24 June, 2024

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Government Is A ‘Blackhole’: IMF Should Be Worried About The (225+1)

By W. Vishnu Gupta

W. Vishnu Gupta

The State of Sri Lanka experienced the most bizarre and undemocratic political change in the modern history of the democratic world. All citizens, if not most of the Sri Lankans irrespective of their political affiliations, demanded change of government led by corrupt and vile Rajapaksa chicaneries. They, including their extended family members are alleged to have squandered the state assets and siphoned billions of dollars and stashed away in the overseas private bank accounts in many countries. For 13 of the last 18 years, members of the Rajapaksa family have controlled the highest reaches of Sri Lanka’s government. During this time, this ordinary family of an unassuming farmer; D.A. Rajapaksa who could not afford even a push-bicycle has become one of the most dreaded billionaires, leader of the pack Mahinda Rajapaksa was hellbent on creating an everlasting political dynasty by firstly duping leading Buddhist clergy, secondly laying the foundation for polarizing various ethnic groups and finally by instilling fear among majority Sinhala Buddhists, Rajapaksas were the masters of “divide and rule”,  they promoted divisive acts based on ethnicity, religion and language. 

April of this year, Bloomberg reported how and why Rajapasas were responsible for the economic crisis in the country, in an article published under the caption “A powerful dynasty bankrupted Sri Lanka in just 30 months.”

Likewise, in May 2022, Washington Post reported that “The Rajapaksa brothers have dominated politics here for most of the last 20 years. After helping Mahinda win the presidency in 2005, his brothers Chamal, Gotabaya and Basil took over ministries that controlled three-quarters of the national budget and built popular support despite allegations of human rights abuses and corruption. But by 2019, when Gotabaya became president, the family was marred by infighting and dysfunction that would drive South Asia’s most developed nation into ruin.”

Obviously, it appears that Rajapaksas have planned well to rob the state of Sri Lanka, and it can be assumed that their grand scheme included the appointment of a crafty accountant and Mahinda Rajapaksa’s personal acquaintance as the Central Bank Governor. There is no other explanation for bringing Nivard Cabraal who worked in the private sector and for ignoring well trained and qualified senior central bank executives including deputy governors and directors vying for the plum job at CBSL. Rajapaksa may justify appointment of his pal as the Governor because his predecessor Chandrika, known as the bandit queen or “Chowra Rajina” was the first to violate the sanctity of the apex appointment at CBSL. Therefore, when it comes to economic crimes Chandrika and his inner circle should not be overlooked, Chandrika installed the first outsider; Sunil Mendis a corporate executive as the 11th CBSL governor on 1st July 2004. A carefully orchestrated move by the corrupt oligarchy, the appointments of political stooges are highly suspicious and should be considered as a push toward to weaken the independence of the STATE institutions and pave the way for economic crimes. The opening of the floodgates for economic crimes was accelerated by Chandrika, Rajapaksas, and Ranil. Consequently, Nivard Cabraal (12th Governor), Arjuna Mahendran (13th Governor), W.D Lakshman (15th Governor) and for the second time Nivard Cabral (16th Governor). All these political clowns appointed by the temporarily elected government leaders were equally responsible for the economic crisis of the nation. 

Moreover, it is a cardinal principle of democratically run states, and time also has proved that the central banks must remain independent from government FISCAL POLICY to carry out the nation’s monetary policy and control its money supply, and maintain low inflation with steady GDP growth, often mandated by the requirements of the state and not by the nefarious motives of the temporarily elected government. Therefore, the central bank must remain uninfluenced by the political concerns of any regime. Then obviously, Chandrika, Mahinda, Ranil and Gotabaya and their inner circle of political collaborators have deliberately violated this cardinal rule to achieve their personal and political goals driven by alleged compulsive appetite for hedonistic lifestyles.

