22 March, 2019

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Tax & Debt Crisis Of The Yahapālana Government

By Mahinda Rajapaksa – 

Mahinda Rajapaksa

Mahinda Rajapaksa

Reckless borrowing by the present government is the main reason why Sri Lanka was given negative outlook categorisations this year by Moody’s, Fitch and Standard & Poor – the three top international credit rating agencies. All three ratings agencies had cited the huge liabilities coming due for payment before the end of this year as the main reason for their decision to downgrade Sri Lanka. Standard and Poor’s not only gave us a negative outlook categorisation but also warned that in the coming three years, the debt burden would increase further. They also warned that if there was no improvement in the situation, a further downgrade may follow.

Text of the Sinhala translation of a speech on the “Tax and debt crisis of the yahapalana government” delivered by former President Mahinda Rajapaksa at the Battaramulla office of the Joint Opposition on Wednesday 29 June 2016:

Venerable members of the Maha Sangha, clergymen of other religions, Members of Parliament, and distinguished guests,

It can be seen that the increase in the Value Added Tax has run into a great deal of opposition countrywide. Owners of small and medium businesses and traders in many towns have come out onto the streets against this tax hike with the support of the general public. The government tried to justify their tax increases by placing advertisements in all media stating that this tax increase is necessary to pay off the loans taken by my government. I thought it is only right that I explain to the people what has really caused this situation. The amount of debt that a country can take on depends on our capacity to pay back the loans as they become due. My government always ensured that borrowing was kept within manageable limits.  Treasury reports reveal that during the last seven years of my administration, foreign loan repayments (principal plus interest) that came due each year were as follows:

2008 – 1.4 billion USD
2009 – 1.3 billion USD
2010 – 1.2 billion USD
2011 – 1.5 billion USD
2012 – 2.2 billion USD
2013 – 2.4 billion USD
2014 – 2.2 billion USD

These were not excessive amounts that could not be met. Furthermore it should be borne in mind that my government did not take loans for consumption. We obtained loans to carry out the war against terrorism and to develop infrastructure which can be used by our people for decades if not centuries. What we have built can be seen all over the country. Leaders of this government are still opening only the projects that my government commenced. One minister publicly acknowledged this fact recently. Whenever we took out any loans for a project, it was done carefully in a planned manner which is why we never had to contend with an unmanageable piling up of debt.

However, since January last year, the present government has been on a reckless borrowing binge. They have borrowed 2.3 billion USD from India in the form of currency swaps on three occasions in March 2015, October 2015 and March 2016. Then they have borrowed 2.15 billion USD through sovereign bond issues in May and October 2015 and a further 3.1 billion USD through Sri Lanka Development Bond issues between March 2015 and June 2016. The total foreign loans taken by the yahapalana government now amounts to 7.7 billion USD. No less than 3.3 billion USD of this falls due for payment before the end of 2016.

Some of these dues such as the 1.1 billion USD six month currency swap from India have already been paid as have some of the short term Sri Lanka Development Bonds that were issued last year. Yet there is much more to be paid off before the end of this year. All this is over and above the loans taken by previous governments which also have to be repaid. The loans taken by previous governments is not a reference to the loans taken only by my government. Long term loans taken even during the J.R.Jayewardene era are still being repaid. Every government pays the debts of the governments that preceded it. After being elected into office in 2005, I too paid the debts taken by previous governments.

Reckless borrowing by the present government is the main reason why Sri Lanka was given negative outlook categorisations this year by Moody’s, Fitch and Standard & Poor – the three top international credit rating agencies. All three ratings agencies had cited the huge liabilities coming due for payment before the end of this year as the main reason for their decision to downgrade Sri Lanka. Standard and Poor’s not only gave us a negative outlook categorisation but also warned that in the coming three years, the debt burden would increase further. They also warned that if there was no improvement in the situation, a further downgrade may follow.

In this situation, the government obtained a loan of 1.5 billion USD from the IMF. When the IMF gives a loan to a country, they also impose conditions that are meant to create an environment where the recipient country would be able to pay back the loan taken. As a result of this, when a country enters into a programme with the IMF, the standing of that country in the credit market improves.

However, even after the IMF decided to give Sri Lanka a loan, both Fitch and Moody’s issued press statements saying that they were not confident about the capacity of the Sri Lankan government to meet the targets set by the IMF. Moody’s stated that Sri Lanka’s needs will not be met by the IMF loan and that they expected the debt burden to increase further this year and the next. In June this year the IMF executive board approved the loan to Sri Lanka and the first tranche of 168 million USD was also received. It was after the IMF money started coming in that Moody’s gave Sri Lanka a negative outlook categorisation on 20 June. Experts say this is the only known instance when even acceptance into an IMF programme has failed to bolster market confidence in a country. Having given us a negative outlook categorisation, Moody’s went to the extent of warning that a further downgrading of Sri Lanka may take place if the situation does not improve.   Even though entry into an IMF programme usually bolsters confidence in that country, the moves made by the yahapalana government to use the IMF programme as a cover to borrow more and more, seems to have unnerved the ratings agencies. The task of ratings agencies is to inform the markets about the creditworthiness of those taking loans so that the lenders can make an informed decision.

