MONETABRIEF – Sri Lanka's opposition leader Sajith Premadasa piled on pressure for the government to give hire unemployed graduates questioning whether the recent policy statements indicated abandoning of the policy.
Referring to a statement by President Anura Kumara Dissanayake that all state recruitment and promotions will be done through exams in line with service minutes, Premadasa questioned whether the policy of giving unemployed graduates jobs had been abandoned.
He also questioned whether there was a plan to create jobs in the private sector also, as there were tens of thousands of unemployed graduates waiting for a solution from the government.
Then questions come as heavy taxation led to a reduction of the budget deficit.
There have been warnings that raising one sided raising of taxes under revenue based fiscal consolidation is not a sustainable way of fixing state finances as there will be pressure to spend any money rather than reducing deficits and debt.
In a democratic setting, expenditure tends to follow revenue, in phenomenon known as the Parkinson's Second Law.
Sri Lanka has high levels of monetary instability due to a deeply flawed operating framework of the central bank where the currency can suddenly collapse amplifying domestic and external shocks.
