Covid crisis leaves Sri Lanka on brink of bankruptcy

[Hydrogen]

Half a million people have sunk into poverty since the pandemic struck, with rising costs forcing many to cut back on food

Sri Lanka is facing a deepening financial and humanitarian crisis with fears it could go bankrupt in 2022 as inflation rises to record levels, food prices rocket and its coffers run dry.

The meltdown faced by the government, led by the strongman president Gotabaya Rajapaksa, is in part caused by the immediate impact of the Covid crisis and the loss of tourism is compounded by high government spending and tax cuts eroding state revenues, vast debt repayments to China and foreign exchange reserves at their lowest levels in a decade. Inflation has meanwhile been spurred by the government printing money to pay off domestic loans and foreign bonds.

The World Bank estimates 500,000 people have fallen below the poverty line since the beginning of the pandemic, the equivalent of five years’ progress in fighting poverty.

Inflation hit a record high of 11.1% in November and escalating prices have left those who were previously well off struggling to feed their families, while basic goods are now unaffordable for many. After Rajapaksa declared Sri Lanka to be in an economic emergency, the military was given power to ensure essential items, including rice and sugar, were sold at set government prices – but it has done little to ease people’s woes.

Anurudda Paranagama, a chauffeur in the capital, Colombo, took on a second job to pay for rising food costs and cover the loan on his car but it was not enough. “It is very difficult for me to repay the loan. When I have to pay electricity and water bills and spend on food, there is no money left,” he said, adding that his family now eats two meals a day instead of three.

He described how his village grocer was opening 1kg packets of milk powder and dividing it into packs of 100g because his customers could not afford the whole packet. “We now buy 100g of beans when we used to buy 1kg for the week,” said Paranagama.

The loss of jobs and vital foreign revenue from tourism, which usually contributes more than 10% of GDP, has been substantial, with more than 200,000 people losing their livelihoods in the travel and tourism sectors, according to the World Travel and Tourism Council.

The situation has got so bad that long queues have formed at the passport office as one in four Sri Lankans, mostly the young and educated, say they want to leave the country. For older citizens, it is reminiscent of the early 1970s when import controls and low production at home caused severe shortages of basic commodities and caused long queues for bread, milk and rice.

The former central bank deputy governor WA Wijewardena warned the struggles of ordinary people would exacerbate the financial crisis, which would in turn make life harder for them. “When the economic crisis deepens beyond redemption, it is inevitable that the country will have a financial crisis too,” he said. “Both will reduce food security by lowering production and failing to import due to foreign exchange scarcities. At that point, it will be a humanitarian crisis.”

One of the most pressing problems for Sri Lanka is its huge foreign debt burden, in particular to China. It owes China more than $5bn in debt and last year took an additional $1bn loan from Beijing to help with its acute financial crisis, which is being paid in instalments.

In the next 12 months, in the government and private sector, Sri Lanka will be required to repay an estimated $7.3bn in domestic and foreign loans, including a $500m international sovereign bond repayment in January. However, as of November, available foreign currency reserves were just $1.6bn.

In an usual approach, government minister Ramesh Pathirana said they hoped to settle their past oil debts with Iran by paying them with tea, sending them $5m worth of tea every month in order to save “ much needed currency”.

The opposition MP and economist Harsha de Silva recently told parliament that foreign currency reserves would be -$437m by January next year, while the total foreign debt to service would be $4.8bn from February to October 2022. “The nation will be totally bankrupt,” he said.

Central Bank Governor Ajith Nivard Cabraal made public assurances that Sri Lanka could pay off its debts “seamlessly” but Wijewardena said the country was at substantial risk of defaulting on its repayments, which would have catastrophic economic consequences.

Meanwhile, Rajapaksa’s sudden decision in May to ban all fertiliser and pesticides and force farmers to go organic without warning has brought a formerly prosperous agricultural community to its knees as many farmers, who had become used to using – and often overusing – fertiliser and pesticides, were suddenly left without ways to produce healthy crops or combat weeds and insects. Many fearing a loss decided not to cultivate crops at all, adding to the food shortages in Sri Lanka.

