The JVP yesterday said that the country is in an economic mess and it is getting worse day by day due to the Mahinda Rajapaksa government’s corrupt administration and bad economic policies.

Speaking to the press at the party head office in Pelawatta, JVP General Secretary Tilvin Silva said that according to the Central Bank report for 2009, all products and earning of the country had decreased while local and foreign borrowings of the government increased.

"Tea exports had decreased by 9.1 per cent compared with 2008. According to the Central Bank report, the country has exported 318 million Kgs in 2008 but it had reduced to 289 million in 2009. Tea is the main export crop in Sri Lanka and now the industry is under threat," he said.

Silva said the annual coconut production was 2,909 million nuts in 2008, but it had reduced by 147 millions in 2009 and only 2,762 million nuts were produced.

Paddy cultivation had decreased by 75,000 hectares. of 1,053,000 hectares cultivated in 2008 only 978,000 hectares were cultivated in 2009, he said.

"Rice production decreased from 3,875,000 tonnes to 3,652,000 tonnes," he said. The government’s import expenditure had increased.

The Government had imported 76,000 tonnes of rice in 2005 and it had increased by 48,000 tonnes during the next four years. 124,000 tonnes were imported in 2009 despite the government launching several programmes to uplift the local agriculture sector, Silva said.

Only 41,000 tonnes of potatoes were imported in 2005, but 99,000 tonnes were imported in 2009. While 121,000 tonnes of Onions were imported in 2005, 174,000 tonnes were imported last year. 444,000 tonnes of sugar was imported in 2005 and it had increased to 563,000 in 2009.

"Government borrowings increased year by year and it had increased by 16 per cent last year when compared with the previous year. The Government borrowed Rs. 4,161.4 billion from local and foreign financial institutions in 2009 but it was Rs. 3,989 billion in 2008," Silva said.

The government’s total income was Rs. 708 billion in 2009, but expenditure was Rs. 1,247.6 billion. The government did not take measures to reduce the expenditure but only imposed several new taxes and continued taking loans.

Silva said: "The government has relaxed the excise duties on vehicle imports by 50 per cent, but it is just a show. The Government imposed a tax called ‘nation building tax’ for the welfare of war heroes during the war. But now, despite the war being ended over a year ago, the tax still remains.

"The Government’s gimmick is to help the rich by reducing vehicle import taxes, but several other hidden taxes, which are a burden on the normal general public still remain," Silva said.