17 October, 2019

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Plunging Into An Economic Abyss

By Mangala Samaraweera

Mangala Samaraweera

Just 9 days prior to the presentation of the 2019 budget, the Sirisena-Rajapaksa “coup” ousting the legitimate and lawful Prime Minister and cabinet has thrown the country and citizens into an unprecedented crisis.

The Speaker having gone through all legal procedures in parliament has also declared that as per Article 48(2) of the constitution, the purported Prime Minister and his cabinet are illegal.

As per Article 148 of the constitution, “Parliament shall have full control over public finance.” In the absence of a legitimate government, a grave situation has now arisen as there is no legal way to meet public expenditure and obligations of the state from 2019. The constitution does not provide for any alternative arrangements for public finance, even with the intervention of the executive envisaged under the limited circumstances of article 150(3) under which the President can only allocate finances for the first 3 months of a new parliament. Thus, under the current circumstances, from January 1st 2019 until a new parliament is convened, the spending power of the state ceases to exist.

As the Finance Minister, I have made allocations to ensure funding until December 31st 2018, however from January 1st 2019, the country will fall into a crisis.

A legitimate government with an adequate majority in parliament would have had the opportunity to present at least a vote on account which would have covered at least the first 3 months of the new year enabling payment of pensions, salaries, samurdhi payments, and settlement of debts. It is still not too late to reestablish the government that commands the clear majority in parliament to present a budget/vote on account to authorize expenditure from the consolidated fund from 2019.

This illegal government has no majority and are pirating the government benches through force and violence, and they cannot muster a majority to even pass a vote on account, they are forcibly preventing the lawful government from taking the critical steps to provide funding for 2019.

In any event as per Article 150 (2) of the constitution, only a legitimate finance minister can sign a warrant to release funding. As per the ruling of the Speaker on 16th November, as per article 48(2) of the constitution, the purported government, its finance minister, and cabinet stands dissolved.

As a result of the actions of the Sirisena-Rajapaksa coup, all payments of government from 1st January 2019 are illegal and cannot be affected by public servants. Some of the critical areas include public sector salaries, pensions, welfare payments including samurdhi, and all debt repayments.

Furthermore, as per the ruling by the Speaker under Article 48 (2) as the purported prime minister and cabinet are illegitimate, as per section 52(3) all ministry secretaries cease to exist and any actions taken by them are null and void and illegal. Such actions are serious violations and would be punishable under the Public Property law and other relevant legislation.

As a result of these actions, Sri Lanka is on the brink of economic anarchy and chaos as never experienced before. The cavalier and irresponsible actions of the president starting on October 26th based on personal animosities and precipitating a series of illegal acts, places at risk Sri Lanka’s ability to meet its immediate debt obligations. In early January 2019 we have to repay US$ 1 billion of Rajapaksa debt taken in January 2014, the repayment of which is also under the purview of Parliament.

Sri Lanka has hitherto never defaulted its debt obligations. The actions of 26th October have irreversibly undermined Sri Lanka’s credibility in global markets – risking our ability to service future debt as well. We are being pushed towards a state of economic collapse as we stumble on to a road of a Greece like situation.

The only way to rescue Sri Lanka from this unfortunate and unnecessary crisis is for the President to recognize the Prime Minister and the government that was in place prior to October 26th and continues to command the clear majority in parliament. It is necessary for all like-minded people, regardless of political affiliation, to come forward to save the country from an otherwise impending economic collapse, by supporting efforts to reestablish the supremacy of parliament and the constitution.

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Latest comments

  • 18
    1

    These thugs did not foresee all these consequence.
    They do not care about people ..
    They want to capture power at any cost …
    First thing is to impeach M&S ..
    Secondly; put the country back ..with this idiot M&S this country will be like a gost house.

    • 13
      0

      For the grave violation of the constitution the president needs to be impeached …….. and he with the rest of the coup-plotters should end up in jail as an example to future politicians.

      Former presidents of South Korea and Brazil are in jail for lesser crimes.

