SRI LANKA IN CRISiS BORNE OF AN ILL WIND
Posted on March 30th, 2022

Editorial

Sri Lanka’s present crisis borne of an ill political wind based on detrimental administration and bad choices as it appears are of a severe  socio-economic nature that can end in complete bankruptcy which seems like an impending disaster looming over the horizon.Despite warning signs  the Government seems to be unconcerned and act as though it might blow away in the manner of a proverbial ostrich burying its head in the sand where properly targeted drastic action which is the key to resolving it seems to be the furthest thing from the present administration currently dabbling in issues of lesser priority than the one imminently at hand and the nation continues its agitation in apprehension and uncertainty which could result in dire ramifications for all concerned which in all probabilities could include the Administrators themselves in a most ironic sense.

While the predictions appear grim towards the future for the once beautiful and well balanced nation of a once proud and dignified people it hopefully can be resolved in the manner of similar situations which faced other countries like Argentina and Zimbabwe to name the most prominent in recent history which eventually recovered through prudent rebuilding and re-management and the help of many nations which have come to Sri Lanka’s assistance.

It precludes the rationality and reason towards the well being of the Nation that the people appear to be completely unaware of the gravity of the situation where post haste remedial action is needed to prevent a downward spiral as Sri Lanka teeters on the edge of economic uncertainty as well as issues relative to Covid 19 which the Administrators seem to be blaming the current crisis for and perhaps not unreasonably so despite being marginal.

As quoted in a recent report compiled by a renowned financial analyst “A clear plan of action to address this entire situation invariably rests on the  nation’s stability both economic and relative to the Covid situation.The enforcement of the health rules should be given equal or higher priority in the total program as well as bolstering the economy which disastrously seems to be slipping out of control for which the Administration seems totally responsible.”

The report continues that “Sri Lanka according to knowledgeable world financial analysts is alarmingly rated as being close to bankruptcy and desperately in need of dollar resources where foreign investors cannot be expected to come to her rescue due to the high risk involved and thereby forced to borrow short term loans at high interest from unscrupulous lenders further compounding Sri Lanka’s woes and consequently being subjected to a foreign debt trap as the lenders invariably demand more than a pound of flesh in return.The foreign exchange reserves to buy essentials like food and medicines from abroad appear to be running out. The lack of dollar reserves will lead to a severe shortage of essentials. The result will be racketeering and high prices – a black market. This will send prices up further and a worse case scenario could plunge the country into dire straits all too frightening to apprehend as well as comprehend!! ” end quote.

The panacea searchers continue asking ” so how do we prevent or minimize these unfortunate trends?”  The question asked is how long will this

Covid-19 pandemic last. On the basis of experience with past pandemics and epidemics, which have generally existed in epidemic form for two or three years, they have then become milder routine infections like the common cold, or influenza. The appearance and increase of herd immunity contributes to the above change.Hopefully with Covid -19 too this will be the case.”

With regard to the repayment of our loans as a country which has been badly hit by the Covid-19 pandemic as well as the global economic crisis we are entitled to re-negotiate and restructure the repayment of our sovereign debt. Accordingly we should ask for a period (say about five years) where we do not re pay our debt to the creditors.

This is to enable us to bring about the requisite changes of the policies that will result in sustainable development. During this period we can ensure that our people obtain their essential needs and their suffering be minimized.

There still is hope that impending complete financial disaster can be averted with timely intervention and the right measures taken.Something the present Administration owes to the people of Sri Lanka  for the trust placed by them towards what they believed was a better future after the grave errors of the previous impotent combine of the so called “Yahapalana Government” who left Sri Lanka in a shambles  despite their claim to the contrary.

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