Apt Question by Shenali Waduge
Posted on July 9th, 2022

Prof. Hudson McLean

Sri Lanka’s energy crisis an artificial one?
Shenali D Waduge

Shenali Waduge touched on an important point. 

Today despite the Russian-Ukraine debacle, oil flows un the Middle East, Venezuela, Iran, and over 100 countries, as in 

https://www.worldometers.info/oil/oil-production-by-country/

Sri Lanka is a small fry in the Big Fish oil market game. 

The oil business offers substantial payback to operators, but since Sri Lanka has a current cash flow problem, the discussions could be more complicated.

Sri Lanka has a current negative cash-in-hand problem,  as a Sovereign State, Sri Lanka is Not Bankrupt!

“A country never goes bankrupt”

https://www.indiatimes.com/explainers/news/explained-what-happens-when-a-country-goes-bankrupt-559344.html#A_country_never_goes_bankrupt

“The country is going bankrupt.” In truth, that is a false assertion. To begin with, when a country fails to repay its debts, it does not go bankrupt; instead, it defaults on the loan. Second, the government, not the country, defaults.

With this in mind, suppliers might be ready to commence limited supplies of oil against a Sri Lankan government Bond.

Here comes the skill of the negotiators.

The supplier might offer personal incentives to the buyer against the prevailing oil price and their Terms & Conditions.

Could Sri Lanka find professionals capable of putting the country before the individual?

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