1 March, 2024

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Government’s Election Manifesto Was Issued By The Central Bank!

By Hema Senanayake

Hema Senanayake

The Central Bank issued a Press Release on January 4th, 2023, on the same day, the Provincial Council election was gazetted by the Election Commission.

The Central Bank knowing that the government’s culpability in bringing this economic crisis could play a huge role in the election, it exonerated the Gotabaya regime’s responsibility from making the crisis in the first place and for prolonging the crisis under the Ranil Wickremesinghe’s presidency.

We all know that nothing will happen without the presence of necessary conditions. This principle is known as the cause-and-effect principle. No crisis could happen without the presence of necessary conditions. 

So, everybody in this country knows that the President Gotabaya Rajapaksa’s regime set the cause for this economic crisis by not taking prudent and timely decisions. Instead, he lectured the Central Bank officials about running the Central Bank properly. Foreign currency reserves evaporated under his presidency. IMF warned about the necessity of taking care of debt sustainability months before the crisis and directly communicated it to the former Presidential secretary, Dr. P.B. Jayasundera. Neither Jayasundera nor President Gotabaya paid any attention and on the contrary, they argued as far back as July 2021 that fast tracking project loans from the World Bank, ADB and other multilateral and bilateral lender supported projects would be sufficient to meet the balance of payment problems; seeking IMF support was not necessary. Country crashed under their watch. In that sense Gotabaya’s government was responsible for bringing this economic mess.

This culpability of economic crime was exonerated by the very first paragraph of the Central Bank’s press release.  Instead, it says that the current economic crisis was resulted due to Easter Sunday attacks in 2019, the outbreak of COVID-19 in 2020 and its protracted impact on activity in the aftermath in 2021, the socioeconomic and political crisis in 2022 amidst catastrophic balance of payment pressures. These were the causes for the crisis identified by the Central Bank. Then the Central Bank says the crisis itself led to make unprecedented policy trade-offs which have severely affected economic activity inflicting unimaginable hardships to individuals and businesses.

But we know that the sociopolitical crisis is the response not the cause as identified by the Central Bank. In fact, the Central Bank knows the truth. Then why it has said what has been said. I guess the Central Bank wants to exonerate the government’s culpability in making the crisis. But Gotabaya has gone. Then why the central bank wants to exonerate his regime from being responsible in creating this economic crisis. The second paragraph of the press release provides an answer to this very question. 

The reason is to exonerate the present government for prolonging the current crisis. The second paragraph of the press release begins by saying that, “the government and the central bank were compelled to implement painful but unavoidable policy measures during 2022 aimed at restoring macroeconomic balance.”

The truth we know is that the present government prolongs the crisis by not bringing the macroeconomic balance soon. The central bank first exonerated the Gotabaya’s regime from the responsibility then exonerates the Ranil’s regime for prolonging the mess. At this moment the most important economic indicator is the “business confidence.” The present government is ruining it. The business confidence is an intangible and subjective parameter. But right now, it depends on a very objective variable known as the stability of the domestic currency or rupee. In turn this stability of rupee depends on the inflow of debt free dollars, a very objective parameter. Ranil’s government ruining the confidence. That is why the press release itself reveals that “measures were initiated to improve foreign exchange liquidity in the domestic foreign exchange market with the repatriation and conversion requirements of foreign exchange, thereby disincentivizing activity in the grey market.” What does this mean? It means that those who are capable of bring in debt-free dollars have lost confidence in the government and therefore the Central Bank had to impose punitive rules for repatriation of hard-earned dollars or other foreign currencies.  

After hatching a constitutional coup and holding on to political power would not create any confidence domestically or internationally among all stake holders. They all know that the present regime is not a legitimate government, and its days are numbered. The way to revive lasting “confidence” is to set up a corruption free “united supper democracy” of all-party government for limited time period, say for one year. Then every political party, not selected few henchmen, will be included in IMF negotiations, debt restructuring, economic reforms etc. Such policies may continue even after the next parliamentary and presidential elections. Once I told this necessity to a prominent JVP member. He agreed and said that they will do it under their government without people of corruption allegations. Then, I agreed.

