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”
“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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