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Sri Lanka heading for serious crisis!

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By Dr. Laksiri Fernando

This is not a prediction, but the reality. Sri Lanka is already in a serious crisis in terms of people’s living conditions, the economy, foreign reserves, political system, government’s legitimacy, public administration, foreign relations and the government’s day to day decision making processes. While some are long standing, like the foreign reserves or debt, most of the others are quite recent, and are the results of unequivocal incompetence and bad management. Even the foreign debt situation has worsened under the present administration.

If one draws a balance sheet, the current administration can be credited for COVID-19 vaccinations, but almost all other endeavours are utter failures. At the presidential elections in November 2019, 6.9 million people voted with much hope, but all these are now shattered. The slogan touted was ‘Prosperity and Splendour.’ Prosperity has been acquired by the deal makers and fraudsters; no splendour to the country or the people. In economic policy, the government has zigzagged between ‘state-control’ and ‘free-market,’ and the economy and the people have suffered as a result.

Economy and inflation

What affects the people in general and their living conditions at present is the thumping inflation in essential commodities. Even according to the Central Bank, the national inflation rate has gone up from 3.7 percent in January 2021 to 7.6 percent in October 2021. As the Trading Economics website has noted, “Prices advanced at a faster pace for both food products (12.8 percent vs 10 percent in September) and non-food products (5.4 percent vs 3.8 percent).” Taking into account the piling up of hardships on people, Moody’s has downgraded Sri Lanka’s sovereign rating from Caa1 to Caa2. Corruption might be another reason for this downgrading.

People’s living difficulties cannot be fully gauged through official inflation rates. The newspapers and TV interviews with people on the ground have revealed more drastic conditions. Day by day the prices of essentials like rice, tea, milk powder, sugar, bread, coconut, lentils and vegetables have been going up. Men express their anger and women cry referring to their children’s and household needs. One reason for the price inflation is the rapid increase of fuel prices. Undoubtedly, world prices are going up, but in Sri Lanka, the gap between the fuel refinery costs and market prices is also high.

Of course, many countries have suffered economically during the COVID-19 pandemic. But to alleviate people’s suffering during the lockdowns and after, most countries (if democratic!) have taken measures to offer various payments and relief measures. It is understandable that Sri Lanka has serious public finance difficulties. However, most of these difficulties are the result of waste, corruption, and financial mismanagement. The stagnation of salaries in both public and private sectors has also contributed considerably to the people’s difficulties.

Zig-zag policies

There have been these zigzag policies and u-turns, particularly between August and October this year. First the government imposed a state of emergency with regard to essential food items, including rice and sugar, with controlled prices and started to raid hoarders. It created a huge black market and the prices shot up. The government did not have any control. It withdrew all the gazette notifications on controlled food prices, and the prices again went up!

Even before, since March 2020, import controls were imposed due to foreign currency shortages. Since then, and until last month the government went in the direction of a ‘closed economy’. After one year’s ‘experimentation,’ in April this year, Basil Rajapaksa was sworn in as the Minister of Finance to implement a change. It is that change we are experiencing at present!

Now, it appears that we are in an ‘open economy,’ more open than before to corruption and ‘money making’ by politicians, their families and cohorts. This is part of the controversy over the discreet deal between the government and the American New Fortress company.

The old dichotomous controversy over a ‘closed-economy’ and an ‘open-economy’ does not have much meaning today. While an economy should be open as much as possible in market sense and also in investments, the State has a definitive role in maintaining strategic enterprises like harbours, airports and the energy sector. In addition, the state also should offer welfare services to the needy and encourage people to work hard to contribute to the country’s welfare. To motivate people towards work and entrepreneurship, politicians should be exemplary, and free from corruption and misdeeds.

Fertilizer crisis

It was in April this year that the President suddenly declared a complete ban on chemical fertilizer importation. It was like a military order. That was the flaw. There is no question that high quality organic fertilizer is better for the environment and people’s health. However, that transition requires much time, planning, raising of awareness among farmers, and necessary arrangements to be made to produce (or import) reliable organic fertilizer.