This means, I guess, all political parties know what is to be done to save the country. But the Central Bank doesn’t know it, it seems. That is why it tries to paint a rosy picture of what the government and central bank do right now. It never points out the need of true political stability which will transcend a positive message to all stake holders, motivating them to bring in debt-free dollars voluntarily, increase in tourist arrivals or fast-tracking lending to support balance of payment issues, in restructuring debt quickly, in providing bridging finance and even bringing in Foreign Direct Investments, etc. Political stability is the main thing. Ranil cannot do it by intimidation. Ranil will awaken to this reality possibly after the provincial council election. The sad thing is that to awaken him from an illusion, the election commission must spend nearly Rs. 10 billion. People will do what the Central Bank reluctant to do as the official economic adviser to the government. 

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Latest comments

  • 9
    0

    I think the Central Bank wants to put on record that it was the Easter Sunday attacks staged by Gota and his Deep State accomplices that allowed him to come to power and destroy the economy. However, Central Bank should realize it is inappropriate for it to make such political statements and should stick to its mandate and talk about economics only.

  • 6
    1

    Well said Mr Senanayake. We all hope ranil will be thrown out early for the country to recover. Our debt is mounting up, central bank doesn’t give any details. The CB is the main culprit hiding the truth. Ranil has runout of loans now he will have to sell profit making institutions or try and obtain IMF funds to keep the support of the corrupt politicians and administrators. No one is going to buy even the profit making institutions because they will not get dollars to send the earnings out

  • 12
    0

    In this country, what happens is that the donkey tries to do the work of the dog and the dog in turn, tries to do the work of the donkey. In the end, when things go awry, both the dog and the donkey keep passing the buck!
    Another thing is, the guilty are absolved/ exonerated of all wrongdoings and the people who protest against corruption, bad governance, injustice and hardships are arrested under the PTA and put in detention indefinitely.

    • 3
      0

      What does that clearly Portray??? This is a country of Buffoons, unequalled by any other!!! Hooray!!! Country reached the PEAK!!??

  • 8
    0

    One Family economics principles equals one countries economic principles. A family to develop its economy all members of the family have to work hard efficiently and effectively united sharing the resources to maximise the family benefits. If there is conflict between family members you cannot achieve your benefits. This principle is a necessity for a country. So, all the citizens of this island should be equally contribute to the country’s benefit. So, Government cannot represent only one community or one race. Since independence that principle was violated and that brought bankgruptcy. So, Unity of communities is the only way for this island.

  • 6
    0

    Mr. Senanayake: Why did you forget the court case filed against the culprits viz. Gotabaya, Basil, Cabral, MR, Artygalle and P.B.J who are all made “Respondants” for bringing the “Economic Downfall”?

    On the first day of the hearing, the Court ordered that a comprehensive report be obtained from the Central Bank in regard to the payment of $ 500 Sovereign Bonds by the then Governor Cabral that led to the depletion of our foreign assets. This “Report” you refer to could be to “PROTECT” those indicted in the case more than intended to be an “Election Manifesto”.

    Recently, the present Governor Nandalal Weerasinghe visited “Umandava” – the “Heaven” where the “Enlightened” (self-declared) “Samanthabadra” lives. He -Nandalal was “Entertained” to a very “Lavish” and “Sumptuous Buffet”. He traveled all the way to Mel-Siripura in Kurunegala to pay his respects to this “Enlightened One”. Nanadalal’s next visit was to Asgiriya and Malwatte. He too, as c
    “customarily” done by all “Corrupt Politicians” presented the Chief Prelates with “Ata Pirikara” and trays of “Fruits”. These visits could be to request these parties to “Transfer” some “Percentage” of the “Enormous & Unaccounted” funds to CB to meet urgent needs of the Government expenditure. Nandalal knows where to “TAP” for urgently needed funds. He is doing a “Good Job”?

    • 8
      0

      During this unprecedented crisis the people are going through, Nandalal should give priority to economics, not dabble in politics or indulge in self-promotion. He should get on with his job for which the poor tax payers are paying him – rather than going and prostrating before the fraudster and charlatan Samanthabadra. There is no need to pay obeisance to the chieftains at Asgiriya and Malwatte either. Nandalal should realize he is not a dignitary, but a public servant. He must try to behave according to professional ethics rather than feudal norms.

  • 10
    2

    If the people who have forcibly grabbed the responsibility now ……… can easily solve the economic problems of the country ……. put it on the right track in 6 months …… and come out of the woods in 2 years.

    If that’s their primary intention!


    It’s high time people stopped wasting their time and understood …….. this is not politics or religion or economics or anything else going on here ……. what’s going on is just basic human cussedness.

    Ranil is a man who said he would not bring into parliament people who lost: he refused to accommodate Rosy Sennanayake.

