asserted the need to rethink the social safety nets that have been offered for decades.
some of her insights are highlighted below
Sri Lanka’s economy has been on a ‘champagne diet with a ‘kassipu’ income’ for a bit too long, according to a top economist in the country. Former Central Banker and economist Dr. Anila Dias Bandaranaike believes this is the key reason for the crisis status of the island nation’s economy. The expectation from the government to come to the aid of people ever so frequently has impacted the country’s productivity for decades.
“What we have been doing all these years is being on a champagne diet with a ‘kasippu’ income. Dr. Bandaranaike: “While the welfare efforts must be extended towards the poor, the poor are not targeted at all”. State-owned enterprises (SOEs) continue to make losses, she said.
Dr. Bandaranaike stressed the need for social safety nets to recognise the country’s bankruptcy and move forward from that point of acknowledgment. She also highlighted the need to rationalise the social safety net administration and delivery, while removing all price anomalies to reflect costs. “Donor-dependence must reduce overtime,” she stressed. At present, Sri Lanka performs poorly in exiting welfare programmes.