The government made a dramatic U-turn in late October and farmers are now struggling to cover the high costs of imported fertiliser without help.

“The costs of cultivating paddy [wheat] have gone up astronomically … The government has no money for fertiliser subsidies. Many of us farmers are reluctant to invest money because we don’t know if we will make any profit,” said one farmer, Ranjit Hulugalle.

In an attempt to temporarily ease the problems and stave off difficult and most likely unpopular policies, the government has resorted to temporary relief measures, such as credit lines to import foods, medicines and fuel from its neighbouring ally India, as well as currency swaps from India, China and Bangladesh and loans to purchase petroleum from Oman. However, these loans provide only short-term relief and have to be paid back quickly at high interest rates, adding to Sri Lanka’s debt load.

Anushka Shanuka, a personal trainer, was among those who used to have a comfortable life but now is struggling to get by. “We can’t live the way we used to before the pandemic,” he said, saying the prices of vegetables had gone up by more than 50%.

“The government promised to help us but nothing came, so we are just managing the best we can. I don’t know how much longer we can go on like this.”

https://www.theguardian.com/world/2022/jan/02/covid-crisis-sri-lanka-bankruptcy-poverty-pandemic-food-prices

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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.

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.

Many who mistakenly believed they could never be poor as long they work hard, will learn their error the hard way. By then it might be too late. But why must reality mimic a bad movie with obvious problems which people refuse to admit exist?

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[_BlackStar]

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.

[AmoreJaz]

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

[batang_bitcoin]

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.

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.

[pinggoki]

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.

[cabron]

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.

[Findingnemo]

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.

[avikz]

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.

[Mamun74]

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.

[fiulpro]

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.

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.

[Gozie51]

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

[Furious 7]

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.

[The Sceptical Chymist]

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:

Half a million people have sunk into poverty since the pandemic struck, with rising costs forcing many to cut back on food

But the gist of the article is broken down in this single paragraph, and the only thing I can see that has anything to do with the pandemic is the decrease in tourism:

The meltdown faced by the government, led by the strongman president Gotabaya Rajapaksa, is in part caused by the immediate impact of the Covid crisis and the loss of tourism is compounded by high government spending and tax cuts eroding state revenues, vast debt repayments to China and foreign exchange reserves at their lowest levels in a decade. Inflation has meanwhile been spurred by the government printing money to pay off domestic loans and foreign bonds.

High government spending, tax cuts, foreign debt, and irresponsible money printing don't have anything to do with a virus.  It amazes me how COVID-19 just grabs headlines even when it's not warranted, like in this case.  Unless there were Sri Lankans dropping dead on the street by the thousands, any negative effects on the economy are likely due to overblown government policies in reaction to the pandemic--just like in the US and other countries.

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. 

[Coyster]

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.

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.

[dothebeats]

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.

[paxmao]

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.

[Sithara007]

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.

[magneto]

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.

[laredo7mm]

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.

[Taskford]

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.

[kaya11]

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.

[Sirait]

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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.

In this case I believe all world leaders have their own plans in dealing with the trap from China. My country has also been dependent on China for some time and this pandemic has made it clearer. China's trap is really dangerous and a small country like Sri Lanka if it has big benefits it will definitely be very easy for China to control. I wish the best for all countries in the world.

[el kaka22]

We shouldn't be really shocked, governments can't handle the economy anymore and the difference between the rich and the poor is growing and yet even the rich can't really get "rich" in the sense that they already have networths over what they could spend so they are just playing a leaderboard game at this point.

