20 September, 2021

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IMF Or Not: What Other Options Are Available For Sri Lanka?

By W.A Wijewardena –

Dr. W.A Wijewardena

Closing the door to IMF

Central Bank Governor Deshamanya Professor W.D. Lakshman, in an interview on Derana’s Hyde Park last week, reiterated the stand of the present Government that it will not seek any bailout from IMF.

This was one day after Sri Lanka kept its unblemished record of meeting all foreign debt obligations on time by paying in full the International Sovereign Bonds or ISBs of $ 1,000 million that matured on 27 July 2021. This was done by using the existing foreign reserves of the country and minimising the dollar outflow by arranging with the local banks to reflow their maturity proceeds to Sri Lanka Development Bonds that are to be issued on a future date.

State Minister of Finance Ajith Nivard Cabraal, a former Governor of the Bank himself, congratulated the Government on keeping its promise untarnished. He expressed his sympathy for those who are deemed to have incurred a loss by overreacting to rating agencies and analysts’ reports. He too had previously maintained in an answer to a question raised in Parliament that Sri Lanka could resolve its debt issues without the support of IMF.

Recently, in an interview with Sunday Times, the de facto policy chief of the Gotabaya Rajapaksa Administration, President’s Secretary Dr. P.B. Jayasundera too had reiterated that going to IMF was not the solution.

Strangely, the new Finance Minister Basil Rajapaksa has been silent on this issue, perhaps keeping his options open. But as it is, the Gotabaya Rajapaksa administration appears to be firm on the stand of not seeking IMF support to rescue Sri Lanka’s economy badly battered by worsening macroeconomic conditions exacerbated by the outbreak of the COVID-19 pandemic. Despite many suggestions by analysts, including this writer, the Government will seek to implement its own home-grown policies to rescue the economy without the support of IMF at this crucial hour.

Delaying the move to IMF will be costly

However, the experience in the past has shown that many policymakers and top politicians who had spoken valiantly against any type of IMF support had finally yielded to the pressures of the market and changed their stance. The most recent example was that after the Good Governance government was set up in 2015, its Finance Minister Ravi Karunanayake refused to seek IMF support to resolve the growing balance of payments problem of the country. Instead, he claimed that a Belgian investor had agreed to supply Sri Lanka with a deposit of $ 3 billion. He did not change his stance, nor did his Government, when it was pointed out that such an inflow may be a fake and smelled of an instance of money laundering.

When the Government decided to go to IMF, it was too late, and the rescue package was delivered only by July 2016. Because of this late adoption, it could not deliver the expected results. As a result, President Gotabaya Rajapaksa inherited a problem economy that demanded tough measures for effective resolution. Hence, when a country is facing an acute balance of payments problem, a delayed decision for a rescue package is extremely costly and the late delivery of support would not bring in the desired results.

Wittingly or unwittingly, the present Government too has fallen into this trap. If it one day decides to go to IMF, it will be too late. Hence, the present Government does not have a choice but to go along with its own plan of resolving the country’s balance of payments issue. That will involve, as Governor Lakshman had eloquently pronounced all the time, going ahead with the much-publicised alternative policy stance.

A Finance Minister on a tight rope

This is the formidable challenge faced by the new Finance Minister Basil Rajapaksa. His choice is like the paradox faced by the proverbial villager who was given an impossible choice: if he stayed in a place on route to house, he would die; if he went home, his wife would die. That was because, unknown to him, a cobra had lodged itself in his travel bag and whatever he did, it was an unbearable cost which either party had to take. Similarly, there is a cobra that had entered the coffers of the Treasury making the choice which finance minister had to make an impossible one. This will make the preparation of the Budget 2022, his maiden budget, a choice involving imposing enormous costs on some section in society.

The impossible three tasks of the new Finance Minister

President’s Secretary Dr. P.B. Jayasundara had given a clue about it in an interview with the website EconomyNext.. Claiming that the new Finance Minister will make a ‘dramatic change’ in his Budget 2022, he had said that the Minister is a practical person plus ‘market-friendly, state-friendly, and business-friendly’ too.

