President Mahinda Rajapaksa Might Need A Lesson On Economics

Filed under: Colombo Telegraph,MORE OPINION,Opinion |

By Hema Senanayake –

Hema Senanayake

With due respect, I think President Mahinda Rajapaksa needs a lesson on economics. By profession he is a lawyer and we do not expect him to know everything about economics, but since he being the Commander in Chief in regard to the nation’s economy holding the portfolio of the Minister of Finance, the nation expects him to know a little bit about economics when he interpret economic policy. This is a challenge for any president who is not an economist by profession. When the former U.S. president Richard Nixon who was a lawyer too by profession decided to abolish the Breton Woods Agreement unilaterally, he convened a summit of his economic advisers at Camp David.  He carefully listened to opposing views, perhaps which is the easiest way that anybody could study a subject that he or she is not familiar with. That was a huge economic decision with global impact. Nixon learned much about economics and once he said that “We all are Keynesians now”, that was to interpret that his administration was to abandon the formally favored less-interventionist-policies.

When President Mahinda Rajapaksa declared opened the Mattala Airport he said that previously Sri Lanka borrowed from foreign countries to “eat bread” but his administration is borrowing to build infrastructure like the Mattala Airport. When I heard it I thought it was just a slip of tongue of a political leader. But he reiterated the same point a few days ago when he declared opened the new Water-Break of the Colombo Harbor. This made me to think that his opinion is not just a slip of a tongue instead it is an economic theory and policy of the government.

In economic terms what the president tries to insist is that borrowing for consumption (to eat bread) is not what he is doing; he borrows to build infrastructure which is considered as investment. His economic conclusion might be that borrowing for consumption is bad and borrowing for so called investment is good. If this was his conviction then it appears to be right but unfortunately non-revenue generating expenditure made on infrastructure is economically considered as consumption – And moreover, the expenditure made on lost making commercial ventures with borrowed money is the worst form of consumption.

In other words, if the Mattala Airport is not viable commercially at least to recover its operational cost and is required to finance its operation through the government budget, then eating bread is better than the expenditure incurred on Mattala Airport, because feeding of hungry citizens is a common interest of the nation but financially unviable commercial airport is not a common interest of the nation. The danger is that such ventures threaten the financial stability of the country than eating bread. The same is true for the Hambantota Harbor if it did not prove its financial viability at least in near future. Likewise the Mihin-Lanka is not a common interest of the nation and hence is not required to be supported by the government. The same cannot be said in regard to the Southern Highway and the new Water-Break of Colombo Harbor if those infrastructure projects can be proved to be essential to expand commerce. This means certain projects fall into the category of common interest and is required to be financed by the taxes or loans mobilized by the government, which loans will be repaid by the income of future taxes. These points might need further explanation.

Let us start from GDP because GDP (Gross Domestic Product) is a household term today. In general, when the government spends Rs. 100 the GDP will go up by Rs. 100. The reason is the government expenditure is included in GDP calculation. In fact GDP is calculated by adding up four parameters; GDP = C+I+G+NE, whereas, C=Household consumption, I=Investment, G= Government expenditure and NE= net exports (or exports- imports). Now you may easily understand why the GDP goes up by Rs. 100 when the government spends Rs. 100, because it is added up to the parameter called “G” in the above equation. Investment too, is a parameter in this equation. Is the government expenditure (G), considered as investment? No, it is considered as “consumption.” In fact the government is considered as the only institutional consumer in the economy. Is this getting complicated? Do not worry, believe me, it is easy to understand than you think.

The best quote that I could find to explain as to why we should consider the government expenditure as “consumption” was from Karl Marx. He said “tax is an income deprived to employees to pay for those in government to produce things of common interest.” As far as I know all capitalist economists agree with his notion on this particular point.

So, tax is a part of an income deprived to people. What do the people do with their income? They consume and such consumption is known as household consumption which is “C” in the above equation. Now assume that you have to pay for your child’s school. The money spent on to pay for the school is also household consumption. Instead of you paying to the school direct, you pay a sum of money out of your income to the government as taxes and the government pays for your child’s education. When you pay for your child’s education it is consumption and so is the situation when the government spent your money on your child’s education. In economics there is no difference between you paying for education or the government paying to produce educational service; both situations are accurately treated as “consumption.”

So, what is educational service? It is a common interest of the society because people need their children to be educated. According to Marx, the government is to produce services of common interests of the society and capitalist economists think that this should be done as long as such services cannot be produced on demand-and-supply basis. Also Karl Marx justifies the taxation because the people who are being taxed will be benefitted from the common interests produced by the government with taxes. The flip side of this notion is that the taxation is not justified if people in general are not benefitting from the expenditure incurred by the government.

