By MahindaRajapaksa –
Mahinda Rajapaksa
In announcing increases in the VAT and income taxes, and the reintroduction of the capital gains tax the Prime Minister said in his special statement to parliament last week that the government has been compelled to increase taxes in this manner because my government had got the country into a debt trap. The country is now facing an unprecedented economic crisis and we should examine how and why things came to such a pass.
After coming into power, the present government obtained 400 million USD under a currency swap arrangement with India in March 2015. They obtained another 650 million USD through a sovereign bond issue in May 2015. Another 1,100 million USD was obtained from India in July under a currency swap agreement. A further 1,500 million USD was obtained through a sovereign bond issue in October. Between March 2015 and March 2016, the government issued short and medium term Sri Lanka development bonds on 12 different occasions borrowing over 2,711 million USD. Thus in the 15 months they have been in power, the present government has obtained 6,361 million USD in foreign loans.
To put matters into perspective, this is enough to meet the entire foreign loan components of the Mattala airport (190 million USD) the Hambantota Port (426 million USD) Norochcholai Coal Power plant (1,340 million USD), The Colombo-Matara Highway (630 million USD), The Colombo-Katunayake Highway (248 million USD) all put together, and there would still be enough money to build not one, but two Port Cities (1,400 million USD each) one 500 megawatt Sampur Coal power plant (500 million USD) and yet another Mattala airport with the final leftovers.
This government enjoyed foreign exchange savings of around USD 2,500 million in 2015 due to the precipitous drop in oil prices after they came into power. But they could not build up foreign exchange reserves or even make the Petrolem Corporation and the Electricity Board profitable. All these colossal borrowings including the massive savings from petroleum imports have been spent on consumption. It is because of the almost comic fiscal irresponsibility shown by the government that Sri Lanka’s credit rating was downgraded by Fitch and Standard and Poor’s recently.
Explaining their reasons for downgrading Sri Lanka Fitch ratings pointed out that the government had loan repayments amounting to 4,000 million USD this year which would place an immense strain on foreign reserves. Of this four billion, more than 2,497 million USD or over 62% of the total were loans that the present government had taken in just the past year. The 1.1 billion USD currency swap arrangement with India entered into in July 2015 for six months and taken in September fell due this year. Furthermore, of the Sri Lanka Development Bonds issued since March 2015, over 1,397 billion USD were short term bonds coming due this year. The share of the repayments due in 2016 attributed to all previous governments put together was thus just over 1,500 million USD. Fitch would not have downgraded us if the debt repayments had remained at a more manageable level as was the case when the economy was managed by my government.
This downgrade has led to a situation where it has become very difficult for Sri Lanka to borrow in the financial markets and they have been forced to rely on multilateral lenders like the IMF who impose conditions such as increasing government revenue to demonstrate that the borrower will be able to pay back the money lent. This is why taxes are to be increased. Last Friday the government had to repay the 1,100 million USD borrowed from India. This month, the government was so desperate for money that they issued Sri Lanka Development Bonds with three and five month maturity periods to raise money. Development Bonds are supposed to be long term instruments. But this government has been using them to raise short term funds. Usually any country would phase out the loans they take so that there is no ‘bunching’ of loan repayments. This government has been ignoring even those basics. Such things do not go unnoticed in international credit markets.
The last time Mr. Ranil Wickremesinghe was Prime Minister between 2001 – 2004, the government debt to GDP ratio was consistently above 102%. It is my government that brought this ratio down year after year until it reached 75.5% by the end of 2014. This was the lowest debt to GDP ratio achieved since 1979. During the war years from 2006 to 2009, government expenditure remained at around 23% of GDP but after the war, we controlled expenditure until it reached 18.3% in 2014 – the lowest govt. expenditure to GDP ratio since independence.
It is because of this demonstrated fiscal dicipline that the IMF gave my government a stand-by facility of 2.6 billion USD during the global economic crisis of 2009 without any of the strict conditions that they have imposed on the present government. My government did borrow money to build infrastructure projects, but these were long term concessional loans at 2% or less in interest. Furthermore such borrowings were spread out over many years. We never borrowed for consumption like the present government which is why there were no fiscal fiascos like sweeping revisions of budget proposals and constant revision of tax rates when my government was in power.
The prime Minister’s allegation that there are undisclosed loans and liabilities of my government which are only now coming to light, is also a complete falsehood. State owned enterprises engage in commercial activities and they have their own dealings with banks. Borrowings by state entities are governed by their respective acts of parliament and have to be approved by cabinet. Such borrowings are paid back from their own revenues. Some loans may be guaranteed by the Treasury and in such event are reported to Parliament.
The Prime Minister said during his special statement to parliament last week that he increased the salaries and pensions of public servants, and reduced the prices of fuel, gas, sugar, canned fish etc. He was claiming to have fulfilled all the irresponsible promises made during the Presidential election to win votes. The present precarious situation shows that there are serious consequences to contend with when you try to win votes by pledging the taxpayer as live collateral.
