Features
we ARE on course to a dual currency regimen
by Kumar David
Communist Cuba, even when Castro was at the peak of his powers, employed a dual currency system of the Cuban peso and the ‘dollar’ (by which I mean any hard currency). ‘Dollar-shops’ all over the country sold imported goods for hard currency. Import ‘dollar’ costs were recovered, but there was no obvious gain for the economy except commissions and taxes, and seemed a pointless exercise. It did provide consumer satisfaction by providing access to imported goods.
But there is another secret. Nearly 1.8 million Cubans live in Miami, other parts of Florida and in the U.S. southern states. They remit loads of money (about $2 billion a year) to their families (like our workers do) but not everybody rushes to dollar-shops with their treasure; they simply cash it (more so if attractive exchange rates are available). Hey bingo it now becomes a net foreign currency earner as in Lanka. Yes, it creates its problems; some families with overseas earners are well-off and social stratification grows especially in village society. And there are other problems in Lanka like booze loving males shipping off family females to work overseas. There is a need to balance between these considerations but it can be a big foreign currency earner. We are familiar with the game except that we don’t have dollar-shops and don’t offer a higher exchange rate to enhance remittance inflows.
A more serious situation is when a national currency collapses as in Zimbabwe etc where inflation rose to hundreds of percent. The local currency was abolished (except for wrapping a loaf of bread). For years the economy functioned on dollars and all payments were made in that medium. Lanka now seems to be heading for something in-between. Production companies are being asked to pay for their fuel in dollars. Also the Public Utilities Commission has formulated an experimental scheme where foreign currency earning exporters will he asked to pay for electricity in dollars so that a part of their foreign earnings is shared with the exchequer and the community. Central Bank (CB) regulations will have to be changed but that’s a detail if the concept itself is deemed good. The tricky point is what higher exchange rate to offer for remittances and how to manage the game. I can think of half a dozen complications, CB bureaucrats will therefore come up with two dozen.
My discourse today is ‘where is the rupee headed?’ The Ranil Wickremesinghe (RW) government is hopelessly out of depth in addressing the fuel emergency. Petrol and diesel queues are a visible slap in RW’s face but everything – production, exports, public transport, goods in shops – is fuel dependent. Fuel is king of any modern economy as even mighty Germany is learning to its cost as Russian gas supplies are curtailed. I steadfastly maintained that RW should not be dumped while negotiations with the IMF were in progress. The IMF team will report to its bosses and it remains to be seen what the terms of the eventual protocol are. Whatever, the need for an unelected RW administration to continue in office has now passed and it’s time to call elections. But 22A does not permit early dissolution of Parliament, that is not before two and a half years of its election without the consent of a majority of the 225 MPs. Thereafter the President can dissolve at will. I would like to see them all thrown out pronto, but we must not undermine formal legitimacy in these dangerous times.
RW and his team of goats including deceitful Power & Energy con-artist Kanchana do not see the loathing that they evoke on the streets and in petrol queues. The job of the police and army now is to shield reviled political bigwigs from the anger of the masses. The language in the queues is atrocious, even parents are not spared. Admittedly it’s irrational, the damage was done by the Rajapaksa gangsters before RW et al took office, but people are so incensed there is no reasoning with them. Two weeks more without petrol/diesel/gas and with power-cuts lengthening is maybe the most this government can survive. Then what? Will an alternative lot do any better? Whistling in the dark! Or will it be anarchy?
The government has failed to bring fuel and slept on the job for six weeks; it has shown itself to be incapable of understanding the critical importance of fuel for the survival of a modern economy and society. At the early stages of his administration RW was winning additional power and outmanoeuvring Gota. Now that very fact has turned him into the centre of attention and expectation. If RW’s team fails to surmount the fuel crisis they had better start packing their bags. Their implicit argument “We can’t do it, but nobody else can do it either, so let us cling on to power” is plain greed. That cock won’t fight.
