SRI LANKA’S CASH CRUNCH

BY Priyan Rajapaksa

I was in Sri Lanka in December. And my homeland, which bubbles like a volcano with its deadly brew of race, caste, religion and ethnicity, had a new fissure – cash.

What’s more, I had not seen such disparity in spending patterns before. Sri Lankans were paying New Zealand prices on local incomes. Friends whom I considered relatively affluent were feeling the pinch. The poor had taken the only way out by skipping meals.

My opinion of Sri Lanka is based on YouTube videos. I rely on social media as the press is nobbled and journalism remains risky. And the different points of view on YouTube indicate the deep divisions within the country.

Since my political roots are with the Lanka Sama Samaja Party (LSSP), I give pride of place to the left. My colour is red, tinged with a pragmatic capitalist blue as I live in a mixed economy.

In New Zealand, I vote Labour and am a low-level volunteer in the party. Marxism exists only in the minds of manipulative politicians and the peculiar Marxist state of North Korea.

On the left, I see comrade Anura Kumara Dissanayake dressed in the obligatory red shirt. Sigh! How I envy his beard – my own was like that many moons ago. He is opposed to the IMF facility because the International Monetary Fund has imposed conditions on Sri Lanka.

Yes, indeed – but to oppose for the sake of opposing displays commercial naivety. Any lender (other than China) wants its money back and as such, it will impose conditions.

I can understand his opposition to the loans as he (and I) fear the government will bust it up and/or pilfer the money as in the past.

Not being an economist, this is my view of the IMF loan of US$ 3 billion in simple language. This scenario has me as a Sri Lankan. I need cash to pay for various things such as a motor vehicle, and to improve my business prospects and standard of living.

I look around and wonder how I could pay for my needs. I can’t pay cash as my current account is overdrawn. Then I call the bank and ask whether it will lend me the money. The bank says that if I have equity in my house, I can borrow the funds at the housing rate of five percent.

Without equity and depending on my banking history, the bank may lend at the commercial rate of 10 percent or thereabouts. It then assesses my credit history and says I’ve used previous loans for food, educating my children beyond their capabilities, and my Porsche and Mercedes… The bank then refers me to an overseas finance company that will lend at 25 percent.

But if I default, IT will seize the aerodrome and yachting harbour close to my village, which I had built for the sake of vanity.

I rely on social media as the press is nobbled and journalism remains risky

After discussing this with my family, we decide that we’ve lived beyond our means. So we refuse the loan and live like North Koreans. We’ll travel by bus, skip lunch, have dinner by candlelight restaurant style, read only during the day, give up the air conditioning and hire a punkah wallah to fan us.

On the right, I see the messiah dressed in Savile Row. I look again. I can’t believe my eyes! This is the guy who used to walk to school down 5th Lane in Colombo and we would occasionally exchange pleasantries.

Boy! Is he the president? He must be connected. It was only the other day that he was sitting by himself in the opposition with a number one sign to emphasise the point.

I disagree with the president’s statement that Sri Lanka should emulate Thailand. He may fancy that because some Thais worship their head of state.

When he inhales, the president speaks of Sri Lanka being an export oriented nation connected to the world economy. When he exhales, the head of state speaks of Theravada Buddhism and being like Thailand.

He learnt of books and men but not to play the game. I didn’t see him at rugby practice so he didn’t learn about the blind side. He omitted the failed Theravada fascist Buddhist state – Myanmar – on the blind side.

My understanding of Buddhism is that it’s not materialistic – so is he advocating for materialism or meditation?

I can’t see how we can build an export driven economy connected to the rest of the world (with all the bad, corrupting influences of Western materialism on weekdays) and think of nirvana and salvation on Sunday. Six-sevenths capitalist and a seventh Buddhist…?

A gentle reminder to reconsider the loosely worded Prevention of Terrorism Act (PTA): the PTA, if used to suppress civil opinions and rights, could transform into the ‘Promotion of Terrorism Act.’

The incumbent’s mentor and his GOP hoisted the executive presidency on Sri Lanka to keep the greens in power for life. It backfired and kept the reds in for ever so long.

That was a bad law, apparently; but the PTA is worse and may be used to keep a person in power until kingdom or nirvana come…

He was green but now represents the reds. What is his colour then? Red or green, or its combination – yellow? Hence the push for Theravada…?