Covid crisis leaves Sri Lanka on brink of bankruptcy - page 3.

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Quote from: AmoreJaz on January 03, 2022, 04:39:09 PM

Quote from: _BlackStar on January 03, 2022, 11:33:58 AM

That doesn't sound good at the moment. But I regret why China got involved in this crisis after they wanted to help?
Sri Lanka owes too much to China which will eventually worsen its financial situation. It's really not great, but maybe they had no other choice last year when it came to solving some of their country's financial problems. China's insistence on Sri Lanka to pay off its debts will only make things worse, I'm not sure Sri Lanka will be able to pay off ^{[its debt installments]} even though the government is optimistic about it.

of course, china has underlying intentions on why they want to help sri lanka. and they will only get that point when china starts asking favours from their government. anyway, it is not only sri lanka that is experiencing this economic trouble during this pandemic. and we are not yet out of the woods, and this new variant omicron is threatening the economic situation of many countries again. i believe after we surpass this challenge, many governments as well as individuals will learn a lot how to survive in this kind of crisis. if you are not resourceful, you will be in miserable situation. in our own ways, we need to find options how to survive in these challenging times

Just now I saw some news on social media but I haven't verified it yet that another variant are on the way, not just one but more than tens. I just got from the pharmacy in our place and all of the paracetamol and medicines for fever are sold out. I feel like we have gone back to square one where mask, tissue paper, alcohol etc are sold out or x200 the price if available. What is happening in the world, and I hope we don't second on what happen to Sri Lanka and other countries link to China's money trap, but I am afraid we are in good terms with China and we already had big projects that they funded, I don't know what is the deal between our leaders. The only thing to do is trust our Leaders and have faith on them.

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Quote from: laredo7mm on January 05, 2022, 06:42:12 AM

Quote from: _BlackStar on January 03, 2022, 11:33:58 AM

That doesn't sound good at the moment. But I regret why China got involved in this crisis after they wanted to help?
Sri Lanka owes too much to China which will eventually worsen its financial situation. It's really not great, but maybe they had no other choice last year when it came to solving some of their country's financial problems. China's insistence on Sri Lanka to pay off its debts will only make things worse, I'm not sure Sri Lanka will be able to pay off ^{[its debt installments]} even though the government is optimistic about it.

They also took a loan from another rasing sun in Asia Bangladesh. The even Maldives asked for a loan from Bangladesh. Bangladesh and Srilanka both have sea areas and ports. Both are ideal for business but why Srilanka is in these kinds of situations when Bangladesh doing very well.

China has a big investment in both countries and Bangladesh is taking very good advantage of it when Srilanka failed to manage their investment to develop the country. The way it is going Srilanka will be fully chinas influenced very soon.

Don't know the economical situation of that country but if they fail when the other country still doing well then the problem is on their government since if they manage well their situation then they will not go on the worse situation they got and maybe corruption has been rampant that's why this one contribute on major crisis happening in their country so hopefully they can recover and their government find ways to rebuild their economy.

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Quote from: _BlackStar on January 03, 2022, 11:33:58 AM

That doesn't sound good at the moment. But I regret why China got involved in this crisis after they wanted to help?
Sri Lanka owes too much to China which will eventually worsen its financial situation. It's really not great, but maybe they had no other choice last year when it came to solving some of their country's financial problems. China's insistence on Sri Lanka to pay off its debts will only make things worse, I'm not sure Sri Lanka will be able to pay off ^{[its debt installments]} even though the government is optimistic about it.

They also took a loan from another rasing sun in Asia Bangladesh. The even Maldives asked for a loan from Bangladesh. Bangladesh and Srilanka both have sea areas and ports. Both are ideal for business but why Srilanka is in these kinds of situations when Bangladesh doing very well.

China has a big investment in both countries and Bangladesh is taking very good advantage of it when Srilanka failed to manage their investment to develop the country. The way it is going Srilanka will be fully chinas influenced very soon.

magneto

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Exactly.

When you are born in entrench disadvantage, the only way that you are going to get out is a bit of luck that you get a citizenship/permanent residency in a more fortunate jurisdiction.

But hard work definitely plays a role in it, although it is only a necessary but not sufficient condition.

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A lot of people would love to tie down the issues in Sri Lanka with the loan provided by China. There is hardly any truth in that. The loan terms offered by China were much more favorable than those from other agencies and colonial powers. Now the reason why the port project failed lies in the incompetence and corruption of the Sri Lankan political elite. Sri Lanka had a bloody civil war that lasted for more than three decades. The government spent a lot of resources for the war effort and that is the reason why they are neck deep in debt.

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I was not fully aware of the situation in Sri Lanka, but it seems that is one of those really promising countries that were able to borrow quite a bit on regards of a growing economy and the right diplomacy to the factual powers in the region. What is happening now is what happens when good and productive debt becomes bad debt by a change of market conditions. The leverage was great before and is killing now.