Even before the present debt crisis, the economy was in an uncontrolled freefall. The All Share Price Index has lost around 1500 points after 8 January 2015 and over Rs 600 billion has been wiped off the market capitalisation in the stock market. Foreign holdings of Sri Lanka rupee bonds have gone down by more than half during the same period. Foreign investors who kept renewing their investments when I was in power started exiting the Sri Lankan bond market after January 2015 because they have no faith in the economic management of the present government. During the first nine months of 2015, the unemployment rate increased by nearly 1%. The Rupee has depreciated more than 10%. Foreign reserves which at an all time high of 8,200 million USD at the end of 2014 have gone down to less than 5,000 million. In the coming months, all that can be reasonably expected are more tax increases, more cuts in welfare measures and increases in water, electricity, telecommunications and transport costs not to mention even more unemployment due to the continuing economic mismanagement of this government. The present government will have to be held accountable for the hardships the people will have to face.
*Text of a speech delivered by former President MahindaRajapaksa on the “Foreign debt crisis of the yahapalana government” at the Battaramulla office on Monday 14 March 2016.
Rohan / March 14, 2016
Whether the facts support the figures, I don’t know. But, the script is someone professional. So, who wrote this? Did the man read it out??
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Point of View / March 14, 2016
Even if they put MR, GR, BR and the three idiots together, they will not make head or tail of this !
What a shameless clown ! Even the street vendors in Pettah have more self respect and dignity !!
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Dodo / March 14, 2016
Mahinda, Basil and Gota Rajapaksa should have been arrested long ago and the funds and gold stolen by them and the Jarapassa family that were stashed in foreign bank accounts brought back to pay off the national debt. Instead today the people have to pay for the Corruption of the politicians with rising taxes and VAT!
Sira, Ranil and Mahinda Jarapassa are all doing a tango at the Diyawenna Parliament of corrupt morons while the economy crashes.
They are PARASITES – one and all. The corruption is bi-partisan, UNP and SLFP politicians are equally corruption and INCOMPETENT. Ranil replaced the crook Nivard Cabraal at the Central Bank with another crook Arjuna Mahendan.
The struggle for Sri Lanka today is between the PEOPLE VS. POLITICIANS. The corrupt and criminal politicians are united to defraud the people and are giving themselves huge perks while the country sinks into debt and taxes loaded onto the masses..
Today “The politicians and not the poor are the real welfare kings and queens of the country. The oppressive increase in the VAT can never be justified in the public eye, if there is no reduction in the costly privileges enjoyed by the parasitic political class.” Ranil and Ayahapalanays is loosing the race and the economy is spinning out of control and looking to the IMF which is a curse because its policies are pro-rich and TRICKLE UP because it never mentions cleaning up the CORRUPTION and bringing back stolen wealth from the Global South that is stashed in global north and fattening those economies! IMF and WB figures are as much SPIN as Jarapassa’s growth figures, and no one should believe them anymore. Sad thing is that Ranil is running behind dirty old IMF, that has legalized financial criminality, corruption and INEQUALITY in the world and Sri Lanka will soon be like GREECE – in debt to the hilt, with IMF, CHINA and INDIA causing mega disaster development projects..
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janaka / March 14, 2016
This was not written by former uneducated finance minister and bunches of flowers still hiding teleprompter?
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Amarasiri / March 14, 2016
Mahinda Rajapaksa,
Finally, you got a GOOD shill who got some GOOD numbers and credibility. It is a far cry from the 9 month old baby saying “Jayavewa”.
“The last time Mr. Ranil Wickremesinghe was Prime Minister between 2001 – 2004, the government debt to GDP ratio was consistently above 102%. It is my government that brought this ratio down year after year until it reached 75.5% by the end of 2014. This was the lowest debt to GDP ratio achieved since 1979. During the war years from 2006 to 2009, government expenditure remained at around 23% of GDP but after the war, we controlled expenditure until it reached 18.3% in 2014 – the lowest govt. expenditure to GDP ratio since independence.”
There is support for this. However, Debt/GDP ratio, 78% is a long way from Greece, 175%. It won’t happen in your lifetime.
All the Current Govt needs to do is take out some long-term loans at some reasonable rate, and pay off the short term notes, and increase taxes, and send more women to the Middle East, so that they can get more foreign exchange, and some of them will return in body bags. Some, like Rezana Nowfeek were even beheaded by the Devil, Satan, following Saudi Wahhabis, and will not return.
After all, you sent more women to the Middle East during your reign, didn’t you?
Debt-to-GDP ratio
https://en.wikipedia.org/wiki/Debt-to-GDP_ratio
Current account balance (% of GDP)
Current account balance is the sum of net exports of goods and services, net primary income, and net secondary income
http://data.worldbank.org/indicator/BN.CAB.XOKA.GD.ZS
• 1996-2000
• 2001-2005
• 2006-2010
• 2011-2015
Sri Lanka
-7.1 -5.9 -3.4 -2.6
Central government debt, total (% of GDP)
http://data.worldbank.org/indicator/GC.DOD.TOTL.GD.ZS
2011
2012
2013
71.1 68.7
Central government debt, total (% of GDP)
Debt is the entire stock of direct government fixed-term contractual obligations to others outstanding on a particular date. It includes domestic and foreign liabilities such as currency and money deposits, securities other than shares, and loans. It is the gross amount of government liabilities reduced by the amount of equity and financial derivatives held by the government. Because debt is a stock rather than a flow, it is measured as of a given date, usually the last day of the fiscal year.
http://www.tradingeconomics.com/united-states/government-debt-to-gdp
United States Government Debt to GDP 1940-2016 | Data | Chart | Calendar
The United States recorded a Government Debt to GDP of 102.98 percent of the country’s Gross Domestic Product in 2014. Government Debt to GDP in the United States averaged 61.38 percent from 1940 until 2014, reaching an all time high of 121.70 percent in 1946 and a record low of 31.70 percent in 1974. Government Debt to GDP in the United States is reported by the U.S. Bureau of Public Debt.
