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Why is Sri Lanka Collapsing? - TLDR News
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- Опубликовано: 22 апр 2022
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Sri Lanka is in a very bad place at the moment with violent protests erupting across the country. So in this video we outline what's going on to drive Sri Lanka's collapse and what the future might hold for the island nation?
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I have a very good friend who lives there, we use to talk all the time online. But because of the power outs we barely talk anymore. The thing that scares me the most is how calm she is about it. She just said “ sorry I can’t talk to you often, or government is falling apart and there are power outages so I have to conserve power”. She said it in the most calm voice too like she had just excepted it. I hope everything gets better for her sake.
The government is having a lot pf trouble of course but it isn't falling apart completely yet. They have appointed a cabinet recently and the party has agreed not to remove the pm. Even if you do not support the government, right now is not the time to change or have an election, the IMF does not have discussions unless there is political stability(i.e no elections going on) and it is time consuming + expensive
@@alcabone1126 Fair I just hope everything works out fine
@@alcabone1126 No. The government and party are completely saturated with corruption and every day they are in power and a single Rajapaksa is left in the political system they will continue stealing any incoming money that they can, including IMF funds, and putting it into assets overseas to hide it while the country collapses
I hope so too. Everybody suffers when politics are in shambles. It's such a waste of human energy, never mind devastating. Worrying about food, safety and shelter should be a thing of the past considering how much progress we've made producing goods and machines.
Whid a thought the budget deficit would rise by cutting taxes and buying currency instead of food and medicine, or taxing those who can afford it rather than doing the opposite? Politicians understand economics about as well as Musk understands dancing lol
I have good friends around the world and I had to explain the situation to them without making a big deal out of it. Happy to know I'm not the only one.
You forgot the most important part. More than 70% of the problem in Sri Lanka is down to unprecedented amounts of corruption. So much public money was stolen by the ruling family that it would more than cover the country's entire foreign debt.
Let's assume they stole about 3billion dollars. And somehow you manage to get 2 billion dollars from selling the properties and comapnies they put their money on. You may able to recieve 2 billion dollars after couple of years. That's not enough money. Srilanka needs to reform its education system. Make it mandatory to have a qualification to become a politician by having a degree in either economics or political science. Then they need to promote it and innovative to the country so in the future srilanka can export some tech in terms of apps, software or hardware like Taiwan, South Korea, India and japan. The it need to be self sufficient in food and reduce import of rice, meat and promote private farming in those sectors. Moreover increase income tax, lowest being 10% for people who make at $4000 per anum and the highest being 25% $20000 pee anum. Then it needs to reduce spending on welfare by not making most of it free but definitely cheaper so there is more treasury fro money for infustructure building.
But they really can't put that without proper source otherwise credibility issues arise.
You got the leaders you deserve Srilankan people are voting for simhala dominance not for good governance not for ideologies pure ethnicity and religion india is in the same road
I am Nepalese, having migrated to Canada for a decade, I blame the mismanagement of the Sri Lankan government and its addiction to China. The same here in Nepal, where addiction to China and state corruption take place altogether. Now Nepal is facing a threatening future of bankruptcy and this is not what I wanted because of what is happening now in Lanka.
Just a few officials get bribes of a few million to accept ridiculous debt that costs the country billions
@LeoTheBritish-Eurasian They supported the Communist Maoist branch though. Royalists are literally non exist in Nepal.
@@gurunggurkha4311 The PRC was actually the monarchy's biggest benefactor behind the US and the UK.
China did not want a communist government in Nepal.
Welcome to Canada, glad to have you here! Wishing you and your family the best. My family and I moved to Toronto 22 years ago.
is the new government better than the Old?
They also banned artificial fertilizer which was an astonishing bad idea
They really wanna fail
yes this was maybe the biggest factor in current condition. this ban resulted in drying up a major revenue stream for the country and loss of a full season's harvest and huge loss to spice, tea and coffee plantations that are major export products of Sri Lanka. otherwise, they may have been able to coast ahead for one or two years more if this step was not taken.
Now they have to import much more food and bail out all the farmers who lost their livelihood due to irresponsible policy.