The government has no money or income other than taxes; as such it can only consume and by no way the government can invest. One might think that if the government borrows domestically or from a foreign source, such financial resources are not taxes. It is true for the current period of accounting, but how the government is going to repay the loans? Government loans are repaid by your future taxes and that is why the loans are linked to taxes. Also one might think, that if a venture that is built on government expenditure, is generating profits, then that must be a prudent decision; unfortunately not, because revenue generating ventures or the ventures that have potential to generate revenue is not inclusive in what we call the “government.” This is the reason that the Bank of Ceylon, People’s Bank, Sri Lanka Insurance Corporation, CEB, CPC, etc., are not considered as part of the government even though such institutions are owned by the government. Therefore the rule of thumb is that the government must not spend money on commercial projects. The government must strictly spend only in producing common interests.

What are the most common common-interests? Those are general administration, judicial system, maintenance of law and order, education, health care, advanced scientific research and development, relief for poor, allowances for unusual emergencies, etc. Also certain infrastructure projects are treated as common interests. For example, road and rail network, free trade zones, essential industrial parks, harbors, airports etc., but the condition applied here is that those projects must be proved essential to expand the commerce and well-being of the people. By this definition, are the Mattala Airport, Hambantota Harbor, Highways constructed and proposed, New Water-Break of Colombo Harbor be considered as essential? If not, there is no difference between eating bread and undertaking the said projects.

As we noticed above these common interests are being produced from your taxes and taxes only. If the government reduces taxes, people will have extra sum of money which can be spent for their well-being.  Therefore the general rule for the government is that it should be the most productive institution in the economy; being unproductive is a waste of tax money and tantamount to a crime. Let me explain this point a little further.

The need for a kind of general administration is a common interest and over administration is a sign for unproductivity. Having excessively large cabinet is an example for unproductivity. Also, having to hold any election before the expiration of the term is another example for unproductivity. Having the best possible rule of law is the way to increase productivity in maintaining the law and order of any country. If people know that the rule of law applies evenly to anybody, then we will see that no fanatical groups take the law into their hands. Will that reduce the cost of maintenance of law and order? Yes, it is. Would there be a shooting and killing of people in Weliweriya if the rule of law applied in giving orders to shoot? Would it save tax money and lives if the rule of law applied in dispersing demonstrators? Of course, it is. Also, as an example, let us think that the government held elections each year. This increases the expenditure of the government that needed to provide for the election commissioner. Since the government expenditure is added up in calculating GDP any increase of expenditure for elections must push the GDP up. But we know the increased election expenditure will not increase the well-being of citizens. This means the government’s wasteful expenditure results in increasing GDP without any bearing on the lives of people.

Therefore, the government must increase its productivity in all areas of its activity. Then only, people feel that their well-being is increased with the increased GDP.

Print Friendly

66 Responses to President Mahinda Rajapaksa Might Need A Lesson On Economics

  1. 0
    0
    In nutshell ,All Rajapaksa brothers are half boils .

    Benadict
    August 17, 2013 at 12:33 am
    Reply

    • 0
      0
      Let us be clear: NONE of the Rajapakse brothers has a RECOGNIZED DEGREE in ANY SUBJECT. Mahinda has a CERTIFICATE after studying for a year or 2 at the Law College on special provision for uneducated politicians. The So-Called Minister of Economic Development, Mr 10 percent Basil, is a high school drop out and knows NOTHING about Economics or Development. Gota the goon has a IT diploma. No wonder DEVELOPMENT IS A DISASTER IN LANKA!

      James Bond
      August 17, 2013 at 9:51 am
      Reply

      • 0
        0
        MR educational qualification and Siri Lankan style political and family friend connection (DA Rajapakse) he had only manage to find a job as a clerk or assistant librarians before he found his natural potential in Siri Lankan politics. I am trying to show MR real education qualification.

        Anura
        August 17, 2013 at 6:03 pm
        Reply

    • 0
      0
      THe Rajapassa brothers do now know that to make policy you need experts who can make an OBJECTIVE and multidimensional (ECONOMIC, SOCIAL AND ENVIRONMENTAL) cost benefit analysis of a proposed development project before embarking on it. They just get uneducated cronies to draw up project with huge KICK BACKS to make money.. The Rajapassa brothers have now started an ENVIRONMENTAL AND DEVELOPMENT DISASTER for the West coast of Sri Lanka by letting a Chinese Company build a port city in Galle Face in the sea for more hotels and a Formula 1 Race track. THIS MUST BE STOPPED BY CITIZENS MOBILIZATION. GALLE FACE MUST BECOME THE VENUE OF THE LANKA SPRING TO SAVE COLOMBO CITY FROM THE RAJAPASSA BROTHERS WHOSE CRONIES WITH THE MILITARY HAVE CUT DOWN ALL THE OLD TREES AND TREE CANOPY OF COLOMBO. The West coast of Lanka has been eroding (e.g.) Mout Lavinia Beach) and this erosion will be exacerbated by consolidation of sand in one place which erodes sand up stream and down. AN ENVIRONMENTAL DISASTER IS IN THE MAKING..