In terms of economics, a person cannot be friendly to these three competing sectors at the same time. For instance, a state-friendly person must expand the state sector at the expense of the market and the business. A market-friendly person can be to some extent business friendly if the business sector follows the market rules. If business is anti-market, both the market and the business clash with each other. Surely a market-friendly person cannot be state-friendly at the same time unless the state is prepared to follow the market rather than lead the market.

This was how the open economy with a human face preached by Chandrika Bandaranaike or social market economy of Ranil Wickremesinghe failed in attaining their goals. If all the three goals are pursued, it is an iterative process. The algorithmic formula requires the policymaker to follow one ignoring the other two and then return to the ignored goals one after the other. But once they return to the ignored goals, they are no longer in the previous condition. Once they are fixed and the policymaker returns to the original priority, it is also changed beyond redemption.

If a balancing act is required, it is like an acrobat walking on a tight rope holding three burdens at the same time in his two hands. If he tilts to one side, say to the state sector, he will fall. Similarly, if he tilts to the market side, he will also fall. The same is true if he tilts to the business sector. Hence, the Budget 2022, it appears, instead of bringing a dramatic change, will drive the new Finance Minister to an inescapable trap. He should be wary of this pitfall if he is a practical man as claimed.

Singapore story

Can a country rescue itself without an IMF program? It can, provided it will introduce an economy-wide reform and restructuring program on its own. Singapore has set a good example for this.

Singapore joined both the IMF and the World Bank in 1966 one year after it got separated from Malaysia. Singapore’s Finance Minister at the time, Lim Kim San, while presenting the Bretton Woods Agreement Act in Parliament, justified seeking IMF membership on three grounds. They were: boosting Singapore’s capacity to manage its balance of payments, instillingconfidence of the global community in its monetary policies, and gaining access to continued IMF technical expertise and advice on Singapore’s economy.

Further, joining IMF was a prerequisite for joining the World Bank which might extend some development loans to infant Singapore. But apart from the technical advice, Singapore did not go for an IMF program. There was no necessity for such a program either. That was because Singapore continued to implement the needed reform programs on its own.

No free lunches

How Singapore implemented the reform programs has been explained by its first Finance Minister Dr. Goh Keng Swee in an article written for the silver jubilee commemoration publication of its Currency Board. Explaining why Singapore chose to continue with the Currency Board system, though it was a relic of the colonial rule, Goh says that Singapore’s old guard felt the necessity to establish discipline among its ruling politicians. Unlike a central bank, a currency board cannot print money for financing the government expenditure programs because it has to maintain an equivalent amount in foreign exchange when it issues currency. If the country does not earn fresh foreign exchange, it cannot print new money.

Similarly, if the country loses foreign exchange, an equivalent amount of currency already released will be withdrawn from circulation. Hence, there was an incentive for the ruling politicians to implement schemes to earn fresh foreign exchange. Dismissing the extant popular view that central bank printed money could generate prosperity, Goh says that the old guard did not buy that idea. According to them, the central bank money cannot bring in prosperity. Prosperity is generated by hard work done by all citizens, students in schools, undergraduates in universities and technical colleges, and workers in workplaces.

By adopting this type of a policy stance, Singapore’s old guard wanted to give messages to three types of people: its future politicians, citizens and people in the rest of the world. The message to its future politicians was that if they needed to have vote catching expenditure programs, they should bring that money from homes and not the money printed by the central bank. The Singaporeans were warned that if they needed better public services, they should be prepared to pay for them and not expect free lunches.

The message to the people in the rest of the world was the important one. It simply said that they could leave their savings with Singapore and the country would invest them prudently so that they would be paid an attractive rate of return, while ensuring the safe return of the principal.

No alternative for prudence

Accordingly, Singapore adopted a prudent budgetary policy and monetary policy throughout its post-independent history. From 1965 to 1973, the budget was balanced, from 1974 to 1987, a slight deficit, and thereafter, a budget surplus. Its monetary policy was so restrictive that its inflation rate was lower than that of its main trading partner, USA.

Hence, the Singapore dollar which was exchanged for S$ 3.32 per US$ in 1960 continued to appreciate in the market ending at S$ 1.35 per US$ by end-July 2021. In the external sector, Singapore had a slight trade deficit from 1965 to 1982, but a growing trade surplus thereafter. Its current account was in deficit from 1965 to 1987 and was in surplus since then. As Singapore managed its finances well, there was no necessity for seeking IMF funding.