How can a government be THAT stupid?! Why did they do it?
@@perturabo7825 because they claimed that they wanted to put people before profit and that organic food was tastier.
@@perturabo7825 they said they wanted to make Sri Lanka an all organic country
Poland is getting 10% inflation which already sucks, but Sri Lanka's near-20% and all of those shortages sound unbearable
We have 6.7% inflation in Canada and the thought of 20% inflation is nightmare fuel.
Poland 🇵🇱 economy and low taxation is maintained by the EU funding
Our country (Turkey) has an inflation rate of over 100%.
In Czech republic we have inflation of about 15% right now
@@TheToxiss czechia
the bank didn't free float the dollar, they set a daily rate that they determined. as of right now, the banks say the dollar rate is Rs330, binance says USDT rate is Rs.380, and physical US dollars are going around Rs.430
so no one is using the banks
@Block Lord I guess you will be the first to complain about the inflation being so high.
Knowing nothing about this country, my only connection to it is a friend I had online that I spoke with for about two years. She was incredibly kind, and I loved chatting with her. When covid hit, I got a message out of the blue from her longtime boyfriend who brought me the bad news that she had passed away. She had come down with something that here in the west is easily treatable, but because of the lockdown she was unable to get proper medical attention and medication, and because of that, died from something that should have been easily treated. It still breaks my heart to know that, years later.
I think srilanka has pretty decent medical facilities than most asian countries
China, Covid, Oil price, fall of tourism and remittance, bad organic agriculture policy, authoritarian tendency. These are few reasons.
Chinese debt trap do be the worst
NoOoo, ItS cAuSe tHey DonT hIgh EnoUght TaXes
Authoritarian regimes can work untill they start the thing where it goes to there heads and they start blaming everyone and everything for anything and start a war or start a civil crisis and shit hits the fan.
@@gastonlinares5593 well actually cutting taxes downgraded SL and cut them out of many international banks. Gov cut taxes from already low 14% to 9% cutting revenue by 30% . Dont mock something which is correct.
@@Jaylio Unfortunately 'lower taxes fixes everything' is a bit of a religion to many, so any suggestion that taxes need to be higher feels like an attack on their very identity.
Pakistan, Sri Lanka, Afghanistan. Damn, the Indian subcontinent is not having a fun time right now.
myanmar and nepal too
Almost all the subcontinent stones gatherd for Indian Thanos.
Myanmar is also in civil war and Nepal has run out of forex reserves...
And when as Indian we tell our westrrn friends we have a lot on our plate right now. Thwy kind of not believe.
1. Helping Afghanistan by donating 90000 tonnes wheat(despite Taliban
govt. Which is against our interest).
2. Sri lanka is littery surviving on Indian oil and food.
3. Helping Nepal to increase their forex reserve.
4.Reducing Chinese influence to zero in Maldives.
5. Helping Myanmar refugees.
6. Bangladesh is fine at least
7. Countering china-pak axis.
@@hmmmm6685 Coastal flooding and Chinas dating of rivers might soon change Bangladesh's stability. In summary, the 2020s so far have been rough for the subcontinent.
This is ironically similar to our case, except that the Turkish economy is 20 times larger than Sri Lanka. Basically, Turkish economy is too big to collapse even when it is so horribly done.
I feel like its collapsing quite well
Sure buddy...nothing is too big to fail. Nothing
India's economy was also big but when our largest ally USSR collapsed, our trade was destroyed, we saw biggest economic crisis of all time but here we are standing with a $3 trillion nominal GDP because Japan saved India by giving a loan of $500 million which India converted into $500 billion.
Must be in denial if you think it, it's too big to collapse.
@@scholaroftheworldalternatehist The US, China, and EU are too big to fail. Civilization will melt down if any of them fail.
Pakistan to sri lanka
Pakistan:hey I know things are looking bad
Pakistan:but trust me
Pakistan: *it's only gonna get worse*
Curruption, family dynasty and non transparent policies is the main cause.
according to other sources I've read, the ban on artificial fertilizer did much more harm to their economy than the pandemic. you could have mentioned that
Yes it is. Government completely botched the project.