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Amarasiri / March 15, 2016
Mahinda Rajapaksa,
Given below is a link to the Public Debt and Importance of
Taxation in Sri Lanka by Dr K. Amirthalingam, Senior Lecturer
Department of Economics, University of Colombo.
You can get your “Consultant” explain that t you, so that when people ask questions, you can answer intelligently, when your consultant is not there.
What economics says about the prudent
magnitude for a budget deficit?
• Economics recommends for countries
A deficit budget during the a recession
A surplus budget when the economy is
operating at its maximum potential capacity.
Any artificial expansion of aggregate demand
will lead to higher inflation or larger current
account deficits in the balance of payments
which requires more foreign borrowings.
Foreign –funded investment in infrastructure
should generate goods and services that
either save import expenditure or increase
export earnings to ease repayment of debt.
• Expensive projects undertaken for political
reasons have proved costly in many
developing countries and resulted in
economic crises.
The economic benefits of foreign borrowing
for infrastructure would depend on several
factors.
The terms and conditions of the loans
Interest rate
Pay back period
Loans for infrastructure projects should be at
low interest rate and the repayment of
capital and interest should be over a long
period.
Nexus between public debt and
economic growth: Theory
• Ricardian Theory: the government debt is not
a burden to the economy
• Keynes view: Positive consequences of
budget deficit and debt finance on economic
activities
• Neo-classical economists view: A negative
correlation between debt and economic
growth
• Economists and policy makers widely accepted
the neoclassical view by suggesting that high
debt level is negatively correlated with the
growth rate of an economy
• Sri Lankan experience??? Mr. Mahinmda Rajapaksa, you should know it better. May be your “Consultant” knows. Does he know?
https://www.casrilanka.com/casl/images/stories/PDBF/public%20debt%2001.12.2015.pdf
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Sampath Perera / March 14, 2016
Author is none other than Madamulana nanny Peiris.
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gamini / March 15, 2016
If MR is that knowledgeable why is it that he does not speak so in Parliament? Obviously it is the work of someone else and MR’s seal. The irony is that MR is contributing to the very Web CT that he blocked then.
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Amarasiri / March 15, 2016
gamini
“The irony is that MR is contributing to the very Web CT that he blocked then.’
Will he read it?
Will he understand it?
Let’s give Economics 101 lessons. Better late than never.
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paul / March 17, 2016
Well Gamini, are you happy with the MR-free, incorruptible, transparent, democratic government you were yearning for all these years?
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gamini / March 18, 2016
Paul for your information the yahapalanaya with all it’s faults and short comings is million times better than the MR marapalanaya. Today you can blame and blackguard Ranil and Sirisena openly. Media still shows their servility to MR yet the Yahapalanaya regime does not try to censor or ban webs. Could you have done this under MR & Gota who would have white vanned you. That is the Big Difference.
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Lasith / March 15, 2016
Why does he write on the media he had banned during his day?
Didn’t he call CT an instrument of Western propaganda? Didn’t he imply that people who are on CT are traitors?
Now that he is on your arse he forgot all that! How convenient.
You are a Selfish, cheating, lying, stealing, shameless creature.
I don’t believe a single word of what you say. Your days are numbered, write all you want. Karma is catching up with you.
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Paddy / March 15, 2016
Aney darling MR, when we want your opinion we’ll ask for it ok. Till then please remember that you are just another MP now.
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Amarasiri / March 16, 2016
Mahinda Rajapaksa
RE:The Foreign Debt Crisis Of The ‘Yahapalana’ Government
“Between March 2015 and March 2016, the government issued short and medium term Sri Lanka development bonds on 12 different occasions borrowing over 2,711 million USD. Thus in the 15 months they have been in power, the present government has obtained 6,361 million USD in foreign loans.”
Why? You were in power for 10 years before that.
Given below is a paper, that will be of interest to you and your “Consultant”, if he knows math. You can still read the Figures, and make your arguments with your consultant. It was not sustainable then, and it is not sustainable now, unless consistent actions are taken.
Sustainability of Government Debt in Sri Lanka
OG Dayaratna-Banda Ph.D1, A. A. S. Priyadarshanee2
ABSTRACT
Available Online July 2014 This paperexamines the impact of government budget deficit on debt sustainability in Sri Lanka by using a novel methodological approach.
The study used annual time series data from 1960 to 2012 in Sri Lanka for
empirical testing. Sustainability of government debtis tested by using face
value, market value and discounted market value of government debt as a
proportion of GDP. Discounted market value of debt to GDP ratio was
calculated using weighted average interest rate.
Results of Augmented
Dickey Fuller and Phillips-Perron tests indicate that debt ratios are nonstationary implying the existence of an unsustainable debt outlook. Results
of the Chow test, employed to test if a structural break can be observed in
1978 as a result of moving away from the command economy to a marketoriented
economy, indicate that the policy change has not led to have any
fixed change in the mean of debt serials. The results compel us to conclude
that public debt in Sri Lankan is not sustainable, so that a switch is required from foreign debt to other sources of financing of fiscal deficit or deficit reduction.
http://thejournalofbusiness.org/index.php/site/article/viewFile/551/446
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Amarasiri / March 16, 2016
Mahinda Rajapaksa and “Consultant”
Conclusions of the Paper:
Conclusion
The results of the empirical tests clearly indicate that the government debt in Sri Lanka is not sustainable. These results may be future verified if one uses the methods such as Vector Autoregressive method and impulse response functions, which are not the subject of focus in this paper.
