Dud Governance: 3 Months 4 Foreign Trips by President and 14 by Foreign Minister and the Economy in Doldrums!
Posted on April 7th, 2015

Dilrook Kannangara

It is absolute plunder of weakening foreign reserves. Although they promised good governance, their dud governance has proven a corrupt disaster already.

When the Rajapaksas left office, country’s foreign reserves stood at $7.8 bn. Thanks to unlimited plunder of foreign reserves, it has now fallen to $6.8 bn. What is noteworthy is reserves measured in months of imports is in its worst now since the war. Increasing inflation (and interest rates), depreciating rupee and borrowings have caused $1.63 more debt value within just 3 months. The Treasury plans to raise 400 billion rupee debt to pay for state salaries increase by the Sirisena regime.

Gold reserves held by the Central Bank of Sri Lanka have also fallen from $880 mn when Rajapaksas left to $866 mn by March. Of course the downward trend of the Colombo Stock Market indices and the depreciation of the rupee continue unchecked since the last regime left office. Who is robbing state coffers as never before?

What is more alarming is this drop comes during the tourist season (November to March) when foreign currency inflows are the highest during the year. For foreign currency reserves to collapse to such low levels during this season, the plunder must be many times more than the numbers indicate.

Exuberant spend on foreign trips is nothing new to Sri Lanka and it has worsened in the current regime. Barely 3 months passed since it assuming office and the president and the family have made four foreign trips already. Daham Sirisena is carrying out his own foreign trips at state expense. He was already in China on his own when President Sirisena visited China. Foreign Minister Mangala Samaraweera is almost always overseas with 14 foreign trips to his credit already.

Election sweeteners offered by the Sirisena regime also cost a fortune. Disruption of Chinese investments (Sri Lanka’s largest investor) also contributes to the impending economic disaster. IMF has already refused to help and available options are fast drying out.

7 Responses to “Dud Governance: 3 Months 4 Foreign Trips by President and 14 by Foreign Minister and the Economy in Doldrums!”

  1. Kumari Says:

    Can’t the patriotic MPs (if there are any left), bring a no confidence motion and bring down the government? I think it is already too late. The most popular politician of the land, Mahinda Rajapakse is not even in the parliament.

    Dear MPs, you are representing us. Please save the country for us. That is your primary responsibility.

  2. Lorenzo Says:

    “depreciating rupee and borrowings have caused $1.63 more debt value within just 3 months.”

    I don’t think this is TRUE.

    AGREE with the rest. We are in TROUBLE. BIG TROUBLE.

    But the WORST BIT is Singapore citizen CB governor and family are ROBBING SL and cooking the books to show a rosy picture. All these stats are central bank produced. How can you trust them? The reality must be FAR WORSE.

  3. Lorenzo Says:

    Breaking news. 400 BN bond issue to find money to pay salaries DEFEATED in parliament 52 to 31.

    Now govt. is BANKRUPT.

    People should STRIKE WORK NOW! No salaries for you. NO NEW YEAR.

  4. Independent Says:

    Don’t be happy that our country is BANKRUPT.

  5. Christie Says:

    Namaste: Indian Imperialists will come to shore up the economy of the colony or the Indian colonial parasites who run the economy may help at the last moment. It is their government. Jai Hind

  6. L Perera Says:

    Is the fate of Sri Lankans like that of the proverbial crabs swimming in lukewarm water not aware that the fire beneath will bring it to a boil? Time they jumped out, that’s if it not already too late.

  7. SA Kumar Says:

    Don’t be happy that our country is BANKRUPT.-Last SL Govt left with 2 trillion dollars liability – CBK said
    Chinese OC money Comikco economic policy what else can expect !!!

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