It was pure incompetence from an unqualified government only there thanks to nepotism, populism, support from extremist Buddhist clergy and patronage
It was for a good cause, the ban, but it backfired due to the economic crisis, he last thing you want is to make it impossible for farmers, already struggling, to not be able to plant.
If my memory is correct, Sri Lanka tried to only use organic fertilizer recently, it didn’t work, the coat of some food went up by like half, farms made half the yield as before and eventually they had to repeal the policy
I think that was the main reason for Srilankas ecconomic crisis
It reduced export of tea and rubber which were main export income for the country
And it also affected domestic rice farming which lead to more rice imports
Which ultimately burnt down foreighn reserves
Yeah ppl and some cabinet members were worried and saying that dont make any worthless ideas coz obviously even Europe countries tired that too but it couldn't work out so it's not possible to work out for sure
It was because the highschool educated ministers decided to save cash on fertilizer, then after discovering their failure, decided to import organic fertilizer from China which had parasites and was turned back (making us pay them for damages) , plus it opened the floodgates for individuals to do spot purchasing (who can benifit from a few million in their bank ) to buy essential goods…
The three brothers.. Mahinda, Goyabaya, and BASIL.. I don't know why but that tickled me pink. Lmao
Sri Lanka is a wonderful country, with a wonderful people. Unfortunately the current government, together with its dependence on China, and all of this on top of the damage to the tourist industry caused by the Easter bombings and Covid, has made the current economy unsustainable. I believe India has announced some support for Sri Lanka, which I hope will provide at least some relief to Sri Lankans.
I think it's easier to blame the current government and China and who ever deal with us. But Sri Lanka's biggest challenge and the core issue is it's ineffective and unproductive public sector and government administration: which includes 25% of labor force and contribute a negative value for the GDP. Thus resulting in need for loans.
Or printed cash.. sad. This is the true game that need fixing
It's not it is a country which follows majoritarianism and fiercely suppressed it's minorities
en.m.wikipedia.org/wiki/War_crimes_during_the_final_stages_of_the_Sri_Lankan_Civil_War
Compared to the WTO/IMF regime, China is really nothing.
@@barney1019
The Red Loan Shark destroyed Sri Lanka.
Yeah 10% debt is owed to china. That's not that much. Also china doesnt care what the country does as long as it keeps paying the agreed amounts.
Thanks for covering this!!
It's amazing how many things I don't hear about until a youtuber brings it up. Thanks for this information!
it's sri lanka...literally no one cares much as they dont make an impact in the world stage. plus, people are more concerned about ukraine
Im a Sri Lankan, and as with every teenager here, we feel that our dreams and aspirations are basically gone, those who can have fled, and the remainder are protesting, prices have increased dramatically over the past few months and there is a shortage of fuel, food items and medicines including 4 essential ones. The biggest reason is mismanagement by Basil - who has no economic experience and according to some sources - worked in a gas station in LA (both brothers are from the u.s) and there was a surge of money printing to pay off for employee benefits, welfare etc , while keeping taxes artificially low and the exchange rate lower than the natural market demands, this allowed the bigger companies and individuals to buy dollars at a lower amount and launder it elsewhere, this caused a shortage of usd for payments and the government did a major blunder by cutting off fertilizer saying organic was better and it dropped crop yields including ceylon tea production , causing more issues. Next they restricted imports of electronics and other food items deemed unnecessary but that was too late, t There is a large migrant worker population who can send upto a billion per month (this is the second largest source of income for sri lanka , tourism is third so that took another few millions off the table as well, but by keeping the rupee artificially lower (exchange rate) to the black market (which sells close to 600) , people sent their cash through blackmarkets - denying the government cash, that with alleged laundering of 19 billion by the current government since 2019 has fueled anger against the government even more…as for me im on the edge, in a few months we may have no fuel at all, there is also a risk of losing access to the internet as the local ISPs are unable to pay for the services of the undersea cables and there is a massive hoarding of food …its almost like Lebanon, if you are planning to visit here, i strongly suggest you do research on it and plan according because s*it is about to hit the fan
This is what happens when the people of the country are bigots so that one family can loot the country by simply promoting sectarian violence as long as they stroke the ego and bigotry of its citizens
Good luck to you
Sorry to hear that. Sri Lankans are a bright and productive people, and can get back on track.