      The economic mess is the lesser crime Sirisena has committed when compared to the coup he has carried out which amounts to treason.

      There is no your excellency this or your excellency that bull-crap ……. he belongs in jail.

      It’s high time the rest of the pols and the citizens get it in to their heads …….. that the highest citizen in the country has carried out a high crime and he belongs in the jail.

      In a country of laws …… there is no way Sirisena can avoid jail …….. but then this is Lanka

      • 2
        6

        The Hairdresser X finance minister of Banana Republic Sri Lanka, who is in the pocket of Washington’s MCC and IMF economic hit men is making wild statements!
        Mangy who knows nothing about economics is following Washington’s agenda of ECONOMIC WAR and CYBER-WAR on social media in Sri Lanka, and spreading fear about economic crash.
        In fact the present economic crisis was set in motion by Bondscam Ranil’s IMF MCC advisors who wrote Ranil’s disastrous economic policies . Mangy and Washington hope to bring back their man – Bondscam Ranil who was selling off Lanka’s assets back through economic war and the NARRATIVE of ECONOMIC CRASH.
        Lanka’s is a small economy and is being played by US linked global finance rating agencies like Nomura rating and Moodys agencies now. Nomura Ratings agency which bought Lehman Brothers after the 2008 crash published fake figures and data of Sri Lanka’s debt and began the crash of the rupee.
        The fact is that the Lankan economy was destroyed by BONDSCAM Ranil who looted the Central Bank, so that no FDI would come to Lanka, and then started selling off strategic assets of Lanka (land, transport and energy security infrastructure), without due diligence or transparent tender process. Bondscam Ranil’s economic policy was drafted in Washington by MCC IMF to benefit America First and the global 1 percent, loot the people of Lanka, and further Mr Trump’s Cold War against China in the Indian Ocean.

        Mangy who knows nothing about economics is engaging in Washington’s Economic and cyber-war on social media against China in Sri Lanka and spreading fear about economic crash which was set in motion by Ranil’s IMF MCC advisors who wrote Ranil’s disastrous Vision 2025.

        • 7
          1

          Don Stanley,

          You have written a lot ……… I didn’t read most of it because it doesn’t make any sense to me ……… perhaps it makes sense to you ……. that’s well and good.

          For argument’s sake lets say that all what you have written is the gospel truth ……… but please answer me this,

          Who got commercial flights to take off from Katunayake and land in Mattala 5 minutes later? IMF?

          I hope you’ll be a man and answer ……….. and not run away and hide as they always do.

          • 0
            1

            It is Bondscam Ranil, Ravi K and Mangy who borrowed at very high interest rates from global markets, rather than getting concessionary loans, that have put Lanka in the abyss. Let us be clear about this.

            • 1
              0

              Kalinga

              Could you explain how, where … this bondscam originated. How much and how scam benefited the scammers?

              What was the interest rate charged to the bonds, market rates, charged on concessionary loans, Chinese loans, …………………
              Thank you.

              • 2
                0

                Native,
                I don’t think you will get any answers. Don’t waste your time waiting.

                • 1
                  0

                  oldcodger

                  We know the answer,
                  However it is our historical duty to raise these questions then and there even if we don’t get satisfactory answers or answers at all.

            • 2
              0

              “Who got commercial flights to take off from Katunayake and land in Mattala 5 minutes later? IMF?

              I hope you’ll be a man and answer ……….. and not run away and hide as they always do.”


              That is the question asked ……. like I’ve correctly guessed you wouldnt have the courage to answer it even though you write under several pseudonyms :))

  • 12
    1

    The mad president should be removed from office and should be taken legal action against him. Life imprisonment is the best choice since people like this should not come again to ruin the country.

    • 4
      0

      consequences for treason is worst than that. the reality is what has happened to Venezulea will happen to srilanka very soon. china gave loans to Venezuela ,planning to take over Citgo. Thank god its in US soil nobody could touch it.. But very soon china will own srilanka. Crooks sirisena and mara will represent china as reps of chinese govt island of srilanka. Folks if you keep quiet this will be the reality.