What does this mean for the subject of my essay, a dual currency regimen? It will bring the event closer as breakdown of social order will further undermine the LKR, now about 365 to a US dollar. If petrol price in the black-market is an indicator of where we are heading bear this is mind. In late June the black-market price of petrol was Rs 800 a litre. On first July it had risen to Rs1,500, and is now unavailable at any price. A collapse of LKR will add pressure for a dual exchange rate (like FEECS) scheme or an explicit dual currency regimen. The other option is to transfer (sell) national assets, say the Trinco fuel storage facility to India in exchange for fuel, food and medicines but I have not yet examined the cost-benefit ratios closely. We have ultra-nationalists who will shriek and die proudly proclaiming “Hela jathika abimane!” rather than suffer the shame of mortgaging the metaphorical family silver. Count me out, I’m not one of them goofy nationalists; I’d rather sell the silver and live.
A collapse of LKR due to inherent causes such as a continuing disaster in foreign debts, collapse of local economic activity or social turmoil is intrinsically bad. We must do all we can to prevent it. However, this has to be seen as a separate matter from renting out local facilities in exchange for profit whether to India or anybody else. If it’s a win-win deal why not? India, it is believed, would like to lease out the Trinco oil farm, it is said the Advani Group via PM Modi and President Gota has applied pressure to be allowed to build a wind-farm in Mannar and a solar plant in the NCP in exchange for fuel, food and other forms of economic assistance.
I am not knowledgeable of nitty gritty details of the shenanigans but the concept in general terms per se is fine with me. If a win-win deal can be struck what’s the problem? Take Hambantota Harbour, the trouble is that it was an eye-wash prestige stunt to perpetuate Mahinda’s name and for the Clan to collect bounties and commissions. The damage was done then and we were unable to pay back our dues. After that had happened leasing the harbour to anyone is in principle fine. We lease out a property or a facility, collect rent, use a portion for maintenance of the property and the other potion is available for consumption. In principle what’s the problem? Why else does anyone rent out property? Each case has to be judged on its financial merits.
The advantages of a more flexible currency regime, even short of a dual currency system can be debated. Say LKR totters but survives, however the country’s foreign debt and balance of payments woes will not go way for a long time, maybe a decade. From pragmatic considerations there is a case to be made for exchange rate flexibility. The DFCC Bank is offering inward remitters 2% higher interest rates if they hold the funds in a 12-month deposit with the bank; as I mentioned the Public Utilities Commission has proposed that a portion of dollars received by foreign currency earning companies be exchanged with the state; the hotel sector has asked that it be allowed to retain a part of its income in foreign reserves; and expatriate Sri Lankans are holding back in anticipation of better exchange rates for inward remittances. To an extent a dual currency regimen has already commenced.
The IMF team has worked on a medium-term stabilisation and debt restructuring package – the fuel crisis per se is not within its remit. The protocol will stipulate higher taxes and interest rates, pruning of budget deficits (less spending on social welfare, higher fuel and electricity prices) reducing the Foreign Debt-GDP ratio, now about 130% to below 80% (a measure which will require painful belt-tightening), and a de facto dual currency system. The IMF’s dictates will be a medium to long-term programme and run for long after RW and his team are gone, perhaps dead and buried. The opposition will cry blue murder but has nothing concrete to offer instead. An election run by a caretaker government is timely to release pent up pressure if nothing else. The opposition parties need now to announce their programmes, maybe just for the record! Let’s take it from there.
With reports emerging that India has attacked some ‘sites’ in Pakistan and Pakistan-administered Kashmir, the question could be posed whether the stage has just been set for yet another costly India-Pakistan military conflict. Sensible opinion in South Asia could only hope that wise counsel would sooner rather than later come to prevail on both sides of the divide and that they would draw back from the brink of full-scale war.
The states concerned ought to know fully well the possible wide-ranging weighty consequences of another regional conflict. It should be plain to see that it would benefit none in the two theatres of confrontation, most particularly the relevant publics or the ‘Silent Majority’.
In fact, in connection with the mentioned initial military attacks, the Pakistani side has gone on record that some civilian lives have been lost. Such losses could burgeon in the event of full scale hostilities. These costs could of course be staggering and unimaginable in the event the nuclear option is resorted to by the sides, going forward.