As one of your neighbour, I hope you people's situtation gets better.
you did a better job than the guy who made the vid he hasn't done a good job explaining this
Great show thx 🇿🇦
I'm glad my little corner of the world in the Okanagan Valley is expanding a bit with the help of channels like TLDR.
Great video!
"similiar" @1:22. Love these videos though... very concise and informative.
It's interesting that Sri Lanka's tax-to-GDP ratio at 13%, is higher than India 's 11.7%. Yet India is doing better, because India has lower debt.
95% of Sri Lanka 's taxes goes to interest repayment. For India it is 45%.
Actually for India it is 23%
Union of states & Big economies doesn't collapse that easily.
Thanks for doing this video mate
A very good description
Has Austerity every worked? I mean, not spending money on vanity projects is one thing, but selling off your assets only to rent them back is not a smart strategy.
Romania would agree. I Agee Austerity needs to stop. It's just not working and is one of the biggest issues with neoliberalism.
need some sound dampening in that room as there's a lot of reverb. Thank you for the video 🙏
Why there is no information about "In Sri Lanka, organic Farming Went Catastrophically Wrong"?
Echoy!
(But not too bad audio overall.)
0:37 Note to the producers: Never use an inverted graph to make a point. you could have just as easily expressed $ per 1000 Sri Lankan Rupees to obtain the desired graphic. but you chose the most silliest, horseshit approach.
I'm sure the Chinese will grab more of the country and offer new scam loans. Peking would love to get close to the Indian heartland. India needs to step up to prevent this with some substantial help to resolve the situation in a fair way.
Aew helping with 2.5 b $ and fuel supply and more credit line 1.5 b $
Next the Rajapaskas might make similar "security agreement" as with the solomons which allows the government to call in Chinese military police to bring "order"
Although I hate China's government and the way they treat their own people and other countries, Sri Lanka's government shouldn't of been dumb enough to trust China. They really thought China was gonna throw free money at them without strings attached? 😂Sri Lankans need a complete overhaul of their government
China is barely 10% of Sri Lanka's debt, and most of it isn't even due yet. They owe Japan as much, yet I don't see people like you blaming Japan. They owe money mostly to international bond markets (nearly half of all their debt), who are mostly western btw.
India should just annex it tbh
Sorry but I did laugh at the 'Mahinda, Gotabaya, and....Basil'.
Would be good to have a programme on all the other countries at similar risk.
I'm Sri Lankan, you said everything perfectly. thank you for speaking so well about this topic.
IMF needs to stop its love affair with austerity. Sometimes its necessary but other times it just pushes countries into downward spirals of instability and collapse. A one-size-fits-all solution is no solution at all.
Austerity is pretty much the only way the IMF can get its loans back quickly.
@@scythal it's better to wait sometimes. If I'll get paid back eventually I'll get paid back. The IMF needs to focus on long term goals.
@@frankieseward8667 The IMF needs to be convinced that their loan will be repaid back in future though - what'll stop the country from defaulting again even with the IMF loans? I feel that for that to be possible, the borrowing country and the IMF needs to plot out a long-term plan for use of the loan money and eventual repayment.
Going off topic, would you guys please talk about the Colombia-Nicaragua sea border dispute?
Also, related to this topic, Colombia will celebrate presidential elections in May 29, and I would like to see you talking about this topic.
Never take out loans from a Chinese bank
Its sad to see so many countries fall for that b*llsh*t
@@bababababababa6124 exactly
Our government need violance. So they trigger them by using their lap dogs. But most of the youth in Sri Lanka is continouing so creative and peaceful protest for weeks now. Government try to resist them but they definitely cant. අරගලයට ජය✌🔥 🇱🇰 #gohomegota
🇱🇰
The Tamil people have been protesting against this government for many many years. Now the Sinhalese people are starting to wake up too. It's time for this incapable government to go and install a government that cares for its people regardless of the background and bring SriLanka back on track with the rest of the world.