    This is the same man who has come into parliament through the national list after losing his seat …….. and now grabbed the presidency through shameful cunning scheming. It would not pass any of the tests/criteria/principals he set for others when he was wining his seat by huge margins and had much self-respect as a result.

    • 9
      1

      continued

      Now Ranil has no self respect/esteem left after he and the party couldn’t win a single seat. He is trying to cover his shame with some put-on arrogance.

      For Chrissake man, understand this is not about developing or rescuing the country. Ranil is just being vindictive to get back at the other deadbeat, his nemesis Sajit …… to breakup Sajabe (or whatever it is) …… and teach a lesson to UNPers who abandoned him ……. and show them, if they had remained with him, they too would’ve got some positions to enjoy the perks and privileges without doing any real work.

      It has nothing to do with developing the country or the blooming economy …….. it’s high time people focused on the reality of the situation ……… without diverting people’s minds into other nonsense.

  • 2
    0

    Prolonging the crisis under the Ranil Wickremesinghe’s presidency

    Like the hen is hatching eggs he is hatching the Presidency his life time dream where he no knows he has no people power but the pohotuwa minister power, it will only incubates people to hatch bigger ideas that are not forthright and not abiding by the law, President experience cannot unwind the IMP challenges but foreign policy is increasingly falling prey when a rebuilding deal is done with IMF

  • 9
    1

    The vast majority of Sri Lankas are idiots with a low IQ. Those of readers and commentators or indeed writers are a microscopic minority that is largely insignificant in determining who governs. The vast majority of idiots will again vote with their derrieres when elections are held at great cost. They will also swallow the codswallop being dished out by Nandalal and his central bankers. Sri Lanka will never recover from its dire straits unless a popular revolution, backed not by the fat mahanayakes and parasitic vermin in parliament or mercenary industrialists but by the awakened and intelligent students, graduates and other such groups completely wipe the slate clean of the rotten scumbags who have committed economic crimes against humanity.

    • 3
      3

      Dear Lasantha,
      .
      I totally agree with you. I am neither a pedant nor a UNP member. I am not a 100% supporter of anyone. I am only a moderate critic but completely against fascists and murderers.

      https://www.colombotelegraph.com/index.php/wasantha-mudalige-4-january-2023/

      But commenter- Sinhala man is trying to put me in danger. I believe CT will ban him next days. His intention must be to kill me in the same way Jamal Khashoggi was dismembered in Istanbul 4 years ago.

      This man is more or less like JVP-Dracula who killed our youth in 89-92.

      See how man underestimates the danger before us. The only way to correct the colossal failures committed by past governments is to align a composition of good young leaders who represent all good thoughts for a better future. It should not be limited to JVP. Then again, it will be a hell of a new struggle because the JVP has no overall knowledge of the nation and what they really want.
      .
      How can we teach seniors like SINHALA MAN the basics?

      • 5
        2

        Dear LM: I have to take exception to your views on “S_M” and “JVP”. You say: “JVP Dracula who killed our youth in 89-92”. Hope you have collected all the “Data” and an “Analysis” of the “Identities” of all those engaged in such killings. Surely, you would agree it was not only JVP but there were many other “Gangs” “STRUCTURED” and leashed out like “Mad Dogs” to carry on the massacres. That is only a drop of lime to awaken your memories.

        As regards “S_M”. Don’t try to “Teach” others and others’ to “BAN” him. You will fail. Do I have to tell what “Teaching” means? Instead of “Teaching”, try to give “Information” and your “Views”. Let the “Recipient” the “FREEDOM” to sort out and “ABSORB” what is suitable and within his/her capacity to learn.

        Please “LEARN” from the fate that fell on Sepal Amarasinghe. Please read my comment on that article by Symond Jayasinghe. My views are there for your absorption.

        • 3
          5

          Dear Simon,
          what are you talking about ? Don’t you think SM should think twice before blaming the people who post comments?
          He is the one who abuses words repeatedly. However, he should understand that there are people who respect anti-AKDISM theories more than anything else. He behaves like a teenager today. Not a single person who exchanged emails with him wants to go back to him. His is absolutely despicable.
          I have received a lot of information about the 89 rebellion and the number of killings. Not from other gangs, most of my gangs were burnt in Tipperary at the time. As I once revealed, a family was sent a parcel of meat in the mail and later informed that they had eaten their own son’s flesh and bones. Can you imagine how cruel that must be? Another friend of mine, Sanath Senaviratne (an undergraduate student from Pera) was killed near Galle. He was the only son of those teacher parents. Not from other gangs but J.V.P. SM explained that he was out of the country during that time. If someone killed one of his daughters he would be sad…but perhaps not…. . To be honest I’m not sure he would be sad even if his family is gone. From what I read about him today, he is not the man I once knew him to be. Bad associations change people… Grandma said that again… abuddassa kale labuth thithalu.