I do not think that 150 billion dollars and 300 billion dollars is that much of a difference when you are that rich, you are not going to be able to spend that anyway, it is way too much money, maybe if you sell the stocks and build another company than you could do it, but your networth staying there without moving or even in your pocket as money changes anything in those areas. Whereas people are going starving all around the world nowadays, and we do not care, policy wise there are still middle income people who keep saying "they should bring themselves up by bootstraps" to people who are starving, it is literally impossible thing to do by the way, if you pull yourself up from your bootstraps, you can't go up...

[cryptoQueez]

Aside from this crisis of bankruptcy, another sad news is that kids left away by parents who passed away due to Covid

[davis196]

Working hard in a poor and underdeveloped country isn't the same as working hard in a rich western country.
Imagine working hard for a ridiculously low salary,while having to deal with rising inflation and increasing debt payments.
Inflation in the western countries is way lower and the salaries are way bigger,compared to Sri Lanka.
The western countries don't have big problems with their debts,because they can print more euro and dollars and pay their debts.The value of the USD and the euro isn't collapsing,despite the massive money printing.
I really hope that Sri Lanka will find a way out of this debt trap.The government will have to negotiate better conditions with China and try to postpone a part of the debt repayments.
 

[kryptqnick]

What caught my eye in the article was debt repayments to China. It's very unfortunate that Sri Lanka fell for Chinese easy-to-get but hard-to-repay credits, and I'm sure that it created additional problems on top of the lack of tourism due to the pandemic. It's sad that 5 years of progress in combatting poverty were countered with a couple of years of the pandemic, and it's terrible that poverty is still a problem in our world of overproduction. I wish there was proper redistribution done, so that food wasn't thrown away in huge quantities in some places while people suffer from malnutrition in others. It's just ridiculous that it's still happening.

[stompix]

When you rely on others that much, shit like this happens.

It's not just about this virus thing, imagine there would be an economic meltdown in the world and as usual tourism will be the first one hit, what are you going to do, sink faster than everyone?
But even with this 12% to GDP wouldn't be that much or enough to sink a country that bad, probably besides the friendliness of China there are even more problems there.
I see a 20% decline in garments exports which seems like a big branch of the economy so as I said relying too much on trade and too little on yourself will get you into trouble at the first global hiccup.

I wonder how Thailand is doing, they had a 21.9 % tourism contribution to GDP in 2019, twice that of Sri Lanka. If they manage to deal with it as I've seen no news about catastrophes there SriLnaka should loor at them as a role model.

But that aside, I'm sure in a decade a lot will start regretting their deals with both the US and IMF when they see what alternative China provides.  

[cheezcarls]

And now it gets even worse because of the Omicron variant. On top of that, there’s what they call as “IHU” variant in which  it has 46 mutations. But I just don’t know if this is already the “endgame” because some news sources like WION are saying that these variants are now getting weaker.

So it means to say that it’s possible that these future variants will no longer be a concern for us.

[Silberman]

What caught my eye in the article was debt repayments to China. It's very unfortunate that Sri Lanka fell for Chinese easy-to-get but hard-to-repay credits, and I'm sure that it created additional problems on top of the lack of tourism due to the pandemic. It's sad that 5 years of progress in combatting poverty were countered with a couple of years of the pandemic, and it's terrible that poverty is still a problem in our world of overproduction. I wish there was proper redistribution done, so that food wasn't thrown away in huge quantities in some places while people suffer from malnutrition in others. It's just ridiculous that it's still happening.

The economic repercussions of the pandemic are being felt over the world and Sri Lanka is just another example of this, politicians most of the time are only looking at the short term so if they can indebt the country, steal a lot of money and give a thing or two to the people so they look as if they are doing a great job, however that debt has to be repaid and it is the next government the one that has to do it, but by the time the effects of their actions are felt they are safe knowing they will no be blamed as they do not have the political power anymore, so until this changes we will keep seeing countries being ruined by receiving some easy loans with high interest rates from other countries that are impossible to pay.