All government need violence on Tamils whether it’s police brutality to forced land seizures to targeted civilian attacks in the war. I hope Sinhalese brother and sisters will now voice out for Tamil brothers and sisters who face oppression in north and east to this day which the mainstream media there tries to hide from people in the south🤝
The IMF is absolutely horrible.
Very informative and sums up the crisis in Sri Lanka. Thank you
I was waiting for you to make one about this country, thought alot of youtube economic and political news channels didn't care about this island cause its was irrelevant compared to other news like China, US relations with Saudi, French elections and Ukraine and Russia War
One can't stress enough the loss of tourism during the pandemic. Other than tea, SL has nearly no other hard currency generator. By 2000, SL had become a hellish traffic-jam country rather than investing in electric trains. Wages earned from years of making beds and serving meals in hotels was immediately squandered on junky, filthy foreign autos and petrol. The goverment did not sufficiently tax those earnings and invest them in electric trains so the money fled out of the country. Now, the tourists are gone and SL has nothing to show for its years of hard work.
Never heard someone blame the collapse of a nation on no electric trains.
The new government actively reduced taxes while bringing in Laws that hampered exports. Tourism wasn't the only issue.
@@scoobydoobers23 that's just one part of the issue
@@tanker00v25 I was being a bit pendantic. I think OPs main point is that useful infrastructure was ignored while the government invested in pointless vanity projects.
@@scoobydoobers23 The white elephants of Hambantota port and airport were pointless. Investing in the railways or renewable energy would’ve benefitted them a lot. Building a bridge with India could’ve also helped with more tourists and cheaper goods to the island.
As if Sri Lanka is really that rich. It is only a "high income" in South Asia after borrowing money too much without developing native industrial background.
One really important factor is the OVERSEAS worker remittances to Sri Lanka which were the highest FX earner for the country, even ahead of tourism. The corona pandemic led to those remittances drying up as foreign workers in the Middle east lost their jobs and the fact that it has always been more lucrative to buy LKR on the black market. The Central bank floated the rupee in order to get people to remit rupees thru the banking system, but the flosting, which was recommended by analysts 2 years ago, came too late. The black market exchanges the rupee now for 390 to a Dollar.
One more thing: the import reliance of Sri Lanka is also due to the poor development of industry, and that in turn due to the the massive taxes imposed on imported machinery and other Red tape in the country which effectively blocks all foreign investment. Investors are regularly asked for bribes by government officials in the order of about 10 million USD, e.g. to build a solar power plant, which would benefit the country or other eco friendly forms of Power Generation which would make the country more independent of fuel imports. But every fuel import goes in hand with bribes so solar energy is not acceptable. This has been the case for 30 years now, and politicians, when asked why they go into politics, state that they wish to earn money fast. That sums up the misery of the country...
This is similar to Lebanon, and the culprit behind Lebanon's crisis is an ally of the country that owns Hanbantota Port.
Iran?
The Tuktuk drivers are currently having to queue for 6 hours to get fuel
Hey, turn up your audio gate. The reverb on this recording makes it seem like you forgot to turn on that microphone...again....
Sri Lanka lowered taxes when it has massive debt, that's like putting fuel on a fire.
South Asian countries need cooperate to ensure mutual prosperity. I hope one day India, Pakistan, Afghanistan, Bangladesh, Sri Lanka, and Nepal form a European Union-esque union between each other
That's impossible given the history of the region, and also the fact that India would bulldoze all the others in the union, being the largest economy (by a big margin) and also the most stable.
Yeah there is already one, it's called the Republic of India, you may not know this but it's a federal republic with each state having their own autonomy, official state languages, road signage, media regulations, regional media hubs and other local peculiarities and customs.
India already has West Bengal, Tamil Nadu and East Punjab, among many other regions and countries within it.
India's neighbours are too proud to admit that India is to them what the European Union is to Europe. It undermines their raison d'etre, especially Pakistan.
@@giansideros India is not the EU. The states of India are not sovereign, and cannot leave if they so choose. It is a federation much like the United States of America. India is still a nation in its entirety. The European Union in a supra national entity, not a federation or a confederation, and is the first of its kind.