We have thus far been talking only of foreign debt, but domestic debt too has increased by 16% (Rs. 681 billion) from Rs. 4,278 billion at the end of 2014 to Rs. 4,959 by the end of 2015. This was the highest yearly increase in domestic debt since independence. The Auditor General too has revealed that the loans taken in 2015 were nearly double the borrowing limit mandated by parliament. Despite all these borrowings, the government has not started a single development project. When the contracts that my government signed are completed, leaders of this government go for the opening ceremonies.  There isn’t a single development project that has been initiated by this government. Yet they obtain loans as no government has done before. We did not get indebted like this even during the war.

The present government is using borrowed money for day to day expenses. They won the 2015 presidential election by uttering lies and making false accusations against me and my government.  Because they could not win the 2015 August parliamentary election using the same tactics,  they practiced a different kind of deception by giving people large salary increases and tax concessions that the economy could not sustain. They never told the people that it is the people themselves who will ultimately have to pay for all this election related largesse. They told the people that the Rajapaksas could have given all those concessions but they had used the money for the comfort of the ruling elite instead. They told the people that now that the wasteful Rajapaksas had been ousted, it was possible to give various concessions to the people. Because they could not increase taxes immediately to raise the income to meet the additional expenditure, they began to borrow money to fulfill their pledges.

You can live on credit for a number of months. But at a certain point the credit markets begin to get nervous. It is at that point that the government approached the IMF. The IMF gives a programme of action along with the loan. The first thing they would tell you is to start collecting the money to repay all the loans you took. The IMF tranches are released only after reviewing progress on the implementation of their conditions. Then we see VAT being increased and the application of the NBT being broadened to increase government revenue. This creates an anomalous situation in Sri Lanka. Over the past eighteen months, the global prices of milk food, wheat flour, sugar, crude oil, steel, cement and virtually everything that we import, has declined precipitously. But because of the yahapalana taxes, the prices of these goods have been increasing only in Sri Lanka. This is why I called on the people of Sri Lanka to rise up as one against these tax increases, a few days before May Day this year.

Now the government is looking for more ways to tax the people. They have announced that a capital gains tax will be introduced in the coming weeks on the grounds that people accumulated a lot of wealth in the recent past and that this should be taxed. It is ironic that while insisting that I ruined the economy, this government says in the same breath that people earned a lot of wealth during my tenure which has to be taxed. When ordinary people hear the phrase ‘capital gains tax’ they may assume that this is a tax levied only on rich people who own ‘capital’. But what is meant by capital in this case is property owned by anybody. If a farmer, labourer or schoolteacher disposes of his land or house, he will have to pay a tax on the difference between the price at which he bought it and the price at which he sold it. The capital gains tax is no less objectionable than the VAT and NBT increase.

Today the government sees the whole nation as a cow to be milked to sustain themselves. They clearly showed where their priorities lie by presenting a supplementary estimate to parliament to buy expensive luxury vehicles for ministers right in the middle of the unprecedented floods, landslides and manmade disasters that befell the country in the past several weeks. Now a new danger has manifested itself. Using the credentials provided IMF programme, the government has made hasty arrangements to take a syndicated loan of up to 3.5 billion USD facilitated by a consortium of five banks including HSBC, Citibank and Credit Suisse. This would have been a factor causing concern to the credit ratings agencies as well. According to the Sunday Times, the attorney general has objected to certain clauses in the relevant agreement where the loan can be cancelled and the Sri Lankan government required to pay back the entire loan upon the occurrence of certain events.

Such clauses are introduced to give the creditor priority over all other creditors. The banks in the consortium can transfer all their rights to other banks and whoever owns the debt will be entitled to cancel the loan and demand immediate repayment upon the occurrence of certain events. As reported by the Sunday Times, the  Attorney General has pointed out that if this loan is recalled, and the government is unable to pay the loan in full, it will automatically trigger default provisions in other loan agreements as well, making those loans also payable in full immediately. At this moment, the government is desperate enough to agree to any condition to get their hands on some money.

I earnestly request the government to table this loan agreement along with the Attorney General’s observations before parliament. The legislature needs to be informed about the financial management of the country at this critical moment. This is a country that has gone through 30 years of civil war and two insurgencies in the south. We have even had foreign armies on our soil. Yet we have never faced a crisis as acute as the one created by the reckless borrowing of the yahapalana government. The people of this country should be aware of the situation that is developing.

Thank you.

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Latest comments

  • 37
    11

    Mara’s figures don’t include the debt that was hidden as they were borrowed by state owned enetreprises not directly by the government. but the government is responsibe for it.

    • 27
      8

      His greediness and devious tactics will never make him silent. The kind of men will have to face it if not now in the future. No former presidents worked for devious agendas, but MR has been genius record breaker to have commited diverse agendas alone during the last 18 months. Even lanken expatriates are being animated for his political gains- the most recent example has been the controversial visit to Japan by invitation of the lankens living there. Prior to that he also pleased and provokes Ugandians and anti dictators of the world (western world, america, canada and asian countries) respectively.

      Ohoma yang -let s see how far he will throw his ball…

      • 14
        1

        Tsunami Hora, mother of all stepfathers (90k widows)

        “Moody’s, Fitch and Standard & Poor – the three top international credit rating agencies. “

        These are private entities run by multinationals for multinationals.
        One speech from Samanta Power to IMF and SL was awarded $1.5 billion and based on it Korea and Japan have promised 0.8 billion.