Accordingly, the hope of the peace-loving world-wide is likely to be that India and Pakistan would give negotiations a chance and resolve their differences peacefully. It would be in the best interests of the world for the champions of peace to join their voices to that of UN chief Antonio Guterres and call on the sides to negotiate an end to their differences.
The utter helplessness and misery of the people of the Gaza ought to drive home afresh the horrors of war. Currently the news is that the Gazans are literally starving to death. Food and other essentials provided by UN agencies are reportedly being prevented by Israel from getting to the hapless people of Gaza. So dire is their situation that concerned quarters are calling on the compassionate worldwide to provide the Gazans with food, water and other essentials voluntarily. This SOS would need to be heeded forthwith.
Accordingly, it could be inferred that most formal arrangements, including those that are generally under the purview of the UN, geared to providing emergency humanitarian assistance to the needy, have, for all intents and purposes, been rendered ineffective in the Gaza. The UN cannot be faulted for this state of things; rather, Israel should be held accountable in the main for it.
The matter of accountability is central to the dramatic slide into lawlessness the world has been experiencing over the past few decades. As could be seen, International Law is no longer fully applicable in the conflict and war zones of the world because it is not being adhered to by many state and non-state aggressors. That the UN is hapless in the face of such lawlessness is plain to see.
We have of course the Middle East wherein International Law has fallen silent for quite a while. How could it be otherwise, when Israeli aggressions are being winked at by the US, for which the policy of backing Israel is almost sacrosanct?
Moreover, under President Donald Trump, it is difficult to see the US changing policy course on the Middle East. Trump made vague promises of bringing peace to the region in the run-up to his reelection but has done nothing concrete by way of peace-making. Consequently, complete lawlessness prevails in the Middle East. US policy towards Israel counts as another example of how the self- interest of US central administrations blinds them to their international obligations, in this case Middle East peace.
However, the commentator could be criticized as being biased if he holds only Israel responsible for what has befallen the Middle East. It has been the position of this columnist that Israel’s security needs should be taken cognizance of by its state and non-state adversaries in the Middle East and acted upon if the basis is to be laid for a durable Middle East peace. Inasmuch as Palestinian statehood must be guaranteed, the same should be seen as applicable to Israel. The latter too enjoys the right to live in a secure state of its own, unopposed by its neighbours.
The Ukraine of today is also sad testimony to the ill consequences of powerful, aggressor states wantonly disregarding International Law and its obligations. Nothing could justify Russia in invading Ukraine and subjecting it to a condition of Longsuffering. Clearly, Ukraine’s sovereignty has been violated and such excesses go to the heart of the current state of ‘International Disorder’. Of course the same stricture applies to the US in relation to its military misadventures in Afghanistan and Iraq, to name just two such modern examples.
There is no ducking the fact, then, that civilian publics in the mentioned theatres of war and outside, are being subjected to the worst suffering as a consequence of the big powers’ self-aggrandizement schemes and military misadventures. Longsuffering becomes the tragic lot of the people who have nothing to do with such unbridled power ambitions.
One would not be exaggerating the case if he states that civilian publics count for almost nothing in the present ‘International Disorder’. Increasingly it is becoming evident that from the viewpoint of the big powers and authoritarian governments the people are of little or no importance. Considering that self-aggrandizement is of the paramount interest for the former the public interest is coming to be seen as inconsequential.
Consequently, not much of a case could be made currently for the once almost reverentially spoken of ‘Social Contract’. For, the public interest does not count for much in the scrambles for power among the major powers who are seen at the popular level as the principal history-makers.
It is in view of the above that much is expected of India. Today the latter is a ‘Swing State’ of the first importance. Besides being a major democracy, it is one of the world’s principal economic and military powers. It possesses abundant potential to help to put things right in international politics. If there is one state in Asia that could help in restoring respect for International Law, it is India.
Considering the above, India, one believes, is obliged to bear the responsibility of keeping South Asia free of any more long-running, wasting wars that could aggravate the material hardships and socio-economic blights of the region. Thus, India would need to consider it imperative to negotiating peace with Pakistan.