Lol never happening 🤣
@@giansideros Lmao. Wtf did I just read? Indian states are not sovereign. Yes, India is one of the most diverse nations on the planet but it's not what you think it is.
And right now Indian society is the most divided it has ever been, and sooner or later this will come and bite us or maybe it's already doing that.
1:36 This is actually incorrect, Sri Lanka's tax-to-GDP ratio of 27.3% is lower than the OECD average of 33.9% but rivals that of first world nations such as Australia (27.7%), the USA (25.5%) and China (22.1%).
the figure you are quoting is excluding Chinese debt... China has given A LOT of debt to them...
China is not a First World country it average income is around 15000 which is Just under Us minimum wage
I think it's easier to blame the current government and China and who ever deal with us. But Sri Lanka's biggest challenge and the core issue is it's ineffective and unproductive public sector and government administration: which includes 25% of labor force and contribute a negative value for the GDP. Thus resulting in need for loans.
Or printed cash.. sad. This is the true game that need fixing
@@TheStudyShackbySanketManiyar China is barely 10% of Sri Lanka's debt, and most of it isn't even due yet. They owe Japan as much, yet I don't see people like you blaming Japan. They owe money mostly to international bond markets (nearly half of all their debt), who are mostly western btw.
@@mikeoxsmal8022 China can't become first world country because "first world" status are for country who sided with USA during cold war after ww2
Do Mauritius next
I am from Sri Lanka. The protests are entirely peaceful and non-violent. Characterizing them as violent is the government's excuse and propaganda for cracking down on them with unjustified force. Please refrain from posting alarmist clickbait for views if you aren't familiar with the ground reality.
So, what do you want to say about the very violent images at the end of the video?
I'm sure it's overwhelmingly peaceful and non-violent, but not "entirely".
@@BernasLL there's alot of false flag elements sent by the government to try to make peaceful protests violent. There was one instance of a bus catching fire and it turned out to be a coordinated plan trying to discredit the 100s of thousands on the streets
Like Terrorist stamping the Tamils after oppressing them
@@BernasLL there are two kinds of protests - the main one in Colombo is and was peaceful with teens, families, clergy and the educated and was a more middle class protest , the government tried to remove them from the area but using violence will result in sanctions, and lawyers have backed up the protest, denying the supreme court from removing them. And the numbers grow day by day . The government instead uses other ways to discredit the protesters , such as stirring up rumors of sexual assault on teens, possession of drugs but that didn’t work, then they tried to send in goons to disturb and create a fight but that didnt work, so they used thugs to rally the rural - uneducated folk to basically derail the credibility of protesters by organizing road blocks, damaging state property and the common masses fell for it and joined in as they too were frustrated. Then the protesters were shot in one town but it did not stop people from joining the cause
Wait... this tropical paradise island needs to import lots of food?! But Sri Lanka basically got summer all year.
Either there's too many people or there are some serious management issues.
"tell me you know nothing about agriculture without telling me you know nothing about agriculture"
Btw, they explained why the food crisis has become worse than it should be in the video itself (sudden shift to organic)
Yep you got it right. Management issues it is. The soil is so rich that basically anything grows here. It's tragic.
Rajapaksha Family is the sole reason for this crisis. They stole the money and laundered in Uganada. This is the worst political regime. They must go from the office and should be bought to justice.
I am afraid this could be the first country in a new "Asian spring".
IMF-imposed austerity is a lot like bloodletting. It lets the doctor feel like he's doing something important while killing the patient even faster. And hey, if the patient survives it, then it must have worked!
But austerity measures will make sure that the govt won't just squander the loan money. Right?
And? If not austerity, how? Borrowing more and spending more?
@@AIArtworks45 As a matter of fact, sometimes the answer to that question is a definite "yes".
However, it actually depends on the specific circumstances, and I have no idea whatsoever whether those circumstances apply to Sri Lanka.
I am not an economist myself, but I am aware that there is a massive schism in economic theory between Keynsian economists and strict monetary theorists about how and when austerity works, and when it is counterproductive.