The immediate effect was on the tea industry and vegetable cultivation. Then came the Maha paddy cultivation season in September. Without fertilizer, chemical or organic, farmers could not continue cultivation. Except in certain areas, the situation is the same today. Although the agriculture contribution to GDP is (under)estimated at eight percent, over 28 percent of the population depend on agriculture and 82 percent of the population live in rural areas.

In the President’s speech in April, he said, “the annual sum of USD 400 million spent on fertilizer imports could be used to uplift the lives of the people.” Now, what has happened? Perhaps realizing the lack of capacity to produce organic fertilizer locally, at such short notice, the government then decided to import 99,000 tonnes of ‘organic’ fertilizer (solid and liquid) from China. Perhaps there were other reasons.

This fertilizer has proved or is alleged to be more harmful than the chemical fertilizer! The government also decided to import 30,000 tonnes of potassium chloride from Lithuania, but called it ‘organic fertilizer.’ Sri Lanka also had to so far import 3.1 million litres of nano liquid fertilizer from India. Some politicians may have taken commissions from all these new foreign contracts.

Within the last three months, fertilizer costs have rocketed to nearly USD 150 million, and if calculated with previous imports (January to July), definitely exceed the previous annual cost of fertilizer imports ($ 400m) that the President quoted in April. If these figures are incorrect, it is up to the government to reveal the correct figures to the people.

Elevation of Gnanasara?

The government’s mistakes, blunders or offences are not limited to the mismanagement of the economy, cost of living, or the ‘commission seeking’ deals by ministers and appointed officials. The social and public policies are equally disastrous. A recent case in point is the appointment of (Ven.) Galagoda Aththe Gnanasara as the Chairman of the so-called Presidential Task Force on ‘One Country, One Law.’

‘One country, one law’ is not the correct formulation, if it refers to granting, the civil code or personal laws in the country, some uniformity or conformity. ‘Uniform civil code’ or ‘common civil code’ might be better formulations. ‘One country, one law’ should refer strictly to offering the validity and application of laws equally to the ‘powerful and powerless’; the ‘politicians and ordinary citizens’; and the ‘rich and poor’. This is the way the majority of the people must have understood the slogan at the last election.

Gnanasara undoubtedly is not suitable to perform either of the tasks. He is appallingly partial and aggressive. He is the leader of the Bodu Bala Sena (Buddhist Power Army) with proven discordant behaviour. He has been involved in many violent acts and was imprisoned for six months for threatening a woman in the courts. What kind of law reforms can one expect from this type of person? In addition to this dubious Chairman, this so-called 13-member task force does not include a single woman, Tamil or a Christian.

Conclusion

One wonders whether the purpose of the above moves, on the part of the government, is to instigate and fuel religious and ethnic tensions in the country. This is in order to possibly tighten a stronger military or authoritarian grip on the political system as the economic and political policies of the government have been utter failures.

However, in Sri Lanka, the democratic traditions of the country, people’s awareness, trade union movement, independent media and civil society organizations are stronger than the spoiled and corrupt political leaders. Let us keep our fingers crossed.



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US’ drastic aid cut to UN poses moral challenge to world

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An UN humanitarian mission in the Gaza. [File: Ashraf Amra/Anadolu Agency]

‘Adapt, shrink or die’ – thus runs the warning issued by the Trump administration to UN humanitarian agencies with brute insensitivity in the wake of its recent decision to drastically reduce to $2bn its humanitarian aid to the UN system. This is a substantial climb down from the $17bn the US usually provided to the UN for its humanitarian operations.

Considering that the US has hitherto been the UN’s biggest aid provider, it need hardly be said that the US decision would pose a daunting challenge to the UN’s humanitarian operations around the world. This would indeed mean that, among other things, people living in poverty and stifling material hardships, in particularly the Southern hemisphere, could dramatically increase. Coming on top of the US decision to bring to an end USAID operations, the poor of the world could be said to have been left to their devices as a consequence of these morally insensitive policy rethinks of the Trump administration.

Earlier, the UN had warned that it would be compelled to reduce its aid programs in the face of ‘the deepest funding cuts ever.’ In fact the UN is on record as requesting the world for $23bn for its 2026 aid operations.

