Sri Lankan elite discusses “frightening economic situation”

1430994898_4688145_hirunews_sri-lnaka-bank

http://www.wsws.org/en/articles/2017/02/22/econ-f22.html

The Colombo-based Sunday Times published a lengthy article last weekend about a secret meeting of government ministers and President Maithripala Sirisena. According to the newspaper, the high-level gathering discussed “what portends to be a frightening economic situation unfolding in the country.”

The meeting was briefed by Central Bank Governor Indrajith Coomaraswamy and his deputy, Nandalal Weerasinghe, and involved ministers from Sirisena’s Sri Lanka Freedom Party (SLFP). The SLFP is part of the “unity government” with Prime Minister Ranil Wickremesinghe’s United National Party (UNP). Another meeting involving UNP ministers is planned.

The Sunday Times reported that the Central Bank officials called for the Sri Lankan government to fully implement the austerity measures required by the International Monetary Fund (IMF). In exchange for a $US1.5 billion loan last August, the IMF demanded Colombo increase taxes, cut subsidies and impose various far-reaching economic reforms, including the privatisation of state-owned corporations. The government is currently preparing more attacks on the living conditions of workers and the poor.

Sri Lanka has been severely hit by the continuing downturn in the global economy and a prolonged drought that has destroyed key crops and driven up the prices of staple foods. Early this year, Central Bank chief Coomaraswamy described the economy as being “hospitalised” in the hands of the IMF.

Central Bank officials presented the ministers’ meeting with a detailed overview of domestic and foreign debt and associated debt-servicing problems. Weerasinghe said domestic debt had increased from $US30 billion (4,590 billion rupees) in 2010 to $62 billion in 2016. He said the annual servicing of Treasury bonds required $6.23 billion (945 billion rupees), but market sources had warned “the feasible amount” that could be raised was only $4.74 billion (720 billion rupees).

Recent reports have revealed that the official foreign reserves were only $5.5 billion in January, a fall of half a billion dollars over the previous 12 months. Foreign direct investment (FDI), according to the Board of Investments, halved to $300 million in 2016, from $600 million in 2015.

A recent Reuters news agency article also noted that “Sri Lankan policymakers face a tricky balancing act as the rupee comes under fresh selling pressure, hurt by capital outflows” due to the US Federal Reserve’s “more hawkish policy outlook and uncertainty caused by US President Donald Trump’s policies on trade, immigration and international relations.”

In an indication of increasing capital flight from Sri Lanka, foreign investors sold about $208 million worth of government securities during the four weeks to February 8. Exports have also declined and the rupee has depreciated by around 15 percent since January 2015, sharply pushing up domestic prices.

According to the IMF, which is working directly with Colombo, Sri Lanka’s “capital and financial account position has weakened due to foreign exits from government securities, lower FDI inflows, and slow implementation of externally financed public and private projects.”

The IMF said “investor sentiment has worsened, reflecting global market volatility and concern over domestic policies.” An IMF team visited Sri Lanka last week, with an expanded delegation expected to arrive shortly.

The IMF has proposed that $500 million be raised from the financial markets to compensate for the withdrawal of funds from securities. The finance ministry, however, expressed concerns over this proposal. Last weekend’sSunday Times said the ministry told the IMF it “would be imprudent to impose unjustified burdens on the people” and warned that “reluctance on the part of the IMF to show flexibility could destabilise the government.”

Irrespective of its concern, the government is already attempting to secure loans from the international markets. Last week, the cabinet approved efforts to raise $1.5 billion over the next few months to service the debt this year.

———-

“Central Bank officials called for the Sri Lankan government to fully implement the austerity measures required by the International Monetary Fund (IMF). In exchange for a $US1.5 billion loan last August”

at least we know who the central bank works for..

“According to the IMF, which is working directly with Colombo, Sri Lanka’s “capital and financial account position has weakened due to foreign exits from government securities, lower FDI inflows, and slow implementation of externally financed public and private projects.”

so here is some more money but do this first..who governs the country then?

401

Advertisements

~ by seeker401 on February 28, 2017.

9 Responses to “Sri Lankan elite discusses “frightening economic situation””

  1. fearmongering.
    All the IMF ever do is impose burdens on the debt slaves for its usury banking scams.

  2. Play more cricket…Sri Lankans wont notice..

  3. Reblogged this on World Peace Forum.

  4. A look at the wider world of Sri Lanka. How much of this is true?
    https://thecolemanexperience.wordpress.com/2013/04/27/prince-charles-arthur-c-clarke-and-the-paedophile-connection/

    Article date is 2013. Prince Charles, Arthur C. Clarke, Sri Lanka, ping-pong, and paedophilia:

    “”But [Arthur C.] Clarke’s fading health does not stop him enjoying his favourite pastime – playing table tennis with schoolboys at a notorious pick-up haunt for perverts called the Otters Aquatic Club.

    Crumbling and in need of a coat of paint, the Otters is a meeting point for Westerners who lust after young boys.

    Those who hang around its games room, pool and tennis courts are perfect prey and are easily persuaded to sell themselves for 1,000 rupees (pounds 10) – a small fortune to them.

    Clarke goes there regularly in the afternoon, hobbling on a walking stick, to challenge boys – some as young as 12 – to a game of ping pong.

    Asked what his definition for paedophilia was Clarke said:
    “There are two different definitions, anyone who interferes with young boys who are not old enough to know their own minds and that’s my definition. It varies for me.”

    [Sacramento Senior Detective] said Sri Lanka used to be a popular destination for the paedophiles. But then the government changed and they were all thrown out.

    He said Clarke was one of the few they didn’t expel because of his status.”

    Ron O’Grady, of ECPAT confirmed he had been warned about Clarke by police in Sacremento.

    Meanwhile, Sri Lanka’s special paedophile investigation unit has not yet decided whether it will launch an inquiry into the author, one of the island’s most well-connected residents. Local people are now demanding his deportation.””

    • i think thailand is possibly above sri lanka now..

    • we talked about Clark not long ago here…
      “This was the final public message recorded by the late Sir Arthur C Clarke, which closed the global launch of the International Year of Planet Earth, at UNESCO Headquarters in Paris on 13 February 2008. In his unique style, Sir Arthur connects the local with global, and traces the influence of space exploration on the global environmental movement. He ends calling for humanity to listen to the planet’s distress call, and respond with knowledge, understanding and imagination.”

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: