3 August, 2021

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Swallow The Pride & Go To IMF

By Ameer Ali

Dr. Ameer Ali

Economic policy makers who are advising the Rajapaksa Regime (RR) seem to be advocating what they call an alternative path to development, without detailing in any document or forum what constitutes that path and how smooth or rough the journey along that path going to be for the economy and people. If the distance covered so far, is any evidence, then there is no doubt that the path is pointing towards a cul-de-sac. Sri Lanka’s economic crisis is multidimensional.

One of the core elements of this alternate way seems to be a negative attitude towards the International Monetary Fund (IMF), and policy makers are stubbornly unwilling to approach that institution for financial assistance. IMF and World Bank (WB) were created after World War II specifically to help economies in difficulties due to scarcity of savings and capital. IMF would assist on short term basis when countries face chronic deficits in balance of payments (BOP), whereas WB would assist in financing long term projects. Sri Lanka, a member of IMF and currently facing chronic BOP deficits qualifies for IMF assistance, if approached. Needless to say, that there are conditions such as tax and spending cuts attached to IMF assistance. Yet, it is the cheapest source of credit available in the market today. There were instances in the past, as at the end of the second JVP insurrection in 1980s and during the civil war in 1990s, when IMF provided assistance and the economy avoided bankruptcy.

It is no secret that IMF is ideologically committed to promote free market capitalism, and any interference in the operation of free market and free movement of capital is anathema to that institution. It is therefore labelled by many as an institution that operates in the interest of big capital and rich nations. There is of course a lot of truth in this. But given the situation that Sri Lanka find itself today, can beggars be too choosy?

Looking at the current situation pragmatically, IMF assistance would open the doors for RR not only to ease the financial pressure but also repair the damage the regime has caused in the area of foreign policy. For a longtime Sri Lanka was committed to the idea of non-alignment. That is the most sensible policy for a small island nation like Sri Lanka situated along the shores of a crucially important waterway, the Indian Ocean. It was only during the period of Rajapaksa Presidencies (2005-2015 & 1919 -) that the policy non-alignment was allowed to erode, and at a time when a new cold war is brewing between the US and its allies on the one hand, which includes India and Japan, and China on the other, in which the Indian Ocean in particular is poised to become a main theatre of confrontation that Sri Lanka has veered too close towards China, and to the discomfort of India, Japan and the West.

This tilt in foreign policy has obviously angered the West, which has begun exerting pressure on RR on totally different grounds. For example, the hard-hitting resolution resulting from the United Nations Human Rights Commissioner’s Report (UNHCR) on Sri Lanka, which was passed in Geneva in September last year, and the most recently announced threat of withdrawing or suspending GSP Plus concessions to Sri Lankan exports entering into European Union (EU), unless Sri Lankan Government seriously reforms or removes altogether its draconian Prevention of Terrorism Act (POTA) are actions that have foreign policy underpinnings. Had RR for example, not withdrawn from the US Millennium Challenge Corporation Negotiations, or, refused to offer India and Japan, apparently under instigation of China, the contract for developing and operating the Colombo Harbor East Container Terminal, or for that matter, kept its “predator friend” China at equidistance as between Sri Lanka and the West, it is doubtful whether UNHCR resolution would have been passed or EU would have issued the said threat.

Historically, US and the West are notorious for trampling human rights in so many developing countries to protect the interests of imperialism and Western hegemony. Likewise, terrorism and counter terrorism are highly undefined terminologies popularized by US after S11 that gave a free hand to governments in power to arrest, torture, incarcerate and even kill their political opponents by condemning them as terrorists. For instance, as Roberts meticulously researched and argued, it was as part of George Bush’s diplomatic manoeuvre to win China’s support at the UN for US Global War on Terror (GWOT) and subsequently for US invasion of Afghanistan and Iraq that he conceded China’s request to include in the UN list of terror groups, the Eastern Turkistan Islamic Movement (ETIM), which, as China alleged, to have supported the Uyghur demand for a Xinjiang Uygur Autonomous Region. It was this US sacrifice of Uyghurs in the interest of US inspired GWOT that ultimately led to the current tragedy of “cultural genocide” of Uyghurs unleashed by Xi Jinping’s Communist China (Sean R. Roberts, The War on The Uyghurs, Princeton and Oxford: Princeton University Press, 2020). Now Joe Biden is shedding crocodile tears for Uyghur sufferings. Thus, the West’s tears for human rights in Sri Lanka and elsewhere, and EU’s concerns about POTA are covers to get RR to change its foreign policy. What has this got to do with IMF financial assistance?