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The older generation always downplays the current economic conditions, and pins it to the youth for not doing much for themselves, hence why a lot of them are broke, and cannot afford basic things that they should be able to buy. The economic conditions in Sri Lanka is extremely critical, that no amount of hustle can help anyone weather the current economic crisis. Even if you are lucky enough to start a business, your consumers would be so poor to even buy from you, rendering your business bankrupt in a few months or so. Government aids can also save people for a limited time, and what everyone of them needs is a stimulated economy that creates jobs, but I don't think that the country won't see it anytime soon.

With the threat of omicron being a more transmissible virus, countries relying heavily on tourism such as Sri Lanka will have a hard time getting back on their feet.

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Quote from: Hydrogen on January 03, 2022, 11:09:12 AM

There are many americans on social media I have seen, who believe its impossible for those who work hard to experience this degree of poverty affecting places like sri lanka. They say youth today are unable to afford basic necessities while working in entry level positions, due to them refusing to "hustle" the way that older generations think they themselves "hustled" when they were young. It is strange how many refuse to acknowledge dangers of negative economic conditions, and how they might someday affect everyone.

People who think that way are definitely wrong, I'm not from Sri Lanka, but my country is also in a dire situation and I can tell you that people over here work really hard, we're in a really terrible economic situation with cost of living really high and salaries really low, so sometimes no matter how hard you work, you earn little or nothing to take care of yourself and your family. I have friends who work from 7am - 6pm from Monday to Friday but yet have nothing to show for it, and even if you earn a fairly average salary, due to Inflation/high cost of living, you end up not being able to afford much.

Quote from: Hydrogen on January 03, 2022, 11:09:12 AM

Whenever I read things like this, I assume the worst case scenario. These troubles will someday make their way to the shores of the united states. It is best to prepare.

I know the U.S. are also bearing the brunt of the pandemic with inflation and all due to so much money printing, but I doubt if the situation in America can get as worse as it is in Sri Lanka and other developing countries, America has a better economy than virtually every country in the world, so even at their worst, they'll prolly still stay somewhat afloat and much better than many economies of the world.

The Sceptical Chymist

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Well I for one don't doubt that hard work can only take you so far in certain regions in the world. I don't know much about Sri Lanka and how capitalistic and developed they are, but if opportunities to advance in a career or to start your own business are limited, you're basically screwed from birth. And if your government has a lousy leader or is corrupt to the core, that only makes things infinitely harder.

About this article, I was struck by the title, which clearly insinuates that COVID has something to do with what's happening to Sri Lanka's economic situation:

Quote from: fiulpro on January 04, 2022, 11:06:05 AM

With the current problems regarding the new variant being super fast, it's honestly spreading everywhere, already more than 75% of cases in US is of Omicron, the restrictions are getting more serious at some places and at some places the government is moving towards heard immunity.

Do you know what herd immunity is? It's not something a government heads toward, but perhaps there's a language barrier here. In any case, don't expect the media or the government to ever announce that your country has reached herd immunity against COVID, because it'll never happen. Not if new variants (odd how we used to call them "strains") keep popping up which older vaccines aren't active against. There's going to be no end to the mask wearing, the lockdowns, physical distancing, etc. Meanwhile, the CDC keeps publishing statistics on their website that are confusing at best, even to people who know how to interpret data.

Furious 7

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Another country that almost gave up because of the prolonged pandemic.
of course this is very concerning but indeed small countries will surely experience the same thing like this now.
The decline in the economy due to lack of income from various sectors made them inevitably borrow money and print more money.

On the other hand, I don't really like China's role in this, they are like heroes by lending as much money as Sri Rare wants and the worst thing is that they are not aware of the true intentions of China.

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Quote from: Findingnemo on January 03, 2022, 10:03:58 PM

There are two different kind of leaders ruling around the world, the good ones are helping their economy to grow by increasing the economy status of their citizens for example UAE, Singapore,etc but there are also some leaders who don8care about the people they want tax, more tax and no matter what hits the people they are not going to help the people instead they will loot from them and ket them to starve.

I believe poverty in the lives of masses is the effect of corruption and bad policies. The government of Sri Lanka is as corrupt that policies are not carried out and embezzlement is the order of the day. Inflation is eating up the country and the standard of living falling. The current year 2022 doesn't look of high prospect for Sri Lanka because cost of living is high etc

fiulpro

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France, Germany and Italy pushed back the bankruptcy in 2020, there are many other countries which are in the line. With the current problems regarding the new variant being super fast, it's honestly spreading everywhere, already more than 75% of cases in US is of Omicron, the restrictions are getting more serious at some places and at some places the government is moving towards heard immunity. We can honestly say that it was inevitable. But if they would do it or no is the real deal.

Quote from: avikz on January 04, 2022, 12:14:50 AM

There are two reasons behind Sri Lanka's poverty.

1. Their tourism business is destroyed due to Covid
2. They believed that China is their friend

Their main source of income is tourism which got destroyed due to Covid and international travel curbs and they couldn't pay back the billions dollars debt taken from China. Also Chinese officials denied to extend their loan repayment tenure so they had to hand over the ownership of the port to China.

