“The
first panacea for a mismanaged nation is inflation of the currency; the second
is war. Both bring a temporary prosperity; both bring a permanent ruin. But
both are the refuge of political and economic opportunists” Ernest Hemingway
The Rajapaksa regime has blamed the Covid pandemic for
Sri-Lanka’s economic problems. However, this is just another deception of the
discredited and incompetent regime.
Sri-Lanka faced a food shortage in 1952. It agreed a
barter arrangement with China to get rice in return for rubber – because
Sri-Lanka did not have enough foreign currency reserves.
Late last year, it agreed with Iran to pay off debt using
tea - because Sri-Lanka does not still have enough foreign currency reserves!
Sri-Lanka has been under a state of emergency since 1971.
In the early 1970s, the economy collapsed and it faced food shortages.
The Rajapaksa brothers control most of the important
ministries and are involved in massive corruption and fraud.
The Rajapaksa brothers are also suspected War Criminals
alongside many members of the military.
Successive Sri-Lankan regimes have printed money and
mismanaged the economy. In 1950, one US dollar bought Rs 5.00. Today, one US
dollar can buy more than Rs 200.00
Sri-Lanka is now facing bankruptcy and it recently
borrowed US $200 million from Bangladesh. The Sri-Lankan regime is going on
begging tours to various countries.
Fake Promises and Pipe Dreams
In 1978, JR Jayawardena
promised to make Sri-Lanka the next Singapore and failed to deliver! Instead,
he centralized power by changing the constitution and he was responsible for
the civil war that lasted for more than 25 years.
After failing to become the
next Singapore, in 2009 Mahinda Rajapaksa promised to
make Sri-Lanka a Wonder of Asia!
After
failing to become a Wonder of Asia, last year, the Rajapaksa brothers promised
to deliver Prosperity and Splendour.
The Rajapaksa brothers are now delivering Prosperity and Splendour to themselves while ordinary people starve!
Secret files reveal Rajapaksa ruling family member and
husband used secret companies to stash riches around the world:
https://www.icij.org/investigations/pandora-papers/sri-lanka-rajapaksa-family-offshore-wealth-power/
Bankrupt Economy
Sri-Lanka’s current economic problems are not new. These
can be traced back to numerous blunders and state-sponsored terrorism of
successive Sri-Lankan regimes since 1948.
Sri-Lanka faced a food shortage and an economic crisis in
1952. It signed an agreement with China to get rice in return for rubber.
https://ceylontoday.lk/news/hard-road-to-sino-ceylon-rubber-rice-pact
In December last year, Sri-Lanka agreed to offer tea to
Iran to settle its debt of US $251 million.
Sri Lanka plans to pay off Iran oil debt with tea:
https://www.bbc.co.uk/news/business-59753873
Sri-Lanka’s current economic problems were predictable and predicted, as shown here in an article published in 2013:
https://sri-lankahumanrights.blogspot.com/2013/04/why-sri-lanka-will-become-skint-lanka.html
Sri-Lanka has been busy printing money!
From
December 2019 to August 2021, Sri Lanka's money supply increased by 2.8
trillion rupees - a massive 42% increase, while the economy grew only 2% during
the same period!
https://asia.nikkei.com/Economy/Sri-Lanka-s-economy-seen-as-a-ticking-time-bomb
Sri Lanka on brink of sovereign bond default,
warn investors:
https://www.ft.com/content/09e1159f-9c45-4379-b862-98cb5e30a4da
State of Emergency
Sri-Lanka has experienced never-ending conflicts and
violence – all in the name of Buddha!
Sri-Lanka faced an economic collapse in the 1970s.
The country was crippled by debt.
Sri Lanka, Short of Food, Faces an Economic Crisis:
Since 1971, Sri Lanka has been in a constant state of emergency with the exception of very brief periods. The state has demonstrated an immense penchant towards emergency laws in responding to crises such as communal riots, natural disasters and economic problems.
A state of emergency was declared in 1971 during the
first JVP insurrection. Unemployed Sinhalese launched a revolt against the
government.
Under a state of emergency, successive Sri-Lankan regimes
carried out mass murders and enforced disappearances while pretending to be a
peaceful Sinhala Buddhist paradise!
There are mass graves all over the country.
Sri-Lanka has the second highest number of disappeared
people in the world after Iraq.
The Deceptions of the Rajapaksa Regime
The Rajapaksa regime has repeatedly claimed that asking the
IMF for assistance would be against the sovereignty of the country!