There are two or three ways of benefiting by seeking help from IMF. Firstly, and as pointed out earlier, it is the cheapest source of credit available in the market, but subject to certain conditions. Secondly, approach to IMF gives an indication to Western powers that Sri Lanka has rejoined the IMF family and is prepared to play even handedly at least between the West and China. This does not mean that Sri Lanka has to cut off its friendship with China. It calls for a diplomatic game of delicately balancing the country’s own interests with competing powers and their conflicting demands, which requires professional expertise that unfortunately seems to be in short supply within RR. And thirdly, it may open the doors for more financial and other assistance from countries like India and Japan. If RR gets closer to India for example, Prime Minister Modi’s insistence on implementing the controversial 13th amendment may remain just a rhetoric and to the disappointment of Tamils.

However, assistance from IMF alone is not going to be a panacea for Sri Lanka’s multidimensional crisis. At least it can bring relief in one area. In the final analysis RR’s economic and foreign policies must be ruled by pragmatism and not by unnecessary ideals and unattainable visions. At least to stop further deterioration of the economy during the little time left to this regime, will the new Finance Minister swallow the pride and approach IMF?

*Dr. Ameer Ali, School of Business & Governance, Murdoch University, Western Australia

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Latest comments

  • 10
    26

    Mr. Ameen, you just keep circulating the same long dead, Washington Consensus platitudes and failed neo-liberal policies that have brought the world to a Global Inequality Pandemic today.
    Sri Lanka needs to think out of the box and capitalize on its Strategic LOCATION in the the Indian Ocean for economic growth!!
    Lankan Policy makers and Finance Ministry should develop a framework to TAX and Charge the Global Submarine Data Corporations and UDC companies and their corporate clients, Google, Apple, Amazon etc. that profit from Data Mining for use of Sri Lanka’s Exclusive Economic Zone (EEZ). Lanka would be able to pay off its debt in a very short time.
    http://www.colombopage.com/archive_21A/Jul18_1626632728CH.php
    Sri Lanka has launched the Submarine Cable Protection and Resilience Framework with UNODC) .
    Sri Lanka is the first country in Asia to come up with such a Framework is the claim, but the Framework was very likely designed at UNODC and among those who coined the term “indo-Pacific” to secure their economic, financial and Security interests, and simply adopted by Sri Lanka, a country where investment in Maritime Resources research and development (R & D)is non-existent.
    Sri Lanka should be taxing and charging Global Corporations and UDC companies and through them their corporate clients,(e.g. Google, Apple, Amazon etc), that profit from Big Data Mining for use of its EEZ .

    • 8
      22

      Sri Lanka’s valuable minerals like Graphite from which Graphine is made are being looted by German companies that bought Bogala Graphite. Lankan graphite/ Graphane is used to manufacture Pfizer Covid-19 Vaccines with nano particles, which are sold at massive prices. However, the income Sri Lanka gets from Graphite and other Mineral exports is paltry!
      The island though rich in resources, because paltry advised by Economic Hitmen like Old Wije and the MCC Hitmen has no INNOVATION.
      The SL Business community, dependent on Garments and under ware exports is totally useless. NO INNOVATION is the motto of the so called Captains of Industry and their advisors in the Miracle of Modayas!
      Sri Lanka’s valuable Rare Earth Mineral and Rare Earth Elements are bring looted and removed in so called “Sand Mining” operations. The Country needs a policy framework for value addition and use of its valuable mineral resources.

      • 12
        1

        Dinuk,

        All these concerns must be already being taxed appropriately. Any more taxes and they would move  elsewhere. All the taxes collected are placed in Rajapaksa government long- term investment potential, like probably Virgin Galactica and the Elon Musk enterprise. Rajapaksas have their own alternate universe of global investment portfolios (unavailable for public scrutinity due to Executive Order) that they see as being very good for the country in the long run. No IMF will be allowed, for when Rajapaksas open their books and explain their factors, IMF will say “What the Hell ! “

      • 20
        2

        Dinuk,
        If we actually have all those valuable minerals, why did the British prefer to plant tea? Were they stupid, or were they smarter than you?