A number of factors were identified as responsible for the government debt to be unsustainable over the years in Sri Lanka. Overreliance on various sources of debt to finance the budget deficit has resulted in this predicament. A large number of public works programmes were implemented during the past few decades mainly through
foreign commercial borrowing.
The output generated by these investments was basically non-tradable goods and services making it extremely difficult for the government to find means for financing debt services. Export growth was not facilitated mainly by these investments
http://thejournalofbusiness.org/index.php/site/article/viewFile/551/446
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De Silva / March 14, 2016
This is all Cabral’s writing. Mahnda is not competent enough to make an analysis like this
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Simon Gunasekara / March 14, 2016
but do you think cabral could have the knowledge to do it ? – had he had the knowledge, why should the bugger have costed Raja this much of blunders. Econmists say that the loans taken by Raja were not documented accordingly. CB man should have filled prions in his brain cells – the very same manner mad cows behaved actually.
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Simon Gunasekara / March 14, 2016
Mahinda is almost like his twin brother Sumanadas Abeygunawa of Galle.
Both answers when being questioned _ not having understood the question well. I really dont kno wwhy teh masses thought and felt intoxicated that Mahinda could be so intelligent- he is intelligent to act his role – his real face is still not clear to anyone. On broad day light Michael, at night Daniel. Now he has been making every efforts to kill Sarath Fonseka and MY3 for sure not being able to see that the current rulers move forward though slowly.
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Saman / March 14, 2016
Shame…..Shame….Shame……
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Amarasiri / March 16, 2016
Saman
“Shame…..Shame….Shame……”
MaRa has not heard the above words before.
All he has heard are the words, “Jayawewa”:, “Jayawewa” from 9 month old babies, before they say “Amma” or “Thatta”[Edited out]
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Banjiappu / March 14, 2016
This man has no shame not the smidegeon of that.
I think the rulers are not strict enough to control this man.
If i would have been one of the rulers, I would bring all the high corrupted issues investigated giving them a priority. Political will of the day seems to leave some space these men to further sabotage the work being done by current regime.
Police and courts are also not strict enough. He may feel with his sons bail out that things would go this way so easy for them – alone to use his ends to express that nothing whatsover is happened to lanken economy is beyond all bearing.
As a human if he accepted his mistakes people would consider it but this way of prevarications not talking to the point – can only make it worst.
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Banjiappu / March 15, 2016
Yes, his talent is to twist the poor mans brain for their advantage – meaning make them even more fool- injecting nationalistc germs to make them his voters. This has gone on and on poor will never see it right.. once they are informed
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confu tao / March 14, 2016
A load of bullshit from this scoundrel who has caused immense problems for Sri Lanka.
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Tungsan Yu / March 14, 2016
Fmr Pres: Rajapakse seems to have made some pretty good points here, irrespective of what personal feelings the public have for him, I think this should be answered at length by the PM and FM.
As for now the people seem to be up shit creek with the price of bread going up and taxes increasing.
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Mano / March 14, 2016
Ex Presidents who have betrayed the people of this country, who has ruled by nepotism, corruption, and doing nothing while journalists were being kidnapped, threatened and killed, should not be heard nor seen.
They rightfully should be in jail.
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ramona therese fernando / March 14, 2016
Oh well, it was you who started the over-ambitious development projects in the first place, isn’t it Rajapaksa! Your projects failed to pass parliamentary approval, but yet went ahead. If proper democratic parliament was allowed, it would have been common consensus towards country’s true worth.
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Rohan Polwatte / March 15, 2016
ramona therese fernando
over-ambitious development projects in the first place, isn’t it Rajapaksa!
The Village idiot was ambitious only fattening him and his family members own pocket. You stupid cunt living in USA still doesnt admit the destructio that this family did to the country. You must be another LTTE supporter who loves rajavassas to stay in power to continue destroying the country.
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ramona therese fernando / March 18, 2016
Rohan Polwatte,
All of Sri Lanka’s leaders ride on the high-horse of over-ambition.
Ranil and co. would have sold to India in liaison with US, with or without the Rajapaksa debt. Imagine being indebted to India!!! At least Rajapaksa’s debt is the more profitable Chinese variety.
If Ranil and Co. were around from the start, Sri Lanka would have been of a federal states situation, with the Northern section doing splendidly with the Tamil Nadu factor. The remaining 2/3 would have been subject to dire poverty in the imbalance of commercial and cultural enterprise, and been forced eventually to accept the TN authority to boost up the miserable 2/3’ds.
At least the Rajapaksa family live in Sri Lanka. But there are a lot of their cronies and affiliates who made big bubble-money, dumped and bad-mouthed the regime, and now dwell as society people in the West.
But I agree that Ranil and co. have some sensibility in their building the country from ground-up, with adequate taxation and proper regulatory institutions in place. Rajapaksa lacked this kind of commitment.
Both have their good and bad sides. We need a leader who can take us through with greater candor.
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ramona therese fernando / March 18, 2016
Best that can be done is for Ranil and co. to go half-and-half with India and China. And thank the Rajapaksas for all the projects they built up, especially the very lovely and delicate looking Nelum Pokuna.