Paul Krugman wrote a great deal about this, especially in regards to how forced austerity in Greecee made things significantly worse than it otherwise would have been. I have not, however, read any take of his on the situation with the Sri Lankan economy, and I cannot predict what he would say in this situation.
@@Lazarus1095 just ask him. I'm sure he'll be happy to indulge.
@@frankieseward8667 Fair enough. I'll send him a twitter tonight.
Can you please make a video on the floods in South Africa?
Only 20% inflation? Those are rookie numbers
😎 Only a two digits inflation? * laughts in Argentinian *
@@gastonlinares5593 Only three digits Inflation? * laughs in Lebanese *
@@planeoldguy8441 😂
Inflation is good mfs when the currency inflates by 10000% (suddenly its not good anymore)
@@planeoldguy8441 Omg 😂
US dollar - Canadian dollar, Australian dollar, New Zealand doller
Indian Rupee - Pakistani rupee, Shree lankan rupee, Nepali rupee
Chinese Yen - ? 😜
99 year lease is ridiculous. And anything about 30 years is pretty bad.
I'm sorry, I know it's not the point of the video, but I did laugh out loud at "Mahinda, Gotabaya... and Basil" :D
Mahinda, Gohabaya, and... Basil? Was their dad a Fawlty Towers fan?
I can guarantee you the truth of Sri Lanka is uglier than depicted, and we can all thank the Rajapaksa criminal syndrome.
Please do a review for Nepali economy. I feel like it's on track to downfall like Sri Lanka.
At this point its just better to go with barter system in Sri Lanka.
Removing one or two zeroes is another way to deal with inflation of ones currency
National debt seems to be a problem for a lot of countries. Every government in the world should get together and agree that none of them are going to repay any of their debts, then life would be improved for everyone.
Neat
The loans coming from chinas was like 20% of the total debt, highest came from Japan . About the 99 year lease ? The chinese company running the port still has to pay billion dollars yearly for the rent space which goes to a sri lankan company .
And the chinese still made quite a loss in sri lanka actually.
I think Chinese were okay with loss.
Their motive being takeover over of port. China given loan for a project which can't generate nothing.other motive were there rather than a healthy loan.
true
China lost billions in Pakistan as well. cpec was halted again
Many comments are there stating chinese loans only holds 10% of sri lankas debt economy but check the interest rate lankan government has agreed to give to chinese is significantly high to the japanese government and obviously the Japanese government and the IMF will never capture the countries assets like china did. Obviously china is not the only culprit but a important one. If the stupid lankan government hadn't given that important port to those chinese for 99 years the i guess with the strategic location it could have done more. Its so pity that because of the stupidity of the government the common people have to suffer.
is there a TLDW verstion?
Can you do a video on Somaliland please. Thanks.!
Why are people surprised that Sri Lanka is in financial trouble for years? Basil ran a hotel in the late 70's in Great Britain and that didnt go so well either did it? :P
@@r2sav175 I think this may be a joke based on Basil Fawlty, a character from the 70s UK sitcom Fawlty Towers about a hotel
Please sort out your room echo! (PS I respect your content big-time)
Everything feels like we're in the brink of a new, not good, era of world history, isn't it? I'm Chilean and the political crisis we have right now seems to be repeating previous eras that ended up in civil war and/or dictatorships (I wish you cover our current predicament, btw). Seeing how Sri Lanka, Bangladesh, Peru and many other develping countries are doing also, doesn't reassure me one bit
What's happening in Chile? I thought it was one of the most developed countries in Latin America
Isn't it chile the most developed country in the south america?🤔
Bangladesh is the only neighbour of India who is performing well.
Debt for Nature sounds stupid AF
Don't really understand the connection they're trying to make to lower taxes.
Surely not floating their currency is a big part of the problem too and needed some analysis.
you have low taxes,
you need loans,
you need loans then you get loans in foreign money,
then you need to repay the loans in foreign money.
you have no foreign money ..... broke
It was an election promise to lower taxes and Sri Lanka is a mainly cash economy so tax collction is hard, they also spend a lot on social welfare driven mostly by debt.