        • 0
          1

          OC
          The British did not know of the graphite deposits wen they arrived and graphite came much later into the picture.
          A few families made a mint of exporting our graphite, which is unquestionably of very high grade. Much of it went into making contact brushes for electrical machines and such purposes.
          Even out mineral sand deposits were discovered close to mid-20th Century. They have been exported unprocessed.
          But quantities?
          Nobody does his/her sums before making extravagant claims.

          • 2
            0

            S.J,
            Just be patient and wait for the Mannar oil at a mere $300 a barrel.

      • 13
        2

        Dinuk-we are so insignifcant country is world Graphite production

        https://www.statista.com/statistics/267366/world-graphite-production/
        There are many different graphites and different end uses. Our graphite bought by FABER castel for graphite pencils.

        Just like yourprevious comment on sea cable- Graphite has nothing to do with a Bankrupt country that HAS To go to the IMF

        The idiotic policies is driving us. A severe debt ridden country under SAUBAGYA abolised VAT. Increase individual tac releif fromn 500,000a year to 4.5 Mn. Wiping thetax reveue
        ,Suicidal policies

    • 27
      4

      Dinuk

      “Sri Lanka needs to think out of the box and capitalize on its Strategic LOCATION in the the Indian Ocean for economic growth!!”

      Firstly Sri Lankans are generally lazy bunch to think.
      They are only capable of parroting.
      There is no out of the box.
      We can find solutions when we shed the idea of
      “Sinhala/Buddhism”,
      “Sinhala/Buddhist”,
      “Mahinda, Gota, ….. and rest of the war criminals, each single handedly won the war.”
      “Stop appointing inapt persons to top job”
      “People/voters should reject crooks, murderers, thief, racists, saffron clad thugs”

      ..

    • 16
      2

      Playing political chess games is not going to save sri lanka. If anything it only shows how wicked lankans are as a collective (yes i know there are a few exceptions to the rule).
      A wicked people who cant see that god is judging them for all the evil they have done and continue to do.
      Instead they cunning minds and hearts are only focused on how they can ‘out smart their way out of trouble’
      Some learn only through severe pain.

      • 9
        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

        • 4
          0

          Eagle Blind Eye

          Brilliant
          Thanks for keeping it brief.
          Keep up your good work.

    • 14
      0

      “It is no secret that IMF is ideologically committed to promote free market capitalism, and any interference in the operation of free market and free movement of capital”

      There is free movement capital alright …….. how do Gota and Basil get their loot to California? ……. Isn’t that free movement of capital?

    • 13
      0

      IMF has to disburse funds equitably among countries needing help, and Sri Lanka’s share is only 800 million dollars. This comes with tough fiscal conditions which will make government unpopular. Therefore they do not want to take that chance for this paltry amount. Instead they are going to sell Trinco harbour to USA on five year lease for 400 million dollars, and will hatch other ways to lease another strategic part of the country to some other country for 600 million dollars, both of which have no repayment burden.

    • 11
      1

      I do not Dinuk what your qualifications arevtomake these statements.What has saubmarine cable to do with a Bankrupt country as a last ressort going to the IMF as a last resort to avoid the INEVITABLE bankrutcy.Pls explain.

      • 11
        0

        SP,
        Dinuk is a Princeton alumnus, no less. She has done much research in Kanatte on Covid.
        Please be kind to her.

      • 5
        0

        No qualification at all, which gives the people freedom to write their fantasies and conspiracies. But what about the qualification of those who believe in such fantasies. When we are sitting on Billions worth of oil and natural gas as mentioned by Goman why waste time and money on cable and graphite. I studied about graphite before Dinuk was born, seems we still are searching for it. Poor sole doesn’t realize retired Apple and Amazon owners are now aiming for Moon and Mars and can easily afford to own hundreds of Lanka. Dinuk is there cable and graphite in Mars ????

