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Tuesday November 29th, 2022

Sri Lanka all but Chinese colony; those opposed to India mum about China: CBK

Image credit: facebook.com/cbksrilanka/

ECONOMYNEXT – Sri Lanka has all but become a colony of China and trade unionists and others who vehemently opposed a recent deal with India haven’t said a word in protest, Former President Chandrika Bandaranaike Kumaratunga said.

Speaking to the privately owned NewsFirst network yesterday at a ceremony marking the death anniversary of her late husband Vijaya Kumaratunga, the former president said the parties that opposed the Indian deal are keeping mum about every national asset allegedly being handed over to China.

Kumaratunga was likely referring to the now-scrapped plan to hand over a minority stake in the Eastern Container Terminal (ECT) of the Colombo Port to a firm in India. The proposed deal drew heavy opposition from trade unions, left-leaning political parties, members of the clergy and sections of the government itself.

“If you look at their bank accounts – those in trade unions and others – how they become millionaires overnight – you have to wonder,” said Kumaratunge.

Both her parents – former Prime Ministers S W R D and Sirimawo Bandaranaike – followed a decidedly non-aligned foreign policy, a policy that she herself adopted in her years as president, she said.

“We didn’t bow down to anybody. Those who are in charge must have an understanding of foreign policy and foreign relations,” she said, noting that certain individuals in the present government used to openly mock the very idea of foreign relations.

“Today, for all intents and purposes, we are a colony of China,” she added.

Kumaratunga further said that in order for Sri Lanka to make any progress, the people must change in their outlook and look for leaders of a different calibre.

“Each administration keeps undermining the one that preceded it. This is no way forward for this country. The people must change first. To change the people, the education system must be overhauled. We also need political leaders of a different calibre: young, educated, not given to corruption – people who do not treat politics as a business opportunity,” she said.

People of some means – not necessarily wealthy families, but gainfully employed professionals such as doctors, lawyers and even entrepreneurs – must take over, she said.

“They don’t all need to be educated either. We just need people who are willing to serve the country with integrity and go after two terms,” she said.

Asked if she will step forward to save the country, Kumaratunge said: “I take a step every day. I don’t know if it is to save the country, but I have no intention of stepping back.” (Colombo/Feb17/2021)

Comments (8)

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  1. Jamis says:

    Chandrika was always bowing down to the Western powers. That was the biggest problem SL had. That is the root cause.

  2. Eddie says:

    Sri Lanka governing group is mesmerised by the propaganda of China, especially, Silk Road propaganda. China is taking the complete advantage of economically weak and unstable countries by providing loans, substandard products, services, infrastructure messing etc. to countries such as Sri Lanka. This country is alleged for human rights violations, intellectual property thefts, discrimination of its own people. Following them on the Silk Road is dangerous for Sri Lanka. Sri Lanka should stay close to her traditional friends and democratic countries for her prosperety.

  3. Kevin says:

    Who knew? Until our lady Oracle told us? She should know tho. After all it was her mum who got us cosying up to Mao, and his Little Red Book was the rage in Colombo, until the JVP followed its saying that ‘Power Comes Out of the Barrel of a Gun” and unleashed the mayhem of 1971.

  4. Jeevan says:

    CBK did not hesitate to sell the National Carrier Air Lanka to Emirates but she did not talk the same language at that time.

    1. N V Jen says:

      But Sri Lankan benefitted, as it made good profits under Emirates. Look what happened due to the shortsightedness of Mahinda afterwards.

  5. Mudalige says:

    Yes madam, you are right, Are the unions bribed by those in power in China for remaining silent on the planned colonisation by China?
    Why the unions are silent over the handing over of the islands in the north to Chinese companies?

  6. mohamed Sulaiman says:

    Well we defineatly need educated people and people with some knowledge of managing a country This is like going to the middle East on a contract for five years,and make your money to hell with country,end of the day who cares.The rich and the educated will never swindle and be corrupt,thats reality.

  7. Anne Karunaratne says:

    Wear your mask lady cos it’s the law! Police arrest only the poor who cannot afford a mask! They may even be ignorant of the facts of wearing a mask..

View all comments (8)

Comments (8)

Cancel reply

Your email address will not be published. Required fields are marked *

  1. Jamis says:

    Chandrika was always bowing down to the Western powers. That was the biggest problem SL had. That is the root cause.

  2. Eddie says:

    Sri Lanka governing group is mesmerised by the propaganda of China, especially, Silk Road propaganda. China is taking the complete advantage of economically weak and unstable countries by providing loans, substandard products, services, infrastructure messing etc. to countries such as Sri Lanka. This country is alleged for human rights violations, intellectual property thefts, discrimination of its own people. Following them on the Silk Road is dangerous for Sri Lanka. Sri Lanka should stay close to her traditional friends and democratic countries for her prosperety.

