-By Political Correspondent
(Lanka-e-News -29.March.2025, 11.10 PM) The National People’s Power (NPP) government has embarked on a bold economic experiment—one they call a "Democratic Economy." It sounds revolutionary, but what does it really mean? In simple terms, it's an economic system designed to work for the people, not just for the elite few who have traditionally controlled Sri Lanka’s wealth and opportunities.
At its core, the NPP’s vision aims to bridge the widening gap between the rich and the poor. Sri Lanka’s economy has long been a playground for a privileged few, where major business empires like Dhammika Perera’s holdings, Kiehl’s, and Aitken Spence enjoyed unchecked access to state resources, tax breaks, and regulatory loopholes while small businesses and entrepreneurs struggled against bureaucratic roadblocks and corruption. Now, the NPP government is flipping the script, creating an open economic playing field—one where success is determined by innovation and effort, not by political connections or bribes.
But the road to economic democracy is paved with challenges. Can the NPP deliver on its promises and push Sri Lanka towards a more equitable future? Let’s break it down.
For decades, Sri Lanka’s economy has been controlled by a handful of powerful individuals and corporations who had the right political connections. Government tenders, tax benefits, and investment approvals were reserved for those who knew the right minister or greased the right palms. The NPP’s approach is to smash this old boys’ club and allow any Sri Lankan—regardless of wealth or background—to participate in the economy without bureaucratic hurdles or corruption.
The new system aims to:
Eliminate Corruption in Business Registrations and Approvals – Entrepreneurs no longer need a politician’s blessing to start a business or get an investment approved.
Create Equal Opportunities for SMEs and Startups – Small and medium enterprises (SMEs), which are the backbone of most economies, will receive the same level of government support as big corporations.
Remove Barriers for Foreign Investment Partnerships – Unlike in the past, where only a select few were granted access to foreign investment, the NPP aims to allow any entrepreneur to connect with global investors without red tape.
The numbers speak for themselves. In Sri Lanka, fewer than 700 individuals contribute to 80% of income tax revenue, proving that wealth is concentrated in the hands of a few. A truly democratic economy must change this by broadening the tax base and enabling more people to generate wealth legally and transparently.
The biggest roadblock to Sri Lanka’s economic progress isn’t just corruption in the private sector—it’s inefficiency in the public sector. With an overgrown and underproductive civil service, the government is practically bleeding money to maintain a workforce that delivers little in return.
The hard truth?
85% of Sri Lanka’s public sector is unproductive – A staggering figure that reflects inefficiency, laziness, and a culture of entitlement.
40% of government employees disappear after lunch – State employees are notorious for treating government jobs as a paid vacation, often spending afternoons on personal businesses rather than serving the public.
35% of officials refuse to work without a bribe – The culture of bribery is so deeply ingrained that even basic administrative tasks often require unofficial "fees" to be processed.
If the NPP government wants to go "further and faster," reforming the public sector is non-negotiable. This means:
Introducing performance-based evaluations – Government employees should be held accountable for their work, just like in the private sector.
Downsizing the bloated civil service – If employees refuse to work, why should taxpayers continue to pay their salaries?
Digitizing government services – By reducing human intervention, corruption and inefficiency can be minimized.
It’s time Sri Lankan government employees realize that their jobs are not entitlements—they are responsibilities. The NPP must ensure that public servants either serve the public or step aside.
One of the biggest challenges the NPP faces is fixing Sri Lanka’s tax system. The current structure unfairly burdens the middle class while allowing the ultra-rich to exploit loopholes. The solution? A smarter, more inclusive tax system where:
The ultra-rich finally pay their fair share instead of using offshore accounts and shady deductions.
SMEs and startups are given tax incentives to encourage entrepreneurship and job creation.
The informal sector is integrated into the economy to broaden the tax base and reduce dependency on a few major taxpayers.
Another key reform is digitalizing financial transactions to eliminate tax evasion. With Sri Lanka moving towards a digital economy, online payments, e-tax filings, and cashless transactions will make it harder for businesses and individuals to hide income. However, resistance from corrupt officials remains a major challenge, as many within the system benefit from the status quo.
While Colombo often gets all the attention, much of Sri Lanka’s economic potential remains untapped in regions like the Northeast and Northwest, where poverty remains high and investment remains low.
Why is this the case?
The government has historically ignored these regions, focusing investments in Colombo and the South.
Bureaucratic corruption has blocked development, with local officials demanding bribes before approving projects.
Infrastructure is outdated, making it difficult for businesses to thrive.
The NPP government must prioritize regional economic development by:
Building modern infrastructure in neglected areas.
Encouraging local entrepreneurship through targeted grants and incentives.
Decentralizing economic power, ensuring opportunities exist beyond Colombo.
Without this, Sri Lanka’s economy will remain lopsided, benefiting only the capital while leaving millions behind.
The NPP government has set ambitious goals, but execution is everything. For too long, Sri Lanka’s economy has been rigged in favor of the elite, leaving ordinary citizens struggling for opportunities. If the NPP genuinely implements a Democratic Economy, Sri Lanka could finally see:
A business environment free of corruption where anyone can succeed.
A government workforce that actually works instead of leeching off taxpayers.
A regional economy that thrives, rather than being ignored.
However, the real test is not in making promises but in breaking decades-old corrupt structures that have kept Sri Lanka stagnant. The NPP is at a crossroads: Will it be the government that finally fixes the system or just another administration that gets swallowed by it?
Only time will tell. But one thing is clear—if the NPP is serious about going further and faster, it must also be stronger and braver in confronting the forces that have long held Sri Lanka back.
-By Political Correspondent
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by (2025-03-29 19:58:09)
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