It is not only the Central Bank, but the charlatans controlling the government of Sri Lanka has been politicizing and tainting the state institutions since 1960’s including the judiciary and security forces. These abhorrent politicians have appointed their political henchmen, friends, and family members to weaken the state and hence the sovereignty of Sri Lanka. Controversial individuals such as L.Weeratunga, Cabraal, Mahendran, Mohan Peiris, Shirani Bandaranayake, Moragoda, P. Jayasundara, J. Wickramasuriya, Attygalle, J. Jayasuriya, C. Ratwatte, Paskaralingam, Amari Wijewardene, Nishantha Wickramasinghe, and U. Weeratunga are among thousands of political appointees who followed the dictates of temporarily elected governments lead by politicians responsible for economic crimes in Sri Lanka. They have participated, encouraged, turned blind eye, and endorsed the economic crimes willingly or unwittingly and weakened the state institutions. The Bankrupt nation is the sole evidence of the crimes committed by all politicians and their agents appointed to state institutions, it took only 74 years to bankrupt the country and it is laughable when Ranil, one of the gang leaders who ransacked the state, expects to rectify the situation by 2050. It is equally hilarious to note that there is no serious debate about these political operatives and other similar individuals either in the media or among academics and other civil action groups that has mushroomed in the country. 

The common denominator that drew us to bankruptcy

The shared belief of (225+1) and their appointed agents in the state institutions is “Greed is Good”, and they do not understand the pain of majority of citizen suffering from hunger, disease, and lack of other basic needs. These demonic men and women must be told unequivocally that “Hunger is not a Choice”. The state is unable to feed, shelter and provide vital necessities because of the unceasing greed of (225+1) plus their agents. IMF and other donor countries must demand political reforms and structural changes in the state institutions. The government led by an unelected leader and a bunch of vile politicians are not the legitimate recipients of much needed financial assistance. Firstly, IMF must call for accountability statement with independently verifiable data related to all bank loans and grants obtained from donor countries and other international agencies such as ADB. Secondly, IMF and the donor countries must demand explanation on alleged financial irregularities and excesses committed by Premadasa, Chandrika, Mahinda, Maithri, Gotabaya and Ranil and their political cohorts including cabinet ministers accused by the people. Thirdly, IMF and the donor countries must ascertain whether the actions and policies of the regimes controlled by the above politicians and their families have driven Sri Lanka to bankruptcy and the prevailing economic crisis. Therefore, the international players specifically IMF, China, India, Japan, and the USA, should not hurry to feed the unceasing appetite of politicians accused of stealing from the coffers of the state and they should not prop up a government lead by an unelected corrupt politician. Above all contrary to the claims made politician such as Ranil, Ali Sabry, G.L. Peiris and Wijeyadasa in the international forums, Sri Lanka is not a vibrant democracy, it is a fraudulent parliamentary system, the political parties are not democratic at all, and it is the most fundamental issue in governance of Sri Lanka. The IMF and other lending institutions should delay all financial assistance until the STATE is ready with a legitimately established government under a credible political leadership. In the present context, Sri Lankan government is a BLACK HOLE for international funds. 

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Latest comments

  • 9
    1

    Mr. Gupta, lets be honest. Will any right minded person lend loan (personal) to Lanka ???? Not me. Charity may be but not loan, even that too is not an option anymore.

  • 4
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    Government Is A ‘Blackhole’: IMF Should Be Worried About The (225+1)

    The pied piper and followed by the old parlimentarian cannot white wash and be in front of IMF as the IMF knows by leaders action country is in bankrupt they need a fresh group to build up IMP is setting a diciplinary & Prevention, and transparency are necessary, but insufficient, IMF must rejects the the present country action that every time a law’s broken, society is guilty rather division brought up the memebers with Ranil not bought to account for the action as Ranil loose votes as he is build in president with his present leaders agreedment is prolonged by the IMP as the innocent suffer.