        “However, since January last year, the present government has been on a reckless borrowing binge. They have borrowed 2.3 billion USD from India in the form of currency swaps on three occasions in March 2015, October 2015 and March 2016. Then they have borrowed 2.15 billion USD through sovereign bond issues in May and October 2015 and a further 3.1 billion USD through Sri Lanka Development Bond issues between March 2015 and June 2016. The total foreign loans taken by the yahapalana government now amounts to 7.7 billion USD. No less than 3.3 billion USD of this falls due for payment before the end of 2016.”

        The only swap made by Modi/Jaitley was on 15-01-2016 and the amount was US$ 1.5 billion. RBI DR R.R gave both Modi/Jaitley a dressing down for doing it and that was the end of indian assistance.
        We all know from IMF loan that Lanka needs to have another US$3 billion by july 2016 but your figures don’t add up it’s the same tsunami hora.
        Go sit under the tree stupid old fart.

        “Yet we have never faced a crisis as acute as the one created by the reckless borrowing of the yahapalana government. The people of this country should be aware of the situation that is developing.”

        Japan is indebted twice it’s worth just like USA and both are worldwide donors. So where are your rating companies balls?

      • 5
        1

        No formers in the region – nor anywhere have been that greedy in power as this creature has been. Why ? Just to collect more sums from the poor… This man is the top example to see that developing countries can not rise so long the kind of politicians are in life.
        Be it Africa or some part of Asia, the style has been from that day on. Devious politics being played by some idiosyncratic leaders, close doors people not allowing moving forward. These are the stumbling blocks of the day.

    • 18
      6

      This scoundrel is talking about financial instability of the present govt., while it was him and his team that put the entire treasury in a fix and he has no right to utter any words about it.

      This country is destroyed bit by bit by the same old gangs of thieves who call themselves as politicians and leaders, the elites and their hangers on bit by bit, chunk by chunk.

      IMF and the World Bank, two of the most criminal Jewish enterprises that screws poor countries and rip them off right throughout generations during the last 50 years have trapped the likes of Mahinda to go about wasting as much money as they can so that the borrowings from these two criminal joints is the only way out.

      The following video puts in a very simple manner as to how these robberies are carried out in the broad daylight in the Jewish haven they call the USA….

      Illuminati Preparing The Biggest Economic Collapse in 2016 – 2017
      https://www.youtube.com/watch?v=jiu1-e0vsSc&spfreload=10

    • 5
      4

      Mahinda Rajapaksa

      RE: Tax & Debt Crisis Of The Yahapālana Government

      “All three ratings agencies had cited the huge liabilities coming due for payment before the end of this year as the main reason for their decision to downgrade Sri Lanka. Standard and Poor’s not only gave us a negative outlook categorisation but also warned that in the coming three years, the debt burden would increase further. They also warned that if there was no improvement in the situation, a further downgrade may follow.”

      “Yet we have never faced a crisis as acute as the one created by the reckless borrowing of the yahapalana government. The people of this country should be aware of the situation that is developing.”

      You laid the foundation for this. In addition, you also stole, and had white elephant projects to boost your Ego, which are not giving a return. All those inefficiencies and negative returns due to expenses are adding up every day.

      Who is paying the interest and principal on these non-perming MaRa assets?

      MaRa MaRa ChaTu MaRa
      MaRa MaRa Amana MaRa
      MaRa Maa HoRa MaRa
      MaRa Maa DhushaNa

    • 6
      0

      I challenge if all these are true, MR to come for an open debate with lanken economists and clear the issues ONE by one.

      As a minister of finaince having had the enitre responsiblity not allowing free legal department to function in the CB, until the new governer was appointed, all the decisions taken by his his ET AL should now be subjected to an open debate.

      Journos, it is your turn to clear this for the sake of YP supporting srilankens in and out of srilanka. Jayawewa… sure, MR would reject this.
      Not hit and hidden.. but face to face…Economists of the day Dr. Harsh Silva and several others will be ready to take up the challenge.

    • 0
      0

      Rajapakshes have no right to even talk about the corruption being done by others, since the way they mastered them were beyond all this and morals.

      Alone those who today sit with them further support to him and et al are the curse o fthis country.

      If he managed all these funds better, why should SRILANKEN become a white white elephant ?

      If he managed those new projects with plans ahead of the country… mattala should have started to the world by the time bugger was chased away from the office…

      in the same manner Hambantota habour shoudl be the main hub to the region ? Can the bugger at all help anyone to come of the pit… besides all those sums to have gone missing in the mediation of former governer are hypothetical sums….JVRs have no right to talk about that big… the manner they took the lives of my mates in 89 … can NOT be compared to the billions…. to theose victimized parents, sisters and brothers.

      Choge ate billions… who spoke about them ?

  • 20
    5

    Harsha and Eran can you please respond to MR’s speech point by point.

    • 17
      6

      No worries Gune, Harsha and Eran are both not eating grass. They will surely clarrify these issues. I did not go into details, but getting all the bits how the Megaalo Rajaakshes abused peoples funds for distribution of Sewing machines alone – as bills confrim at least 30 billions of tax payers funds should have been abused fo rthe playful event… but for voters to be pleased for their tickets.

      • 6
        17

        Yes they do not eat grass, they eat punnakku,
        And you guys work your arse out to pay for the punnakku!

        Why do not you objectively analyze the article and try to prove it wrong?
        Are your yahapalana principle to just character assassination?

        Why do not point something that is not true in this article?

        Can somebody explain why all these loans are taken for and what do they do with these loans?