      • 0
        0

        “Crooks sirisena and mara will represent china as reps of chinese govt island of srilanka.”
        That would be a very good idea, Mr. Bert. Sri Lankans can’t govern themselves. If we give China to govern, we will be like Hong Kong island. Or we could give to India and be like Goa.

      • 1
        1

        Its rough waters ahead for Lanka.
        The US led Economic and Cyber War to bring back Bondscam Ranil as Prime Minister of strategically located Sri Lanka has begun with Mangy’s statement and Moody’s downgrade!

        At the bottom of the political-economic crisis in Sri Lanka today is Trumpland’s Cold war against China in the Indian Ocean. US was in the process of accessing Sri Lanka’s strategic land, transport, energy security infrastructure and Data Platforms to access Lanka’s BIG DATA through Ranil whose economic policies were drafted in Washington, but Sira scuttled this by sacking Bondscam RW!
        Now we see the push back from Trumpland to restore their man Bondscam Ranil Wickramsainghe, through the Economic and Cyber war with US Peace Corps who are all over social media to craft the ECONOMIC CRISIS NARRATIVE installed in Lanka.
        Rough waters ahead for Lanka!

        • 1
          0

          Kalinga

          Could you explain how, where … this bondscam originated. How much and how scam benefited the scammers?

          What was the interest rate charged to the bonds, market rates, charged on concessionary loans, Chinese loans, …………………
          Thank you.

    • 0
      1

      consequences for treason is worst than that. the reality is what has happened to Venezulea will happen to srilanka very soon. china gave loans to Venezuela ,planning to take over Citgo. Thank god its in US soil nobody could touch it.. But very soon china will own srilanka. Crooks sirisena and mara will represent china as reps of chinese govt for island of srilanka. Folks if you keep quiet this will be a reality.

  • 4
    7

    Any person with two cents worth of intelligence would not be convinced by your (non) performance as finance minister. All you did was carrying out the IMF agenda of squeezing the life blood out of the poorest so that they can lend more money to the rich and keep collecting the interest. You were imposing taxes like a raging bull (in heat).

    At the end of the day, it came out that a man without a two year old’s understanding of macro or micro economics did not have the tools to pull this country’s economy out of the sick condition it is in.

    The government change was a blessing in economic terms.

    You should be humble enough to admit you knew nothing and you didn’t have a prescription for the economy. RETIRE FROM POLITICS and form an NGO for gay marriage as a better option.

    • 3
      1

      “pull this country’s economy out of the sick condition it is in” + “The government change was a blessing in economic terms.”

      Don’t expect a better driver will make any difference when the car is having problems – fixing them is the solution and it is not within a driver’s scope. He might not have ideas about macroeconomics, but we can’t blame an accountant if the company does not run profitably.

  • 5
    0

    “As per the ruling of the Speaker on 16th November, as per article 48(2) of the constitution, the purported government, its finance minister, and cabinet stands dissolved”
    .
    So the plan of Speaker’s November 16th ruling is to make things more messy by defaulting loan installments and delaying other payments by not having a “legitimate” finance minister to sign a warrant to release funding?
    .
    Either way, both you parties are punishing the innocent voters who brought you into power

  • 3
    0

    The game is between two bad teams.
    The referee is blowing the whistle “Coupppppp………couuuuuup……..coooooooooooup”.
    We know that you heard it. Tell us Mangala what you hear.

  • 1
    4

    UNP has created crisis since 2015 January 8th has sparked of political debate an essential about
    Sri lanka misstep the unsoundness of nation’s economy, which is even the inappropriate shape of
    neo- Liberalism of crony capitalist system.