Under the Global-Ise Australia Advanced Sports Development Programme, a delegation of 15 swimmers from Lyceum International School, Wattala, had the remarkable opportunity to train and experience high-performance sports development in Melbourne, Australia.
The 10-day programme was carefully curated to offer intensive training, educational exposure, and cultural experiences for the young athletes.
The swimmers underwent specialised training through Swimming Victoria’s elite programme, held at some of Melbourne’s premier aquatic facilities.
Visit to Victorian Parliament
Each day began as early as 5:00 a.m. and continued until 7:00 p.m., ensuring a rigorous and enriching schedule that mirrored the standards of international competitive swimming.
Beyond training, the programme offered a wide array of experiences to broaden the students’ horizons.
Morning training
The tour group explored iconic landmarks such as the Victorian Parliament and the Melbourne Cricket Ground (MCG), and enjoyed shopping at Chadstone – The Fashion Capital. They also experienced the natural beauty of Victoria with visits to Yarra Valley Chocolaterie & Ice Creamery, and Cardinia Reservoir Park, where they observed kangaroos in their natural habitat.
An academic highlight of the tour was the group’s exclusive visits to three of Australia’s leading universities: the University of Melbourne, Monash University, and Deakin University. These visits aimed to inspire students and showcase the vast educational opportunities available in Australia.
Checking out the scene at Yarra Valley Chocolaterie & Ice Creamery
As part of the cultural immersion, Global-Ise hosted a traditional Australian BBQ at the Tim Neville Arboretum in Ferntree Gully. The students also enjoyed a variety of diverse culinary experiences each evening, further enriching their understanding of local and international food cultures.
The tour concluded with a celebratory dinner at the Spicy Wicket Restaurant, where each participant received a presentation in recognition of their involvement.
Enjoying an Aussie BBQ for lunch
The evening was made especially memorable by the presence of Pradeepa Saram, Consul General of Sri Lanka in Victoria.
Global-Ise Management—Ken Jacobs, Johann Jayasinha, and Dr Luckmika Perera (Consultant from the University of Melbourne)—did a magnificent job in planning and the execution of the advanced sports programme.
Coaches from Sri Lanka presenting a plaque to Global-Ise Management team
Ken Jacobs (centre), Johann Jayasinha, and Dr Luckmika Perera (on the right
Hi! How’s the beauty scene keeping with you?
Phew, this heat is awful but there is nothing that we can do about it.
However, there are ways and means to take care of your skin and I will do my best to help you in every way I can.
Well, this week, let’s go for a Bright, Smooth Skin.
Gram flour (also known as besan) is a traditional skincare ingredient known for its:
* Natural exfoliating properties.
* Ability to absorb excess oil.
* Gentle brightening and tan-removal effects.
* Suitability for all skin types, especially oily and acne-prone skin.
You will need 01–02 tablespoons gram flour (besan) and rose water, or raw milk, to make a paste.
You could add the following two as optional add-ins: A pinch of turmeric (for extra glow), and a few drops of lemon juice (for oily skin and pigmentation)
Add the gram flour to a small bowl and mix in the rose water (for oily/sensitive skin) or raw milk (for dry skin) slowly.
Stir well to make a smooth, spreadable paste—not too thick, not too runny.
Now apply this mixture, evenly, to your damp face and neck, and let it sit for 5–10 minutes (don’t let it dry completely if you have dry skin).
Gently massage in circular motions using wet fingers—this helps exfoliate.
Rinse off with lukewarm water, and then pat your skin dry.
Use it 02–03 times a week for best results.
Skin Benefits:
* Removes dirt, sweat, and oil without stripping natural moisture.
* Gently exfoliates dead skin cells, revealing smoother skin.
* Brightens the complexion and fades mild tanning.
* Helps clear clogged pores and reduce pimples.
* Leaves skin fresh and glowing—perfect for humid climates.
Showers may occur in coastal areas of the Western and Southern provinces and in Puttalam district in the morning and most other areas in the afternoon and night
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