Lots of reverb, can I mail you some milk cartons? 😘 Jk, comments help SEO, just à but of heckling to say thanks for the channel
The Sri Lankan people are at breaking point. It's the hottest and stormiest season and they're dealing with huge power cuts while the rich and corrupt government fly their children overseas and buy generators. Fuel queues are 10 hours+ in sweltering heat. Hospitals are asking for donations of insulin, bandages, ibuprofen etc. The people are finally protesting and are doing incredibly well organised and peaceful work, including with some hilarious slogans and catchphrases, doctors, lawyers, clergy, and everyone is involved. What Sri Lanka needs is humanitarian aid, an end to the Rajapaksa family's grasp on the State, and for tourists to visit and spend money there.
It's worth noting too that tourists and tourism are virtually completely unaffected by these troubles. They're still perfectly capable of having affordable (even more affordable given that dollars and pounds are worth twice what they used to thanks to rupee inflation- you can get a meal for two at a city-centre 5 star luxury hotel like the Hilton or Shangri-la for $20) and ridiculously beautiful, relaxing, and/or romantic holiday
Even if humanitarian aid comes in, the brothers will take it. That’s what they did to tsunami aid in 2004 & pocketed millions of dollars
You skipped the organic farming stint
Accepting a new IMF deal would probably be disastrous for Sri Lanka... There's a reason pretty much every developing nation hates the IMF & World Bank -- all of their deals come with such overbearing strings that you're basically selling out your entire country by dealing with them.
If I were in a position of authority in Sri Lanka, I'd be doing what many other developing nations have done. I'd be talking to China.
Of course the mainstream media ain't reporting this 🙄
Sounds eerily similar to the current Pakistani economy collapse.
Kinda scary as a Pakistani
The China debt trap thing was somewhat made up to create fears of China since China only makes up 10% of the debt. Anyway the IMF loan will only happen once Sri Lanka has done debt restructuring
The Chinese premier has promised 'utmost' support, which we will have to see. Short term help has mostly come from credit lines from India in the form of Fuel and rice. There has been rain recently(after like 3 months of little rain) which will help fill the hydroelectric dams and provide some power. The rupee is still falling though and we will have to see how the crisis will be solved in a few months. The recovery will be slow and painful.
The debt trap isn't just measured in the amount of debt but rather what was given up. By creating a port and then handing it over to another country, Sri Lanka has effectively built an international trading hot spot that the other country is now profiting off of. So on top of any losses already made through costs and interest payments, Sri Lanka is loosing a large chunk of potential gains that port may have brought to it's economy.
You get the idea ,no
😭😭
Hello
Is anyone really surprised by all this?
Governments taking on debt to finance all kinds of non-productive projects is a global problem, and it makes politicians look good on the short-term, as the borrowed money makes for a big party & GDP boost in the near-term. When the time to pay back the debt with interest comes due, it's on somebody else's watch.
If you are looking into Sri Lanka and the governance of the state you must look into the civil war and how different world powers such as China and India have influenced this island nation. There are many things in the history of this nation that have led to this downfall. It will be worth doing an entire video on the history of Sri Lanka including the genocide of the Tamil people by the Rajapaksa Family.
Cause we all know how effective austerity is, at shrinking the economy and reducing tax incomes…
Sovereignty is a bitch, eh?
The only good thing that has come out of this crisis is the newfound Tamil-Sinhalese unity!
Yeah.. when people are hungry, they look for food. But what happens when the mouths are fed?
debt for nature? i like the idea but must be something iffy behind it
I like how the IMF imposes solutions on developing countries which developing countries for the most part don't use. Really???
Because they don't work and do more harm than good.
Actually they do but don't have to go all-in when you aren't broke.
You need to get that echo down. Great stuff otherwise
"You don't have enough rupees. Come back when you're a little... MMMMMMMMMMMMMMMM! Richer!"
AHH Sri Lanka case is like Indonesian economic crisis in 1998, when President in that time is highly corrupt and funnelling influence and wealth in their family and close friend Which is mostly come from debt, so when Asia got financial crisis Indonesia got hits very badly
So the people especially students do massive protest for month, many students got arrested and numbers also got kidnapped to this day's they still missing.
Ultimately the government can't control the students and people so the president is stepping down
major echo problems lads