Sri Lanka nosedives into abyss of despair

BY FARAZ SHAUKETALY

Sri Lanka became the world’s first and only all-organic farming nation albeit for a short while. This came about when President, Gotabaya Rajapaksa banned the importation of all pesticides and chemical fertilisers overnight. That Presidential proclamation would mark the definitive end of South Asia’s most powerful political dynasty, the Rajapaksas from Medamulana, Sri Lanka. The family has produced a Deputy Speaker, several Members of Parliament all elected – save one who was initially an appointed Member later elected directly – a Speaker of Parliament, a Prime Minister who served two terms, and two Presidents. Since 2005 the family has ruled Sri Lanka for approximately 13 years and counting. At one point it was estimated that Members of the Rajapaksa dynasty controlled around 70% of Sri Lanka’s budget spend.

Sri Lanka is headed towards a major food security challenge according to no less a person than Prime Minister Ranil Wickremesinghe.

The problem is that the new Premier does not seem to be doing enough to address the present ‘dollar crisis’. He is apparently relying on the goodwill of nations sympathetic to Sri Lanka’s economic plight.

Manufacturers warn that the toughest of times are yet to come. They point to the several letters of credit are yet to be opened by various banks including state banking institutions for the import of raw materials.

Sri Lanka needs approximately USD 500 million every month to fund consumption requirements and appears unable to present a coherent plan to sustain previous debt. Government debt is estimated at USD 32,200 million whilst private sector debt is approximated at USD 18,000 million.

Lack of visionary thinking has resulted in Sri Lanka underutilising its assets. Thousands of hotel rooms of various classes are idling. A beach resort area in Negombo Beach area is almost deserted, says a hotel owner, whose loans are on hold thanks to a moratorium but banks are making noises, mindful of the impact of non-performing advances on their own balance sheets.

Efforts are being made to prevent the banking system from collapsing. Trillions of rupees have been lost due to poorly managed state-owned enterprises including the national airline. Fancy projects from the past have become part of the under-utilised state-owned asset list producing only costs with little or no earnings.

These problems do not seem to have affected majority population in rural areas—not just yet—but they are troubling the farming community: the effects of the use of organic fertiliser has seen severely depleted harvests threatening to also affect the country’s prized export, Ceylon Tea.

The latest moves by the government to increase remittances to the national exchequer with the redrawing of income limits for personal and corporate taxation have affected the urban middle classes.

In spite of these significant problems the government of the day appears to be focusing on the so-called political crisis and have launched plans to make the 21st Amendment to the Constitution the matter of immediate concern. An industrialist told this writer, ‘The real crisis is the dollar crisis, the political crisis is a crisis of political power plays’ and the people’s frustration will only lead to much more frustration leading to more and more of the population taking to the streets to draw attention to their plight.

Large sections of the media have overtly pandered to the government of the day in what appears a misguided reading of the peoples’ distress. Those institutions too were roundly criticised by the thousands of peaceful protesters who have been at it for over 60 straight days braving torrential rains and scorching heat.

The bottom line is clear: Sri Lanka, which voted for a security centric President, has been let down badly by the very family that appeared to enjoy majoritarian support. The fact is that even the majority Sinhala people are going through a period of utter hopelessness engineered by a President they voted for in what is now the mistaken belief that security will prevail. Sadly, and ironically, it is not the type of security alluded to by the Rajapaksa dynasty but their inability to ensure food security that will see Sri Lanka nosedive into an abyss of despair and helplessness with no seemingly easy way out.

(Faraz Shauketaly is the host of Newsline Live TV1 – farazcolombo@gmail.com)