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Banda / March 14, 2016
De Silva, Simon ayya, Saman and Banjappu – The bootlickers of Ranil hamu…..you have no constructive argument to break Mara’s analysis other than the typical Ranil Hamu’s boru show! Dream onuntil George Soros come and rescue you!
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gamini / March 18, 2016
Bando you take MR to see Wesak on your shoulders. We have no qualms at all.
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Wow / March 14, 2016
As soon as somebody hears the name of Mahinda in CT they instantly start the hate/mud flinging. Cmon, Can anybody say that what he is saying doesn’t make any sense? I’d like to know whether these facts are true or not. If they were true the finance minister should really consider giving his job to a child :D
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sama / March 14, 2016
man, what are the facts – in terms of his eating of funds.
He accusses the current regime of taking loans but all these have been taken to gap up MRs loans.. and their interests. Each and everyone is clear today there are no extra vaganza.. if you listen to your heart you or the like would also agree with.
All in all, the slow mode of current regime in finding the evindence this bugger can even attack the rulers this way. Who abused Srilanken as if it is his own taxi, not My3 OR Ranil but MR.. how much money is being lost if you block air flight `but this bugger rpeatedly travelled using the aircraft filling all the wandibattayas to please them. THe losses should have been millions per entourage. Is that the case with any of the leaders in the country today ? Do you speak from your other end ?
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Wow / March 14, 2016
The current regimes keeps saying that the country is in debt because of MR but they fail to tell us to whom we are in debt. Why can’t they just come out and say what’s going on? Its all easy when you dote on all the words that come out of Ranil/Sirisena, you would believe anything. All we see is a lot of drama like the avant guard, thajudeen, lasantha cases. They have now conveniently found secret debts that somehow was hidden for a whole year and suddenly comes at a moment when they are head over heels in debt. When you increase the wages of government workers by 10000 do you think there’s anything left over in the treasury? Their nearsightedness and the greed for quick votes has caused this whole issue. And to your point on mahinda taking private planes to fly to other countries, well before our over simplified sirisena president came alone, all the other president traveled the same way. My3 was just trying to show how simple he was to gain votes. I know damn well where and how to speak son. Open your own stupid eyes. My3’s simple nature often hits a “cat’s out of the bag” scenario from time to time. One must only remember the song he prepared for his one year anniversary as president.
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Rohan Polwatte / March 15, 2016
REplay to Wow
Tell me
MIHIN Air was advisable whne you had a Sir Lankan air ways? Was it profitable? Is it profitable now?
SRi lankan airways was making a profit under emirates. after this jack ass took over is it profitable now? IS it a loss? Flop?
Are we making money from RAJAPASSA Hamabonto Cricket Stadium?
Are we making money from RAJAPASSA POrt?
Are we making money from RAJAPASSA AIrPort?
Are we making money from RAJAPASSA Nelum Pokuna?
Are we making money from RAJAPASSA Norchial Power Plant?
All projects were completed with 6 or 7 times higher than what needed to be spent, all project were not eniviorementally studies nor did seek approval of the cabinet.
I can write more. But its not point if you gas gembas dont have the intelligence to understand the reality.
Absolutely there was no law and order accept rapassa clan and its close clowns were above the law. Rape, thuggery, murder, unwaanted car races desrupting and wasting the tax payer money, stealing, more and more for rapassas and more we innocent had to pay in electricity, gas and other essential commodieties to compensate the family unwanted illegal consumption.
Last and least I am asking you idiot do you have common sense? to support rajavassas
Open your own stupid eyes, at least we have law and order.
I am not supporting the VAT increase.
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words / March 15, 2016
My dear- Your one before last sentence says it all!!
You’ve given yourself away … ” …..AT LEAST we have law and order”
Law and order we DO NOT HAVE.. underworld out rampaging like never before. Daily front page news is someone somewhere being gunned down or burnt alive!!
So I guess that means that Yahapalanya delivers NOTHING now
Oh.. and for your information— the CEB a while ago stated that the breakdown was due to poor maintenance of machines.. and you guys were screaming “sabotage”” !! Now say the CEB engineers have been paid off by MR”s hidden loot!!
Thank you for saying you oppose the tax increases. It was so apparent that the economy was mismanaged from the word “go” by RK, Ranil and Mahendran.. and we the public are now paying the price for their incompetence through heavy taxes. That’s a fact that I’m sure you too are aware of!! Any reasonable man can see that! In fact I’m sure all the CT contributors though unlikely to openly admit it will accept it in their minds too
I don’t know where you are writing from, but many of us have opted to stay back in SL and work and raise our families here. And what is happening now
The government should do better by us, we deserve better.. Making fancy statements asking Lankan intellectuals to come back home to contribute towards its progress is a lot of nonsense.. if they can’t even seem to look after those of us who have always opted to retain SL as our home!!
Which SL right now in his right mind would even consider coming back to settle here???
Its quite ok to be a UNP supporter , a SLFP supporter, A TNA supporter or a Joint Opposition supporter.. but lets be firstly patriotic.. our country is on a downward spin and we need to either GET THIS GOVERNMENT TO WORK or ASK THEM TO GET OUT!
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gamini / March 18, 2016
This Thamiz Donkey is cunningly trying to appeal to the lot who voted against MR to go against Yahapalanaya govt. asking it to go home. Is he so ignorant that the Yahapalanaya govt will go it’s full term and by the end the Rajapaksas will be History and so will this Thamiz donkey.
