16 January, 2022

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A Dark Future Looming As The Foreign Reserve Down To $ 1.5 B, Lowest In The History: Eran

The opposition alleged in Parliament that foreign reserves have dropped to $ 1.5 billion which included the gold reserves of $ 300 million. The Govt. did not refute the opposition claim that the available cash reserve was only USD 1.5 billion less than one month’s import payment, lowest in history.

Eran Wickramaratne M.P told a news conference at the Leader of the Opposition’s office in Colombo that as a result, essential food items and fuel shortages would follow and the country could face power cuts in the future

The MP also stated that manufacturers and businesses would be prepared to face the consequences if the government informs the country well in advance. The oil refinery was also closed for the first time in history.

When this government came to power, the foreign reserves, which was more than $ 7 billion, has now reduced to 1.5 billion dollars as this government is more concerned with giving relief to its cronies than governing the country.

He added that despite reports that the International Monetary Fund (IMF) has provided emergency assistance to 80 countries, including Asian countries such as Pakistan, Nepal, Maldives and Myanmar, the government has not yet responded to a question raised in parliament a year ago whether it had received a rapid financing instrument from the IMF. Sri Lanka did not receive this assistance because the International Monetary Fund (IMF) had speculated that Sri Lanka would not be able to repay its loans due to the depletion of our foreign reserves which needs a comprehensive reform process.

The present government, which had criticized and repealed the fuel price formula implemented by the yahapalana government as a timely solution to the problems faced by the country, now insists that fuel formula is good for the country. This proves that they do not have a proper understanding of economic management or governance.

The foreign reserves which were around $ 7 billion in 2019 has been gradually declining every month up to $ 1.5 billion by November 2021 making it inadequate to meet the one month’s import needs.

Even the poorer countries than us in Asia received this Covid-19 emergency aid from the IMF, Sri Lanka was not included in the recipient lists due to the assessment of the International Monetary Fund that Sri Lanka needs major economic reforms in the context of the collapse of its foreign reserves.

According to the Standing Orders of Parliament, when a question is raised, it can be adjourned only twice. However, Wickremaratne warned that the government was still postponing his question ostensibly collecting data and urged that it was the responsibility of the government to tell the people the truth about the dollar shortage and its consequences in importing essential goods to the country and prepare them in advance, realizing that deceiving the people in prevarication of the fact is not a solution to the serious situation facing the country. (By M.Ali Hassen)

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Latest comments

  • 8
    0

    Here is one pointer where USD income has been purposely avoided. Dual Citizenship
    Fees . Rs. 345,000 (USD 1500) for Principal applicant. There is a huge outstanding list of applications to be attended to. The delay behind this is awaiting some palming-off
    to happen. This Department earns the highest in Bribery and is well organized.

    To-date, online payment from Applicants residents to make easy payment via Banks
    from Overseas has NOT been organized. The Link sent to some Applicants far and between for payments do not work and are suspected as fake sources originating from Officers said to be from the IE Dept. & all the links don’t always work. No
    serious attempt is being harnessed for this source of foreign income at all – since the very start. This is one of the Departments the President has not made a surprise visit,
    for some hidden reason.

    • 3
      11

      Eran: a dark future awaits the world reserve currency and the Neoliberal fake human rights global order that is built on American Militarism and War Mongering, as the USD is not worth the paper it is now printed on. The entire Washington-centered global financial system with the Washington Consensus (IMF and WB), ,at this head is a ponzy scheme to benefit the OECD DAC countries that have been looting and colonizing the Global South, where the real wealth of the world is. This is why tiny El Salvador now uses Bitcoin!!
      Sri Lanka should dump the USD and adopt Bitcoin and Crypto currencies.
      Basil and Goat Rajapaksa families are US citizens and America the crashed empire turned biggest Rouge State in the world has weaponized the Sinhala Buddhist Diaspora to asset strip Sri Lanka including the Kerawelapitiya power plant and destroy the economy while forcing expensive and dangerous mRNA Pfizer vaccines on Lankan.Washington has printed USD 9 trillion in the past 2 years of Bio-Terrorism Covid-19 hoax “Bailouts”, and so too the Europeans have been money printing. The US is the most indebted country on the planet! China is the biggest economy to day.

  • 3
    12

    Also, Eran, Washington has 800 military bases, and Lilypad marine bases, all over the world, produces and exports more weapons than the next 8 countries together, according to the Stockholm Peace Research Institute (SPRI), and sells them all over the world while stoking wars to sell weapons as the wise Cardinal Malcom Ranjith said, and then preaches financial prudence and Human Rights!

    JOKE RIGHT?!

    • 5
      2

      Dinuk, another mad hatter is born amongst us, welcome! Where do you crazy fellows come from? Every day I see a lunatic appearing on CT with opinions that don’t make any sense. Are you a cousin of Eagle ‘dimwit’ Eye?

      • 1
        0

        TfN,
        Strange that you haven’t noticed D before. She is female, Princeton educated, and given to conducting research on Covid in Kanatta. A good example of too much education.

        • 2
          0

          Old Codger, I sincerley have to say that I have lost count of how mad hatters are on CT. A whole string of nuts are cropping up under different names. Whew, my head is spinning trying to keep track of these looney tunes. She was at Princeton, USA or Princeton MV in Hambantota?

          • 1
            0

            TfN,
            Ha, ha, didn’t know there was another Princeton!
            I have a feeling her US visa was rejected.

  • 2
    1

    ” $ 1.5 B, Lowest In The History: Eran”
    *
    Sri Lanka Foreign Exchange Reserves was measured at 1.7 USD bn in Oct 2021, … high of 9.0 USD bn in Apr 2018 and a record low of 38.0 USD mn in Apr 1970.
    [https://www.ceicdata.com/en/indicator/sri-lanka/foreign-exchange-reserves]
    *
    The level of gross external assets of the country reached a peak of SDR 735 million in 1984 from SDR 296 million in 1980 and the international reserves held by the Central Bank also rose from SDR 192 million to SDR 494 million during this period
    (Source Central Bank)
    *
    I wonder when “history” begins for Eran– or is it Ali Hassen!
    *
    The situation is not happy at all, but comment should be sober.
    Notably, our foreign reserves stand mainly on borrowed money since 1978.

    • 1
      0

      S.J,
      You beat me to it. Still, there is another howler. This is not “the first time in history” that the Refinery was shut down. It is shut down regularly for maintenance, like any other refinery.
      I heard another idiot MP claiming in Parliament that this is Asia’s oldest refinery. Maybe not, but maybe we have the dumbest MP’s.

  • 2
    0

    A future of riots, unrest, extremism, poverty, war and violence (if SL remains as one multi ethnic nation).

    Not bad for weapons dealers, refugees, human traffickers, coffin makers, soothsayers, drug dealers, politicians, extremists, terrorists and fools.

  • 1
    0

    I know that this is a must read article, but I’ve been kept busy with this:
    .
    https://www.colombotelegraph.com/index.php/church-of-ceylon-anglican-democracy-choosing-the-best-to-be-put-over-us/
    .
    As a strong and principled Christian of a different sort, Eran, I know that you will be understanding, but I deserve no forgiveness unless I get down to reading this article, and, let me see, there’s also a Youtube to listen to, isn’t there?
    .
    Eran, what do you feel about the fact that the “Dislike” button on Youtube doesn’t work?

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