Not only that there were probelms how they are handling the crisis. Let's talk about some things :
1. UK eased their travel restrictions due to the pandemic precisely because they knew if the tourism dies down, so will the funds, the government could have taken further steps to ease such things.
2. China have been traping several countries under the same web, they loan out small countries then ask them to surrender something super important, it's part of their sick agenda, most countries should know better but they have no choice during the covid therefore we cannot speak or say anything here.

Mamun74

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There are some different leaders ruling in the earth. Srilanka lone money from china,But the China’s need to make profitable of them.I Think both countries will be benefit from this mutual work. I Think every leaders or Government should have improve their economy by the increasing.

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There are two reasons behind Sri Lanka's poverty.

1. Their tourism business is destroyed due to Covid
2. They believed that China is their friend

Their main source of income is tourism which got destroyed due to Covid and international travel curbs and they couldn't pay back the billions dollars debt taken from China. Also Chinese officials denied to extend their loan repayment tenure so they had to hand over the ownership of the port to China.

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There are two different kind of leaders ruling around the world, the good ones are helping their economy to grow by increasing the economy status of their citizens for example UAE, Singapore,etc but there are also some leaders who don8care about the people they want tax, more tax and no matter what hits the people they are not going to help the people instead they will loot from them and ket them to starve.

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This isn't different from what happened to other countries in South America where government officials are corrupt. Sri Lanka proposed a project to China and then China provides them funds. The interest of the loan is even lower than what other countries ask but when officials want more for themselves than for the country, the whole country suffers.

When a country like Sri Lanka loans money from China, the government of Sri Lanka will likely give favors to what the Chinese ask. And it's all China needs to make it profitable for them too. But eventually, the two countries will have to come up with mutual benefits. Maybe populate Sri Lanka with Chinese workers and Casinos and will still have economic growth. The port project of Sri Lanka for example.

The Chinese have to extend somewhere because of their population and this is their way of doing it. There is not much to grow in thier land because they reserve thier lands, they have to move people to other countries through contracts with other countries such as Sri Lanka.

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Quote from: _BlackStar on January 03, 2022, 11:33:58 AM

That doesn't sound good at the moment. But I regret why China got involved in this crisis after they wanted to help?
Sri Lanka owes too much to China which will eventually worsen its financial situation. It's really not great, but maybe they had no other choice last year when it came to solving some of their country's financial problems. China's insistence on Sri Lanka to pay off its debts will only make things worse, I'm not sure Sri Lanka will be able to pay off ^{[its debt installments]} even though the government is optimistic about it.

They owe so much money because they can't pay the debt in the first place and it's not the money that China is after when they set this debt traps in poor nations, they want the territories that the infrastructures that were built using the money that they've lent to this country. I don't think that it's impossible for Sri Lanka to pay the debt with the pandemic still ravaging the world.

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Aside from this crisis and bankruptcy, the other bad news that I've read in Sri Lanka are those kids that are left by their parents that have passed away due to the virus. It's sad and more problems are existing due to this pandemic.

Quote from: _BlackStar on January 03, 2022, 11:33:58 AM

But I regret why China got involved in this crisis after they wanted to help?

Yes, there's the help but there's also the inner intention of what they want and that's why they're helping. This is not only for Sri Lanka but also in many countries in South East Asia and as well as African countries. It is the known debt trap of China.

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Quote from: _BlackStar on January 03, 2022, 11:33:58 AM

That doesn't sound good at the moment. But I regret why China got involved in this crisis after they wanted to help?
Sri Lanka owes too much to China which will eventually worsen its financial situation. It's really not great, but maybe they had no other choice last year when it came to solving some of their country's financial problems. China's insistence on Sri Lanka to pay off its debts will only make things worse, I'm not sure Sri Lanka will be able to pay off ^{[its debt installments]} even though the government is optimistic about it.

of course, china has underlying intentions on why they want to help sri lanka. and they will only get that point when china starts asking favours from their government. anyway, it is not only sri lanka that is experiencing this economic trouble during this pandemic. and we are not yet out of the woods, and this new variant omicron is threatening the economic situation of many countries again. i believe after we surpass this challenge, many governments as well as individuals will learn a lot how to survive in this kind of crisis. if you are not resourceful, you will be in miserable situation. in our own ways, we need to find options how to survive in these challenging times

_BlackStar

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That doesn't sound good at the moment. But I regret why China got involved in this crisis after they wanted to help?
Sri Lanka owes too much to China which will eventually worsen its financial situation. It's really not great, but maybe they had no other choice last year when it came to solving some of their country's financial problems. China's insistence on Sri Lanka to pay off its debts will only make things worse, I'm not sure Sri Lanka will be able to pay off ^{[its debt installments]} even though the government is optimistic about it.

Topic: Covid crisis leaves Sri Lanka on brink of bankruptcy - page 3. (Read 406 times)