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Wow / March 15, 2016
re: polwatte
thank you for pointing out all the RAJAPASSE constructions. Let me ask you, how would you develop a country? Give 10000 to the government workers like the government did? Is those constructions weren’t good enough for you, do tell me how else you plan to a develop a country. The colombo town is congested and it was evident that a second trade city was needed. Hambanthota was the best location (ofcourse it had its political reasons as well) because it was closer to the sea trade root. That’s why the hambanthota port came into existence (which btw is suddenly operating according to Ranil). The katunayake airport hasn’t been upgraded for years and its runways needed to be relayed but there was no other airport to divert the air traffic, hence RAJAPASSE airport. Nelum pokuna is hosting dozens of cultural events per month (don’t believe me, make a visit to the place next weekend) and somehow managed to make CBK call it a “comode”. I’m not a supporter of MR , rather a fed up citizen under the current government. I voted for MR because I knew what sort of devastation these thieving Ranil/My3 combo was going to do to the country. Atleast the previous government did something, what has these buggers done? are you saying this is better than MR? seriously? Lay down your party loyalty and call things as they are. this is a failed government, nothing more to it.
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rew / March 15, 2016
See Sama below for answers
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Sunil Dahanayake / March 14, 2016
Who ever has written this, this is a professional analysis of the economy.
The ordinary people are not economics, but they can feel and sense the economy through their “Badagini” and day to day struggle.
There is nothing to hide, Yahapalanaya government has completely failed.
Have they started a single production facility or factory?
Have they constructed or commenced any new project?
Have they received any financial capital from USA, UK or India?
Have they increased the prices or income of the traditional commercial products or crops of Sri Lanka?
The Yahapalanaya leaders made big talk. But no work.
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paul / March 14, 2016
Well they did put all those yakko street sellers back on the city’s pavements again. No doubt the local mps are renting out the pavements again to the highest bidders.
And Nepotige Sirisena appoints his brother SLT chairman within two weeks of becoming President in order to end nepotism from within.
These are the shameless bastards who want to shake hands with the like of Merkel, Cameron & Obama. The pathetic scum who cannot even keep their illbred kids off a stage to which they were not invited.
Watch them pontificating on TV about the state of the nation. Have you noticed how very ugly all our politicians look? That is the result of evil thoughts and evil deeds. These are the same bunch of thieves and blood suckers who 68 years after independece still cannot provide water or electricity to a small island. What the fuck (to use CT’s language) have they been doing all these years?
F the lot of them.
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Barus / March 14, 2016
I wonder if MR knew all these statistics while he was in power. This article seems like a futile effort at gaining some respect from the people.
Definitely this man does not have as much command of the English language as demonstrated in this article.
A clear evidence of plagiarism.
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janaka / March 14, 2016
No mention of helping Hambantota?
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paul / March 15, 2016
Hambantota was helping him to help himself.
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Karu / March 14, 2016
Barus, the original speech was delivered in Sinhala. This is an English translation.
If these facts are false PM or FM should come forward and point that out – their silence, speak volumes.
people are already sick of this so-called “Yahapalana” government. All it took was 12 months for yahapalanaya to turn Sri Lanka into a cesspool.
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Barus / March 14, 2016
Karu, Yahapalanaya is not the ultimate state of mind in this country. I agree with you 100%.
But, at least people have the liberty to voice their opinions and there is some sense of normalcy in the country.
What exactly is the development that the previous government had done? Building some idling infrastructure in a far away village?
If such development happened at the expense of a particular family’s wealth then no one can question that.
But now we fund that the state is burdened with servicing these loans. Is that fair?
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Wow / March 14, 2016
Building some idling infrastructure in a far away village?
Really? is that all you could think of? How about the southern express way? How about the restoration of 1000 lakes project? how about the hanbanthota port (which is suddenly functional btw according to our PM)? How about winning a 30 year old war despite the opposition from UNP(who btw was going to bring in foreign influence to stop the government from winning)? Are you just going to believe anything Ranil says? These so called debts suddenly and conveniently sprang up from nowhere after a whole year? If we were so in debts how come the development of the country, according to the world bank, was at a plus rate? are you saying the world bank got it wrong? Cmon mate, hate for the previous government aint gonna solve the problems this current inapt government is causing.
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Old Codger / March 15, 2016
Wow,
Hambantota port only works because vehicle carriers are diverted from Colombo.
Mattala airport?
Mihin Air?
Sri Lankan Airlines, which made profits under Emirates even during the war?
How many of the 1000 “lakes” were actually restored?
As to infrastructure , building it with loans is self-defeating. Like buying a Benz on credit when your salary is only 20,000. Sri Lankans are well known for this.
Please name one sitting Head of State who built over 20 infrastructure projects and named them after himself? All that the corrupt bastard wanted was to win the next election.
We don’t have to believe what Ranil says. We have seen it all.
You seem to live in Australia.
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Max / March 15, 2016
You idiot, Thieving rajapasse’s cooked the books, you never saw the real
situation
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Goraka / March 14, 2016
Where did you hide people’s money, you bug**er?
This caused our foereign debt.
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srinath.gunaratne / March 14, 2016
Guys, Read the facts, they are true, Economy was going better under Mahinda!
He recovered the economy from the brink of collapse,during the early ware years, if anyone can remember the 18% deposit rates offered at that time.
If you objectively look, Mahinda period has had the best economic performance, IMF recognition and Rating recognition!