        How much did this government saved from wastage and what did they do with it?

        • 4
          3

          Quote

          How much did this government saved from wastage and what did they do with it?

          Unquote.

          No doubt you should really be eating Punnaku of unique category… There were all evidences that the 100 day programs were run by all the sums saved from the reduced sums for presidential secretariat.

          And the pay hikes were finanzed by them. And no the kind of Dansalas or extra vaganza have been the day today event neither of them.

          What have you been bubbling man… I have no idea you may be using the other end to leave such questions.

          Do anyone of the current govt hold any kind of big parties or the like that could cost the state billions as had been the case Under your Most abusive Rajapakshes ?

          Srinath, you are simply a fool who has not the least knowledge about the basics.

          No trips using srilanken as their Taxi service since RW and MS have been the leaders of this countrty.

          Gone were the days, buggers filled srilankens aircrafts were landed still until the Rajaathuma finished his farting trips be them to USA, Europe Africa or.. tax payers fund had been abused in high volumes as no other leaders with sanity could go for that…

          Leaving Rajarata people dead not having their basic medicine, but Rajathuma had been honey mooning with his various kindsof kith and kin.. even dogs and cats were part of his entourages.

          • 1
            1

            This is very true. Today s media men dont any efforts to publish the truths.

            We are not blind the way how MS and RW use their funds for their own trips. None of them sofar abused lankan aircrafts the way Mr Medamulana abused them leaving weeks long annulations for other passengers……
            why not the journalists wholeheartedly publish all the stories related to the kind of unestimable wastages of the former ?

            This cant be overlooked by anyone – that is how the sums of multiple billions rose in billions since Emirates was forced to leave SRILANKEN.

            These huge sums have to be paid by tax payers funds today…

            If I were the rulers, I would long ago have got caught all of this high criminals by their horns – sadly, this is too hypothetical…. anyways, realitically, the kind of high abuses must no means be neglected by anyone.

        • 2
          2

          You re the one who eat punnaku being a liability to UK govt. Social funds of them have supported you guys to raise your head. Now being big mouths, even make every efforts to destroy own folks. Gone were the days you guys could enter UK as refugees.. today, the times are differnt.. UK is an another sinking state within in Europe. The next Greece will be UK and Portugal is certainity. Their leading role in EU is gone forever. That alone is rather disadvantageous to them, but right men would not see it as of now. TheEnglish guys in Germany and Switzerland dont want to leave since the standard of living they enjoy in UK is almost similar to that of a developing country by now.

          At least you people should learn something from good people how you have to allow fellow lankans to respect a dignified life. Your god father is a born culprit and devious person by all means. He proved and is proving again and again

    • 10
      5

      The kind of articles being written by hired men of MARA will have to face it in next days, since we perfectly know that there had been no the kind of huge frauds occured.

      Alone that issue to have abused milions for clothing is open lie to please stupid folks by stupid media men…

      Here below what AM assures:

      QUOTE.

      Are you a Sri Lankan citizen at present?
      No. But I was a Sri Lankan citizen by birth and continued to be so till 2006. Even today I consider Sri Lanka as my country despite the documentary citizenship. However, I was compelled to leave Sri Lanka for Singapore as we had to face many difficulties as members of a minority community during the Rajapaksa Government. During this period Tamil Parliamentarians, journalists, intellectuals and many others were killed.

      I have some of the best blazers in the world with me. I am not so bankrupt as to buy blazers from the Central Bank money. There is an allowance for Governors’ dressing, but I don’t take it. I challenge anyone to prove all this mudslinging

      UNQUOTE

      • 2
        10

        Correction!,
        Mr Mahendran left the country during the regime of Chandrika Kumaranatunga, now the closest friend of Ranil.
        Repeating lies over and over would not protect tigers in wolves’ clothing., nor the crimes and treason committed against this country by enemies within.

        • 9
          2

          Oi mancha, what? so you are mafia art from white van?

          “”Mr Mahendran left the country during the regime of Chandrika Kumaranatunga, now the closest friend of Ranil.”

          so what because it is on record by Margaret Thatcher July 1983 when she opened the doors of the world to accept Tamils of Colombo and that set the pace and it has never been shut.
          That is why during Tory Boris, MR the mother of all stepfathers got rotten eggs thrown at him at London and he had to run in his ambude.
          What a don mancha – the enemy within.

          “Repeating lies over and over would not protect tigers in wolves’ clothing., nor the crimes and treason committed against this country by enemies within.”

          So you are a baldie idiot wolf in sheep attire?
          83 we saw the poor sinhala buddhist beast rape, rob, burn not just tamils but educated buddhist folk from thailand running registered enterprises at colombo.

        • 5
          0

          You cant attack him just becaues of his ethincity. U cant accuse him of being corrupted, on hypothetical focuses ? The world will watch out … Investors would not come if they know the manner AM is treated this way ? Transparency and Accoutnablitiy is something golden, but that should have been done in a manner the entire world experts could see it right. I still believe AM is no means corrupted… on the bond issuance.

  • 3
    6

    without increasing the GDP of the country, there wot be any positive rating fom this alleged institutionsas increased, uncjanged or decreased after the regime change. If the GDP has still increased but the debts als increased then someone should check the economy of the country. The govt. institutions may be based due to the influence of former and present regime politicians. we need neutral external auditors to acess the real finacial situation of the country, and this should happen rather very soon.