    • 13
      0

      Dinuk “Sri Lanka needs to think out of the box “
      Sri Lanka or its politicians cant think out of the box.
      They think inside the Sri Lanka Sinhala Buddhist Racist box.
      Sri Lanka Sinhala Buddhist Racist box.is not made of cardboard to rip apart and come in to the real world
      Sri Lanka Sinhala Buddhist Racist box.is made of brick.
      The brick box is open only for those who cant think out of the real box

      • 3
        0

        Rsjash, “think out of the box” Dinuk means IDIOT BOX at home.

  • 7
    16

    IMF cannot help SL now.

    SL is beyond help. Just split the island into 3 mono ethnic nations and relocate people or hand over the island to China.

    • 5
      3

      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
        0

        GATAM : “Split the island into 3 mono ethnic nations and relocate people”. Do you mean that the three nations are Sinhala, Tamil and Veddha, who are archaeologically and genetically the legitimate first nations of the island.

        • 3
          4

          Yes correct. Thullukans are descended from largely low caste converted immigrant Indian Thamizh Hindus, with itzy bitzy Arab or something else in the few hundred families. This itzy bitzy Arab or something else, is largely found amongst southern Thullukans. The Thullukans from the north and east are almost 100% Thamizh, especially the eastern ones, as they are purely Thamizh Mukkuva on their mother line. This is why the eastern Thullkans followed the Mukkuva law of the eastern Eezham Thamizh, as this was a matriarchical law that came from their maternal line. Now all for perceived political and economic advantage claiming to be of pure Arab and other Western Asian heritage that only around 5% of them, partially have, and denying the 95% or more Thamizh origin and heritage they have. Claiming to be Arab but look at most them. Look like typical Dravidian Thamizh that they really are. Islam is a world religion followed by many races and people not just these converted South Indian originThamizh Thullkans and being a world Muslim is a religious and not an ethnic identity.

        • 3
          3

          Yes correct. These South Indian origin Thullukans are descended from largely low caste converted immigrant Indian Thamizh Hindus, with itzy bitzy Arab or something else in the few hundred families. This itzy bitzy Arab or something else, is largely found amongst southern Thullukans. The Thullukans from the north and east are almost 100% Thamizh, especially the eastern ones, as they are purely Thamizh Mukkuva on their mother line. This is why the eastern Thullkans followed the Mukkuva law of the eastern Eezham Thamizh, as this was a matriarchical law that came from their maternal line. Now all for perceived political and economic advantage claiming to be of pure Arab and other Western Asian heritage that only around 5% of them, partially have, and denying the 95% or more Thamizh origin and heritage they have. Claiming to be Arab but look at most them. Look like typical Dravidian Thamizh that they really are. Islam is a world religion followed by many races and people not just these converted South Indian origin Thamizh Thullkans and being a world Muslim is a religious and not an ethnic identity. DNA analysis on Sri Lankan Muslims have proved there is no difference between them and the island’s Chingkallams and Thamizh. They are core genetic make up is South Indian Dravidian with far below average Arab in them.

        • 1
          11

          Dr. Gnana Sankaralingam,
          People who came to Sinhale/Ceylon as invaders and coolies do not qualify to be consider as a first nation of this country.

          • 2
            0

            It is Chingkalam ( meaning the land of red or red soil or copper coloured in Tamil) . This is one of the ancient name for the island . Sinhalese is just a corrupted Pali/Prakrit version of this ancient Tamil name for the island. Unlike in Tami, it does not mean anything in these languages, therefore to justify this, a lion myth ( Sinha or Sinham) was cooked up. No human is descended from lion or part lion, it is scientifically impossible. The ancient semi Tamil ( Elu) or proper Tamil speaking indigenous Dravidian Naga and Yakka were called Chingkallavar meaning from the island of Chingkallam or Eelavar or Eezhava from the island of Eelam/Eezham another ancient Tamil word for the island. In many ancient Tamil Sangam poems the island is referred to as Chingkalla Theevu or a Tamil Naga poet from the island was referred to as Eelathu Pothanar. Hela again is the Prakritized version of Eelam/Eezham, meaning land of toddy or metal in Tamil. What does Hela mean? Like Sinhala nothing ?