    Under the right-wing regime of UNP of RW and CBK guided policies, of that political, economic and social corruptions are prime feature of Neo-Liberalist style.
    The key issues of many their actions have been little more than RW, MS, Milk .Samarawicrama ,Ravi K.. and H de Silva was aim of naked grab for money.
    By and large short-sight of Managala Samaraweera the financial and economic sector crisis, both before and during the crisis has exposed the worst. Uneducated ex-M o F of that MS …what a costs to us today can be high even beyond richest country like USA cannot affordable…! .

    In spite of that political differences on that UNP’s Neo-liberalism and National sustsnsbility of capitalist development has vast gap between ongoing current globalization by emerging political-economic order in the present world.
    Having emerging capitalism in Island sufficient room to be expanded in Lankan economy. This positive factors unaccounted by ex-Minster of Finance of UNP regime in power after expire mandate in 2015 January 8th .

    The nation development of country has created that an uncertainties and instability an Island-wide since 2015 January 8th by wrong set of policies by that foreign -origin advices has been implemented by UNP leadership….Meanwhile its laid in depth foundation for the catastrophes in every sphere of life-line of Sri Lankan economy..
    There is not possible going back to Sri lanakn before the crisis. But question are how is that deep of economic failure reflected more deeper problem in society .
    Therefor that UNP having no planned to bail-out financial crisis by Managal Samraweera who in irrational moving economy by uneducated Minsters…last one year or more.

  • 4
    4

    Both Mangala Samraweera and Ranil Wickramsinghe are anti-Sri lankan. I can not understand why. They both are two members of the gangs that Talked against annihilatingPAbakaran and now they destroyed Sri lanka Economically, finacially and culturally. Mangala Samraweera fromtime to time you go MAtara and PREACH to School kids. One can be the richest person on earth. but, If your children are grown like vagabonds that money is not a worth at all. Go to western countries, which you are very used to, and cheak how the children of rich people had been ruined and some live jails, some are LGBTs (you know your internal struggle). In Kings time both Ranil and Mangala and some others shuld be in GallafACE AND THE PUNISHMENT SHOULD BE “ula thiyanawa”. So they can remember their Traitorous work.. i THINK THE SAME FATE THAT sRI LANKA HAD HAPPENED IN Brazil which was ran by a LEftist. A poor developing country is run by now a rightist.

  • 3
    0

    Mangala Samaraweera: Tell us how can a country be successful when the country is importing every thing from OVerseas.EVEN TRUMP has understood that thier globalization and so many free tade Facts no longer work. SO He has the new philisophy called AMERICA FIRST. How are you going to develop the country by selling everything to the multinational and international companies. The problem is you do no thave a family so you don’t understand wht parents are going through. You are not educated in the usual disciplines but you are trying to be the economic Whizkid. In your foreign relations too you were a puppet to some country and what happened with China when you asked them to buy back the assets of the port they built. My thinking is JRJ started his SINGPORE Dream. but, he did not think. that Singapore is a Hunmpngous PORT which transship chinese goods. So, they have a manufacturing sector. thatis in additiona to TECHNOLOGY which sri lanka doe sot have and Raijitha Senarathne like people tries to buy from the US companies because the COMMIS and the share offering as a reward are very good.

  • 2
    0

    Constitutional discussion is all fraud. Sri lankan constituttion, including the 19th amendment, with respect to the parliament is a humongous FRAUD. IT is for 225 crminals, FRAUDSTERs, Drug lords, Bank loan defaulters, WESTYERn agents etc., etc., Other wise, when did you people last establish a govt only by one of the majoroty parties ? ARe you doing what you are supposed to do with the National list. NAtional list is all for to take back defeated candidates and those who gave you humngous cash rewards and they earn it back. Then why everytiime PResidents and PMs talk about a National govt. Why major parties need three wheeler parties to establisha govt. Will three wheeler parties ever establish a govt. Why did not you talk about MCC grants you got from and for waht purpsoes and how you spent those. What Maithripala did wat what had to be happened. Only problem he is very very late. In a decent country, even you must have been history as a Finance minsiter and foreignminsiter verfy long ago. We know MS is not a saint but he is the saviour right now. I know you say, eventhoughthey say we do not do to that extent. On the otherhand, they say he has done every thing we want. You were destroying the country for the future children. Are you taking revenge for something that happened ? How about the argument that Ranil tried to sneak in as the PResident two times, one behund CBK, this time behind MS.