Sri Lanka: Cut revenue and then print money

Sri Lanka which shuns IMF now can learn a few lessons from Singapore. Maintaining fiscal and monetary discipline is an important element in these lessons. On the fiscal front, the discipline should come from the elimination of free lunches by getting the users to pay, on one side, and enhancing the Government’s taxation capability, on the other. While the first element is now being tried out, the second has been largely ignored. This is evident from the loss of a massive amount of revenue by offering an unsolicited tax concession to income and value-added tax payers.

The loss of the Government revenue in 2020 compared to its achievement in 2019 amounted to some Rs. 519 billion or 3.5% of GDP. According to the developments so far, the loss of revenue in 2021 will amount to some Rs. 450 billion or 3% of the estimated GDP. To compensate for the loss in revenue, the Government has resorted to borrowing from the banking sector that is made up of both the central bank and commercial banks. During the period from December 2019 to June 2021, its borrowings from the banking sector had amounted to Rs. 2,854 billion.

This would have led to a massive increase in the money stock had it not been for the outflow of money from the country by way of a decline in its foreign assets. But the money stock during this period has increased by Rs. 2,541 billion or 33%. Sri Lanka cannot continue with this type of fiscal and monetary indiscipline and think of managing its own affairs without IMF.

This is the formidable challenge faced by the new Finance Minister when he prepares the Budget for 2020.

*The writer, a former Deputy Governor of the Central Bank of Sri Lanka, can be reached at waw1949@gmail.com.

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Latest comments

  • 15
    1

    I am hesitant to draw a parallel. Nevertheless, I shall. – Our national question.
    More the dillydallying, more the ugly it becomes!

  • 25
    4

    In essence sri lanka is not singapore.
    The former is a racist country filled with fraudsters.
    The latter is of a different calibre totally.
    Funny you mention the cobra in the bag analogy.
    Because it was god who put that snake in the bag.
    SL has much bad karma to pay for and
    until the people admit to this fact, repent to god and change
    their ways, there is no ‘outsmarting’ their way out trouble.

  • 14
    4

    Sri Lanka has the best rehabilitation program in the world for those who had issues dealing with public funds. The program is so effective the former miscreants rise to the top of country’s financial management. It is reported the IMF is showing a keen interest in learning about this novel program to see if any policy changes are needed.

  • 24
    3

    “What Other Options Are Available For Sri Lanka?”

    Line all the Rajapakses up in The Gall Face Green and shoot them …….. and make sure they are dead.

    That’s what has happened throughout history …….. for countries to recover …………..

    And I’m a pacifist ……. perhaps the last one still standing!

    • 14
      0

      nimal fernando

      “And I’m a pacifist ……. perhaps the last one still standing!”

      I suppose you want all your opponents/enemies to be pacifists while you want to “Line all the Rajapakses up in The Gall Face Green and shoot them …….. and make sure they are dead.”

      How do you reconcile both positions?

      By the way this was what the only lonely Field Marshal wanted to do to the clan just after the 2009 elections.

      • 3
        0

        “How do you reconcile both positions?”

        That’s not the only question I’m grappling with now! ……….. how about this?

        • 5
          1

          continued

          Let me put the cat among the pigeons. :))

          I confess; I’m a racist.

          It’s this thang I carry in my mind …………. I won’t let my children marry a Tamil, a Muslim, a low-caste Sinhalese, a Black, a Chinese, ……………….

          Shouldn’t I be stoned to death?

          Oh what the heck ………….. let me cast the first stone …………..


          https://www.colombotelegraph.com/index.php/spotting-a-racist-is-easy-what-to-do-next-is-the-hard-part/


          I said that on February 9, 2019 ……… now ye realize why I didn’t go …….. Mega/hyper/over-the-top ……..holier than thou ……… on poor Dr M M Janapriya …………..

          No wonder, Lanka has canonized only one saint ………. Native, what are my chances of being the next?

          Don’t ye agree, my chances are better than 50/50?

          Or should I lie my way into sainthood?

          Do saints attract gals? ……… If then, does the end justifies the means?

          • 4
            1

            continued


            I learned my thinking at the feet of Native’s favourite uncle Socrates …….. He said 3 things

            1. “The unexamined life is not worth living ……… know thyself.”

