Quote “We are not responsible and we are Irresponsible”! unquote
The Buildup of The Crisis
Recent turnover of events has warranted further listings as part 2 in deals
with true and actual reasons led to the present crisis, Part 1 dealt with
further deepening of crisis, in both search for ideas to alleviate whole crisis
in long run.
Part 2
“We are not responsible” and “It is not our mistake” are the post electoral political rhetoric we have been hearing so long and still hearing ever since of forming of new governments even after few years of the electoral verdicts. Though the people are fed-up of this political rhetoric ever since independence, yet they will go to the polling booths cast their precious votes with lots of expectation for anticipated change of government or attitude of the politicians both which never happened to date. If the politicians wanted to make the people believe, they are ready to bring even devil and evil to the society, and wear sarong and perform summersault, as you all are doing now for the grabbing of public riling power. That is how you all brought up the insurgency of ruling community itself to the level of manifesting the devilishness twice, brought up the hated and divided society within the Sri Lanka, brought up the terrorism to the magnitude they grew, all that devasted the steady economic growth, that was ignored for so long, (this is discussed further down) and you all will never learn because you all strongly believe that Sri Lankan public can be fooled every time
11. As described in 4. Above unwarranted tax cut amounting to Rs.600 billion annually which is 30% of the total income, led the International Rating Agencies to downgrade Sri Lanka at the first hand closing the door for raising money through CBSL Treasury Bonds selling, which had been the main mode of Foreign Currency compiling until very recently.
12. As such without addressing the issue of inability raise funds as explained in 11. continued burrowing for higher rates to repay the loans and imports while the income reduced rapidly.
13. As this practice adamantly continued foreign exchange reserves rapidly reduced, you all decided autocratically* to cut the imports drastically to preserve the Dollars, to meet our debt repayment obligations which harmed our economy further because 80% of what we import are of service for our export, that as well reduced further our dollar earnings, precipitating our dependence on the dollar further.
14. When the Covid19 appeared in 2020, didn’t take enough measures to safeguard our country from contamination from foreigners such as of Indians as textile workers, Ukrainians as tourists and Chinese for projects; people who are infected with covid don’t show any symptoms during the initial 1-2 weeks, as such thousands of Chinese who returned after celebrating their New Year entered the country unhindered and spread the virus further, and the Boralasgamuwa Cluster of Covid19 infection was not revealed to the country until the Delta variant is detected in many local populations, all these created situation that warranted closing the country as lockdown for longer period, as longer as 7 months which otherwise could have been very shortened and effective prevention (2 phases of 21days maximum)
15. Through above 14 imposed 24/7 curfew for 7months covering entire country brought the country to a screeching halt which in turn resulted halting of most productions, constructions, cash flow businesses, 4 million job losses etc. and thereby bringing our economy to a screeching halt – that completely destroyed our economy.
16. Above 15 resulted in severe shortfall of cash flow and resulted in further loss of income in addition to the above stated in 4. and brought the government to a state of being unable to pay the salaries of government employees meet other necessary commitments of the government.
17. As such drastic situation was created for money printing and performed 24 hours 7 days unqualified money printing of sweeping 2 trillion, named Sri Lankan rupees.
18. Above 17. resulted in devaluation of the currency, increasing the demand for the Dollar, exponential rise in the price of consumer goods, inflation and shortages.
19. Instead of finding a solution for the above, in order to save foreign currency for debt servicing, autocratically* decided to totally ban the chemical fertilizers and go for improperly managed and produced carbonic fertilizers.
20. This resulted in a telling 40% reduction of harvest in all export and consumption crops and created loss to farmers/plantations losing their income, supply chain and availability of products in the market, resulting in food shortages, further hike of food prices and the creation of a rampaging black market.
21. Compounded the escalating prices of the commodities by letting all the price control mechanisms off the hook and that resulted in huge increase of the price of all good.
22. Despite all these Economic commotions going on, tried to get some shortcut income into the government coffers, increased the taxes of all petroleum products and gas, causing transport cost and all products and commodities to further escalate the prices to unmanageable level. (Another misfired autocratic action)
All these are fateful immediate mismanaged contributary factors for today’s state of affairs: Steady Economic Growth of a country cannot be defined or framed up into a five- or six-year period, it requires at least 10-year visualized strategy if not best 25 to 30 years well defined plan and strategy. Even though the politicians well aware of this indispensable criterion for the Steady Economic Growth, they masquerade it for power greediness, by five-year popularism theories and short-sighted inappropriate priorities. As it is usually from political clowns understandable, but a Responsible Governor of the Central Bank coming out to frame the total Economic Crisis within a five-year period, he is just a “political rookadaya, (Political Puppet) who is totally incapable of enlisting or researching as it done in this listing, into the actual reasons of the present collective crisis that has totally crippled down the earnings and day to day survival of the ordinary people at present.
23. By appointing above explained incapable person as Central Bank Governor who is incapable of analytical enlisting of reasons you all are again trying to masquerade actual crisis brought about by debt over debts over the prolonged years, and politicalize it for personal gains, which is further worsening and deepening the crisis.