  • 2
    0

    Even during the King’s time. We needed food in order to live during the war times. Even filthy richUSA grow up there Wheat, Meat. Why do we have to import even Onion, Potato, Rice etc., etc., Only SIx districts were affected from the drought. why don’t we have Storage methids for food. You people are politicians for whole your life. YOu go to California ans talk to Tamil BBQs and said for 70 years all we did was destroyed the country. Why you ar enot homest in Sri lanka and isntead go and bully Army officers.

  • 2
    0

    There is a ,limit that a country can be developed only with the open economy. Sri lankangovts thought everytine IMF/WORLD bank are their gods to help them. Just take the wealthy country. they impport only the cheaper goods which are expensive tomanufacture. Instead they manufacture expesive items and collect indirect taxes in various ways. JRJ began, I heard CBK did it know how to do eventhough she said Open economy with humane attitude etc., etc., Even Mahinda Rajapske did not udnerstand because they did not think about those problems. Even in your home only by selling everything you have how you are going to get rich or developed. Sri lanka has the best tea. but Sri lanka has only a 5% of the world tea market. china and India 67% of the world market. Then Tea is not onlu for drinkng and there are so many things that we can do with that. where is technology there. I have seen even the Scent sparyed on body but the Tea smell. It is like KOTHALA HIMBUTU is endemic to Sri lanka but the Patents rights for every thing withthat tree is with Japan. So, Sri lanka has to go to Japan and ask can we use Kothala Himbutu to develop westrn pahramceuticals anything that will be sold out side Sri lanka.

  • 2
    0

    With respect to your 9 days before the Budget, You know how many finacial and exchange related LEgialations were modified because that help the foreign companies taking money overseas. How come you get Srilankan money in Malaysia. that is only thing we, outsiders gotto know. It was important for Ranil to finish the federalizing part of the constitutionwithin the last few days of his positionand to report it to his bosses. You now it. What budget, how many things you sad in your last budget happened the way you said that it would happen that particular way. All BS. Lot of talk and frauds behind everything.

  • 2
    4

    You are wasting your time Mr. Samaraweera, our president is Stupid in the extreme and his actions have proven this without a shadow of a doubt.

    Two of Albert Einsteins quotes come to mind “Only two things are infinite, the universe and human stupidity, and I’m not sure about the former”. Slime Srisena’s stupidity is of much higher grade,

    The second one is “The difference between genius and stupidity is that the genius has its limits”. Srisena’s stupidity surpasses all the other kind like SWRD Bandaranaike’s, Srimao Bandaranaike’s, JR Jeyawardana’s why even Ranil Wickramasinghe’s.

    Like Einstein said, “We cannot solve our problems with the same kind of thinking we used when we created them”.

    While I’m at it I want to throw a couple more, “Nationalism is an infantile disease. It is the measles of mankind.

    Whoever is careless with the truth in small matters cannot be trusted with important matters.

    All of these are sadly applicable to all our presidents and sadly to this one too, but only too well.

  • 2
    2

    Mangala Samaraweera and Ranil, RAVI the LIAR, Rajitha, John amaratunga like people side support, and helping did and were doing enormous an destruction to the country. You were preparing to do something that the British govt too did. that is acquiring Small land from padde land holders and other cultivable lands and give that to foreign companies.People discuss all those in other plces even though you try to hide those I think ypu made Ajith Kumaraswamy also to lie. Other wised, rupees worth cannot be Rs 100 to Dollar. IT should be more like Rs 200 to dollar. Remember, in another two years, $ NINE billion Exchange reserve of you established will be halved when the TRUMP is elected for the second time. Because, the bubble blows up.