            2. “Have nothing to do with Native ……. he is too prone to emotions and quick to anger and judgement.”

            3. “Take ye time, Sweet Child o’ Mine ……. Time heals all wounds …… but more importantly, …….. Time wounds all heels.”

            Ye can stone me for being a racist …… or ye can stone me for being a heel. ……. But ye can’t stone me for both!

            Aren’t ye spoilt for choice? :))

    • 2
      4

      nimal fernando,
      “Line all the Rajapakses up in The Gall Face Green and shoot them …….. and make sure they are dead.”
      —-
      Is that the punishment for eliminating Tamil terrorists who terrorized the people in this country for three decades?

      • 0
        0

        “Tamil terrorists”

        Do I have a choice between the “Sinhalese” Rajapakses and the Tamil “terrorists?”

        Give me the “Terrorists” any day!

        Good ol’ Prabakaran was a principled honest dude who didn’t rob from his people ……….. but you might be a little past your mental-prime to realize it ………….

        • 0
          0

          Nimal,
          A true insight from you. During the war, the politicos were scared even to come out of their houses. The monks were cowering under their beds. We civilians could go about our business without fear of traffic policemen because they were all posted in the North.

  • 10
    3

    What Other Options Are Available For Sri Lanka? Many if the society has the will!

    There are many options available for the long term prosperity if we look at the problem from first principles:

    Sri Lankan society is a pampered lot.

    Being a poor country 73 years after self rule people don’t practice birth control voluntarily. Population is increasing steadily but the nation does not produce enough food, and other services to cater to the increased population. Result is increasing poverty.

    Will the rulers enact laws to implement birth control? No it will be unpopular. Singapore and China did it and they are prosperous now.

    Many rich countries charge economic fees for higher education in Universities and polytechnics but they also provide loans to cover the fees to be repaid in monthly installments when the graduates start working? Maha pola is given on top of free education to pamper students.

    The above only two instances where unpopular actions by the government can open the road to prosperity. Will they do it? A resounding no! So we go in a fools’ merry-go-round to poverty.

    • 3
      0

      T
      “Will the rulers enact laws to implement birth control? No it will be unpopular. Singapore and China did it and they are prosperous now.”
      Singapore did it more wisely than China.
      The one child policy has created for China problems that were realized rather late. Now there is hasty over-correction with a 3-child policy.
      *
      Our population growth is much under control and has been on the decline (over 2% in 1950 to 0.4% now and projected zero growth in 15 years).

      • 2
        0

        SJ, I think that China’s One Child policy only applied to the main Han ethnic group. All minorities were exempted. Please correct me if I’m wrong.

        • 1
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          Paul
          You are right.
          Even before the one-child policy there was birth control guided by the state. The minorities were exempt. But I do not think that the minorities abused the concession.

    • 2
      4

      Thiru,
      “Being a poor country 73 years after self rule people don’t practice birth control voluntarily.”
      —-
      Sinhalayo practiced birth control under the program ‘Punchi Pawla Raththaran’ (Small family is golden) but others did not. A study conducted by K. Radhakrishna Murty and Susan De Vos on ‘Ethnic Differences in Contraceptive Use in Sri Lanka’ and published in Studies in Family Planning Vol. 15, No. 5, 1984: pp. 222-232 says “In Sri Lanka, the majority Sinhalese had a much higher use of contraception than either the Sri Lankan Tamils or Moors.” (Source: https://www.jstor.org/stable/1965736)
      —–
      In order to persuade others to practice birth control, the Government should adopt a policy to provide free education and health services only to two children.

  • 2
    1

    This comment was removed by a moderator because it didn’t abide by our Comment policy.

    For more detail see our Comment policy https://www.colombotelegraph.com/index.php/comments-policy-2

  • 9
    1

    Sameera is a fearless.
    https://www.youtube.com/watch?v=e7stab23HxA

    Lalith WEERATHUNGA should have been jailed. I think President and his men are beyond bearing.
    Not even tribal african leaders have not behaved so. PCR test numbers have gone down.