If this UN appeal happens to go unheeded, the possibilities are that the UN would not be in a position to uphold the status it has hitherto held as the world’s foremost humanitarian aid provider. It would not be incorrect to state that a substantial part of the rationale for the UN’s existence could come in for questioning if its humanitarian identity is thus eroded.

Inherent in these developments is a challenge for those sections of the international community that wish to stand up and be counted as humanists and the ‘Conscience of the World.’ A responsibility is cast on them to not only keep the UN system going but to also ensure its increased efficiency as a humanitarian aid provider to particularly the poorest of the poor.

It is unfortunate that the US is increasingly opting for a position of international isolation. Such a policy position was adopted by it in the decades leading to World War Two and the consequences for the world as a result for this policy posture were most disquieting. For instance, it opened the door to the flourishing of dictatorial regimes in the West, such as that led by Adolph Hitler in Germany, which nearly paved the way for the subjugation of a good part of Europe by the Nazis.

If the US had not intervened militarily in the war on the side of the Allies, the West would have faced the distressing prospect of coming under the sway of the Nazis and as a result earned indefinite political and military repression. By entering World War Two the US helped to ward off these bleak outcomes and indeed helped the major democracies of Western Europe to hold their own and thrive against fascism and dictatorial rule.

Republican administrations in the US in particular have not proved the greatest defenders of democratic rule the world over, but by helping to keep the international power balance in favour of democracy and fundamental human rights they could keep under a tight leash fascism and linked anti-democratic forces even in contemporary times. Russia’s invasion and continued occupation of parts of Ukraine reminds us starkly that the democracy versus fascism battle is far from over.

Right now, the US needs to remain on the side of the rest of the West very firmly, lest fascism enjoys another unfettered lease of life through the absence of countervailing and substantial military and political power.

However, by reducing its financial support for the UN and backing away from sustaining its humanitarian programs the world over the US could be laying the ground work for an aggravation of poverty in the South in particular and its accompaniments, such as, political repression, runaway social discontent and anarchy.

What should not go unnoticed by the US is the fact that peace and social stability in the South and the flourishing of the same conditions in the global North are symbiotically linked, although not so apparent at first blush. For instance, if illegal migration from the South to the US is a major problem for the US today, it is because poor countries are not receiving development assistance from the UN system to the required degree. Such deprivation on the part of the South leads to aggravating social discontent in the latter and consequences such as illegal migratory movements from South to North.

Accordingly, it will be in the North’s best interests to ensure that the South is not deprived of sustained development assistance since the latter is an essential condition for social contentment and stable governance, which factors in turn would guard against the emergence of phenomena such as illegal migration.

Meanwhile, democratic sections of the rest of the world in particular need to consider it a matter of conscience to ensure the sustenance and flourishing of the UN system. To be sure, the UN system is considerably flawed but at present it could be called the most equitable and fair among international development organizations and the most far-flung one. Without it world poverty would have proved unmanageable along with the ills that come along with it.

Dehumanizing poverty is an indictment on humanity. It stands to reason that the world community should rally round the UN and ensure its survival lest the abomination which is poverty flourishes. In this undertaking the world needs to stand united. Ambiguities on this score could be self-defeating for the world community.

For example, all groupings of countries that could demonstrate economic muscle need to figure prominently in this initiative. One such grouping is BRICS. Inasmuch as the US and the West should shrug aside Realpolitik considerations in this enterprise, the same goes for organizations such as BRICS.

The arrival at the above international consensus would be greatly facilitated by stepped up dialogue among states on the continued importance of the UN system. Fresh efforts to speed-up UN reform would prove major catalysts in bringing about these positive changes as well. Also requiring to be shunned is the blind pursuit of narrow national interests.

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Egg white scene …

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Hi! Great to be back after my Christmas break.

Thought of starting this week with egg white.

Yes, eggs are brimming with nutrients beneficial for your overall health and wellness, but did you know that eggs, especially the whites, are excellent for your complexion?

OK, if you have no idea about how to use egg whites for your face, read on.

Egg White, Lemon, Honey:

Separate the yolk from the egg white and add about a teaspoon of freshly squeezed lemon juice and about one and a half teaspoons of organic honey. Whisk all the ingredients together until they are mixed well.

