18 September, 2021

Blog

The Raging Dollar Crisis

By Champika Ranawaka

Champika Ranawaka M.P.

The state Minister of Finance and the Secretary to the finance Ministry are out boasting about the increase of Dollar reserves from 2.8 billion at the end of July to 4 billion. This was solely due to the replenishment of quota for 780 million dollars from the IMF and loan facilities by Bangladesh and China worth 400 million dollars.

How long will these reserves sustain the crumbling economy?

Loans obtained from China will be spent back on Chinese vaccine Sinopharm which was bought at a very high price. Approximately 900-1000 million dollars of loan premium is due before the end of the year. Once spent on Petroleum, Coal, Medicine, Milk powder and Fertilizer, these reserves will be vanished before the end of the year.

We have continued to point out that the economic crisis of the state will cause inability to repay debts and maintain essential imports. There is an even worse crisis looming around the corner. Due to the rapid depletion of foreign currency assets, the state banks and private banks are at the brink of collapse. When the foreign currency assets are depleted below the level to maintain overseas expenditure, even the Central Bank could collapse.

We wish to pose few questions to the rulers of this country.

1. What were the steps taken by this Government and the Central Bank when the foreign assets  were shrinking up to a mere 50 million US Dollars?

2. How long can the Government drag this economy without finding remedies to the crisis?

3. What are the steps proposed by the Government to maintain exchange rates and maintain essential imports?

4. Are there any other “methods” used by the Government Other than printing money?

An emerging “black market” for foreign currency is set to thrive with the Dollar being exchanged for Rs 240/=  to Rs 260 /=. Parents are struggling to send money abroad to their children for their day-to-day expenses. Commercial Banks are rationing the limited amounts of US Dollars they have among their customers.

There were no bidders for the petroleum tender. There are no foreign reserves to import Coal, Milk powder, Medicine and other essential gods. it is imminent that an era with hunger, poverty and unemployment will dawn upon us. The common man will be suffering resorting to firewood to cook and bullock cart to commute. The whole country will be reset at an economic equilibrium of half a century ago.

The lack of confidence in even the local currency is evident by the failure of the government to raise the desired amount of 30 and 20 billion rupees respectively via treasury bonds. Only 4 billion rupees (8%) was raised and the balance 46 billion will probably be replenished by printing money.

Grandiose political rhetoric cannot solve economic crisis. Gloating in pride after repaying just one instalment of the debt is nothing but silly. Shooting the messenger seems to be the preferred mode of addressing the issue. There are statements utterly irrelevant to the current situation such as “there have been situations much worse” .

The only way forward is by accepting that there is a crisis. What is necessary is genuine and transparent financial policy in order to solve the problem.

The Government have brought the country down to its knees by unscientific management of COVID-19. It is taking the nation to its grave by mismanaging the economy.

It is time for scientific management of the Epidemic and Scientific management of the Economy.

Print Friendly, PDF & Email

Latest comments

  • 21
    3

    “It is time for scientific management of the Epidemic and Scientific management of the Economy.”
    This is not going to happen with the current GoSL
    We need a new Leadership

    • 21
      4

      Naman,
      “We need a new Leadership”
      Yes, but certainly not Champika Ranawaka.

      • 12
        2

        Isn’t this the guy who spent public money on a “plant” to allegedly turn polythene waste into petrol? It would have been pretty useful now, but nothing was heard about it after the election.

        • 9
          1

          old codger

          This is the same guy (public racist) who was in charge of Ministry of Power, Energy and Business Development when contract for building Lakvijaya Power Plant project was handed over to Chinese Company.

          We are yet to see/hear that the power plant is running smoothly at full capacity 365 days a year without any problem or frequently incurring any major repair cost, given that he is a Electrical Engineer.

          He has all the potential to be a Presidential Candidate, I won’t be surprised if he is elected.

          • 3
            1

            NV: Why do you waste time reading articles by these types of “Spent Bullet” Parliamentarians?

            • 7
              1

              Simon

              “Why do you waste time reading articles by these types of “Spent Bullet” Parliamentarians?”

              To see when this public racist is going to jump ship.

              If Wimal Weerawansa could place himself being a presidential candidate, why not a Qualified Electrical Engineer?

              • 1
                0

                NV,
                CR is today no more a racist as had been at the beginning of MR regime no 01.
                .
                So I could agree with u with this.
                “””Native Vedda / September 4, 2021

                Simon

                “Why do you waste time reading articles by these types of “Spent Bullet” Parliamentarians?”