  • 13
    2

    Govt after govt ruled over us succeeded in dragging the country on the path of bankruptcy. They divided us on ethnic /language ang religious lines and fattened their pockets.
    Now the present mob is selling the country piece by piece. Someone the other day said they would soon be selling us as slaves like in old days of Africa. But they already have started.
    Ask the stupid media who are the pawns of politicians to investigate on people smuggling during and after the war. It started with smuggling the people of North & East. As someone who has connections with vast number of Lankans went as refugees, I know some big names of Lankan politics are involved. This has to come out in the media and the culprits punished. Then only we can get rid of these poisonous weeds in our country before creating a just political environment.

    • 0
      0

      Razuh Langai,
      Not only in Africa, even in Asia there was slave trade. Those slaves are scattered all over the world in their former colonies. They used Sinhale/Ceylon as the hub for slave trade. That is how Sinhale has a place called ‘Slave Island’.
      —-
      “Someone the other day said they would soon be selling us as slaves like in old days of Africa.”

  • 3
    3

    Lankan Market-friendly and Business-friendly economies are far, far, out of the equation from the Family created State-friendly 0.001%- Oligarchy, as a bullock-carts are to Starship Enterprise.

    As for Singapore, potential was apparent- i.e. burgeoning region via colonial money connected to money stolen from China + oil rich countries surrounding it. So Spore citizens had incentive to work hard.

    • 2
      0

      State-friendly 0.001%- Oligarchy doings :

      2-billion on vehicles for MP’s ;

      2-billion on Olympics drive for Sr Lankan venue ;

      10-billion on Space-X investment ;

      20- billion on Crypto investment.

  • 12
    0

    Old Codger

    I cannot understand why this issue of seeking IMF’s assistance is being blown out of all proportion.
    You know Clan’s cronies within and outside Central Bank kept on their campaign about Central Bank Robbery between 2015 and 2019.

    Now the all powerful single handed kotti slaying Gota is in charge of every institution can’t he just wave his hands and recover the billions stolen from Central Bank?
    Else he could ask his brothers to return part of the monies stolen between 2004 and 2015.

    Don’t you think this debt servicing is as simple as that.
    However Nimal Fernando may dispute.
    I am not sure if he is still sitting on the fence.

    • 2
      1

      Native,
      “can’t he just wave his hands and recover the billions stolen from Central Bank?”
      Assuming all the money was stolen, (it wasn’t) that’s only 10 billion. Not much really. They’re about to spend 2 billion on vehicles for MP’s.
      You should ask Ramona, since it’s a metaphysical question about recovering something that doesn’t exist.

      • 0
        0

        OC, …, money of the suffering masses is invested in high-flying objects. Cannot get it out.

  • 3
    0

    Dr. WAW, I wonder whether brains are being used to solve national problems or cause more confusion with arguments needing to be won. SL printed so much local money that what is the difficulty to print a bit more and pay off the teachers bubble and solve a major crisis progressing into a confrontational movement involving politics. Surely Prez. will gain satisfaction helping students and also receive gratitude from a very important and valuable segment of the population regarding education.

  • 7
    1

    There is more politics than economics in not going to the IMF. The IMF is controlled by the US and its prescriptions follow the economic preferences of the US. The present government has tied its wagon to China. China must be dictating the choice. We will have to wait and see whether China will bail us out. But, it seems that like a drunk, the government is wavering between a lot of choices borrowing from all and sundry. The Singapore parallel is inexact. Singapore has stood on a firm policy. It is corruption free and has technocrats as its leaders, not men induced by personal greed for power and money. Like a drunk we will walk in the hope that we reach home. Let us dump a few more pots in the river, drink more dhamikka peniya and hope for the best.

    • 0
      0

      C
      “The present government has tied its wagon to China.”
      It is a rather hasty conclusion.
      Can we compare our foreign and defence policies with any country that has bonded itself to a global power?

  • 4
    0

    Who are the parasites who gobbled this $1 billion? Tax them or take it from them otherwise!

  • 3
    2

    Economic Policies are made based on the status of the economy but in Sri Lanka they are made on Election gimmicks. You will never see in other countries that a politicians help to carry out Easter Bombing which affected the economy of the country for many years. I am sure that Bonds scam is another planned robbery carried out with the help of politicians and many other robberies such as Hambantota airport, cricket stadium, MIC deal carried out to make money by politicians. Even the LTTE attack on Central Bank or Daladha maligawa did not have such a level of economic loss compared to the loss by corruption sponsored in the name of people and country by politicians. Even now they do not want peace and stability in this country which is fundamental to investment and economic growth. Rotating the finance ministry within the family will not change anything. Who is the next Finance Minister? Is it the Eldest Shamal Rajapaksa or youngest Namal Rajapaksa?