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Wow / March 14, 2016
Give it up mate. you are barking up the wrong tree when it comes to CT :D you can’t make the readers hear say thank you to mahinda, that’s never in hell gonna happen. All you can hope to do is point out how stupid the current government is doing. But if your intention was to piss off some UNP and LTTE supporters, by all means go ahead :D
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sama / March 15, 2016
iF YOU CONSIDER THEM AS FACTS- it is fine but punnaku eating men of your kind only would believe them.
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Simon Gunasekara / March 15, 2016
You are good exmaple to show even if one is given the chance to live in a full democratic country, depending on his bring up, he cant change himself. He would further lie with dogs not considering the ticks problem.
Future generations and social funding bodies in UK should regret to have given you asylum. If you have a pain to save the bum of Raja- you are free to go to srilanka and continue it Mr Gonwahanse.
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Rajash / March 14, 2016
“Text of a speech delivered by former President MahindaRajapaksa on the “Foreign debt crisis of the yahapalana government” at the Battaramulla office on Monday 14 March 2016.”
who invited him to make the speech?
who attended?
How many attended?
was there a autocue?
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Simon Gunasekara / March 14, 2016
guy is today overwelmed by the release of his son.
Entire world know that the avalanche of money grabs made by Maharaja.
I want the current govt to respond this bugger as he cant speak anymore.
Current rulers are civlized than the Rajapakshes.
Since SF and others have revealed a lot, this bugger with his media men have been makin every effort to turn the facts.
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Marwan / March 14, 2016
Exactly, at least put up the voice cut to actually believe MR actually made this speech. The MR we know is a zombie incapable of analyzing fact from fiction, let alone economics in such detail and convincing manner. No doubt, it is a professional job with MR just lending his name to it. I truly wish we will see an equally well informed rebuttal to put things into perspective. It should be for us readers to decide who is taking us (the people) for a ride. Let us be the judge once all the facts are in. We have a capable CB Governor with many years of experience having served in high positions in many financial capitals and institutions of the world and it would be great to know his views on all of these allegations. We must be able to decide who is really telling the truth in terms of managing the country’s fiscal policies. What are the financial implications and what should be our short germ and long term objectives to be achieved in this first term in power. Also of importance is what efforts are being taken to put the country’s economy (barring outside influences) on a stable footing.
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Rohan Polwatte / March 14, 2016
“I Can Run the Country: Mahinda Rajapaksa.”
You have ruined the country you dumb fak.You. You started MIHIN air, You made profitable air line to loss making air line. YOu invested our money in unfruitful project to mark you stupid moron name. Tell us how much Sri Lanka is gaining from any of your single projects?
You and your family clowns and thuggery friends were thrown out by the Sri lankan majority. NOW SHUT DE FK Up and get ready to end up in JAIL!
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Brown Boy / March 14, 2016
Is this scoundrel for real ? I demand that the PM and FM address these “facts and figures” immediately. I have no doubt that if these currency swaps and bonds issue really happened it was for the simple fact as to hedge the loans and payments that were coming due. I mean if this imbecile along with Cabraal left the country and its economy in such a great state as this chest thumping toothbrush claims why would we need to take such drastic steps ? We know RW and MS aren’t lining there pockets or bank accounts with ill gotten wealth. This fake with run out cardboard cutout should just shut the hell up. Looks like the buffoon grew a pair and got a bit brave that his crooked brat son was just released on bail.
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srinath.gunaratne / March 14, 2016
All this happened because, economic mismanagement of this government!
No more China help. Momntum broken.
Currency swaps happened because SL ran out USD! read before you comment,
Bond issues happened, government ran out of money.
Remember threatening rich with mansion tax! That is when shit hit the fan!
Investors scared, Who would be a fool to invest in Sri Lanka while world economy is shrinking!
Electricity and other energy is expensive!
Logistics is expensive! Industries cannot afford a vehicle because tax are too high!
Bad public transport
Bad roads!
Bad garbage disposal!
Bureaucracy! – Do you know how difficult it is to open a limited company in SL?
Unnecessary TAX!
Corrupt share market!
Looks like Cabraal and P B Jayasundara were doing a great job! Bring them back, They will tell you how to run the country!
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sama / March 15, 2016
Wait and see, it is too early to make the kind of conclusions.
There should be something hidden that the current rulers keep for them. That they think could jeopardise on going process. For that matter they keep it away from the public. Now speculations there that Rajapakshes see that they did nothing wrong. But it was all lies. UNP led govt have no other choice than reveal all the realities and facts in today s situation. This will happen sooner than later. We always attacked them not taking big sharks, but at the time they were taken – Maharaja and his media men attacked the current men. likewise, they that handle finances will have to reveal some sad facts about Rjaaakshes very soon. I have patience – time will show you it.
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Brown Boy / March 14, 2016
As much as I hate to admit it I do wish sometimes that present government was made up of a few corrupt and vengeful members especially those at the head of government. Nothing would please more than to see a kangaroo court put together in order to send this Rajapakse scum and their boot lickers to jail. Terrible thoughts I know but some of us have just had enough.
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Lasith / March 15, 2016
Why has Ballah not said anything?
Maybe Rabies has finally got the best of him! It was just a matter of time anyway.
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Wera / March 15, 2016
Ballah is unleashed only when there is a need to create maximum damage like in the power failure situation where it was deliberate sabotage accompanied with the dogs rabid attacks on this forum.