                🍬🍬🍬🍬🍬🍬🍬

          • 8
            1

            Native,
            “given that he is a Electrical Engineer.”
            The man is as much of an Electrical engineer as Nandasena is a Software engineer, or Padeniya is a doctor.
            Standardisation has brought us to this pass.

      • 4
        1

        OC,
        .
        https://www.youtube.com/watch?v=odMsw8J3JHU

        Please listen to RAJAPAKSHE miracles
        .
        WOW; it is from the POV of India, but some truth is init right ?

        A country which was been in good shape is fallen into depths with the total mislead of MEDAMULANA thirisannu.

        • 7
          0

          LM,
          The video is a bit over the top. There are no queues because there is a curfew. But give it a month, who knows what queues will form? Flour, milk powder, sugar, petrol…….
          There is a shortage of baiyos too nowadays.

          • 5
            0

            old codger

            “But give it a month, who knows what queues will form? Flour, milk powder, sugar, petrol…….”

            Now that you mentioned queues I just want to share a Soviet story with you:

            A worker standing in a liquor line says: “I have had enough, save my place, I am going to shoot Gorbachev.” Two hours later he returns to claim his place in line. His friends ask, “Did you get him?” “No, the line there was even longer than the line here.”

            https://www.youngpioneertours.com/cias-favourite-soviet-jokes/

            • 2
              0

              NV,
              Very nice, Don’t you have Gota’s jokes?

              • 1
                0

                SK,
                I hear the queue to do bodily harm to Native is the longest, but they can’t find him.

                • 1
                  0

                  old codger

                  “I hear the queue to do bodily harm to Native is the longest, but they can’t find him.”

                  Is Nimal Fernando the first one in the queue?

      • 4
        0

        OC,

        I think JULIAMPIITYA AMARAYA or the like would have more chances in next PE. dont you think so ?
        .
        We had SORYSENA
        .
        We had Nandasena
        :
        People would not give a CHANCE to NPP
        .
        What is seen is JULIAMPIITYA amaraya (mass killers) can be the next choice of OUR sinhala BUDDHISTs ?

      • 3
        0

        Please listen,
        .
        https://www.youtube.com/watch?v=yGi8Wt5Ites

        They WANDIBATTAYA aka Ajith Cabral makes every effort to paint the ppicture in favour of them, bu tentire world is watching.
        .
        SRILANKA will sink to the very same that ship sunk before your shores…. people are to be blamed, to have paved ballige puthas be our leaders.

    • 3
      0

      Naman,
      .
      what is likely going to be happen with the CURRENT barbarians is

      Let people fall dead by COVID. Already we see it happening with so called powerful President being house arrest in his MANDIRAYA:

      No medicine, no essential food items, sky high prices also for daily needs, no gas, no petrol… what else …… that is what they define as ” saubagaya vision or ballige puthas”:
      .
      These men should be hung by their balls by dragging to galle face green, could be the best comfort for the nation, right at this critical moments they are compelled to go through.
      .
      All these were public secret, nevertheless; thanakola eaters dominated srilanka put us all in a risk.
      .
      No wayout from this fall – PIGs might fly if otherway around would be case.
      :
      LET S GET READY TO LINE UP TO DIE !!!!!

  • 23
    0

    How about tracing and seizing “black” money hidden abroad by those who became millionaires from the time of the Tsunami ?

  • 11
    0

    Gave tax concessions to business sector. Now get back to original tax structure and let business sector tax build up the local budget. Enough of robbery of our nation and starving the citizens. Simple brain power.

  • 9
    0

    I recall seeing a clip on social media of a Parliamentarian, who I presume to be one time health minister, Fowzi, stating in Parliament that SL has the pandemic under control & there was no necessity to import the vaccine. Since the gloating, it has all gone pear shape & SL ended up buying a non approved Chinese vaccine at $5 higher than the market price, thereby, someone making a huge profit at a time the country is facing a severe forex shortage. In the light of such blatant corruption, this govt. has once again proved it’s inability to tackle the current crisis & inspire confidence.
    Another era of rationing, from fuel to food, is inevitable but some maybe still in denial. The country needs a regime change, preferably, before the next election, otherwise, we will be going over the cliff edge very soon. .

    • 3
      7

      R-UK
      Sri Lanka used mainly the Indian produced AstraZeneca vaccine until April. Then Indian supplies dried up.
      Sinovac arrived since May, and WHO had endorsed it on 7 May. There was a delay in its approval here, but it was WHO approved throughout its use in this country.
      I wonder why the media and the professionals have been silent on records of vaccine deaths and suspension of certain vaccines in many countries, including several in Europe?
      Those banned vaccines have been used here without question.
      Any thoughts?