[Sithara007]

And now it gets even worse because of the Omicron variant. On top of that, there’s what they call as “IHU” variant in which  it has 46 mutations. But I just don’t know if this is already the “endgame” because some news sources like WION are saying that these variants are now getting weaker.

So it means to say that it’s possible that these future variants will no longer be a concern for us.

The Omicron variant maybe weaker compared to the other strains, but I am not sure whether this will hold true for the other variants as well. One of the reasons why the Omicron variant is having a lower mortality rate maybe due to the fact that a majority of the people are vaccinated by now (and most have already been boosted as well). But the fact that vaccines have almost no impact on preventing infection from this strain is enough to ring the alarm bells. What if it mutates further and become more lethal?

[molsewid]

The Omicron variant maybe weaker compared to the other strains, but I am not sure whether this will hold true for the other variants as well. One of the reasons why the Omicron variant is having a lower mortality rate maybe due to the fact that a majority of the people are vaccinated by now (and most have already been boosted as well). But the fact that vaccines have almost no impact on preventing infection from this strain is enough to ring the alarm bells. What if it mutates further and become more lethal?

Still even if we are already a vaccinated and even get a booster shot of vaccine we can't still live in peace and comfortable just because we are vaccinated, I think I can only live peacefully once the virus were gone but the question is when will be this virus will gone. Many people endure the hurdles in life like us for almost a year and now here we are again the omicron variant, I don't know what will be the approach that the governments will respond if there'll be a more lethal mutation develop, let's just hope it'll be gone now because this covid virus are talking a lot of lives and making the life of people more difficult.

[lixer]

The Omicron variant maybe weaker compared to the other strains, but I am not sure whether this will hold true for the other variants as well. One of the reasons why the Omicron variant is having a lower mortality rate maybe due to the fact that a majority of the people are vaccinated by now (and most have already been boosted as well). But the fact that vaccines have almost no impact on preventing infection from this strain is enough to ring the alarm bells. What if it mutates further and become more lethal?

I would say that it would have been true if other variants didn't still have the same amount of death rate. So, if you have omicron and not die due to vaccination, why do people still die from other variants even when they are vaccinated? Secondly we still have a lot of unvaccinated people, unfortunately way too many people, so at the end of the day it is not really ending but it is not really certain right now neither. We just need to realize that we need to be on the lookout, sure things are looking great, and I would say life is getting a bit back to normal these days and things are a bit more nice with lower death count.

However, this shouldn't really mean that we are out of the woods and there will never be a problem again, nobody knows if there will be a huge and horrible variant tomorrow that kills a lot more people, live your life carefully and enjoy it right now, but check the news as well.

[Silberman]

And now it gets even worse because of the Omicron variant. On top of that, there’s what they call as “IHU” variant in which  it has 46 mutations. But I just don’t know if this is already the “endgame” because some news sources like WION are saying that these variants are now getting weaker.

So it means to say that it’s possible that these future variants will no longer be a concern for us.

The Omicron variant maybe weaker compared to the other strains, but I am not sure whether this will hold true for the other variants as well. One of the reasons why the Omicron variant is having a lower mortality rate maybe due to the fact that a majority of the people are vaccinated by now (and most have already been boosted as well). But the fact that vaccines have almost no impact on preventing infection from this strain is enough to ring the alarm bells. What if it mutates further and become more lethal?

That is without a doubt the greatest issue that we are facing right now, fortunately the omicron strain of the virus is less lethal, however each time one of those strains mutates the dice is literally being rolled and if we are unlucky and a new more lethal strain appears then things could get ugly real fast, after all the economic system is already at its limit and if we were forced to be in a lockdown again then this could crash the economy and cause all kind of new problems that could be even worse than the pandemic.

[Sithara007]

That is without a doubt the greatest issue that we are facing right now, fortunately the omicron strain of the virus is less lethal, however each time one of those strains mutates the dice is literally being rolled and if we are unlucky and a new more lethal strain appears then things could get ugly real fast, after all the economic system is already at its limit and if we were forced to be in a lockdown again then this could crash the economy and cause all kind of new problems that could be even worse than the pandemic.

