It began inauspiciously with an Island-wide power failure symbolic of the incapacity of the economy to indulge in such extravaganza. Should the government give the wrong signals by indulging in such delusive exercises rather than ensure a strong economy? Are we putting the cart before the horse? Should a weak economy waste its resources on such superficial and unproductive expenditure?

Certainly it is a strange move for a government of a country facing a severe energy shortage. In an energy context in which there is still an inadequate power supply situation and there is a future prospect of power shortages, one would expect exhortations to conserve electricity rather than waste it.

The current relief in power supply has been brought about by high cost thermal power production. It is therefore more appropriate to reduce electricity consumption than increase its use. When households are being asked to pay more for their electricity, especially the extra units they may consume, it is strange that the government is indulging in such excessive and futile use of expensive electricity.

What is more it is inconsistent with the picture that is repeatedly being painted of our economic situation. Our national debt, we are constantly reminded is more than our GDP; the debt service costs are a huge burden on the public finances and the debt converted to a per capita basis is a staggering 70,000 Rupees or more per person! Should a country in such dire economic straits indulge in this sort of an extravagant exercise? The government certainly has a not too secret a rationale. They want to give the impression of an economic recovery and that economic prosperity is round the corner: that peace is assured and that economic prosperity is round the bend.

The economic facts however do not lend much support to this expectation. Certainly there has been a modest turn around. This year's economic performance is better than last year's.

In the first half of the year we achieved a growth of 1.4 per cent. Considering the fact that in 2001 we even regressed, an economic recovery of this dimension is hardly a good reason to dance on the streets, especially as the recovery is rather weak.

Last week we pointed out that the country is heading for a large trade deficit. Already our trade deficit is 10.5 per cent higher than in the corresponding nine months of last year. Our exports this year are likely to be even less than the performance of last year. Particularly worrisome is the fact that industrial exports have declined by 9 per cent in the nine months of this year.

An improvement in tourist traffic was expected this year, but during the first nine months tourist arrivals and earnings from tourism have declined by about 2 per cent. The much-improved record of tourist arrivals that was expected with the improvement in local security conditions has not materialised. Apprehensions in the global security concerns have dampened movements of tourists to the country recently. The continuing uncertain international security situation is not likely to assist the local tourist industry in the coming months either.

Consumer prices are rising at a faster rate than last year at around 11.5 per cent compared to less than 10 per cent for the comparable period last year. The rate of unemployment has increased to 9.8 per cent from 7 per cent earlier.

There are possible explanations for these, but the stark fact is that the economy is not faring that well.

In an economic situation that we have pointed out with facts to be far from favourable and an energy situation we are fully aware of as deficient, is there a justification for the country to spend money in lighting up the streets of Colombo to give an illusion of prosperity?

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