      • 4
        1

        There certainly were side effects of vaccines reported, but the numbers were well below noise levels in Europe AFAIK. And the protection from vaccination far, far outweighs the risks of side effects. Regulatory authorities in different countries had different thresholds for use of vaccines in different age groups and err on the side of caution when data with large error bars is put in front of them. Germany adopted AZ much later than UK, but now UK is far behind other European countries in vaccinating young adults. IMHO, “banned” is too strong a word to describe these.
        +
        Were there significant numbers of vaccine caused deaths / serious illnesses in Sri Lanka?

        • 1
          1

          SAV
          Thanks.
          It is not a matter of mere statistics. A risk is a risk and people should be duly informed with relevant details.
          European governments acted promptly at the first information of a risk.
          Recently Japan stopped use of AZ because of particulates found in bottles. The matter was sorted out later, but the state has to act responsibly.
          *
          There is very little information on vaccine deaths here.
          I have heard of some, but had no way to confirm. I did not want to be a source of a rumor.
          It took a long time for us to be told that 85% of the dead had co-morbidities. The age profile is not yet available.
          I agree that ban is too harsh a term for suspension. But while there was suspension elsewhere we proceeded to use without further inquiry.

      • 1
        3

        Come on man. On you alone Deva and Rapist army might have earned in billions, but you are showing water to other CT commentators. What do think of you? Did you drank any of water you are showing to others? Deva started with Manal, Kancha and now Thanni too?

        Once upon a time, when your were flat on the floor and hallucinating, the Indian Pariah Demulo came to Lankawe and offered 500,000 free vials, hoping to get the Western Terminal. Taking that medicine cunningly, Aanduawas called and told Mr.Modi not to send that pariah Demulo back again and negotiated for Eastern terminal with Gopal Bag Lay. Smart, isn’t it? Where did Bangladesh bought $5 dollar cheaper? From India? Whose medicine is India manufacturing? Royal Son Prince wants to manufacture China medicine in Lankawe. Why didn’t they think of manufacturing a European version? They don’t get any commission on that?

      • 2
        0

        SJ

        It is my understanding that Russian & Chinese vaccines have not been fully endorsed by WHO as the test results were not comprehensive, therefore, those vaccinated are not accepted in Europe. The Chinese vaccination is thought to be only about 40% effective (even less in the case of Delta variant), compared to over 70% for Oxford & Pfizer. In SL, vaccination has been dependent on availability, mostly from donations, & it is possible that vaccinations may have been mixed or the booster given after 12 weeks when the efficacy is less. As you have mentioned, health care professionals should record & monitor vaccination usage, particularly, any deaths after vaccination, as done by other countries. Accordingly, UK health authority concludes that it is the non vaccinated who are mostly infected now while those vaccinated but infected have only mild symptoms. A third jab is now considered for those with very low immunity, such as, HIV or cancer patients, & another booster for the most vulnerable during winter. Apart from a few ‘anti-vaxes’, the rest, over 70% of the adult population in UK, have been vaccinated & life is very much back to normal with all lockdowns eased, although, precautionary measures are still recommended.

  • 7
    0

    Sri Lanka is suffering because of all the racist jokers from D S Senanayake to Gota, and you are included too. Seventy three years of Sinhala only and no meritocracy has brought the economy to bankruptcy.

    People are consuming more than what they produce, there is no surplus to export and build a foreign exchange reserve for seven decades.

    All the ministers and the president are damn fools who don’t either know or don’t care about the basics of an economy of a country.

    Even the major opposition party is full of fools whose only goal is to capture and muddle the country through while ling their pockets.

    Sri Lanka has become a laughing stock of beggars with a bloated ego!

    • 3
      0

      Thiru,
      Sri Lanka is suffering economically because of the failure of governments from DSS to Gota and there is no sign of change in the attitude of politicians or Buddhist leadership or Buddhist people.
      Corona has an impact on economy but the economy suffered since 1948 and Corona is not the cause. The deaths due to Corona is nothing to do with vaccines but it is about many other factors. Sri Lanka politicians and health care system spent number of months spending on time arguing whether Corona death bodies of Muslims should be buried or cremated. Sri Lankan president focused on releasing murderers from jail than concentrating on Corona management. Still they are thinking about how to cheat Buddhist Sinhala using racism.

Leave A Comment

Comments should not exceed 200 words. Embedding external links and writing in capital letters are discouraged. Commenting is automatically disabled after 7 days and approval may take up to 24 hours. Please read our Comments Policy for further details. Your email address will not be published.