OK.. here.. this one for you:
https://www.independent.co.uk/news/science/deltacron-variant-cases-cyprus-covid-b1989961.html

A new variant called Deltacron has been reported from Cyprus. It is as contagious as Omicron, and as lethal as Delta. Some of the scientists are of the opinion that this new variant resulted from laboratory contamination, but there is no confirmation yet on that regard. Anyway, one thing is sure. I don't expect things to go back to normal at least for the next 2-3 years. The Spanish flu of 1918-20 lasted for 3 years. This one is going to last even longer. Now coming to Sri Lanka (and other countries that are dependent on tourism), I don't see any light at the end of the tunnel. Their tourism industry will stay crippled for the next few years and by that time the economy will be completely decimated.

[paxmao]

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.

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.

All economic tragedies come with a cost in lives. Modern societies depend on medicine to guarantee the welfare of the people and medicine, particularly the one depending on big international pharma industry, has become very expensive and destined to mostly make patients cronically sick and dependent on medicines rather than to effectively cure the afflictions. COVID has a side economic effect that is more deadly than the virus itself.

[Xinarae*]

The situation with the sri lankan coronavirus has worsened, in recent times when the corona has become a threat the sri lankan government has taken immediate precautionary measures. The government is increasing its control over airports and borders as well as considering domestic tourists as a threat even the country's private health care system is governed by strict rules. They have also ensured the health of the people through this powerful system china has come forward to help sri lanka in this situation.

[Sithara007]

The situation with the sri lankan coronavirus has worsened, in recent times when the corona has become a threat the sri lankan government has taken immediate precautionary measures. The government is increasing its control over airports and borders as well as considering domestic tourists as a threat even the country's private health care system is governed by strict rules. They have also ensured the health of the people through this powerful system china has come forward to help sri lanka in this situation.

So have they announced additional lockdown measures? I don't think that lockdowns are going to help. It has been more than two years since the first case was reported from China. It is not viable to close down the economy for such extended duration of time. At least in my country, more people have committed suicide as a result of job loss, when compared to the number of deaths from COVID. With most of the population being vaccinated and boosted, I don't think that further restrictions are required against this virus.

[Silberman]

That is without a doubt the greatest issue that we are facing right now, fortunately the omicron strain of the virus is less lethal, however each time one of those strains mutates the dice is literally being rolled and if we are unlucky and a new more lethal strain appears then things could get ugly real fast, after all the economic system is already at its limit and if we were forced to be in a lockdown again then this could crash the economy and cause all kind of new problems that could be even worse than the pandemic.

OK.. here.. this one for you:
https://www.independent.co.uk/news/science/deltacron-variant-cases-cyprus-covid-b1989961.html

A new variant called Deltacron has been reported from Cyprus. It is as contagious as Omicron, and as lethal as Delta. Some of the scientists are of the opinion that this new variant resulted from laboratory contamination, but there is no confirmation yet on that regard. Anyway, one thing is sure. I don't expect things to go back to normal at least for the next 2-3 years. The Spanish flu of 1918-20 lasted for 3 years. This one is going to last even longer. Now coming to Sri Lanka (and other countries that are dependent on tourism), I don't see any light at the end of the tunnel. Their tourism industry will stay crippled for the next few years and by that time the economy will be completely decimated.

That really sucks, however it was not impossible to predict at all, if that strain is as dangerous as it sounds I think we may have to accept a world in which for a long time vaccines will need to be developed to combat those new strains until they day comes in which almost everyone is immunized through the vaccines or by having contracted the virus, the question is if the economy will be able to hold out that long, as the inflation on the US is at its highest levels of the last 40 years.