The most likely persons to have written this is Nivard and the Ninny. I am no financial expert but I can see that it is deceiving. For example the state banks were allowed to borrow money internationally and lend it to the government under the meeharakas regime. This was done to hide real borrowings of his government and make it look like the debt was coming down. Savings from the drop in petroleum is offset by a drop in remittances from the gulf where employment is going down due to the slump in those economies. Cutting expenditure by heaping unbearable burdens on the masses is another deception they engaged in (keeping wages down while imposing tariffs on essential foods such as milk powder). Withholding payment to contractors and running huge arrears while asking these contractors to fund his campaign is another deception that the incoming government had to deal with. That is how Mahendran ran into trouble at the beginning with the bond issue. This bond issues was sued to settle all those arrears.
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Douglas / March 15, 2016
The Prime Minister making that statement agreed to a debate and JVP has asked for that too. Mr. Mahinda Rajapakse, you were the Minister of Finance throughout the period prior to January 8,2015. So now changing your venue from Narahenpita to Battaramulla and making statements confronting the Prime Minister and contradicting him does not impress us at all. For the last eighteen months you have never appeared in Parliament and participated in a debate of what so ever; but continue to make statements both written and oral from venues that are friendly and supportive of you. You and your supportive Parliamentarians must understand that your participation at the discussions in Parliament is very vital, both as the Ex President -the Head of that Government and most importantly as the Ex Minister of Finance; because you are the one and only person we look up to get the matters straightened. Also, please do not forget you OWE that Explanation and Accountability to the Country.
Now that the Prime Minister has explained the Financial situation of the Country that this country inherited from your Government, I call upon you to CHALLENGE and CONFRONT him in Parliament without making statements from your “Safe Houses”. Please ask for that “DEBATE” immediately and the people of this country are WAITING for your “Participation”. Thank you.
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Douglas / March 15, 2016
My comment continued …. From the time you got elected as a Peoples’ Representative from Kurunegala, you decided to speak on matters that must be discussed in the “Peoples” Forum” that which is Parliament; first from a Buddhist Temple in Narahenpita and now an “Office” situated at Battaramulla. To me, that is a message to the country, you do not any more CONSIDER, RESPECT or TRUST the PEOPLES’ FORUM – The Parliament. If you do not wish to be a PARTICIPANT in matters that come up in Parliament; but choose to speak from those private venues, please tender your RESIGNATION from Parliament and work from outside like many other countrymen. Surely, you enjoy that freedom.
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anonymous / March 15, 2016
This would not happen if money was invested wisely. War was over, so they were given the second chance to develop a good economy. This crisis is all a result of weak government expenditure by the past regime.
“To put matters into perspective, this is enough to meet the entire foreign loan components of the Mattala airport (190 million USD)- FAILED INVESTMENT
the Hambantota Port (426 million USD) – FAILED INVESTMENT
Norochcholai Coal Power plant (1,340 million USD)- Clearly failed yesterday
The Colombo-Matara Highway (630 million USD)- OVERPRICED
The Colombo-Katunayake Highway (248 million USD) all put together – OVERPRICED
and there would still be enough money to build not one, but two Port Cities (1,400 million USD each) one 500 megawatt Sampur Coal power plant (500 million USD) and yet another Mattala airport with the final leftovers.” – NO NEED PORT CITY and another failing power plant.
Can build many ports and cities around the country for that kind of money
What about stolen money? Mihin Lanka? Sri Lanka wont start till he stops
President and PM shouldn’t feel sorry
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Rodney / March 15, 2016
New loans and bonds need to be taken to settle the loans taken by the morons Mr crack Pot. No need to do such a complex analysis..
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Non PhD / March 15, 2016
Douglas,
When I read your comments it reminded me of Emperor Ashoka’s son Arath Mahinda and the sermon he delivered at Mhinthale.
Yes what MaRa is doing is not Dhamma.
He should resign as an MP if he can not bring important issues for discussion at the parliament .
Yes we understand that he is scared of all the MPs who don’t agree with his views and particularly the JVP MP s will rebuttal with facts and all will be recorded in the HANSARD.
Sadly for Sri Lanka many citizens are still believing the dramas put up by MaRa,Bros & Co.
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Vanguard / March 15, 2016
Dear President
You should be happy to see people are hopeful despite the facts – the stock market is lower and so are are credit ratings as listed by international agencies.
No matter, hopefully the present government will fix everything and rise in popularity.
No worries
Everything is nothing to worry about.
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rew / March 15, 2016
Where were these Int Agencies when massive corruption was in place?
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Vanguard / March 15, 2016
Dear President
“Sri Lanka will strive to tighten its belt and maintain policy consistency to improve its debt rating and help make capital Colombo a global financial center, the
country’s finance minister told CNBC on Monday.”
-Finance Minister
Those wearing sarongs dont have belts, however, what will they do. Tighten their sarongs?
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MirakRajBanda / March 15, 2016
There are here and there few stooges left over to write ‘script writes’ on behalf of MaRa. If you were still power (thank God for your lunacy to go for an early election), Sri Lanka would successfully become an overseas territory of bloody greedy Chinese.
It is alleged that he was planning a Stalin style purge and an ethnic cleansing on retaliation for not supporting his atrocities soon after the war!!!
But the ‘Aschloch’ still scot-free even in Yahapalanaya!!!! That is hard to digest!!!!!
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