  • 6
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    Mismanagement, nepotism, cronyism, & along with it, corruption, became blatant under Mrs B, an uneducated housewife who came to politics on a sympathy ticket. JR era was a new dawn but his autocratic governance made a mess of a possible bright future & his successor, Premadasa, an uneducated trade unionist with a chip on his shoulder, started the trend in white elephant ego spending of state funds. He was succeeded by another uneducated former cooperative inspector who just wanted to abide his time & went with the flow. Then came CBK, & as the author has correctly stated, took corruption to another level, & worse, appointed MR, the loyal pet dog, instead of competent Kadiragama. She played to the gallery with the hope of continuing the Bandaranayaka legacy but the worm turned, which ended the Bandaranayaka dynasty & the party. The new kid in town was MR who took corruption & mismanagement to new heights. A new dynasty was born & we cheered the ‘saviours’ of SL & Buddhism. However, mega corruption was apparent, so we appointed the biggest yob, a humble ‘gramasevaka’, way out of his depth, to the highest position & a chalk & cheese ‘yahapalanaya’ joint venture was formed. Another disaster, which brought back the known devil & his stupid brother, touted as a military strategist, & the rest is history. Regimes change but the same yobs remain.
    Cont.

  • 5
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    Cont.
    Looking back at our glorious history since independence, is it any wonder why we are in this mess? Will any country or organisation have faith in SL? Not until there is a judgement day when all these politicians & their cronies are held accountable for crimes against the people of SL.

    • 3
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      Raj -UK you summed up Lanka’s not so glorious political history ( misery) in a nutshell. Hilarious to see our political experts / self claimed historians go through this rubbish, coming up with, all kind of finer details, analysis, explanations and what not ,

  • 3
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    IMF must be of the opinion that never again a loan to a country like Sri Lanka even if there is a change in the leadership. As IMF or international communities jolly well knew that President Ranil Wickremesinghe is the proxy of Rajapakses to continue the loot even after putting the country in a precarious economic bankruptcy which the country experienced before. But the saddest part is Ranil Wickremesinghe will not take any initiative to apprehend Rajapakses and their cronies swindled and abused huge sums of funds hidden outside the country.

  • 0
    4

    Sri Lanka’s economy will hit another massive blow next year due to the EU’s impetuous decision to impose a price cap on Russia’s seaborn crude oil. The EU’s decision will only benefit the United States at the expense of the very architectures of the price cap. Russia has already stated that it would not comply with the price cap, which is $60 per barrel, and threatened to completely stop selling oil to all the countries that have supported the price cap of Russian oil.
    What would Russia do? Interestingly, the EU has given Russia an alternative.
    Oil industry experts and economists have predicted that if Russia stopped exporting oil to all 27 EU member countries, the price of oil will go as high as $200 per barrel! We cannot blame Russia if it takes full advantage of this situation. I believe that Mr. Putin has already started or planned to hold talks with OPEC+ countries, India, China and other countries to increase their oil imports from Russia. According to records, China and India now import more Russian oil than all EU member states together. What will happen is
    Contd’…..

    • 0
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      What will happen is, global oil giants will stockpile Russian oil through direct purchasing or through third parties to be sold at $200 per barrel when Russia completely stops exporting its oil to the EU member states. Who wouldn’t? Countries like China and India will jump at the idea of increasing oil imports from Russia to be sold to European and other oil companies and make unprecedented profits when the price of oil hits $200 per barrel. I pity poor countries. Whose fault is it? In the meantime, there is a possibility that Russia would increase its profits by altering its current discounted price of oil to $40 or 50 per barrel. Needless to say, if crude oil prices hit $200 per barrel, prices of its by-products will also be increased. That means, there will also be an increased demand for by-products of crude oil from Russia. The same theory will apply to Petroleum and its by-products in February next year. Very soon, the EU’s “price cap boomerang” would come back to its throwers.

  • 1
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    Ranil-Rajapaksa will do anything under different guises to retain power in the country, for instance raiding schools looking for drugs. How can we forget when Ranil, Rajapaksa and Sumanthiran opposed the attempt made by Maithree to execute four notorious drug dealers in 2019. The other attempt waged by present illegitimate leader to distract the attention of the people and to mislead the international community is the discussion on constitution of the country. The root cause of the economic crisis and dissatisfaction of the minorities have no bearing on the constitution. (225+1) is the problem and they are collectively responsible for the “Blackhole” and the legitimate grievances of Tamils in the North.

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