  • 13
    3

    This is what The Sunday Times wrote in 2013;-
    “Much of the money borrowed from China goes back into the Chinese economy. Chinese companies are doing the contract work with Chinese labour. Sri Lanka has spent a massive Rs. 391.7 billion on investment projects in the country in the last four years. This money has been allocated for five projects, of which only three have been completed but are still to serve any real purpose.

    All of these projects have been undertaken by Chinese firms, and have been funded by loans obtained from the Exim Bank. Many of these loans have been taken with interest rates for long term borrowing (20 years) varying from 3% to 6%, and short-term loans at an interest of 2%.

    Construction of the Hambantota port was undertaken by the China Harbour Engineering Company at a cost of Rs. 149.2 billion. The contract to reclaim the sea and build the port city adjoining the Colombo South port was awarded to the same company at a cost of Rs. 85.4 billion; the Mattala airport project cost Rs. 22.7 billion.

    All of these projects were carried out by China Harbour Engineering Company and have been funded by the Exim Bank at interest rates between 3% and 6%; the Chinese have also provided the labour force; the Norochcholai power plant was undertaken by China Machinery Engineering Corporation at a cost of more than Rs. 51.2 billion; the Southern Expressway (connecting Colombo to Galle) was also handled by the China Harbour Engineering Company at a cost Rs. 68.3 billion; the Nelum Pokuna theatre in Colombo provided Sri Lanka with its first state-of-the-art concert hall at a cost of Rs. 3.08 billion — only 60% of the loan was financed as a grant by the Chinese government.

    Sri Lanka is now embarking on a project to construct the largest tower in Asia (down D.R. Wijewardene Mawatha in Colombo at a cost of Rs. 11.9 billion. The construction will be carried out by China National Electronics Import and Export Corporation and Aerospace Long-March International Trade Col. Ltd.

    The total commitment made by China from 2007 to 2011 was US$ 2.13 billion. Of this amount US$ 2.1 billion came as loans and US$ 24 million as grants.

    In the months to come, China’s Exim Bank will provide a loan of $278.2 million to Sri Lanka to help lay a 27 km single-line rail track connecting Hambantota and Matara; the Chinese government is giving US$ 240 million in loans to build infrastructure in southern Sri Lanka; China’s Exim Bank is financing the construction of flyovers and roads in the southern town of Hambantota with the aim of making it a transport hub; Sinohydro Corporation was given the construction of the Moragahakanda Project, which is the second largest tank ever built in Sri Lanka, at a total cost of US$ 382 million.

    In the absence of the Right to Information Law that exists in more 100 countries around the world, but not in China or Sri Lanka, how these loans are expended, how much goes as commissions to individuals who farm out the contracts and how much to political party coffers, and how much is wasted is never known. And, these are loans that future generations will have to pay off.

    The other issue is how wise it is to put all the country’s eggs into one basket and how indebted the country will be to one country, mindful that Sri Lanka’s geographical importance in the scheme of world affairs is not to be downplayed. But that is another issue.

    That the Chinese have a geo-political strategic interest in the waters around Sri Lanka is only too well known. If all these projects are for the wellbeing of future generations, well and good, but serious questions have arisen over the prudence and feasibility of some showpiece projects executed with these Chinese loans.

    One of the painful but beneficial aspects of World Bank/IMF loans was that there was a certain amount of fiscal discipline attached to them. Recipient nations, like Sri Lanka, had to work hard and show results to secure the loans. In so far as the Chinese loans are concerned, there seems to be a carte blanche or virtual blank cheque. It is almost as if while the Washington-based banks compromise the present for a better future; the Beijing bank works on the reverse theory.

    Securing loans from a bank/nation ever-willing to lend is not as difficult as how you spend that money. Every loan, whether from Washington or Beijing has strings attached.”
    ST 2-6-13

  • 7
    9

    Mahinda; you and the excesses committed by your inner circle, paved the way for these incompetent bunch to form a government promising “YAHAPALANAYA”. The nation suffers because of your government and the actions of the present government.”Hotu gani deelaa kahi gani gattha wage vadak” . Majority is of the opinion that “Enough is Enough” we don’t need Hotu Gani or (and)Kahi gani.

    • 5
      5

      Knowing the mind sets of the average – srilankens will never be able to rise if all the bodies from bottom to Top would not have been reformed.

      Much is achieved by current rulers, even if the message is not passed ot the village level. YOu know the barriers are not yet removed them being rocked on the way… that is nobody else the media resistence noot allow real informatoin being passed to the villages.

      You talk about so many things, we cant expect a better governance just because the top leadership is replaced. We perfectly know the sums they the duo have saved for the nations would broad day light have been abused , if Mr Madamulana woudl further have been the president of you.

      I am not a unggrateful to the Present and PM.. they have sacrificed a lot, but much more to be achieved … they will make it for sure. Main thing is Rajaakshes are out of the power… LATTER IS THE FOUNDATION for srilanken future.

      • 5
        4

        Sammy

        Enough talk Sammy, Where is the work!
        Ko wada?
        Nothing is happening in the country!
        Mega polis or gata polos?

        How long do you think this can continue?