            • 2
              0

              When the population down south converted to Buddhism on a mass scale and a new identity and language was evolving down the south of the island due to the corruption of the local Tamil dialect Elu with the Pali/Prakrit of Buddhism, they took on the name and identity Chingkalam and Prakritised it to Sinhala. Hela or old Sinhalese that is very close to its Tamil mother is Elu+ Prakrit. It is the modern Sinhalese who are largely descended from invaders and immigrants and not the Sri Lankan or Eelam Tamils. We all know who are the ancestors of the more than half of the present day so called Sinhalese people. Recent South Indian immigrants. Posting the same rubbish and lie again and again does not make this the truth.

    • 1
      8

      Gatam,
      Your proposal reminds me the fable Arab and the camel.

    • 7
      0

      GATAM, it is possible for you to relocate without splitting the island. You have no right to send other people to be slaves of China, when they do not want it

  • 14
    4

    Dr. Ameer Ali

    “Swallow The Pride & Go To IMF”

    As far as the clan is concerned this island does not have to have its tails between its legs and approach IMF. The clan and the country believe Hindians owe them a lot. Therefore Sinhala/Buddhists know as in the past Hindians will deliver what is needed for the country however much they humiliate Hindia.

    News leaked in the press speculates Hindia is desperately negotiating with Sinhala/Buddhists state/government to offer/lend 1 billion dollars. The proud saffron brigade may reject Hindia’s offer of financial support.

    SJ will be very unhappy.

    • 3
      2

      “News leaked in the press speculates Hindia is desperately negotiating with Sinhala/Buddhists state/government to offer/lend 1 billion dollars.”
      Hindia’s primary motive is facilitating the ground situation for seeing the Tamil structural genocide in the Island to the finish and make the Island the Sinhala Bhuddist ghetto as this will enable to win the hearts and mind of Sinhalese for good.

      “Therefore Sinhala/Buddhists know as in the past Hindians will deliver what is needed for the country however much they humiliate Hindia.”

      Other than that, Hindia is in sex slave bondage to Sori Sinhala Lanka.

      Now you accept this fact.

      More the pain and humiliation the Sori Sinhala Lanka inflict on Hindia, more enjoyment for Hindia.

      Who else would tolerate Sori Sinhala Lanka-fly tearing apart a written understanding for ECT that comes with in the purview of so called Sori Sinhala Lanka constitution, whilst an enemy who is an expert at shredding-by-barbed-and sharp-studded-iron-bars being given a Port City outside of that constitution.

      • 4
        1

        You can never trust Hindia, they have always been the enemy of the Eezham Thamizh or for that matter any Thamizh, as they portray the Dravidian culture. Hindia wants to only portray itself as a Sanskrit based Vedic Hindu Indo Aryan nation/culture. Therefore the will do anything to suppress the older and far ancient Dravidian Thamizh Saivite culture and heritage. This is why Hindia, loves Chingkallams , however much the Chingkallams kick them as they really suppress the Thamizh. India only uses the Eezham Thamizhs and their fight for justice, when it suits Hindia but all other times will help the Chingkalla state to complete their structural genocide on the island’s Thamizh , whilst shedding crocodile tears about the plight of the Thamizh in the island. The Chingkallams also are aware of Hindia and its double game and do not take them seriously, about their fake moaning and groaning about the island’s Thamizh , as they know that this is really joyful grunts. Notice when ever the Chingkallams are in difficulty Hindia comes to their rescue and whenever the Thamizh really need their help, India abandons and betrays them. EG: May 2009 in the UN, constantly abstaining in favour of the Chingkalla nation. All the so called development projects in the North and East, stating in aid of Eezham Thamizh only helps to complete their structural genocide, and helps the occupying Chingkalla armed forces and Chingkalla colonization.