    • 1
      1

      Ajith, One who helped Zahran bomber escape once, did not escape next time with the domestic’s death. Exposure will come on the political easter bombing creating chaos to bring order, by sacrificing about 300 precious human lives. Punitive action may not occur only on earth like at Nuremberg. Depopulation and economic crisis with a religious component was envisioned long ago and will come to pass regardless of the east or west plans, like the Wuhan virus is doing now. All our current gimmicks, they too shall finally pass like the german jewish deposits in swiss banks did after world war 2. Mammon is god avarice. There is nothing new under the sun as history repeats itself, the next mutation being on the way.

    • 0
      0

      “Even the LTTE attack on Central Bank or Daladha maligawa did not have such a level of economic loss compared to the loss by corruption sponsored in the name of people and country by politicians.”
      *
      I wonder if it was by design or by LTTE’s limitations?

  • 1
    1

    Strangely Dr. Wijewardane has not dealt with the Bill to be tabled in Parliament by the PM, uniquely titled “FINANCE”.

    This “Bil” seeks to solve the “Financial Problems” especially relating to depleted “DOLLAR” reserves. I think this is the “BEST” option that this Government has thought of in order to avoid a “Pilgrimage” to IMF. The “Foundation” was laid ahead to the introduction of the “Bill” – “FINANCE” by establishing a Government apparatus called “SELENDIVA” that would take over “STRATEGIC” locations in the city of Colombo so that the “Foreign Currency” “In-Flow” (so far undeclared) by the “Investors” could buy those real estates and invest in “Port City”.

    How does Dr. Wijewardane view this “PROJECT”? Isn’t it worth considering instead of IMF?

    • 0
      0

      S
      The SELENDIVA project I suspect is a desperate move by a cash-strapped government. I will rather not read much into it, although I think that it will be a dangerous precedent.

  • 2
    0

    IMF Or Not: What Other Options Are Available For Sri Lanka – Convert to solar power.

    Only other option is to increase the oil price in method suddenly like it happened to pay the depth, the parliament will approve because bail out the country, When oil and gas prices went up dramatically and filled up the state treasury

    Officials say they hope to attract more foreign investment and avoid seeking help from the International Monetary Fund, To help rebuild its reserves.
    Economy in crisis as debt mounts And the obtained the foreign obligation will be ballooned for next years
    Only oil price.
    Government solar incentives can help homeowners get solar panels for no cost

  • 2
    2

    People cannot be trained enough to resist distraction. After all these are water buffaloes dragging the royal caravan from 1948. The Sinhala Intellectuals camouflaging the country’s many prong problems to IMF. “The West being the Tamils” did not raise enough dust so they are marketing the IMF. The entire discussions on the Colombo media on IMF is bloody fake to make the Modaya to feel that “Appe Aanduwa cares us” and be soothed. The Foxy Ranil is the one took against Resolution 30/1 and took China’s to cover him, sold Hangbangtota to China and kicked on the butt of UN, UNHRC and IC & West. The same fraud is the one now spear heading the “IMF is the saver”. If that rotten clown is true, why did he let the loan grow up like this in Yahapalanaya time, instead of negotiating with IMF and keep China at the gate. This essayist is the one argued that Central Bank Cabal is a smart heck because he negotiated 3 months LCs with Chinese banks to fund the war when the treasury was empty. Now the Aanduwa has shut off local banks from opening LCs for food import. Does this Sinhala Intellectual willing to accept the faulty in his thinking or keep arguing that he and the Cabal is the Sinhala Intellectuals.