      • 6
        0

        LM,
        “His intention must be to kill me in the same way Jamal Khashoggi was dismembered in Istanbul 4 years ago.”
        You don’t need to be so dramatic. He may think anyone who disagrees with his current politics is a traitor, even if they send him chocolates. That’s simply ingratitude amounting to boorishness. Not murderous intent.
        You don’t really want him to think he’s as fearsome as MBS?

        • 3
          0

          “dismembered”

          Too bad! ……. You revealed where you live …… he is taking the 153 bus day and night looking for you.

          Better keep your shirt on! …… the sculpted chiselled chest will give you away! :))

          • 1
            4

            NF,
            yes dismemberd..
            .
            Why don’t you take it seriously, he is also following you. You are sure to be the next target on his list… frech grins.

            He wastes time, so he should be busy gossiping about others until he finds another hobby.
            Other than that, I don’t understand why he is chasing us. Does a man who fights for democratic rights treat his opponents with vengeance? My psycho-social analysts will be contacting him in the coming days to collect more.

          • 2
            0

            Nimal,
            I’ve already taken to stealth tactics. Taking the other bus, a bit longer, but I get to see Deepthi’s heaving you-know-whats.

        • 0
          4

          OC,
          thanks.
          It is normal for him or similar people. They act like they are sitting on their little heads. Although they speak highly of objectivity, even simple things are not clear to them. I really don’t know how a mild-mannered man can fall so deep. According to me, the types of behavior are pathological. My appeal is to psycho-specialists, such citizens need urgent help. They abuse words, time and unnecessary power without any just cause. Paradoxically, they behave as “know-it-alls” when it comes to racism, equality, religious freedom, freedom of the press and, above all, democratic rights. Isn’t this the real problem of our society? My comparison was to wake him up.

    • 6
      0

      CB article, word by word is referenced, citing recent write up of great Nivad Cabraaaal. Funny indeed. Cabraaaal runs down the CB and the nation, they in turn pay tribute by citing him. Can’t say better than Lasantha Pethiyagoda.

    • 2
      6

      “The vast majority of Sri Lankas are idiots with a low IQ. “
      Are they any worse than people who vote into power the likes of Modi, Trump, Biden, Boris and the lot?
      If they are idiots, what do you propose to do with them, as idiocy is not an reparable condition.
      *
      I can assure you that there are plenty out here who will endorse your statement, in the hope that they will not be counted among the ‘vast majority’.

      • 2
        0

        SJ,
        I wonder how those who call for bloodthirsty revolution will take it when one knocks on their own doors…

      • 3
        0

        Out of curiosity, “how can idiots assess, intellectual capacity of others, to know they are same or not” ???

  • 5
    0

    SJ

    In defence of Lasantha Pethiyagoda, let me say that, we, in general, are bigoted, self serving opportunists. Irrespective of the allegations that the Rajapakses connived with the LTTE, which amounts to treason in war time, they taught the minorities who the masters of SL are, & for that matter, everything is forgiven, even for milking the country dry & for them, the hardships experienced by the average citizens now, seem to worth it. In every society there are such people but in developed countries, they are a minority, particularly, the diehards because those misled come to their senses soon enough. Therefore, a comeback for Trump is unlikely & he is likely to face criminal prosecution, the Brexit was a mistake but a Boris comeback is also doubtful

  • 6
    0

    cont.
    Let me finish by saying, that Liz Truss lasted only 44 days after blowing up the economy & her political career is over. The Bank of England intervened to save the day & continue to be independent. Sunak is a practicing Hindu but the Tories knew he was the best man available & even Boris thought twice & withdrew from the race, deciding not to challenge Sunak, so Sunak took over uncontested. Would that happen in SL? That is, apart from the fact that RW also took over uncontested but is he competent or capable?) At least in UK, if you don’t deliver, your days are numbered.

    • 7
      0

      Raj – UK , good luck to you , trying to explain to a Lankan genius, who can even normalize Bankruptcy, dysfunctional system and a failed nation.

    • 3
      1

      Ruk,
      “That is, apart from the fact that RW also took over uncontested “
      No, he didn’t.

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