      Dinuk
      August 17, 2013 at 9:57 am
      Reply

    • 0
      0
      Good comment

      cindymontrose
      August 17, 2013 at 9:54 pm
      Reply

  2. 0
    0
    Yes once upon a time he was lawyer and now he forgot about all laws , befor he get the economic lesson he has to obey the law , which he was practiced before

    Pasel
    August 17, 2013 at 12:36 am
    Reply

    • 0
      0
      A polytechnic Lawyer?

      Kesel
      August 17, 2013 at 1:10 pm
      Reply

    • 0
      0
      Very true, there is no law and order in sri lanka now just because of this Mahinda

      cindymontrose
      August 17, 2013 at 9:55 pm
      Reply

  3. 0
    0
    How did MR become even a lawyer? He has only 5 O/L passes and failed arithmetic (weda pahai, ganag p(f)ail). Felix said he will let any MP enter law College even without qualifications and MR got in. Sarath Silva helped him by tackling examiners and got him passed. D.S. Wijesinghe has openly boasted in Hultsdorf that if not for him MR would not have been a lawyer. He has said he was examiner in some subject and because not all examiners could be approached, he had to give MR 90+ so that MR will get the necessary average. What practice did he have? He used to just shout in the court. So what can you expect from MR. He not only does not understand economics, he cannot even understand advise given by economists!

    hiranf
    August 17, 2013 at 1:27 am
    Reply

    • 0
      0
      you say GDP is a household name today? realy in whose house?

      DeSelva
      August 17, 2013 at 3:24 am
      Reply

    • 0
      0
      To put it in a nutshell Hitlerpaksha is NOT a lawyer, just like his prodigal son Namal. In the “Daily Noise” of July 23, 2012 this bugger is reported to have said “Independence of the judiciary will be ensured and although I am President, I am also a lawyer”. MY FOOT? Look at this monkey praising his own tail! I wish Jeyaraj Fernandopulle was living today to ascertain the whole truth???

      mike
      August 17, 2013 at 4:12 am
      Reply

      • 0
        0
        Mike that is why Jeyaraj was bumped off in time with VP’s help. The same fate would have befallen on Maithripala Sirisena but he escaped by changing his vehicle on is return journey. What was the threat of Maithripala Sirisena to the LTTE but to pave the way for MR to appoint one of his siblings as PM in the absence of Maithripala to keep the Dynasty continuing. If it changes then it is the end of Rajapaksas. So MR today unable to do so, is keeping DM Jayaratne, after a stroke as a figure head of a PM, unable to appoint anyone else.

        gamini
        August 17, 2013 at 12:03 pm
        Reply

        • 0
          0
          Gamini, Yes your comment make sense. This may be the reason why Maithripala said that his life is not safe and there’s a death squad following him. Also only after this Maithripala’s comment, that he was supplied with an Armoured Vehicle escort in Geneva when he attended the world Health Conference……just to humiliate him. Under Hambanthota Gan Kabaraya anything is possible.

          Jayantha
          August 17, 2013 at 10:01 pm
          Reply

      • 0
        0
        If mahinda has not passed but helped to pass then this has to be publised

        cindymontrose
        August 17, 2013 at 9:58 pm
        Reply

    • 0
      0
      He is alleged to have murdered his first wife and when RW was PM he sought RWs help to stall the investigations whereafter the files went missing!! Some Police Officer will write about these once white vans are inoperative in the distant future.

      Moon
      August 18, 2013 at 12:37 am
      Reply

      • 0
        0
        I hope some day the story of a teenaged girl being raped and subsequently murdered will come up with the story??

        mike
        August 18, 2013 at 10:19 pm
        Reply

  4. 0
    0
    This presentation of the true state of affairs will sink with anyone with a modicum of intelligence.When the primary function is to have power and also resort to unethical methods and try to remain in power and also have a dynasty then the well being of the country gets relegated to the back burner.When asses can be misled and the fact that they constitute the majority nothing much can be achieved.The fundamental need is for the rule of law where all are equal before the law.He stands indicted for gross negligence of a sacred duty here.The 18th amendment clearly proved that suckers whom he purchased installed him to enjoy unbrindled power they too enjoy. Since Lord Buddha said all component things are subject to change if everything else fails nature will take over.