  • 1
    2

    Isn’t that desperate burying action of Lankawe by Cabal made China to feel that Lanka politicians and officials are a penny worthless?
    The Sinhala Intellectuals’ object is to show they are smarter than the other Modaya Intellectual. They will never advise to Aanduwa to solve the issue at UNHRC, drop the dependency on China for UN veto, make peace with West. Open the country to FDI as the solution for countries economic ailments. That is the policy of Singapore brought it to this status. That is what the famous leader of Singapore advised to Lankawe Aanduwa, but not what the essayist is talking. Sinhala intellectuals should stop put the carts before the buffaloes to make the buffalos to feel that they are no longer pulling the burden of cart. Instead becoming any more masters of kings and queens is distracting the base fools, the Mondays. Sow some mercy them for crime of they are being born as weak ones. The pressure coming from IMF, UNHRC, West and other democratic nations are clearly showing that they want Lankawe to stay out of political problems so that the rogue nations won’t lease the country to commit their international racketeering. Solve the issue at UNHRC first.

  • 2
    0

    W.W.Wijewardene,

    Thanks for an informative article when the issue is so critical.

    I want an expert and factual clarification from you and not to be vague

    Yet, Sri Lanka since she joined IMF on 29 August 1950 had gone to IMF on several occasions for bail out with low interests, but with stringent conditions attached such as to keep the budget deficit low and have strict financial discipline and to pay back within a short period.

    What was the experience of Sri Lanka historically? If the experience is positive, why Sri Lanka should not go to IMF and rescue the economy of the country? Did Sri Lanka have bad experience previously to go in search of viable alternatives?

  • 2
    0

    The general public need to understand the power of their vote . They need to
    understand the value of their financial wellbeing for a better standard of
    living and it doesn’t come through false promises of unpatriotic Politicians.
    Those who hoodwink the public by harassing opponents to create a

    • 3
      0

      Continued ; short-lived amusement , can not educate the masses on the
      necessity of working hard to build a better nation . And you can never
      develop a nation through lying to your masters who are the voters .
      Through lying , you do not prepare the masses to face the Reality and
      you do not stop lying because that is all you ae trained for and that is
      all you are good at . What Singapore , only Zimbabwe !

  • 5
    1

    The only way the Rajapaksas can sustain themselves is to plough back all what they stole, the Dollars.

    • 1
      0

      Gamini,
      Well said. They are trying to do this, saving themselves to bring back the robbed capital (yes it is capital, because it was part of the Infrastructure development fund by donors and financiers) by passing the act in parliament called “FINANCE” by the brilliant incumbent Finance minister of SL.
      Dr. NM in the shade (Kaley) even with his 1972/73 demonetisation. R. Bros Co did it so well, that demonetisation in SL would not affect them! That’s why i call it Brilliance!

    • 0
      0

      Gamini,
      Before 2015 election, Mangala said Rajapakshes took 18B Dollars out from Sri Lanka. Rajitha said he knows where they are hiding that money. During ‘Jadapalana’ Government, they sent a team to Dubai to bring that money. Those guys had a great time in Dubai at the cost of tax payers’ money and returned empty handed.
      Do you know where Rajapakshes are keeping/hiding the money they stole?
      —-
      “The only way the Rajapaksas can sustain themselves is to plough back all what they stole, the Dollars.”

      • 2
        0

        Eagle Eye ,

        Usually I am not in the habit of getting into confrontation with other
        commentators unless there’s a strong need for it . ” Do you know
        where Rajapakshas are keeping/hiding the money they stole ?”
        Dig into what Sarath N Silva said on platforms where MARA was
        present himself . on his verdict of ” Helping Hambantota ” case !
        And then , there was a time Rajapakshas didn’t have a car to take
        their senior Rajapaksha to hospital at the time of his last breath !
        Ask them how all this changed and you see it for yourself how
        and why they come in bunch to politics ! Let them get back to
        where they were Financially before politics and prove their
        innocence !

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    An insolvent country such as Sri lanka would not be considered for any more loans by the IMF, since the country has already exceeded its borrowing power as determined by the lender ie- IMF. Unless Sri Lanka settles its existing debts to its lenders, not only IMF but, also even other International Banks and money lenders treat it as a bad debtor. This is the real financial position of the country which Rajapaksa cohorts are trying to hide.

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    Borrowing from the IMF to repay China!

    Is it some kind of a joke?

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    What do you expect from a government-run by a mediocre family? What do you expect from a Finance Minister who did not go beyond GCE(OL)?

    What the country needs is a statesman like Lee Quo Yong not political chalets like the Rajapaksa family. They have ruined the country beyond redemption by mixing state and religion a lethal dose.

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