24. you all are trying to use the Central Bank of Sri Lanka as an electioneering tool, as explained in above 23. by portraying the actual prolonged crisis as of short term one and trying to market it to the voters
25. you all connived against previous Central Bank Governor a world renowned Economist Deshamanya Prof. W D Lakshman and forced him to render his resignation as Governor of Central Bank to implant the “political rookadaya, (Political Puppet) who is just a company Accountant who doesn’t know anything about long-term strategies for Steady Economic Growth of a nation, this is worse than bombarding the Central Bank, because when bombardment take place there will be only physical damage of life and property, but not the know how soft technology like in above.
26. 4. 7. 23, 24, and 25 of above listings are well monitored by international lenders and investors and had collectively damaged the foreign currency remittances as well as Sri Lanka has been further downgraded the rating and curtailed foreign currency undertakings, compelling you all for swapping over swap of loans for further higher interest rate further damaging Sri Lankan Economy.
27. * Whatever actions you all took on your own without consulting a reliable economist as for mitigation of ensued crisis backfired on you, what is known as autocratic misadventure / mismanagement.
28. Daily (10 to13) hours of Power-cut due to Dollar and Fuel crisis as well buckling down the economic revival through limiting the cash flow by various means.
A democratic sovereign nation imperatively requires continuity in its strategies and plans, for steady economic growth despite the ruling bunch is changed through elections, that is why government officers and executives are permanent and pensionable so that to carry out the single policy of steady economic growth for long but unfortunately, or rather foolishly permanent executives have become political - familial pawns for craving into the economy of Sri Lanka, along with politicians who made them as just assistants of the clowns themselves.
Present CBSL governor shall visit his father, if he is alive (or to his grave) to know about what is an acute disease and what is a chronic disease and how an acute disease can become an incurable chronic disease. What politicians shall realize is go-on begging globally in search of loans from Uganda to Bangladesh only will dress the chronic wound for further begging.
As explained in 25. Above You all can’t claim patriotic for just eradicating the terrorism alone that you all created by own actions, because you all failed to take Sri Lanka into steady economic growth pathway, even after the ending of 3 decades of war, rather involved yourself into portraying you all as heroes of conquerors of another nation, all by using unabatedly burrowed Dollars in billions. You all could have created factories for intensively consumed items such as paper cement etc. as means of increasing the Sri Lankan coffer and save foreign currency which could have elevated your all into true heroes and patriotic, not by lavish spending for propaganda of begged Dollars. If you all are true patriotic – involve in consultation and consensus with relevant field specialists, consultants and scientists so that steady economic growth road map can be laid; you all are autocratic- not ready to listen anybody because you all want and use entire governing period and the government machinery for propaganda to seek another term – wasting the government resources – coffers – and burrowed currency just for “Showy Developments” alone while plundering as you all have been doing in all along, which is also responsible for present situation. A direct and clear consequence of failing or rather unable to think due to a disease known as propaganda-philia to achieve meaningful income to the government coffers either by direct income or by saving foreign currency through local enterprising – despite annually ever-increasing budget deficit between export and import running into many billions.
By the way you all started/upgrade cattle farming projects in order to achieve self-sufficiency milk and milk products, good thing to begin with, but as soon as you all politicalized the activities Sri Lanka Central Bank by creating the Dollar Crisis – the Dairy Industry you all dreamt of is now buckling down – rather inhumanely – for lack of quality cattle food – is now worsening – those milked and milking cows – are being starving to death. There is no need for any other example for the way you all are carrying on since you all obtained 69 million gullible votes.
Recommendations for Revival
1. Postpone all the large-scale showy constructions and undertakings
2. Reduce the number of cabinet members and their expenditure
3. Lay plans to increase the livelihood of individual families but do not involve voter attractive grants that will further pressurize the treasury**, rather than giving cash relieve to selected families – ensure uninterrupted fuel/gas supply so that nearly 6million self-reliant and self-employed who have been lost their income first due to 7months lockdown of the country and then by the severe shortage of fuel/Gas. The plain cash relieve decision is just another propaganda mode than any real purpose. The 6 million livelihood affected people include fishermen, small scale animal and crop farming, transport, retail boutiques, food cater- restaurants etc.
4. Invest in industries and factories for intensive consumables that can save foreign exchange initially in small scale, which can be promoted for large scale after the complete revival
Quote "Inflation doesn't increase if money is printed; rather it increases only if Inflation is printed". Unquote - Finance Minister of Sri Lanka
Inflation is put in print here – down in recommendations 5 and 6.
5. Do not ** pressurize the treasury – if you all decide to go on with the outright grant of Rs. 5000.00 to selected families either through burrowed finance or through your favorite money printing for propaganda both will end up in further crisis to the treasury as well as to already stuttering Economy. When you do the unqualified bulk printing to meet the grants – inflation and depreciation of Rupee value sets in overnight, and by the time your bureaucracy delivers the money to the beneficiary the value money will be only less than Rs.2500.00 since the depreciation is more than 50% during this economic commotion and the cash follow is one way only where as
6. When you decide to divert this grant amount to ensure uninterrupted fuel/gas supply all business listed in 3 of recommendations will thrive back and multiway cashflow is ensured and hence rupee value would stagnate to certain extend.
7. Do not ** pressurize the treasury – further by recruiting or appointing for newer employments in any government or semi government sectors until revival – that is at least until you all are able to ensure fuel and coal supply towards uninterrupted power supply to the public.
8. Ensuring uninterrupted electrical power supply to public is an important criterion for early recovery for further strengthening the Economy.
I pray the god for the merry-way of life not only for politicians and rulers but for the ordinary civilians as well.
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