    Daya
    August 17, 2013 at 2:16 am
    Reply

  5. 0
    0
    Mr. Mahinda Rajapaksa is a Political Economic Entrepreneur. “When President Mahinda Rajapaksa declared opened the Mattala Airport he said that previously Sri Lanka borrowed from foreign countries to “eat bread” but his administration is borrowing to build infrastructure like the Mattala Airport.” So, some of his investments went south. Even for Venture Capitalists, many of their investments do not pay off. However, for the politicians, the commissions did pay off. Too bad for the country, the investment is not paying off to pay off the loan and the people, the “Investors” have to eat the losses. DeJa Vu.

    Amarasiri
    August 17, 2013 at 3:39 am
    Reply

    • 0
      0
      Amarasiri Mahinda Rajapakse is not a Political Economic Entrepreneur….but a Political Economic Assasin. He assassinated over 3000 Acres of forest and nature to build Hambanthota Harbour and Mattala Airport. Also he assassinated over 3000 acres of trees and green to build a four lane Highway and a movie park. No returns from any of these wasteful projects except huge commissions to the rulers. What do you mean by…..”the “Investors” have to eat the losses” These contracts were signed with China Exim Bank at 8% interest and with colatteral attached. That’s why Rajapakses now giving away our Land, Forests, Tourist resorts, mineral sands and our ocean to China due to unbable to pay back loans. Wait and see what else the Hambanthota Gan Kabaraya will give to China when he is unable to pay back the rest of the Loans.

      Jayantha
      August 17, 2013 at 10:50 pm
      Reply

  6. 0
    0
    MR’s “economics” is essentially a)surviving as long as possible as executive president,and enthroning son Namal as successer b)keeping the citizens ‘quiet’ by use of armed intervention when they tend to dissent, c)enrich himself and the extended family for the next many generations,and,d) leaving his name on all projects. He has enough sycophants who are easily satisfied with parts of the ‘spoils’ and exist as permanent Yes Men to implement anythihg which bears his name. The fact that the country is indebted to the hilt does not bother him.

    justice
    August 17, 2013 at 3:49 am
    Reply

    • 0
      0
      Yes, Rajapakses have built enough and more Monuments and Museums enough for the next 500 years.

      Jayantha
      August 17, 2013 at 9:33 pm
      Reply

  7. 0
    0
    I beg to disagree. He knows his Economics ver well. His economics thinking is : screw this country as much as I can, one day I have to flee this country with my wife and children, and I will need a safe heaven for them. bESIDES i have three brothers waiting for their turn.I need to give them time as well to accumulate, before the stupid Sinhala masses realise what we are up to. That is also a plus point as we have ample time on our side.

    Rajash
    August 17, 2013 at 3:51 am
    Reply

  8. 0
    0
    I dont think HB is a good teacher to give MR a lesson. In fact MR, has done better than everyone else before him. They all end up seliing our land to the foreigners, and filling up heir own treasures in western countries’ banks. This chap has at least putting some of that money at work in SLK as long as the 10-20% commission for fixing things have gone into BR family fund. BTW I heard from a reliable source that the very high cost drugs for cancer patients in fact are paid for by the Presidents Fund. This is one example that the public in general might not be aware of. While I admire it, I detest people like Vermyn Mervyn and such useless MPs and ministers are allowed 2 or 3 luxuray cars for their personal use all paid up by the tax payer. Comapre that with the ambassadors used by most top level Ministers in India and all MPs there. What do all the Sinhala and Tamil or Muslim diaspora, and even the well shod Sri Lankans living in SLK doing; only filling their own personal bank account in western banks, and then preaching everyone else. The only ones who are bringing some money to SLK through their hard work are the less educated villagers who go to do menial work in the middle east. All other preachers, including HB, are just a load of useless selfish pretenders.

    bo
    August 17, 2013 at 3:57 am
    Reply

    • 0
      0
      1. “They all end up seliing our land to the foreigners”. I suggest you read more about who’s buying most of the land in Colombo and Hambantota (hint: it’s not Sri Lankans). 2. “and filling up heir own treasures in western countries’ banks” And you’re dead sure MR isn’t doing that, are you? You’ve seen a complete accounting of his assets to make this statement, to be so sure he’s so different from his predecessors? 3. ” BTW I heard from a reliable source that the very high cost drugs for cancer patients in fact are paid for by the Presidents Fund. This is one example that the public in general might not be aware of” Surprising the public doesnt know of this, if it’s true. A man who uses every opportunity to promote himself, naming pretty much everything after him, cultivating a massive personality cult, doesn’t make this kind of thing public? Sorry, but i say “bullshit”. 4. “I detest people like Vermyn Mervyn and such useless MPs and ministers are allowed 2 or 3 luxuray cars for their personal use all paid up by the tax payer.” And who allows such wasteful spending? The minister of finance. Who is that, remind us again? 5. “All other preachers, including HB, are just a load of useless selfish pretenders.” HB isn’t preaching. He’s not telling people to stop spending on the poor. If you actually read the article before writing this nonsense you’re being paid for by Temple Trees, you’d see the man was talking about economic policy and ways in which the government can cut back on waste and improve people’s lives. In short, READ THE DAMN ARTICLE before airing your ravings here and wasting everyone’s time.

      kp
      August 17, 2013 at 7:43 am
      Reply

      • 0
        0
        Totally agree with you. The government cannot even get people competent in the field to comment!

        Wickramasiri
        August 18, 2013 at 10:52 pm
        Reply

  9. 0
    0
    It is very clear, that Rajapaksa has absolutely no knowledge about economics, for as we can all see, the not so brilliant decisions regarding the Port and Airport down South, have been disasters when it comes to economics. The millions of rupees, the country poured in to stoke Rajapaksa ego, building airports where no planes land, and ports where no ships dock, was a waste of money. To think we put in millions for the airport to be used as a repair shop, is deplorable. Lofty ambitions by small minds. In Rajapaksa land, such decisions must be based on who is paying who, and whether feasible or not, the major project goes through, at the detriment of the Sri Lankan people. It seems the Rajapaksa’s act like the money they spend is all theirs,…no wait, I forgot, it IS all theirs.

    Dhaksha
    August 17, 2013 at 4:10 am
    Reply

    • 0
      0
      Dhaksha, What Economic advise could you give to a Alibaba “Gan Kabaraya” Villege Crocodile whose only intention and aim is to steal and make Commissions. He has Many Economic Advisers and all of them are his personal Astrologers. Remember how Gan Kabaraya recruited one of his Astrologers as a Director to the board of National Savings Bank to trap CJ Shirani Bandaranayake’s husband Mr. Pradeep Kariyawasam in The Finance Co. stock purchase scandal. Under Hambanthota Gan Kabaraya, Economic Robbery goes hand in hand.

      Jayantha
      August 17, 2013 at 9:51 pm
      Reply

  10. 0
    0
    Doesn’t Infrastructure improve Productivity?. I wouldn’t be using this “Lecture” even in an assignment if I was doing AL Economics.

    K.A Sumanasekera
    August 17, 2013 at 4:14 am
    Reply

    • 0
      0
      Sumane,depends on the source that you start with when doing the building of infrastructure.If you first look at what is the infrastructure that the country needs and prioritise them and start with the most critical one,then productivity will start to improve.If you do it the other way about and say,we will first put the infrastructure and then see that the country needs it and force it to use it,then you won’t increase productivity in the short or medium term.Long term maybe with luck. Its like the first principle of marketing which says look at what the customer needs are and produce a service or product to satisfy that need,not the other way about to first produce the product or service and then look for customers who may need it.If you don’t find customers who need the product then you go bankrupt.

      shankar
      August 17, 2013 at 5:20 am
      Reply

    • 0
      0
      When Suddas planned and build infrastructure in SL, the planters had figures to show to banks proving infrastructure they build with bank loans would improve productivity, hence they can pay back When you have one person who is in charge of money- Finance, infrastructure and also executive president of the country, he had no obligation prove the productivity anybody other himself. I read somewhere even the toll money getting from southern highway is not enough to pay the interest of the loan.

      Anura
      August 17, 2013 at 7:19 am
      Reply

    • 0
      0
      The only reason you’d be at a school is to feel up the kids, and when caught, yell something about “conspiracies” and jump over the fence.

      kp
      August 17, 2013 at 7:45 am
      Reply

    • 0
      0
      When the ‘infrastructure’ is a ‘viable’ revenue stream!! Read the article again.

      Sri Lankan
      August 17, 2013 at 8:14 am
      Reply

    • 0
      0
      Infrastructure at ANY cost?? No, I don’t think so!! I pity the students following your lectures if that’s your take on things!!

      Suresh
      August 17, 2013 at 10:20 am
      Reply

    • 0
      0
      Leela bith, What the hell are you doing in the forum for intellects? You filthy maggot better creep in to the ditch of Araliyagaha!