Apply this mixture to your face and allow it to rest for about 15 minutes before cleansing your face with a gentle face wash.

Don’t forget to apply your favourite moisturiser, after using this face mask, to help seal in all the goodness.

Egg White, Avocado:

In a clean mixing bowl, start by mashing the avocado, until it turns into a soft, lump-free paste, and then add the whites of one egg, a teaspoon of yoghurt and mix everything together until it looks like a creamy paste.

Apply this mixture all over your face and neck area, and leave it on for about 20 to 30 minutes before washing it off with cold water and a gentle face wash.

Egg White, Cucumber, Yoghurt:

In a bowl, add one egg white, one teaspoon each of yoghurt, fresh cucumber juice and organic honey. Mix all the ingredients together until it forms a thick paste.

Apply this paste all over your face and neck area and leave it on for at least 20 minutes and then gently rinse off this face mask with lukewarm water and immediately follow it up with a gentle and nourishing moisturiser.

Egg White, Aloe Vera, Castor Oil:

To the egg white, add about a teaspoon each of aloe vera gel and castor oil and then mix all the ingredients together and apply it all over your face and neck area in a thin, even layer.

Leave it on for about 20 minutes and wash it off with a gentle face wash and some cold water. Follow it up with your favourite moisturiser.

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Confusion cropping up with Ne-Yo in the spotlight

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Ne-Yo: His management should clarify the last-minute cancellation

Superlatives galore were used, especially on social media, to highlight R&B singer Ne-Yo’s trip to Sri Lanka: Global superstar Ne-Yo to perform live in Colombo this December; Ne-Yo concert puts Sri Lanka back on the global entertainment map; A global music sensation is coming to Sri Lanka … and there were lots more!

At an official press conference, held at a five-star venue, in Colombo, it was indicated that the gathering marked a defining moment for Sri Lanka’s entertainment industry as international R&B powerhouse and three-time Grammy Award winner Ne-Yo prepares to take the stage in Colombo this December.

What’s more, the occasion was graced by the presence of Sunil Kumara Gamage, Minister of Sports & Youth Affairs of Sri Lanka, and Professor Ruwan Ranasinghe, Deputy Minister of Tourism, alongside distinguished dignitaries, sponsors, and members of the media.

Shah Rukh Khan: Disappointed his fans in Sri Lanka

According to reports, the concert had received the official endorsement of the Sri Lanka Tourism Promotion Bureau, recognising it as a flagship initiative in developing the country’s concert economy by attracting fans, and media, from all over South Asia.

Nick Carter: His concert, too, was cancelled due to “Unforeseen circumstances

However, I had that strange feeling that this concert would not become a reality, keeping in mind what happened to Nick Carter’s Colombo concert – cancelled at the very last moment.

Carter issued a video message announcing he had to return to the USA due to “unforeseen circumstances” and a “family emergency”.

Though “unforeseen circumstances” was the official reason provided by Carter and the local organisers, there was speculation that low ticket sales may also have been a factor in the cancellation.

Well, “Unforeseen Circumstances” has cropped up again!

In a brief statement, via social media, the organisers of the Ne-Yo concert said the decision was taken due to “unforeseen circumstances and factors beyond their control.”

Ne-Yo, too, subsequently made an announcement, citing “Unforeseen circumstances.”

The public has a right to know what these “unforeseen circumstances” are, and who is to be blamed – the organisers or Ne-Yo!

Ne-Yo’s management certainly need to come out with the truth.

However, those who are aware of some of the happenings in the setup here put it down to poor ticket sales, mentioning that the tickets for the concert, and a meet-and-greet event, were exorbitantly high, considering that Ne-Yo is not a current mega star.

We also had a cancellation coming our way from Shah Rukh Khan, who was scheduled to visit Sri Lanka for the City of Dreams resort launch, and then this was received: “Unfortunately due to unforeseen personal reasons beyond his control, Mr. Khan is no longer able to attend.”

Referring to this kind of mess up, a leading showbiz personality said that it will only make people reluctant to buy their tickets, online.

“Tickets will go mostly at the gate and it will be very bad for the industry,” he added.

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