|
|
Sri Lanka to get $ 2.5 B IMF loan
Full News Article
yarlan
Joined: Nov 2008
Posts: 678
Member Profile
|
 17 Jun 2009 23:20:28 GMT Report for Abuse
|
As of December 31, 2009, Sri Lanka's external debt stood at $12.99 billion (US) for GDP of $91.9 billion. If the economy grows strongly into the next decade, this is manageable (and can even be brought down). But, if Sri Lanka continues to borrow more (with interest payments increasing), there will be problems. Sri Lanka also imports far more than it exports - like the United States. For comparison, India's external debt stood at $163.8 billion for a GDP of $3.267 trillion! Do the math.
Do people ever wonder why the interest rates are so high? Find a way to get out of this debt trap.
See my comments from earlier today.
http://www.lankanewspapers.com/news/2009/6/44934_6.html
Edited By - yarlan - 17 Jun 2009 23:26:48 GMT |
MahaDev
Senior Member
Joined: Nov 2007
Posts: 2359
Member Profile
|
 17 Jun 2009 23:28:23 GMT Report for Abuse
|
Loan, loan,.... loan !
Long years experts in borrowing loans !
Who will repay and when???
Getting loan is easy, but repaying! |
peacemakerSri
Senior Member
Joined: Jan 2008
Posts: 2878
Member Profile
|
 17 Jun 2009 23:31:11 GMT Report for Abuse
|
As of December 31, 2009, Sri Lanka's external debt stood at $12.99 billion (US) for GDP of $91.9 billion. If the economy grows strongly into the next decade, this is manageable (and can even be brought down). But, if Sri Lanka continues to borrow more (with interest payments increasing), there will be problems. Sri Lanka also imports far more than it exports - like the United States. For comparison, India's external debt stood at $163.8 billion for a GDP of $3.267 trillion! Do the math.
So the ratio ext debt/GDP of India 5% Sri Lanka 14.1%.
This is not too bad considering the war, corruption and weak political leadership. |
yarlan
Joined: Nov 2008
Posts: 678
Member Profile
|
17 Jun 2009 23:37:50 GMT Report for Abuse
|
PeacemakerSri,
So the ratio ext debt/GDP of India 5% Sri Lanka 14.1%.
This is not too bad considering the war, corruption and weak political leadership
Yes and no. The country is still 'divided'. Some of the mistakes that lead to this war in the first place, are being repeated again. As the US found in Iraq, what comes after the 'Victory' is the harder part. What is being done to pave the way for a better future? Sri Lanka had the potential to be the next Singapore in 1983. It still does. I will re-post my comments from earlier today.
This is too much debt to assume on top of the existing debt. It would be more than economic stupidity to tap into the full loan facility. Sri Lanka already owes billions of dollars to the World Bank, ADB, Japan, India, China, Iran, etc. At the current rate of borrowing, SRI LANKANS will never be able to pay off the national debt. Many African countries who borrowed too much ended up drowning in debt. A huge percentage of their revenues went to foreign debt service, leaving little capital aside for developing the local economy.
Sri Lanka should make national reconciliation a top priority. If the correct political steps are taken (by both sides), then many Tamils in the Diaspora who have been in the position of being the 'blind lead by the blind' will jump at helping to rebuild the war-torn areas. There are many wealthy Tamil and Sinhala businessmen and professionals abroad who will be willing to invest in a better future for the country - provided a clear path to the future is provided by the current President. This is the time for him to act. Mahinda Rajapakse has the political capital he needs to make the bald moves needed to take the country forward. IMF should be relied upon for meeting the current economic crisis only (which the entire world faces today).
Edited By - yarlan - 17 Jun 2009 23:41:11 GMT |
MahaDev
Senior Member
Joined: Nov 2007
Posts: 2359
Member Profile
|
17 Jun 2009 23:41:02 GMT Report for Abuse
|
A top surrendered LTTE rebel has confessed that he saw the Tigers killing a few Tamil youths for molesting a girl in Sri Lanka on one occasion, the army claimed on Tuesday.
Army and Mahinda try use those surrendered ( or govt claimed as) to tell things to the world to prove LTTE was wrong in all ways.
But, in the daily mirror, almost all the comments say that what LTTE did was correct as it is the correct punishment.
Mahinda forgot that his police killed many arrested suspects while ' they try to escape' or ' try to attack the police'!!
Comparatively killing the rapiests is acceptable compared to killing some other criminals.
|
peacemakerSri
Senior Member
Joined: Jan 2008
Posts: 2878
Member Profile
|
17 Jun 2009 23:42:11 GMT Report for Abuse
|
Just checked Australia GDP=795.3b External debt=1002.9 ratio=126.1%
USA GDP=14264 External debt=13641.5 ratio=95.6%
To sum up ext debt/GDP
India 5%
Sri Lanka 14.1%
USA 95.6%
Australia =126.1%
Edited By - peacemakerSri - 17 Jun 2009 23:43:23 GMT |
yarlan
Joined: Nov 2008
Posts: 678
Member Profile
|
17 Jun 2009 23:42:40 GMT Report for Abuse
|
MahaDev,
Comparatively killing the rapiests is acceptable compared to killing some other criminals.
I fully agree with you. It was the correct punishment. |
yarlan
Joined: Nov 2008
Posts: 678
Member Profile
|
17 Jun 2009 23:46:37 GMT Report for Abuse
|
USA 95.6%
Australia =126.1
That is why these countries are in trouble now. The US economy is in very serious trouble. For almost two decades the US outspent its means. The average American is also not prepared to accept that their power has been in the decline for sometime. So, the Federal government continues to spend - in the hope of reviving the glorious past. All that can change overnight if the Chinhese and Japanese holders of the US treasury notes get a 'flue'.
See my blogsite for my articles (not updated for months though):
http://yarlanspace.blogsp0t.com (replace 0 with 'o)
Edited By - yarlan - 17 Jun 2009 23:49:41 GMT |
Fairplay
Senior Member
Joined: Jul 2005
Posts: 4088
Member Profile
|
17 Jun 2009 23:47:08 GMT Report for Abuse
|
By the guys , what happenedn to the underground bunker being built at the Temple trees?? No money??
Is the bunker being built to keep the money??
Jaraa pappa Mahinda!
Fairplay
|
peacemakerSri
Senior Member
Joined: Jan 2008
Posts: 2878
Member Profile
|
17 Jun 2009 23:51:28 GMT Report for Abuse
|
Yes and no. The country is still 'divided'. Some of the mistakes that lead to this war in the first place, are being repeated again. As the US found in Iraq, what comes after the 'Victory' is the harder part. What is being done to pave the way for a better future? Sri Lanka had the potential to be the next Singapore in 1983. It still does. I will re-post my comments from earlier today.
Yarlan,
My view is that Tamils will learn the mistakes they did with eelam concept.
Sinhalese will learn from the bad policies like Sinhala only act etc.
We have moved on and the future looks bright. |
|
Search All News and Discussions