        • 3
          0

          Has Hindia even once protested when rabid Chingkalla Buddhists aided and abetted by the Sri Lankan state and armed forces have destroyed many ancient Hindu Saivite temples in the North and East and converted them to Buddhist? The answer is no. It has done so when it happened in Pakistan and Bangladesh. The reason is Hindia sees these ancient temples not as Hindu but as Thamizh Saivite. Eezham Thamizh Hindu and Christian refugees are denied Indian citizenship but Pakistani, Bangladeshi and Afghan Hindu, Christian and Buddhists refugees are to be granted Hindian citizenship.
          Has Hindia even once protested when rabid Chingkalla Buddhists aided and abetted by the Sri Lankan state and armed forces have destroyed many ancient Hindu Saivite temples in the North and East and converted them to Buddhist? The answer is no. It has done so when it happened in Pakistan and Bangladesh. The reason is Hindia sees these ancient temples not as Hindu but as Thamizh Saivite. Eezham Thamizh Hindu and Christian refugees are denied Indian citizenship but Pakistani, Bangladeshi and Afghan Hindu, Christian and Buddhists refugees are to be granted Hindian citizenship.

  • 14
    1

    Dr. Ameer Ali,

    You article above is a well reasoned out analysis:

    Let’s wait and see how the West and India on the one hand, and China on the other play this geopolitical chess.

    Sri Lanka is the pendant for China’s garland of pearls around India; will it pay any price to secure it so that its Belt and road project will be successful for its geopolitical designs? It will in my opinion, as Sri Lanka in China’s pocket will weaken India and the QUAD, and China will emerge as the dominant superpower.

    Sri Lanka since independence does not have a vision , mission or action for a peaceful united and prosperous country. Sinhalese leaders’ mission and actions are to secure Sinhalese Buddhist hegemony over the whole island. As JRJ put it he will join hands with the devil to achieve it.

    Tamils and their historical homeland in the North-East are used as pawns and are victims in this game.

    • 8
      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

      • 10
        0

        CT,
        Please don’t deprive us of our daily entertainment from Potta Eagle.

        • 6
          0

          Oc,
          Potta Eagle is suffering from ” vasidewa nanayakkara syndrome “. He is still proud of ” native sinhalayo” 😐😐😐😐😐😐

    • 0
      10

      Thiru,
      Usually an ethnic group has only one ‘Homeland’ but Tamils want to have two ‘Homelands’.
      —-
      “Tamils and their historical homeland in the North-East”

      • 6
        0

        EE bp,
        Like or not, believe or not tamils have their rights to fight for their own rights. Even plantation tamils should be treated equally. EU laws would never treat the newly entered Syrians as our racist politicians doubt with country s minorities. Not only with minorities but they continue it also with the destitute in sinhala areas. Rajapakshes are blood suckers born to this island 😉😉😉😉😉😉

        • 4
          0

          EU laws would never allow treat the newly entered Syrians as our racist politicians do it with country s minorities.😐☹☹☹☹☹☹☹☹☹

      • 2
        0

        Because Tamil Nadu and Tamil Eelam are both the homelands of the Tamil people. Ancient Tamilakam ( meaning the land of the Tamils ) consisted of what is modern Tamil Nadu, Kerala, large parts of what is Andhra Pradesh and Karnataka and the island of Sri Lanka or Ceylon. Many ethnic groups have more than on home land. English speakers or Anglo Saxons have five homelands. German speakers three , Arabs around 16 countries , Spanish speakers many. Stop posting rubbish

  • 2
    1

    Error: Your… instead of – You article

  • 12
    1

    Swallow the pride and approach IMF? No way Jose. We are proud Sinhala Buddhists & we have already shown 2 fingers to the West & the UN. We don’t want strings attached, just plain interest at commercial rates which we can understand & China is ever willing to do so. If we can’t service our current loans, get another to cover it. Just logic, we can always sell part of the land bit by bit to pay off the loans & earn a commission as well on the side, after all, those who instigate such strategy, needs to be rewarded.

    It’s simple economics & the ‘viyathmaga’ experts are at hand to help deliver all that splendour to the people very soon.

    • 6
      1

      This going round and round in circles is not to my liking,
      .
      Raj-UK, I’m giving you a “Like” for your sarcasm. Unless that is explicitly stated, my action won’t be understood.

  • 6
    1

    Dr Ameer Ali,

    Sri Lanka was nonaligned since 1956 when SWRD swept to power in 1956,but it was always tilted more towards one over the other. Sri Lanka was never strictly nonaligned.

