Too late for Sri Lanka to go to the IMF, economic experts said – December 28, 2021
Economic experts as well as opposition politicians said that it was too late for Sri Lanka to go to the International Monetary Fund (IMF), when the country was facing a severe economic crisis.
Economic analysts said that although the need to go to the IMF was emphasised a few months ago, Sri Lanka is going with its domestic policy and has reached a dilemma that cannot be resolved even with the IMF.
Former Deputy Governor of the Central Bank Dr. W.A. Wijewardene has warned that Sri Lanka may have to face a severe crisis next year.
****
Veteran actor, stage director Shriantha Mendis
It’s a real piece of work isn’t it? People may criticise, but there is no point. Like them, we are also stuck in queues. We never expected this. We understood that it was the only option available at that time. People need to understand that. This is a real crisis and this path is extremely dangerous. The question followed up by one question after another. What are we going to? It is true that there is no way to feed our children today. We are going through an unfortunate period. The stress of standing in line is too much. People get worked up when they have to stand in the sun for hours without food or water. I really feel sorry for our people in this situation that we all have to face.
****
The state banks are bankrupt…depositors may not get their money – Sunil Handunnetti (June 7, 2023)
At present, Sri Lanka is a bankrupt country in the Indian Ocean. The majority of Sri Lankans got caught up in the Rajapaksa’s campaign, which has no real economic vision, and they voted with the pure purpose of saving the country.
During the 2019 election campaign it was obvious that the Rajapaksa camp did not have a plan to move the country forward. However, with the Easter Sunday attacks, a fear was instilled in the public and they were led to the polls short-sightedly. This is the business mafia led by Dilith Jayaweera where the Viyathmaga are the shareholders.
We ask those living abroad to stop sending money to Sri Lanka for one month. If they decide that they will not send foreign exchange to Sri Lanka for one month, if they decide not to send foreign exchange for two months or three months, they can beat the Government. Handunnetti, a former Janatha Vimukthi Peramuna MP, said that Sri Lanka’s State banks are already bankrupt and there is a possibility of non-payment of depositors’ interest in the future.
He said that sometimes even the deposited money may not be returned in the future.
He expressed these views while joining a discussion online.
****
Do not send even a cent to Sri Lanka, State terrorism is active – MP Sarath Fonseka
MP Sarath Fonseka said while joining the Budget debate yesterday (31) said that Sri Lankans abroad are requested to refrain from sending money home as state terrorism is active in the country.
“Sri Lankans abroad are respectfully requested not to send even a cent to this country until this State terrorism stops. Even if we are ready to die of hunger, don’t send even five cents. Don’t help this Government.
They said that the IMF will send what it is supposed to send. We are proud. It’s like a beggar who won a sweepstakes ticket. But if there is this State terrorism, I have a question whether we deserve these or not.”
****
Why go to the hospital, if you can cure yourself with coriander tea at home – Cabral explains why going to the IMF is unnecessary (September 27, 2021)
Ajith Nivard Cabral, Governor of the Central Bank of Sri Lanka said that the IMF is unnecessary at this point to get out of the financial crisis, and that it will take about 10 years if the IMF program is adopted. The Governor said this in an online discussion organised by the Advocata Institute recently. “I think we can face the crisis. We can create a program that we want. That is why we are doing it. We are going to take a pathway through which we can move forward,” the Central Bank Governor said.
“The IMF is not our enemy. We have no problem with the IMF. We’ll receive technical assistance from them at some point. However, we do not need to go with their program. That is what we are saying. We are currently well-developed in our country. We have the information. We can create our own program. That’s why we are going to go through it.”
“We should first decide if someone from Washington will come and look at it for two weeks, and decide whether it is more appropriate for us to make a decision about it, or whether it is appropriate to have people responsible for this country. I previously discussed with the IMF and the World Bank. It has been said, “For you this is a case study”, if you write that report, then that is what you write. Later, you wrote this report. But, it’s not like that, it’s our economy, it’s our people, there are a lot of people who know the subject very well. The first story is that it is better to take it from someone who comes and brings another prescription for two weeks.”
“The second thing is that we must move this country forward politically. We cannot allow interference. We cannot allow the country’s reputation to be sullied. Many people do not think that the consequences of defaulting on debt are severe. After going to the IMF and requesting debt restructuring, it will take years to get out. It takes 10 years. What are we going to tell to our youth? That’s why credibility comes from our actions. Will there be any credibility in this country after two days of unrest? We are used to these things. We go to the hospital if we have an ailment, but why go to the hospital, when you can get better by drinking coriander tea at home? I think we can face the current situation after we have analysed it carefully.
****
Samagi Jana Balawega MP Eran Wickramaratne
Is the cause of the crisis bad economic management? Samagi Jana Balawega MP Eran Wickramaratne said that the country has suffered this fate due to mismanagement.
“In no country has inflation increased as rapidly as in Sri Lanka. From 2019 to 2021, inflation has increased by 10.5 percent. In these past few months alone, people have sold more than 600 kg of gold.”
• Is Sri Lanka on the brink of bankruptcy?
• Should Sri Lanka receive IMF assistance or not?
• What is a “recession”?
“There are countries that have been affected by the Covid-19 pandemic more than Sri Lanka, but the economy of those countries has not collapsed. There has not been an economic tsunami. In the last two years alone, 1.5 trillion has been minted. You can imagine the speed with which the prices of goods are rising,” said the MP.
“There is a huge forex deficit in the country. If the value of the dollar was freed, the dollar would flow immediately. The fault lies with the government’s economic management. If the value of the dollar had been set right, this would not have happened.”
****
Samagi Jana Balawega MP J.C. Alawathuwala
“The current situation is needless to say. There are longer fuel queues than ever. When will it be short? There is the question of how people can get fuel without standing in the queue. People expect solutions to their daily problems. The mass protests against family rule in this country got to the point where Gotabhaya Rajapaksa had to leave the country. With that, now is the opportunity to appoint a President through Parliament.
Due to the damage done by the President Gotabaya Rajapaksa, who was elected by 6.9 million votes, the people are unable to live their daily lives. Commodity prices skyrocketed. Petrol is in short supply. Cooking gas is running out. People are dying on the road. They are unable to feed their children three meals a day. This is such an unfortunate situation. The 225 MPs in Parliament today have a mandate to decide on the future of this country. Appoint a President for the remaining term according to the Constitution. There, MPs have a responsibility to solve the daily problems of the people, including the mass protest and listen to what the people are saying and their demands. It is the responsibility of the MPs to take necessary steps to establish political stability in the country. The Cabinet came together and decided to ban fertiliser. The Cabinet were just looking on when the President made that decision. They worked together to give tax breaks. But it’s not only the Rajapaksa family who gave benefits to their friends. We clearly say that all those who were in that Cabinet should be held accountable. We always spoke about it. They said that the country will lose when the Samagi Jana Balawega gives billions in tax concessions. They worked almost inaudibly. We were ridiculed in Parliament. So it is not just the Rajapaksas, but all the others also should be held accountable.
****
Sri Lanka will not receive a penny until the reforms accepted by International political and economic entities are fulfilled – Chief Opposition Whip, MP Lakshman Kiriella
Chief Opposition Whip, MP Lakshman Kiriella said in Colombo on Friday (June 21) that the country will not receive a single cent of foreign loan assistance until the political and economic reforms expected by the international community are fulfilled. Kiriella also said that it is useless to dream of international loan assistance without paying attention to the economic and political reforms needed to build the country.
– Translated by Jonathan Frank