      • 4
        1

        The nation has suffered enough under the partisan politics played by UNP and SLFP. The results of their alternatively formed governments since 1953 are sufficient enough to prove both parties are driven by two Schools for Masters of Corruption. One was founded by SWRDB and the other by JRJ. Then there are half a dozen or so Bankrupt Socialist Schools of Corruption and another half a dozen of well funded Chauvinist Schools of Corruption based on religion and language/ethnicity. The graduates of the Bankrupt Socialists and Chauvinist Schools are there for the ride with whichever major party comes to power. This is the dismal political landscape of Sri Lanka since 1953. We were a debt free affluent country until 1954.
        Can we expect to free ourselves from enormous debt burden put on us by the graduates of the above schools of corruption? Isn’t it time to say “Enough is enough” and request these masters of corruption to go home politely? Those who praise these politicians is the nation’s curse, because they tend to campaign to extend the misery of all Sri Lankans.

        • 6
          1

          Anyways there is no matured 3 rd force to run this country. If you feel JVP could do the job properly. there you are wrong. People have not yet forgotten the 89 insurgency JVPrs ran amok in every corners of the country. And people s thoughts have not improved to them was proved by last 2 electons not even a dozen of JVPers being given the chance to get elected as politicians.
          Theories are not practises even if the academics would feel that JVPrs could do it… I also thogut so before the last election, but people see it different yet.
          AKD is not at all matured enough to deliver a senior level speeches THOUGHT his oratory skills are unique to him. Now with their former most senior man no longer iin life.. not even dreams can be made in terms getting him back. All in all, hopeless to see it if it is the 3 rd force

          • 2
            0

            Kautilya and Sameul,

            I agree, both UNP and SLFP politicians hold masters degrees from the Sri Lanka University of Corruption. Unfortunately if any third force emerges they will also be degree holders from the same university.

            Are we really doomed. Not really. We all dance to the same tune, “nawa gilinath band chune”.

          • 0
            1

            How did you come to that horrible interpretation. Read my message again to understand where JVP is positioned. Emergence of a third force without any link to the existing political parties is inevitable in the future. Politicians of all colors, are responsible for the present crisis in every sector of our economy.

        • 0
          2

          This is the requirement of the hour!
          Formation of a new democratic political party with the blessing of everyone.

          No way you can hand over this country to JVP.

          SLFP and UNP is full of corrupt who has no intention of uphold the rule of law in this country!

          Bring in the Judicial changes to further make the judiciary independent and elected by people like in US.

          Reduce privileges from MPs, so people who really care about people will join the trade.

          All we need to in this country is to implement the rule of law, bring the balance of police, judiciary and legislature. Everything will be fixed by this!

          Corruption from individuals up to the leadership like a cancer is destroying the country! JR, Chandrika, Mahinda was sponsoring this then and UNP is continuing the same crap.

          We cured one cancer – terrorism, Now we have to fix this cancer !
          We need to form a genuine team that love the country above self!

          • 1
            1

            But acoordin to you it is better to hand over to Meeharaka Rajakashe again to run his AMOK phase 2.

            From what you guys added to CT readers, we know perfectly, you guys are like entwined with Rajakashe. You guys would even let him ABUSE you… that is really so naive and … not what we want.. we want a nation to be built up.. them to be free from being caught by the politicians of the kind Rajakashe .. never again.

          • 1
            1

            You should be far from the average thinkers. If not noticed that corruption is reduced to some tangible levels by the rulers.

            Alone SRILNAKN was MR air taxi.. you guys farting further just nodded your head whenever he abused it.. today, we dont have the chance to fly from Frankfurt to Colombo just because the bugger ate the sums in higher portions as no other leader did.
            CBKs term together with Emirates we have billions of profits… there she did not make it out of fairy tales as the Mr Abusive did it with war victory and other issues. But talking to you cant bring us anyhting than just wasting MR. You are a born ignorant… let others to discuss it broadly in this valuable forum. Good luck

          • 1
            1

            I have no doubt you speak yourself from your both ends.

            It is an issue researchers to check it out.. the kind of senior men that seem never change their attitudes. No matter the youth would attack you, but you stay as if Kirmati gilapu kimbula with your ideas. So loyal to Rajaakshes but to nobody. it is all magic man acccording to you put the end ot the war.. in the reality not only he but collectiveness succeeded. but the cake was eaten by his siblings… media men painted it as if nothign can cahnge it…. making Rajano.. that was the end of his carrier… he became swollen as a balloon so exponentially by his thoughts until the ballon exploded on the 8th Jan 2015. Until then his conscience were taken away from his men… Rajakashe go to hell leaving us in peace but peace.

  • 9
    8

    Mahinda is very shrewd, he is sniping from the sidelines mainly to dupe an uneducated, ill-informed rural voter base.

    He will never come to the parliament and say these things as he would be taken apart and be found out that he doesn’t know the head or tail of what he is talking.

    This tactic will win him the propaganda war unless the Yahapalanaya mob takes their eyes off luxury car catalogues and finds a smart way to counter him.

    • 4
      4

      Isn’t that what Harsha was doing then?[Edited out]

      • 6
        2

        You have become mad… but tell me even the UK woudl not be able to come out the crisis situation within 18 months. But srilankens under MS and RW will surely make it. Please be patien – you are not a teenager, surely as a retired person you should have some wisdom. If not for those newly passed commission, nothing woudl have gone in the line of discussions as it is the case now.
        Meeharaka led past govt failed to achieve the level. Ruminants of your kind woudl not see it at all… else you woudl surely change your attitude and have sat with good people to change the system back inthe country. As one who enjoy your life being away from home country, you should better know what basic rights we failed to enjoy under the lead of Mr Madamulana. I myself lost my own properties not functioning law and order systems in the country. Notars had worked for their goons to grab my own properties. Having lived on the west for the last 3 decades, I have almost lost my close ties with the people down there. But as one who ownself studied it each time back in the country… I do beleive all the last 10 years the country and nation had been taken to all high crime levels for not having proper lawful systemS: wHOM to be blamed if not for Rajaakshe et al.

  • 3
    0

    [Edited out]

  • 5
    4

    Mahinda, if you are such a smart guy
    fill in the following and show what you are saying is true!

    If you take the debt you left behind when you lost the elections and add the interest component for the President M3 period on this debt that you signed for in the loan agreements, is this total larger or smaller than existing debt?

    If its smaller then you are a big liar as the debt was taken by M3 Government to pay your interest.

    If its larger then let us know where the difference between the present loan outstanding and the amount of loan left by you plus interest on it has been spent by the M3 government. May be then we can take what you are as true.

  • 9
    3

    What a shit and a half! The audacity to even mention debt crisis!! Have you got even 2 neurons in your brain to figure thing out! We have figured out all your contribution to the debt crisis!! Either you have no insight (psychosis) or you think we are bloody fools or this was probably written by the despicable Cabraal! Can’t you see that CT is making you look an arse by allowing your article!! Just count the no. Of yes and naays

    I only hope this Mr MR reads the column!

  • 5
    2

    Stop playing to the gallery. If you are a brave man, debate this in the parliament instead of misleading the people. You and your cronies ruined the country by borrowing big sums at unsustainable high interest rates for unproductive projects like Mattale Airport, Hambantota port, etc where no flights land and few ships docks.

  • 2
    13

    Guess Rajapaksa’s Chinese loans were long-term payable….and Yahapalanaya loans are of….expeditious pay-back time.

    Resting easy with China was never too good a thing….sooner than later, it would have come back to demand of us, depending on China’s success on the global arena. It’s good to see Yahapalanaya following the Middle-Path.

    Rajapaksa’s regime let the country-debt fly into oblivion, and into fiat money-making procedures. Yahapalanaya apparently doesn’t believe in that style of monetary creativity.

    Both sides have their pros and cons. (Rajapaksa’s regime ensured country sovereignty)

    But it’s good that Sri Lanka is getting used to the taxation notion. This way we will have greater self-sufficiency, and ensure the country has greater endurance for many centuries to come.

    However, we hope the taxation schemes are honorable, and not pull down the common man’s means to happiness. We hope that Yahapalanaya will be brave enough to go after the 1%. Yahapalanaya’s success will depend upon that.

    • 10
      2

      “Guess Rajapaksa’s Chinese loans were long-term payable”

      You are as always the clueless frog. the old hag school dropout who reads only newspapers.

      Xi mentioned and it was in Xinhua (ask Ratnam correspondent Xinhua) that the loans given were short term high interest and unpaid therefore Xi was unable to offer more. Therefore the chinese requested for shares in viable government enterprises and ranil had to agree or end up at WTO courts then pay fine etc.

      this is the same Xi had with Putin last week 20% share of the biggest Russian oil company Rosneft and many other items.
      Similarly Xi has purchased 30% of Africa’s largest bank – standard of south Africa.
      both the SA and Russian leaders have swindled the nation just like MR.
      All 3 are socialist leeches so its natural.

      It is very clear that you come to CT for education-
      an old prank of idiotic old hags with no self respect.

      • 2
        10

        ?…..talk about no self resoect….at least I use my real name and not cowardly hide like you behind a pseudonym. And, no, I am nothing of what you say of me. You read, but can’t analyze.

        Loans became short term when the Chinese string of pearls came to an end. But Sirisena has negotiated somewhat, since. With Rajapaksa, loans were more nogotiable.

        • 6
          2

          “?…..talk about no self resoect….at least I use my real name and not cowardly hide like you behind a pseudonym. And, no, I am nothing of what you say of me. You read, but can’t analyze.”

          I dislike folk who stick to a name given at birth when they were clueless.
          no wonder you are still clueless- go get a life! half hamburger!

          Like the brits we are human have bad logic and unlike the rational ants.

          Idiota it is Chinese law to offer only short term loans and the max ext investment is $100 billion per year.
          you are just an old hag extracting info by scribbling muck.
          You neither read the relevant government docs

          • 2
            8

            Can’t think beyond, can you – mired in perverse thoughts. If one has good thinking patterns and can rationalize, one doesn’t need to go into twisted thoughts. I can use my real name; you can’t.

            • 2
              2

              ramona grandma therese fernando

              “one doesn’t need to go into twisted thoughts.”

              Sure, when are you going to straighten yours?

              “I can use my real name; you can’t.”

              Perisappu can use his/her brain, but you can’t.

              • 1
                4

                Native Vedda, you call the filth spewed below using of brains. I had some respect in replying your usual adverse comments. But now I give up!

            • 7
              1

              “Can’t think beyond, can you – mired in perverse thoughts. “
              perverse? – stupid old fart who has never spent time at reference libraries.

              you live out of this world moron and to top it you have not read beyond a newspaper to not know there are pen names.
              your name means just another number from dalits.