  • 3
    1

    HeHeHeHeeee

    Dr Ranil has borrowed 21 Billion USD in just 3 & half years of Yahapalanaya.
    Dr Ranil has set a new record on the price of a Politikka in Kotte, with LKR 500 Million as the base rate.
    Dr Ranil even gave his Royal mate’s SIL , our Mendis Brewery courtsy of the Yahapalana Tax Payers..
    Mela and Onelia now live in a Penthouse with Galleon Ravi, Dr Ranil’s the previous best Treasurer on the Planet Earth.

    What more Abyss can you think of mate ?….

  • 4
    2

    C’mon Mangala my friend, that is a lie, the Central Bank governor said the next year’s payments are on cause, what you are trying to do is what you are so good at and that is fear mongering through lies and innuendo, and you, my friend, is my favorite Mr. Gloebbels but you cannot use the same dirty trick on the same people multiple times, maybe you can in Sri Lanka, in the meantime, I wish you butterflies and rainbows.

  • 1
    1

    Sri lanka very often advertises that they have $ 9 billion as Forex Reserves. I heard the World Bank/IMF say do not spend that and keep it for your safety. But, for a poor country like Sri lanka, that is a burdon to the country to hold that much money A Global recession is nearby they say. Oil prices going down is one sign.so, once TRUMP get elected the Dollar may go down drastically again. Worldwide Industrial activity is going down. that is why Oil use is low.

  • 2
    0

    By resorting to stupid action, Goo N.P is digging its own grave. If you guys block money to pay salaries, pension, Samurdhi, people will drag you to Gall Face and crucify.

  • 3
    2

    Dear Mangala,

    I have a kind request as a southern province man closer to your home town. It is time that you can go back to your old profession of stichiching Jungis and Bressiers for women. Your government and your performance record for the past 3 years is so bad. Matara people sincelry wishes if people like you retire very soon without becoming a further burden to tax payers money. That is the most honourable request that I can make using the diplomatic language. We have had enough.

    • 3
      0

      Sunil,
      Doesn’t your females wear brassieres?
      In even more simple language, why don’t you go back to toilet-tending and stop interfering in Sri Lankan affairs?

      • 0
        0

        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

        • 0
          0

          JD the dim Jim,
          Great!
          So your real name is Sunil Dahanayaka? That’s good to know.

  • 0
    0

    I can understand Mangala Samaraweera talking this kind of crap in the parliament as most are uneducated or crap talkers who talk a lot but do nothing. I can understand you manipulating the voters as Southern voters are very accomodating and are good in forgiving even to the killers. I can understand you fooling UNHCR as their target was something else and to make Sri lanka a singapore. what I can not believe is you write this kind of Crap articles even to CT thinking every one reading this are dummies.

  • 0
    0

    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

  • 0
    0

    The Political -oriented biggest Central Bank scandal by UNP leadership of Ranil Wicks, Malik Smarawrcarama ,Ravi K …..and Kabir Hussan must bring country knees to before that IMF WB and ADB.

    New govt. has to bring before criminal charges of these persons against that court of Law?
    UNP want to back to power by maneuvering current political few members in Parliaments ?
    Whom are support of minority UNP govt.? It is TNA and JVP and other as well.
    They are corrupted members of house been given many perks to support for UNP rule and ruin of
    Sri Lankan nation by foreign Embassies in Colombo.

    The billions of financial frauds by UNP misapproated of public funds since 2015 January 8th has not address by Ex-UNP leadership? And their party Leader of Karu J…….!@
    Ongoing that criminal justice system of court of law has NOT yet charge against any of the Ex-Primer Ranil Wicks, Ministers of Malik Samaraweera, Ravi K…. Karu J… and Kabir Hussan up to now?

    Current UNP is most corrupted govt. since 1948 came into being years 2015 January 8th and that Ranil Wicks and his administration are responsibility and accountability for corrupted deal in many fields that trouble the government by UNP leaders. This is a over-corrupted regime must be erase from Political map of Island in shake of democracy loving people of Island.
    Indeed therefor UNP leadership has shifted make us a laughing-stock before the world public.

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