      Ruwan
      August 17, 2013 at 10:25 am
      Reply

    • 0
      0
      Having the best infrastructure and or natural resources in the world does not guarantee productivity. The criteria to Productivity is too long to list. However, the prerequisite to economic prosperity is a non biased social order. The country and its leaders can learn from the clip below of the former President of India http://www.youtube.com/watch?v=Uu-0vTOHJ44

      Maghribi
      August 17, 2013 at 12:32 pm
      Reply

    • 0
      0
      Doesn’t Infrastructure improve Productivity?. I wouldn’t be using this “Lecture” even in an assignment if I was doing AL Economics. What to do Amanasekara when your intellect is the same as MR’s? How can you use this assignment for A/L when you and MR do not have O/L? Do not worry this is a little complicated for you and MR to understand, what Hema Senanayake is saying. Let the World bank keep on lending money to MR to bust up and rob, as after all MR and his cronies as Nivard Cabrall will deposit their illgotten wealth in their own Banks overseas, for them to collect one day, when the lot are no more. This is the Policy of the World Bank when they lend generously to Despots in third World Countries, they know half of the funds go back to Foreign Banks to be stashed away but in most instances their families are unaware and are lost. This is because most of them are shy to reveal to the family that they have robbed.

      gamini
      August 17, 2013 at 12:37 pm
      Reply

      • 0
        0
        Contd. The World Bank fights shy in lending to countries where Leaderships who are Honest, Educated and Visionary as then the Loans will be used for the countries benefit and they will not get the money back easily like lending to Corrupt Leaders.

        gamini
        August 17, 2013 at 1:18 pm
        Reply

    • 0
      0
      K.A Sumanasekera “Doesn’t Infrastructure improve Productivity?.” No It improves the bank accounts of the politicians, their relatives, their cronies, and Chinese companies. You should perform a complete compliance audit on them. “I wouldn’t be using this “Lecture” even in an assignment if I was doing AL Economics.” Well I am not sure if you are intellectually qualified to read A/L economics. Therefore the need for you to use lectures to write assignment does not arise. Come to think of it anything is possible in Sri Lanka. Perhaps,conferring PhDs on Mervyn, his children, their children are also imminent in the not too distant future.

      Native Vedda
      August 17, 2013 at 1:04 pm
      Reply

    • 0
      0
      Particularly, in Mattala productivity is null and void. In what language do you prefer your Lecture, Manopala?

      Glabodasius
      August 17, 2013 at 1:18 pm
      Reply

    • 0
      0
      Hey dude read the article carefully, the author says the infrastructures like the new airport, hambantotal harbour, most of the express ways built at enormous cost, loaned form China, are idling, and there is no return on capital yet alone returning the capital.

      DeSelva
      August 17, 2013 at 3:59 pm
      Reply

    • 0
      0
      Would you not propose HE MR for Noble Prize in Economics after reading these items, if you have not:- [Edited out]

      punchinilame
      August 18, 2013 at 1:00 am
      Reply

    • 0
      0
      Have we ever heard of a country where maggots write AL Economics except in Maraland?

      Ruwan
      August 18, 2013 at 9:19 am
      Reply

  11. 0
    0
    I would estimate that only 10-25% of govt expenditure is productive and of any benefit to the people of the country. About 25 to 50% must be going into the pockets of the regime to purchase Greek islands and properties abroad. Another 25-50% would be wasted and go into the pockets of the public sector. Another aspect of this problem is that foreign investment is being recovered and siphoned out of the country in a few years due to the concessionary tax breaks and terms of contract. The benefits to the common people are negligible. The common people are deprived of the freedom to even use these facilities due to the astronomically high prices. They automatically become second class citizens in their own country.

    Safa
    August 17, 2013 at 5:45 am
    Reply

  12. 0
    0
    If Bill Clinton were told: “President Mahinda Rajapaksa Might Need A Lesson On Economics”, He would have said: “It’s not the economy, stupid, it’s the money in your pocket that matters.” We are all wasting time talking about economics, investment etc., but MR knows – make hay while the Sun shines – it can be in used even in the Hague!

    Thiru
    August 17, 2013 at 7:45 am
    Reply

  13. 0
    0
    As long as Rajapakses main intention is commissions, no amount of economic knowledge will help them in decision Making. Who the donkey will build the thirteenth (13th) airport in Kandy, in such a small country destroying over 400 acres of Jungle and vegtetation. Only a mad dog crazy mutt will do so. Haven’t Rajapakses herd that there are Helicopters that do the same type of transport like a plane but at a much low cost that do not need airports. This is what the crook Alibabas do when people are crying for water in Weliweriya…..building more airports in agriculture areas. Who is going to use these airports when tourism is down by 20%. The absolute swolen head, false pride, show off, Gamaya came to town moron who does not listen to anybody, should be sent to jail for the rest of his life for destroying our country the moment he gets off from his seat.

