With political observers predicting a strong possibility for the case of a Hung Parliament following the August 17 elections with no single party obtaining an outright majority, analysts warned last week that such a scenario could create political instability triggering economic uncertainty.
The analysts added that hence a government with a single party having the majority was essential and would be beneficial to the country in order to formulate and pass long-term economic policies without hindrance.
Managing Director/CEO, Chevron Lubricants Lanka PLC, Kishu Gomes speaking to The Nation Gain said that a hung parliament would result in difficulties in passing resolutions due to the interference of other political parties.
“In addition, even if it is a coalition government, there can be instances where certain key reforms would not be passed owing to objections and interferences by member parties. Therefore, as business leaders, we prefer to have a government where a single party holds the majority,” he said.
CEO, Lion Breweries (Ceylon) PLC, Suresh Shah, while backing a government where one party holds majority, said that other parties could be included to get a consensus on broader policies.
“For example, Sri Lanka needs to have a stronger focus on exports and in such national issues, it is better to get a common consensus rather than to have a single party view,” he said.
Meanwhile, economists also said that a government, in which a single party holds majority, was essential to have a better understanding as to where the country would be heading in the long run.
Founder, Point Pedro Institute of Development, and senior economist, Muttukrishna Sarvananthan said a stable political environment was the key for a long-term economic stability in the country.
“At the moment it is difficult to say what kind of a government would be formed. However, if it is a coalition, then the parties need to come to a common understanding pertaining to economic policies. That is a must,” he said.
“The other issue is that such instances would compel parties to make compromises that would result in populist policies which are not healthy for the country’s economic growth in the long run. All these should be given importance when forming a government,” Sarvanathan added