    Mrs B was pro Soviet Union and pro China than the west during those cold war years,but was extremely close to Indira Gandhi.

    India never interfered in the Sri Lankan emerging Tamil nationalism during 1970-1977, crushed any attempts to support or encourage Sri Lankan Tamils using Indian soil, and in fact dissolved the DMK government prematurely in 1976.

    One of the reasons given by Indira for dissolution was that Karunanithy government was interfering in the internal affairs of Sri Lanka by supporting the infant Tamil nationalism.

    When JR came to power in 1977 he was an ally of US and the West and India was then very close to Soviet Union than to USA and India sent her troops into Sri Lanka,USA did not support Sri Lanka to the disappointment of JR, but advised JR to settle his issues with India by talking to India. USA refused to raise their fingers against India.

    The Geopolitical game is not simple, as Dr Ameer Ali seems to recommend, but very complex for simpletons to grasp.

  • 1
    14

    Go to IMF, borrow some money and allow ‘US’ to import all kinds of junk and make money. If not, we are in deep trouble.

    • 8
      1

      Eagle Eye,
      To be fair, US does not export “Junk”. That’s what China does.

      What type of “junk” products do you say USA dumps on other countries? Name 5 of them if you can.

      Other than Kudu and Badu, US products are fairly reasonable in quality.

      • 5
        0

        RSP,
        Spot on!
        Saddest reality about the facts. Truth is bitter to them ☹☹☹☹☹

      • 5
        0

        ReginaldShamalPerera

        “Other than Kudu and Badu, US products are fairly reasonable in quality.”

        You found Badu to be of lower quality because you must have smoke equally bad quality Kudu.

        If you are desperate go for expensive up market Kudu (Walls Street) and Badu California.
        If you are the drug peddling pimp, make sure you are properly armed, depending on the type of area you might need a M109 series Self-propelled howitzer.

    • 11
      0

      Eagle Blind Eye

      “If not, we are in deep trouble.”

      You are always in deep trouble.
      What else is news?
      Do you think this country is being cornered?

  • 10
    1

    Whether it is IMF or China or USA or India, nothing will work unless there is a fundamental change in terms of politics, religion and attitude of the people, religious leaders, politicians, professionals and civil societies.
    Every one should realise that Sri Lanka is a very small island with diverse communities with limited resources which cannot compete with the powerful international and regional powers. This island was ruled by colonial powers for nearly five centuries and only had the natives rule for just seven decades. Within that period, there is no unity among diverse communities, continued violence which lead to war which destroyed the economy, created political rivalry, influence of international and regional power into the internal politics. A large sunk of economy or expenditure is now dumped for military which is equivalent to powerful rich countries without any productivity or income.
    This country needs stability and unity within the country. The country needs friendly neighbours and international investors, not influencers or controllers. The country need politicians who unite the people and respect the rule of law. The country need religious leaders who do not involve in politics. The country need strict standards and practice to all. One law for all. In other words, President is equal to a cleaner.

  • 11
    1

    The gist of the article is very clear: EITHER (a) Accept IMF conditions, and swallow your pride and go to the IMF for credit, OR (b) Suffer the consequences of substantial economic hardship. Surely the basic argument, whether we like it or not is logically flawless.
    My guess is that the Double-Paksa Regime will resist for a while more doing (b) and then when the economic noose tightens and conditions on the streets become more turbulent, it will capitulate and accept (a). Of course by then it will be too late. Either way this regime will crash. This is a prediction, not restatement of a wish.

    • 4
      1

      Kumar, careful choice of words is noted:
      .
      “This is a prediction, not restatement of a wish.”

    • 12
      0

      eeakdavi

      Have you had chance to speak to Basil about his trip to USA?
      Did he meet any State Department functionaries?
      Did he meet representatives of World Bank/International Monetary fund?
      Did he meet Hindian Reserve Bank functionaries?
      What did he negotiate with them?

    • 2
      0

      “when the economic noose tightens and conditions on the streets become more turbulent, it will capitulate and accept “
      Not that bad compared to using, whitevan kidnappings, imprison, torturing, raping, setting fire, chemical bombing, cluster bombing, thermobaric bombing, dumping in the ocean, burring alive…….