              “If one has good thinking patterns and can rationalize, one doesn’t need to go into twisted thoughts.”

              please get admitted at angoda or any mental unit than display your ignorance of psychiatry

              Or better still go hug Bodu Bala Sena Galagoda Aththe Gnanasara thero He would take you to his fold lovingly then you could meet Gotabaya.
              Unfortunately you are dalit so try KA Sumanasekera Dalit boss on CT he would take care.

              Mara like Jacob Zuma Mara lent his backside to the Chinese- nothing more. So could not stop the subs visiting and bringing his downfall,
              Speaking to Durban a short while ago they say it was stupid of us to have called for independence this way. Zuma has given away our wealth and the others would surely follow.

              That is exactly what the Lankan wogs Banda JR Mara have done and will keep on doing therefore you have escaped to the west for a better life yet you bite the hand that feeds you.

              In the nuclear deal Obama gave Modi membership of one while the chinese are on waiting list.In the second deal china objected India so now China cannot enter without negotiating with India. Before Obama leaves he will veto China or Trump will do it but India has some obligations (new laws to administer) India will have to follow the league while china will try to jump or wriggle which is difficult because most chinese into education at US are being sent back after qualification.- the chinese spy.
              You are fraudulent in many ways therefore your twisted thoughts like Mara your alter hero.Or BBS.

            • 2
              5

              And with Rajapaksa, Chinese loans had great flexibility.

              • 7
                0

                “loans had great flexibility”
                (string hoppers))))

                Sooo flexi-curve, it is a real enemy who disappears $$$.
                26 May S.Pr flew to washington from N.Y. and addressed Christine Lagarde to approve $ 2.2 billion. wasn’t that super flexible elle??
                (she got no string hoppers on that visit , remember?)

                When Tao prevails not, horses are trained for battle,
                when the Tao prevails, horses are trained to pull dung carts.
                WE are all born half Taoists and half Confucianists.

                Julius Caesar wanted to be the first in the village,
                Laotse says never be the first in the world.

                Xi represents Win-Win-Doctrine of Half and Half, by Confucius
                grandson Tsesse, the author of The Golden Mean-
                the spirit of sweet reasonableness.

                Chinese pacifism is not that humanitarian, but that of the `old rogue` the convincing type of subtle wisdom – What is in the end to be shrunk Must first be stretched- `dimming` one’s light.
                It’s best to leave the fish down in his pool.

                The greatest wisdom seems like stupidity,

  • 4
    3

    Look who is talking. Maha hora is talking. He is the least qualified to talk about the economy. All that he did was plunder the treasury. Blasted humbug.

    • 0
      0

      Until HOragediyas grabs are investigated, nothing will make him silent.

      SLFP leadership is blocked by doing so – since they will claim problems within the party. SO long the istuation lasts this way, HORAGEDIYA can see immunity by SLFP.
      They have made billions out of people funds, but to get them by horns is a mammooth task.
      Wait and see, how many more years it will take the rulers to cornerhim.

  • 0
    1

    Dear Sir

    I do not like to criticize you but it is your fault for giving up power.

    The situation is worrying: Moody Sri Lanka:

    “Therefore, in Moody’s view, while the IMF program will alleviate Sri Lanka’s external liquidity pressures, a more durable improvement in the macro-economic and balance of payments pressures will depend on the extent to which authorities can durably reverse the ongoing fiscal deterioration while improving Sri Lanka’s international competitiveness and attractiveness to foreign investors.”

  • 1
    1

    The government placed a TV ad recently saying that we are going through a crisis but not to worry the present government we will rescue the country.

    Not to worry.

    Should we believe them?

  • 0
    1

    You don’t have to be a Rocket Scientist to understand that the present government have borrow money because of MR regime’s mismanagement or more exactly whole sale robbery of public asserts. What MR left for this government is an empty treasury and a huge debt. Now this idiotic crook is talking nonsense.

    • 1
      1

      So why did they overthrow the government? Why did they ask for all this debt? They must have known what was going on or were there ingorant of the situation? This is what they call asking for it.

      I will believe that in 5 years everything will be alright.

      What is hard to understand is if you take over my debts and then you complain.
      Do you have an answer for THAT?

      Obviously you wanted to take over my debts.

  • 3
    3

    Batalanada Ranil has given LKR 200 Million for a Distillery in Thickkam.

    Soon we will be able to enjoy Palamayarah Arrack from Vellala Federal Eelaam.

    And help pay some of these colossal debt, Mr Mahendran and SIL Aloysious have been kind enough to arrange to finance Yahapalana Pensions and Samurdhi payments.

    But will it be enough to stop Moody downgrading the Yahapalana Economy before Xmas ?…

    • 0
      0

      Mooody will be in the mood to upgrade the rating again before the next election.

  • 1
    1

    To Mahinda Rajapakse:

    Shut up you clown. You know nothing about the economy other than how to ruin it.

  • 1
    3

    Native Vedda, you call the filth spewed below using of brains. I had some respect in replying your usual adverse comments. But now I give up!

    • 0
      0

      Saints without sins don’t interest me.!
      the mind was created essentially for sniffing food.

      pull the flush and it goes down the drain.-brain drain.

  • 0
    0

    Not worth the effort to comment on this deadshit

  • 1
    0

    Wow, Mr Rajapakse, very impressive. Did you actually write this article or was it someone on your behalf, not having all the statistics & information?

    The current regime doesn’t seem to have the bull by the horns but I was under the impression the current financial situation developed, if not escalated, as a direct result of misuse, abuse & plundering of public funds by you & your bunch of yob MPs when you were in power.

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