    Jayantha
    August 17, 2013 at 8:27 am
    Reply

  14. 0
    0
    I am not quite sure whether Hema got it right? what he says is “IF” Mattala and Hambanthota are failures then we are in deep shit? The problem with that statement is there is an “IF” It is too early to say whether these projects will be successful! I also wish to state that these projects were not invented by MARA! These were planned long time ago before he became president! Lets wait and see whether these will be successful as we should remember “Rome was not built in one day” In infrastructure development one has to take calculated risks! Lets not jump the gun! How about the Colombo port? any comments? Though I look positively at infrastructure development law and order has gone to the DOGS. I would request you to focus on attacking MARA on other areas rather than infrastructure development as there are countless number of areas that are deplorable!

    RuwanL
    August 17, 2013 at 8:31 am
    Reply

    • 0
      0
      Indeed, Sri Lanka needs infrastructure development not until it straightens its core values of governance. When Morality declines in a society, the rich and powerful takes control of the resources by unfair means, lack of respect among communities; are some of the signs of an impending catastrophe. Moral and Ethical values have to be in place before economic prosperity can be achieved.

      Maghribi
      August 17, 2013 at 1:58 pm
      Reply

  15. 0
    0
    Rajapaksas has no knowledge of anything but womanising.

    kautilya
    August 17, 2013 at 8:39 am
    Reply

    • 0
      0
      Absolutely. That is why Pimps as Sajin Vass Gunawardene thrive as Advisers to President.

      gamini
      August 18, 2013 at 10:06 am
      Reply

  16. 0
    0
    MR’s view of development is building roads, ports, airports and buildings. He thinks if he does that country will get developed. He never look at ROI (return of investment) and what contribution it does to the economy. It is such unfortunate he doesn’t even understand white elephant projects eat up any economic progress, despite all opposition, media’s talks these white elephants over and over. He need to focus on industrialization, development of SME (small and mediuam enterprises), making state owned enterprises profitable, stop the rampant corruption. He need to build a knowledge based economy. For that he need to improve school education, technical training systems and university education. He need to think why millions of Sri Lankans are looking for jobs in mid east instead of making the economy dependent on expat revenues. He need to get some good economists, busninessmen as his advisors, not accountants (Cabraal etc..) casino guys (Dhammika etc..), thugs, as his advisers.

    Sumith
    August 17, 2013 at 9:06 am
    Reply

  17. 0
    0
    the truth is that the so called economic experts in the Treasury are the culprits for aid and abetting the robbers continue to rob in the name of DEVELOPMENT by cheating gullible masses it is not only MR failed in maths 60% of the population is failed and lost thinking analytically any one who posses with deep voice and ability to perform acting and cheating can obviously become a leader to lead the folk. the word Development SANGWARDANE is the carrot in politics i hear a tallest tower is in the making claiming it is the tallest in south Asia marune!!

    lankaputhra
    August 17, 2013 at 9:29 am
    Reply

    • 0
      0
      Yes,the tallest tower is in the making claiming it is the tallest in south Asia……. for Mara siblings to jump to their eternity.

      mahela
      August 17, 2013 at 10:59 pm
      Reply

  18. 0
    0
    “With due respect, I think President Mahinda Rajapaksa needs a lesson on economics” Just like giving lessons about Hygiene to Pigs. “By profession he is a lawyer……” Only thing what we don’t have in this country is Law and Order. “… since he being the Commander in Chief…..” Then he should resign over Waliweriya Incident. “.. holding the portfolio of the Minister of Finance,….” The only subject that he does not know anything about.

    Lapatiya
    August 17, 2013 at 11:25 am
    Reply

  19. 0
    0
    With all due respect I must disagree. His Excellency has a superb knowledge of economics which has been demonstrated and proved since 2005. His training as a lawyer has given him a similar grasp of the legal system. It is just that Mr Senanyake does not understand His Excellency or his objectives. The economics (and the legal system are fine), it is just that the objectives that are being persued are different from those that Mr Senanayake thinks are important.

    Punchi Putha
    August 17, 2013 at 12:03 pm
    Reply

    • 0
      0
      None are so hopelessly enslaved as those who falsely believe they are free.