However, Sri-Lanka has asked the IMF for help 16 times in
the last 52 years. The frequency of Sri Lanka's IMF programs suggests a high
degree of macroeconomic instability and poor management of the economy.
Now the regime is flip-flopping on going to the IMF. It will be forced to go to the IMF soon!
The regime is scared to go to the IMF because it will be required
to implement austerity measures and be forced to reveal the actual amount of
foreign debt.
Countries such as Greece, India, Indonesia and South
Korea have asked the IMF for assistance without losing their sovereignty! A
bankrupt banana republic like Sri-Lanka cannot talk about sovereignty while
people starve!
Last year, the regime introduced organic farming overnight
and banned the import of chemical fertiliser. It claimed that the use of chemical
fertiliser was damaging to health.
The regime not only banned the import of chemical
fertiliser, but also banned numerous other items, such as cars, motorbikes and consumer electronics goods.
The real reason for banning the import of chemical fertiliser is because the country has less than US $3 billion in foreign reserves. This is woefully low compared to other countries as shown below:
|
Country |
Population |
GDP (PPP) |
GDP
per |
Foreign
|
|
Million |
US
$ Bn |
Person
(PPP) |
Reserve
|
|
|
US
$ |
US
$ Bn |
|||
|
Malaysia |
33 |
978 |
27,000 |
110 |
|
Singapore |
6 |
600 |
100,000 |
400 |
|
Taiwan |
23 |
1,400 |
55,000 |
500 |
|
Sri-Lanka |
22 |
300 |
13,000 |
3 |
|
Sources: IMF/World Bank |
||||
As a result of shortages of fertiliser, rice production is expected to fall by more than 50% this year. The regime is now begging China, India and Myanmar for rice and other food items!
After working against India for many years, it is now
begging India for loans and credit.
It has also borrowed US $200 million from Bangladesh.
The Rajapaksa Regime has been involved in anti-Muslim
propaganda. It has also encouraged Sinhalese extremists and thugs to attack
Muslims and loot businesses owned by Muslims.
The regime forced Muslims to cremate the bodies of people
who died of Covid. It claimed that burying bodies would contaminate ground
water!
More than 190 countries have allowed the burial of
bodies.
World-renowned virologist Prof Malik Peiris, has told the
BBC the following:
"Covid-19 is not a waterborne disease, and I haven't
seen any evidence to suggest it spreads through dead bodies.”
The regime recently went on a begging trip to the Middle
East but returned empty- handed!
Sri Lanka forcibly cremates Muslim baby sparking anger:
https://www.bbc.co.uk/news/world-asia-55359285
https://www.aljazeera.com/news/2019/12/sri-lankas-leader-promises-unite-country-191208102913348.html
https://www.aljazeera.com/indepth/opinion/trouble-brews-post-election-sri-lanka-191208094903589.html
The Sinhalese Chickens are Coming Home to
Roost
Since 1948, successive Sri-Lankan regimes have used
anti-Tamil and anti-Muslim propaganda to win elections by fooling the Sinhalese
peasants.
Businesses owned by Tamils and Muslims have been looted
repeatedly with the collusion of the state. No-one has been brought to justice
for looting, murders and state-sponsored terrorism that have been carried out
since the 1970s.
After 74 years of state-sponsored terrorism and violence,
the country is now facing bankruptcy.
It will take at least ten years to fix the bankrupt
economy provided that the right people are brought in to implement the right
policies. It is highly unlikely that Sri-Lanka will have a government run by
competent and honest people in the foreseeable future. Therefore, Sri-Lanka
will remain as a failed state for a very long time - joining other failed
states, such as North Korea, Myanmar and Somalia.
Here are Lee Kwan Yew’s views of Sri-Lanka:
https://sri-lankahumanrights.blogspot.com/2013/03/how-incompetent-leaders-can-screw.html
A fascinating speech by Lee Kwan Yew at Harvard
University
For Third World Leaders: Hope or Despair?
https://www.youtube.com/watch?v=pCEYJFpwydw
Useful Links:
https://www.aljazeera.com/news/2021/12/1/sri-lanka-orders-probe-into-mystery-cooking-gas-explosions
https://www.aljazeera.com/economy/2021/11/17/as-food-and-energy-prices-soar-sri-lankans-go-without
https://www.eastasiaforum.org/2022/01/19/the-rajapaksas-to-blame-for-sri-lankas-disastrous-2021/
