Hamsen B Paramahamsa MSc geology
Sri Lankan Bankruptcy
Honorable Gothabay Rajapaksa has repeatedly conceded that he has blundered the country and the trust laid on him. From all those blunders the politicians commit, worst at worst times is to drop imports of essential materials. Instantly, they bring about the collapse in jobs and industrial ability.
In the case of recent issues, the worst is to stop imports and increase import taxes by 100% on essential materials. Depends on what?
People have jobs in construction and supplementary fields in large numbers, though not satiating the job market. The 100% increase on building materials dropped thousands overnight onto the road without jobs and income. It set off a net of floods of jobs and income loss.
Heavy duty trucks tractors and workers out of job
The huge spill over onto the streets of the strongest boys and their boiling went into Gota's Palace and made him to bolt away.
One should take parallel in the history of SL. Severe youth revolt had been accompanied with unemployment.
In SL case, the shortage of Dollars does not mean a shortage of money. Many abroad would have done and do even now to lend dollars to kins against Rupees. They don't lend or send to banks and the government because of lost faith and very bad service. Not only the President bolted, also they have been searching for the governor of the Central Bank for years on.
Therefore, open imports for those who have or can get foreign currency. Others will get employed in the chain.
A lot of young people queuing instead of working
Same with fuel. Open free import for those who have dollars. Not through Namal, Basil, or Nadesan. But full trade freedom. The fuel ship will stand on the open seas idling in wait, and the Fisherfolk will do the rest. For the present emergency, don't tax anything. Let industry boom without you, "the government". Open one country and two systems. The nation will boom.
Politicians must not be too greedy.