A Brief Colonial History Of Ceylon(SriLanka)
Sri Lanka: One Island Two Nations
A Brief Colonial History Of Ceylon(SriLanka)
Sri Lanka: One Island Two Nations
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Thiranjala Weerasinghe sj.- One Island Two Nations
?????????????????????????????????????????????????Sunday, July 16, 2017
Sri Lanka: Plight at the end of the Tunnel
Over 90 percent of government revenue currently goes on debt servicing, mainly to China, and the concessionary capital repayment moratorium on multi-lateral agency loans will soon expire. What happens then?
( July 16, 2017, Colombo, Sri Lanka Guardian) The
state of our economy is parlous but we are living in a fools’s
paradise. We have achieved middle income status on borrowed money spent
on unproductive show projects like Mattala airport. Goods, mostly
imported, are feely available even though at a price and the only cloud
on the horizon seems to be dengue and garbage spills and the bother of
the eternally troublesome Tamils with their incessant demands for
devolution and autonomy – why can’t they ever be satisfied with our
generosity in letting them merely exist?. What can go wrong in Paradise?
A great deal as I will try and explain.
Let us take the basics first. Over 90 percent of government revenue
currently goes on debt servicing, mainly to China, and the concessionary
capital repayment moratorium on multi-lateral agency loans will soon
expire. What happens then? The answer of the IMF and World Bank will be
the same remedies that failed in Indonesia and Thailand in 1997 and
Greece in 2014 – more austerity, budget cuts and higher taxes. This will
deepen the recession, increase unemployment in a country with no social
security safety net, dampen economic activity and create social unrest
in a fragile country with deep class and ethnic fissures. The next
targets of ethnic pogroms will be the Muslims and Christians as there
are no worthwhile Tamil targets left and the BBS is already flexing its
muscles
But we will have no alternative but to comply.
Our short term remedies are to borrow more from China (and compromise
our sovereignty even more) and sell our assets like Hambantota harbor –
but these are clearly short term and finite. The expectation of enormous
FDI and setting up an international banking center in the new Port City
are pipe dreams – we do not have the administrative capacity to set up
world standard industrial parks, our labor is unskilled and strike prone
and we lack cheap reliable electric power. As for a banking center we
lack cost effective office space (the 20-year old world trade center
costs twice as much per square foot of office space than more modern
office space in Singapore) , reliable and cheap telecommunication links
to the world and above all a judiciary with a track record of unbiased
and expeditious dispensation of justice. Till then the Megapolis will
remain a Megalomananiapolis !!
The only remedy is to use our resources of soil and water, especially in
the partially developed Mahaweli areas, and develop agricultural and
horticultural exports as Thailand and Vietnam have done (Thailand alone
exports $ 3 billion worth a year – four times more than our tea industry
where we have over 150 years experience), but this will be slow an take
a generation of hard and sustained work. Time is running out and the
only voice in the wilderness is Indrajit Coomaraswamy, our Central Bank
Governor, who harps on these realities in every speech – but who is
listening? Part of the problem is that as a Harrow and Cambridge
educated gentleman and intellectual he minces his words. We need a
political heavyweight like Champika Ranawake to sound the warning loud
and clear.
These steps are the minimum we must take.
– Immediately sell our loss making corporations to the private sector –
here and abroad. Foreigners are preferable as they will bring in foreign
capital and management methods.
– Start a focused program to cultivate and export horticultural products
– especially mangoes and oranges from the largely undeveloped Mahaweli
areas especially System B.
– Expand our production and export of spices.
– Start a fragrance industry with our endemic flowers and spices.
– Build up a dairy industry especially in Jaffna where the people have a natural affinity for the activity.
– Allow foreigners to buy land freely if they pay a 100% tax rather than selectively as at present.
– Start a foreign residence program, similar to Malaysia’s “Malaysia my
second home” program where foreigners are given a permanent visa if they
bring in a minimum amount of capital. Sri Lanka has a better land
environment and sea share than Malayasia and is much better culturally
Malaysia’s Chinese are too busy making money, the Indians are cowed and
introverted and the Malays are arrogant in their delusion of ethnic
superiority and belief in Islam. The Sri Lankans are much more
interesting and welcoming of foreigners especially the British, who as
Galle Fort shows, have a natural affinity for us.
– Allow dual citizenship to any Diaspora, not selectively as at present
especially for Tamils, as they will invest in the North and the East.
The combined income of the Tamil Diaspora is now well in excess of our
GDP and this is the largest untapped source of capital – not more loans.
If we do not act fast, for those of us who can see there is the “Plight at the end of the Tunnel”.
The writer can be reached at ajitkanagasundram@gmail.com