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Inflation in Sri Lanka hits a new record of 20.5% in January
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Bheesan
Joined: Apr 2006
Posts: 784
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1 Feb 2007 07:49:42 GMT Report for Abuse
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| The World Bank says that Sri Lanka is on the verge of becoming a middle-income country thanks to relatively rapid economic growth and its traditionally high levels of human development. In the latest World Bank report that is to be discussed at the Sri Lanka Development Forum which will be held on 29th and 30th of this month at Galle in the Southern Province of the island, the World Bank says that Sri Lanka's overall growth has not been commensurate with its human development achievements. The report praises the country's recent economic performances amidst adverse shocks, including 2004 tsunami, doubling of world oil prices and increased competition for its apparel exports after the nullification of the Multi-Fiber Arrangement (MFA). The report also highlights the regional disparities in growth as well. Report shows that most of the growth has concentrated in the Western Province while GDP growth has averaged less than 3 percent a year in other provinces. Agriculture-the main source of income for people living outside the Western Province-has also stagnated although the service and manufacturing sectors showed a development boom. Moreover, Sri Lanka's overall growth has not been commensurate with its human development achievements. Finally, the country is facing a resumption of the ethnic conflict that has permeated economic and political life over the last quarter century. |
Sintamus
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Joined: Aug 2005
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1 Feb 2007 08:29:43 GMT Report for Abuse
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SWRD,
The US inflation never exceeded 14.76 during the 1980 recession, please refer http://www.miseryindex.us/irbymonth.asp
The main reason why inflation goes up in Sri Lanka is printing of bank notes to pay for the govt expenditure. There is no strict monetory control. |
SWRD
Joined: Apr 2006
Posts: 307
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1 Feb 2007 09:06:36 GMT Report for Abuse
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SWRD,
The US inflation never exceeded 14.76 during the 1980 recession, please refer
sintamus
true my mistake, i was thinking of the interest rate at the time, which is usually higher. but the point i was trying to make was that 'developed' countries are not immune from high inflation. |
elephanthouse
Joined: Sep 2006
Posts: 159
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1 Feb 2007 10:57:14 GMT Report for Abuse
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It is very unfortunate to say, but the only way for certain people holding key positions in the Government to face the reality of this country?s disastrous economical situation is to turn off the foreign aid tap until a minimum of corrective actions have been taken.
Examples: jumbo parliament larger than the one in India, an international airport in the countryside, record high salary increases of MP?s etc.
The degree of frustration of the ordinary folks is constantly increasing and this is not exactly a good omen for the future. |
sanspace
Joined: Jun 2006
Posts: 190
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1 Feb 2007 13:18:44 GMT Report for Abuse
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Well 20.5% inflation - thats the cost of waging war.
The Government loves war, they are waiting to swindle 4.5billion. So why should anyone complain. After all nobody liked the 2 years of peace under traitor Ranil.
War is good for the Government, the Sinhala brave souls who are outside SL, the JHU and other privileged monks who have nothing better to do and the JVP for increasing their rural vote bank. |
sanspace
Joined: Jun 2006
Posts: 190
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1 Feb 2007 13:21:10 GMT Report for Abuse
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The World Bank says that Sri Lanka is on the verge of becoming a middle-income country thanks to relatively rapid economic growth and its traditionally high levels of human development.
You will have high income cos salaries have to increase with the cost of everything going up. What is the point in incomes increasing when the inflation is 20.5%. |
sanspace
Joined: Jun 2006
Posts: 190
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1 Feb 2007 13:30:23 GMT Report for Abuse
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India To Create Extra 200 MN Jobs By 2020
India is set to create one in every four new jobs in the world over the next five years. By 2020, this would translate into an extra 200 mn jobs, which will be more than that in America, Europe and China combined, said Mr Gordon Brown, Chancellor of the Exchequer, UK, and MP. Five hundred Indian companies now operate in Britain with almost 50 companies listed in London. UK is now the fifth largest investor in India, while India is the third largest investor in Britain, with 60 pct of Indian FDI in Europe going to Britain. Trade between our two nations worth £8 bn is growing at the astonishing pace of 20 pct a year, doubling over the last five years, said Mr Brown. Strongly supporting India?s bid for a permanent place with others in the United Nations and commending India for being the third biggest UN peacekeeping force in the world, Mr Brown said emerging new world should focus on modernisation of the United Nations so that it has the right role for the modern world, not least an effective peacemaker and peacekeeper. |
justman
Joined: Mar 2006
Posts: 804
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1 Feb 2007 15:25:57 GMT Report for Abuse
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Bheesan,SWRD and other persons on this forum!
We are delighted that we are truly discussing the real problems, the basics of the island's infrastructure,it's economy.Referring to Dr Mahthir,I having assets in Malaysia I can't be too critical,but I must say,since his defiant statements against the IMF,etc about the devaluation of the Ringgit,ringgit was gradually devalued to today's rate of 8.89 Ringgits to a UK Pound from 4.9 ringgits to a Pound.Politicians can't just go against reality.China too has been asked to Revalue it's currency by it's competitors,just to make their goods cheap and Chinese products expensive,but China deliberately keeps her money supply and government's own expenditure tight.I think this is deliberate to accelerate growth within the country,without depending on supplies from abroad,thus saving on the foreign exchange,which they use to buy major items like Boeing planes and other Western industrial machinery.
Our problems are different and are self inflected.When MR is trying to put an airport in nowhere in the south and take massive loans to put highways,one can't see this as progress.He should concentrate his efforts on the slow functioning of the government sector like long winded court cases,corruption,inefficiency,less of government on the people's lives and more responsibility given to private sector.These nagging problems are discouraging inward investment and I am an victim of this system in SL.Do we have to bribe any one in the private sector to get things done? |
anizam
Senior Member
Joined: Mar 2005
Posts: 2780
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1 Feb 2007 17:53:04 GMT Report for Abuse
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Like JUSTMAN said you guys are having a very interesting discussion. No time to join in. But i wanted to post this article. Read it and think about the following Few points..
1. US imports MOST of its oil.
2. The Cost of US Workerrs and Transportation is ONE of the highest in the World. MUCH HIGHER than SL.
3. The Price of Oil in US gas stations is MUCH lower than SL.
4. Despite all this US oil companies are making UNPRECEDENTED Profits, however, CPC is making Massive Losses.
5. During the past three months or so, the Price of a barrel of oil has reduced to about $54 from a high of almost $80.
WHY IS THIS??????????????????????????????????
http://money.cnn.com/2007/02/01/news/companies/exxon/index.htm?postversion=2007020112
Exxon posts biggest annual profit ever
Record oil prices help the world's largest public oil company earn $39.5 billion in 2006.
By Steve Hargreaves, CNNMoney.com staff writer
February 1 2007: 12:37 PM EST
NEW YORK (CNNMoney.com) -- Exxon Mobil Corp. Thursday reported the biggest annual profit on record for a U.S. corporation - earning more than $75,000 every minute of 2006 on the back of record oil prices.
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But gas prices have eased back near $2 a gallon - and the fiery rhetoric in Washington has receded.
High oil prices have driven up demand for drilling rigs and experienced workers, which has boosted the cost of finding new oil. And much of the world's remaining reserves lie in politically unstable areas or countries that are simply off-limits to foreign firms.
Oil companies have also returned much of their record earnings to shareholders.
http://money.cnn.com/2007/02/01/news/companies/exxon/index.htm?postversion=2007020112
Edited By - anizam - 1 Feb 2007 18:01:44 GMT |
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