Will Sri Lanka recover from its massive debt crisis? | Counter-currents

Sri Lanka

The massive debt crisis has affected the lives of almost all classes of society, especially the poor and the middle, in Sri Lanka is not new. The loans granted lead to a trap of indebtedness which is at the origin of our situation. Sri Lanka’s external debt reached $52 billion and debt service last year was $6 billion and this year $7 billion. Hence the shortage of dollars and essential imports such as fuel, gas, chemical fertilizers, medicines and foodstuffs. To ensure that at least six months of these imports are obtained, the foreign exchange reserve (FOREX) has been maintained at US$7-8 billion. Now it has fallen to zero, thus causing this severe crisis.

The deep and sudden global recession caused by the coronavirus and the measures taken to contain it have forced countries around the world to take extraordinary measures. In the case of Sri Lanka, the additional challenge lies in the pre-existing conditions of low growth and huge debts.

The loans granted lead to a debt trap which is at the origin of the situation. Sri Lanka’s external debt reached $52 billion and debt service last year was $6 billion and this year $7 billion. Hence the shortage of dollars and essential imports such as fuel, gas, chemical fertilizers, medicines and foodstuffs. To ensure that at least six months of these imports are obtained, the foreign exchange reserve (FOREX) has been maintained at US$7-8 billion. Now it has fallen to zero, thus causing this severe crisis.

IMF assistance in 2016 under Sri Lanka’s Extended Financing Facility, which expired this month, was meant to help put the country on a stronger development path. Instead, its overall debt ratio exceeded 90% of GDP, according to a JPMorgan report, and last year the economy grew at its slowest since 2001, at just 2.3%.

Eelam Tamils ​​living all over the world [13 Million] are keen to invest in the north and east of Sri Lanka [the traditional and historical homeland of Tamils] Unless a fair and reasonable solution for the Tamils ​​of the North and East with police and land powers as stipulated in the Indo/Sri Lanka Agreement is granted, the Tamils ​​of Eelam will not will ever invest in Sri Lanka.

It is the moral responsibility of the Tamil Diaspora to help educate these children and empower them to earn a living. Most of them attended local schools and their families could not afford to help them pursue higher education.

An atmosphere conducive to finding a permanent political solution to the Sri Lankan Tamil problem is emerging and it is the moral responsibility of the Tamil diaspora to join in the reconstruction efforts, according to a group of Tamil MPs in the Sri Lanka. Addressing a press conference on Friday, Sivagnanam Siritharan, MP for Kilinochi, said that with the coming together of two major political parties and the efforts of several nations including India, underscored an emerging opportunity to find a permanent political solution to the Sri Lankan Tamil Question.

Tamils ​​living in the North and East were not politically empowered to bring about economic transformation in the war-torn region and to look to Tamils ​​living elsewhere, particularly in Tamil Nadu, for reconstruction assistance. , did he declare.

It is estimated that 90,000 war widows lived in this region without knowing how to raise their children. The government did not treat them on an equal footing with the widows of Sri Lankan army personnel,

Regretting that most of the promises made in the Sri Lankan parliament on the rehabilitation of Tamils ​​have yet to materialize, housing programs in India and other countries have however reached their intended beneficiaries.

Kumarathasan Rasingam – Secretary. Tamil Canadian Elders for Human Rights Org.

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