      Maghribi
      August 17, 2013 at 1:51 pm
      Reply

  20. 0
    0
    Weren’t these Ports planned by the ex Prez Kumaratunga and the TNA proxy Wickremasinghe when they were shitting bricks thinking that even the WPC would be under the LTTE, after Mr Prabakaran attacked our only Airport and obliterated our entire National Airline and our shattered Military Forces were on the verge of surrender ?. Probably this Mr Senanayaka was not around then to give them lessons in Economics.

    K.A Sumanasekera
    August 17, 2013 at 2:40 pm
    Reply

    • 0
      0
      KAS- The Rajapaksha koolaid customer, Yes, Hambanthota port development was in planning stage during previous governments too. Those governments studied the feasibility report of SNC-Lavalin which indicated limited devolpment of this harbour due to a huge rock. World bank agreed to fund this project without removing the rock as it would cost over hundred million dollars. Guess what happened when Rajapaksha family came to power? They got their crony chairman of the port authority, fake Dr.Priyath Bandu to throw SNC report into dustbin and paid tens of millions of dollars to a Chinese engineering firm do another feasibility report omitting the rock issue then got a loan from a Chinese bank at 5% interest rate to develope the harbour. Now SL government is borrowing again over 100 millions (cost over-run)from china to remove this rock in controled explosion to avoid any seismic reaction. It is unconscionable the way Rajapakshas are wasting public funds on pork barrel projects just for huge commissions that they are getting not only from projects also from borrowings at very high interest rates. It is important to mention that SNC-Lavalin feasiblity report we got in the first place, was free of charge as it was funded by CIDA(a foreign aid by Canada). KAS, you can keep drinking Rajapaksha koolaid after consuming Rajapaksha solid waste.

      Avi
      August 18, 2013 at 1:42 am
      Reply

      • 0
        0
        AVI, This KAS pig is the most stanching animal I have ever seen because he swallows all the urines and droppings of Rajpakshas as an elixir. He applies Shranthi’s all over his body as fragrance! Ugly rascal!

        Ruwan
        August 18, 2013 at 9:31 am
        Reply

        • 0
          0
          Sorry, “stenching”, not “stanching”

          Ruwan
          August 18, 2013 at 9:33 am
          Reply

  21. 0
    0
    I think, Mr Hema Senanayaka , simply asking these Tortoise to Fly, in high altitude. If HE / They Agree, We have Highly profitable TWO Air lines to Hold the Stick.

    JULAMPITIYE AMARAYA
    August 17, 2013 at 6:22 pm
    Reply

  22. 0
    0
    I believe the writer’s main intent was to educate the public (ie readers of CT) on basic economic fundamentals and not really to critique economic policy of the Sri Lankan government or its head. He would know, as everyone else probably does, that politicians primarily care about power and maintaining the status quo that enables it, and not economic or legal principles per se. He would know, therefore, that any rhetoric uttered by a politician must be taken in that context rather than naively in any other context…

    Lasantha Pethiyagoda
    August 17, 2013 at 10:39 pm
    Reply

  23. 0
    0
    Hema, MR, Gotha and his cronies dont need any lesson in Economics as they kmow how to milk the country. Coming from very humble origins just look their proprty holdings. How else do you think they accumulated so much wealth other than by looting the nation. MR and unqualified Lawyer whose only knows how to flout the Law Gotha a failed businessman from USA has acquired so much wealth since returning empty handed from USA and has built his own White House in the middle of the City. Has any of his loyal subjects questioned him about the origins of his wealth. NO Basil another Joke. MRs son makes his money from promising to send thousands of young Tamil boys charging them millions. Once they are sea bound the boats are drowned killing all of them. This is blood money. Has any one heard about the unfortunate Tamil boys who are killed and their bodies washed ashore. THis is Sri Lankan Economics.

    kali
    August 18, 2013 at 1:18 am
    Reply

  24. 0
    0
    He got 21st century financial Genius and next Noble prize recipient for Finance’s RB Governor Cabarala at his side counting 4×4 vehicles at Colombo roads.

    Len
    August 18, 2013 at 2:20 am
    Reply

  25. 0
    0
    Interesting and educational forum! In a politically mature country like SL, where are the checks and balances? Impotent Opposition leaders should be held to account just as much as those taking such arbitrary decisions for financial gains Socrates

    sarath Liyanage
    August 18, 2013 at 8:35 am
    Reply

  26. 0
    0
    Forgotten the economic geniuses KP Karuna Doglas Pillaiyan all are advising the president. So he cant go wrong.

    Lanka liar
    August 20, 2013 at 6:43 pm
    Reply

Leave a Reply

Comments should not exceed 300 words. Embedding external links and writing in capital letters are discouraged. Comment approval may take up to 24 hours. Please read our Comments Policy for further details.
Your email address will not be published.