    • 5
      0

      eeakdavi,
      This double-paksha will not crash. Come next election, they will use their trump card of racism which the 6.9M will accept without an iota of wisdom.
      These 6.9M don’t mind loosing an eye, as long as the minorities lose both eyes.

    • 6
      0

      KD and Ameer Ali , do you’ll actually think world bank or IMF can save us at this point ?? Looking for a honest answer. Lanka is no Greece or Iceland or Mexico. Also we have unparalleled family mafia at the top. For all purposes China is calling the shots. China would like to see us fail and hit bottom (not succeed in anyway) so that they can buy out without any resistance.

    • 1
      4

      Wish or prediction, the point is whether it will materialize.
      *
      There is chance, but what follows? To get that right is more important than a gleeful “Did I not say so?”

      • 0
        0

        Educated bafoon aka professor know it all I am not you to gloat on other people misery. Do not estimate others based on your Narcissism.

        • 0
          0

          SJ question is addressed to professionals not you. No where it says I said so.
          You can enlighten us on what is happening in Cuba and Nepal’s communist governments.

          • 0
            0

            SJ , wish or prediction ??? DAN SEPADA..

  • 5
    0

    Just reading the comments it is visible that the “Sinhala Buddhist” stance or any partisan stance will always keep a country backwards and relentlessly poor. Thinking like a racist will isolate you and keep the world apart. Thanks for the analysis Dr. Ali of your vision for Sri Lankan’s awful debt. I think you meant (2005-2015 & 1919 -) <<< 2019? Let's shut up and let the IMF help.

  • 3
    4

    Nobody is advising Royals as Dr. Amir would like to interpret. The rogues surrendered to China only for the veto on war crimes. It was Ranil who burned all the CID investigations on that. There is no economic thinking behind it, as Dr. Amir is bluffing. Educated people like Dr. Amir or Dr WAW are spending time in “I said so”. Not willing to tell the hard-core truth to people and educate them. OIC threatened to bring economic sanctions against Yahapalanaya if they investigate Hezbollah and Richard’s connection on 4/21. It is only the OIC countries that made the Chinese companies rich like that. Then why should America have to talk about Xinjiang? When did last time Dr. Amir or OIC talk about economic sanctions to China on the case of Tibet? Lankawe problem is not yet about Economy; but the elected dictatorial Nazism to wipe out Tamils. Muslim MPs like Hakeem, Harris, Nazeer, Hezbollah, Rishard should stop carrying torch for Lankawe Aanduwa

  • 0
    7

    Dinuk is spot on. Our mineral resources have never been used for economic gains. The rare earth deposits at Beruwela remain unexplored after JRJ shut down its processing factory at Katukurunda. Eppawela phosphate deposit is still not used to make superphosphate fertliser and the politicians are waiting to sell it to a foreign company. Our graphite is the best in the world and exported without any value addition. Our leaders like MR are more interested in grandoise but useless projects like Hambantota harbour, suriyawewa stadium, Mattala airport and conference centre . This is because the Chinese were willing to pay huge bribes to MR and his family. At least if they got the Chinese to build an iron extraction plant and a superposphate plant the country will get some benefit.

    • 15
      0

      Appuhamy,
      “Dinuk is spot on. Our mineral resources have never been used for economic gains. “
      Hahaha.That’s true., since they don’t exist. Oh yes, we have the best tea, but Dubai makes more money out of it than us.
      Coming soon: We will have the best oil in the world, according to Gammanpila. We already have the best idiots in the world.

  • 10
    1

    reading all the comments Sri Lanka is basically like a prostitute
    happy to be raped by USA, EU, UK, India, China, Pakistan and now Bangladesh soon it will be Nepal, Ethiopia

    But the triple gem won the war
    so we can be raped

  • 11
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    Gotha announced he will have another term to make Lanka prosper and splendor. Hearing it Moody’s decided to down grade Lankan sovereign bonds to Junk.

    • 3
      0

      This came all of sudden, because their popularity is now declining drastically right these days.rural masses hate them today as no times in the past. Truth is he is shortly before committing suicide 😉😉😉😉😉😉

    • 2
      0

      chiv

      Gota will make LANKA GREAT AGAIN!!!!

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