  3. Kevin says:

    Who knew? Until our lady Oracle told us? She should know tho. After all it was her mum who got us cosying up to Mao, and his Little Red Book was the rage in Colombo, until the JVP followed its saying that ‘Power Comes Out of the Barrel of a Gun” and unleashed the mayhem of 1971.

  4. Jeevan says:

    CBK did not hesitate to sell the National Carrier Air Lanka to Emirates but she did not talk the same language at that time.

    1. N V Jen says:

      But Sri Lankan benefitted, as it made good profits under Emirates. Look what happened due to the shortsightedness of Mahinda afterwards.

  5. Mudalige says:

    Yes madam, you are right, Are the unions bribed by those in power in China for remaining silent on the planned colonisation by China?
    Why the unions are silent over the handing over of the islands in the north to Chinese companies?

  6. mohamed Sulaiman says:

    Well we defineatly need educated people and people with some knowledge of managing a country This is like going to the middle East on a contract for five years,and make your money to hell with country,end of the day who cares.The rich and the educated will never swindle and be corrupt,thats reality.

  7. Anne Karunaratne says:

    Wear your mask lady cos it’s the law! Police arrest only the poor who cannot afford a mask! They may even be ignorant of the facts of wearing a mask..

A new Sri Lanka monetary law may have prevented 2019 tax cuts?

ECONOMYNEXT – A new monetary law planned in 2019, if it had been enacted may have prevented the steep tax cuts made in that year which was followed by unprecedented money printing, ex-Central Bank Governor Indrajit Coomaraswamy said.

The bill for the central bank law was ready in 2019 but the then administration ran out of parliamentary time to enact it, he said.

Economists backing the new administration slashed taxes in December 2019 and placed price controls on Treasuries auctions bought new and maturing securities, claiming that there was a ‘persistent output gap’.

Coomaraswamy said he keeps wondering whether “someone sitting in the Treasury would have implemented those tax cuts” if the law had been enacted.

“We would never know,” he told an investor forum organized by CT CLSA Securities, a Colombo-based brokerage.

The new law however will sill allow open market operations under a highly discretionary ‘flexible’ inflation targeting regime.

A reserve collecting central bank which injects money to push down interest rates as domestic credit recovers triggers forex shortages.

The currency is then depreciated to cover the policy error through what is known as a ‘flexible exchange rate’ which is neither a clean float nor a hard peg.

From 2015 to 2019 two currency crises were triggered mainly through open market operations amid public opposition to direct purchases of Treasury bills, analysts have shown.

Sri Lanka’s central bank generally triggers currency crises in the second or third year of the credit cycle by purchasing maturing bills from existing holders (monetizing the gross financing requirement) as private loan demand pick up and not necessarily to monetize current year deficits, critics have pointed out.

Past deficits can be monetized as long as open market operations are permitted through outright purchases of bill in the hands of banks and other holders.

In Latin America central banks trigger currency crises mainly by their failure to roll-over sterilization securities. (Colombo/Nov29/2022)

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Sri Lanka cabinet clears CEB re-structure proposal: Minister

ECONOMYNEXT – Sri Lanka’s cabinet has cleared proposals by a committee to re-structure state-run Ceylon Electricity Board, Power and Energy Minister Kanchana Wijeskera said.

“Cabinet approval was granted today to the recommendations proposed by the committee on Restructuring CEB,” he said in a twitter.com message.

“The Electricity Reforms Bill will be drafted within a month to begin the unbundling process of CEB & work on a rapid timeline to get the approval of the Parliament needed.”

Sri Lanka’s Ceylon Electricity Board finances had been hit by failure to operate cost reflective tariffs and there are capacity shortfalls due to failure to implement planned generators in time. (Colombo/Nov28/2022)

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Sri Lanka new CB law to cabinet soon as IMF prior action

ECONOMYNEXT – Sri Lanka’s new central bank law will be submitted to the cabinet as a prior action of International Monetary Fund with clauses to improve governance and legalize ‘flexible’ inflation targeting, Central Bank Governor Nandalal Weerasinghe said.

Under the new law members of the monetary board will be appointed by the country’s Constitutional Council replacing the current system of the Finance Minister making appointments.

“It will be a bipartisan approach,” Governor Weerasinghe told an investor forum organized by CT CLSA Securities, Colombo-based brokerage.

“The central bank’s ability to finance the budget deficit will be taken out. Thirdly the flexible inflation targeting regime will be recognized in the law as the framework.”

The law will also make macro-prudential surveillance formally under the bank.

There will be two governing boards, one for the management of the agency and one to conduct monetary policy.

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