Monday, March 26, 2018

Nero fiddles while Rome burns! It’s no different in Colombo now



The private sector is at its wits end. They have pressure to complete their year-end 31st March, or quarter end in a satisfactory mode. However everything emanating from the Public Sector is moribund, and impotent. So the business confidence will gradually erode, when business is not supported or listened to.

The recent elections, have left a bitter taste in the mouths of all UNP and SLFP die-hards, and they are in no mood to support their leaders, as they have for the most part been marginalized and see that deal making at the Pradeshiya Sabhas, have even lost UNP, the Councils they thought they won. Money is changing hands to buy loyalty, and creating a state of denial where the thugs will rule most of these local councils, where the pawns will be the people, who will again be taken for a ride. 

It will be clear that the period without elected reps, was the least corrupt. It may take two years for the people to realize that the protest vote for the BUDD has left them with the underworld in charge of their fate, who will be running every scam in town you can imagine.

Parliament is stuck in the past, jockeying for power, while doing nothing to grow the economy, and make the lives of the people better.

So what do we have here? Any moment, the Price of Petrol will be hiked, now there is talk that the Milk Powder prices will go up. Soon Laugfs and Litro will have to up their prices of LP gas for cooking, and these will snow ball, with a cry to increase Electricity Prices, as the CEB is buying a lot of Thermal Fuel. Hydro has not pulled their share with low rainfall.

The secondary sector like Bus fares, Three wheeler fares, food prices from outlets selling cooked food, will pass on this increase, you are going to have inflation, when they have JUST been able to tame it. If for any reason due to pressure of Imports, the rupee drops, you really have a problem on your hands when prices of necessities will go up and there will be unrest in the hinterlands.

The private sector will have to tighten their belts, many companies will go belly up, as they are unable to pay their expenses, and they will find it hard to get rid of their staff, due to tough employment and labor laws, and this squeeze may mean that the Economy in 2018 will have ZERO growth, while the Government is still stuck in the mud, debating about who is in charge, unable to prioritize.

How ridiculous is all this? The economy stalling in front of us, and a likely tanking of the exchange rate, which will only assist some export oriented companies, but the consumer will have to pay high prices for everything. This is a recipe for disaster, unless there is some quick and decisive action, NOW

6 comments:

Anonymous said...

that's right. private sector is the only engine of growth, and that engine cannot pull this very destructive public sector along with them as they are stuck and the engine cannot rev enough to get these people who are stuck out of that rut.

So Sri Lanka is doomed, as there is no leader who has the charisma to make this sea change in the attitude of the people.

Anonymous said...

Politics is the bane of Sri Lanka. IF we did not have politics and politicians, then we will not have a bloated bureaucracy to maintain. Simple get rid of politicians, let the country be run on its own with laws only. Do it for one year and you will see the difference.

Anonymous said...

If truth be told Sri Lanka has two Neros working against each other at the same time. So they are not fiddling, but scheming against the other- no guesses as to we are taking about. Ranil and Maithripala.

If only they had any consideration for the people of Sri Lanka who elected them?

Anonymous said...

These are problems that NGOs and think tanks don't understand either, as they are quasi public sector, without a profit motive in their work. So the seriousness is not addressed by the media who only write what the alcohol inducer tells them to.

the university strike is affecting education and no one seems to care a dam, as it does not affect them either. What a scandal?

one can add to the litany of woe this season.

Challenge Private Sector declare April closed with NO wages for anyone, at least then something may happen.

Anonymous said...

In a sick kind of way I have it on good authority that the UNP is happy that the underworld will rule all the Pradeshiya Sabhas. This so that the people realize they have voted for the low life, rif raf who will be running every racket in town. UNP hopes by the next election, they would have really stewed their own goose, allowing them a free reign back into power, with the pohottuwa voter, being ashamed of his choice this time allowing drug dealers to rule.

Anonymous said...

The wealthy have it good in any case. Many go overseas for a whole month, as they know nothing happens here and Colombo is really hot. The rest have to suffer, holidays, drunken fights, and this time new low life, running protection rackets in every street corner, right under the guise of the local police. Nothing has changed in Sri Lanka in 100 years, it is the same type of person who rules over it now. So much for fair law enforcement.