[Sithara007]

That really sucks, however it was not impossible to predict at all, if that strain is as dangerous as it sounds I think we may have to accept a world in which for a long time vaccines will need to be developed to combat those new strains until they day comes in which almost everyone is immunized through the vaccines or by having contracted the virus, the question is if the economy will be able to hold out that long, as the inflation on the US is at its highest levels of the last 40 years.

I am not really surprised with the inflation figures. United States has approved multiple stimulus measures, totaling many trillions of USD. When they create money out of thin air, it is expected that the inflation rate may rise. And as far as vaccinations are concerned, I guess now we need to resign to our fate and get a new booster dose every six months, for the next 5-6 years at least. This is the new reality. We need to wear masks while going out, and in most occasions we need to follow the social distancing as well. The sooner we get adjusted to this, that better.

[dezoel]

Sometimes I do wonder what countries are really achieving with the loans that they take from other bigger countries. Like what’s the need of taking loans when you are still going to end up wasting that loan that you have borrowed and achieving nothing with it, and then your situation will become double and you will still have debt on top of it to pay back, What is really the need? It is better that the country continues to work hard to better themselves, instead of taking loans and worsening the problems that they are already having.

It’s just like the issue that most countries in the African continent is having, they’re always taking loans from China, and at the end they are unable to pay it, and the countries end up in even worst situations than they have been in. It really doesn’t make any sense to me at all.

[Cling18]

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.

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.

It sounds really heartbreaking that even innocent children have to suffer. Lots of countries have experienced bankruptcy during this pandemic but we have no choice but to move on and rise again. It's a good thing that some countries are offering help. I believe that Sri Lanka and other affected countries could still rise and recover in the future. They only need support and help from other countries.

[Sithara007]

It sounds really heartbreaking that even innocent children have to suffer. Lots of countries have experienced bankruptcy during this pandemic but we have no choice but to move on and rise again. It's a good thing that some countries are offering help. I believe that Sri Lanka and other affected countries could still rise and recover in the future. They only need support and help from other countries.

A lot of children have been made orphans around the world and the situation is not unique to Sri Lanka. It can be said that in the developed nations, better facilities exist for such children, while in the third world they are mostly left to their own fate. One factor contributing to this is that in the third world a lot of families tend to have 5-6 children each, and they are unable to take care of anyone else. Most of the time it is left to the religious organizations to do that work. And the outcome is not always positive, as a lot of shady things are associated with such organizations.

[Gyfts]

...

Variants are always "on the way." There is no possible way that COVID can be stopped. It will continue to mutate with new variants infecting the healthy population, similar to the flu. I can't help but laugh at how slow government are in recognizing things, one being the endemic nature of COVID. This isn't necessarily the fault of Sri Lanka, but the supply chain issues are effecting global markets, partly because countries home to large manufacturing of goods continually restrict their economy as a precaution due to COVID. Combine this with the shipping bottlenecks, Sri Lanka is only the start of many countries that will have their currencies enter hyper inflation. The US has already hit a 7 percent inflation level, a 40 year high.

[romero121]

It sounds really heartbreaking that even innocent children have to suffer. Lots of countries have experienced bankruptcy during this pandemic but we have no choice but to move on and rise again. It's a good thing that some countries are offering help. I believe that Sri Lanka and other affected countries could still rise and recover in the future. They only need support and help from other countries.

A lot of children have been made orphans around the world and the situation is not unique to Sri Lanka. It can be said that in the developed nations, better facilities exist for such children, while in the third world they are mostly left to their own fate. One factor contributing to this is that in the third world a lot of families tend to have 5-6 children each, and they are unable to take care of anyone else. Most of the time it is left to the religious organizations to do that work. And the outcome is not always positive, as a lot of shady things are associated with such organizations.

Yes, unplanned family is a big problem with countries facing food crisis. There will be people who are with good wealth, but they limit themselves with the number of kids. But, the poor also does the same in the name of god. What is happening with Sri Lanka is different in my view. The improper governing is the core reason for the prevailing situation. As said, more countries are experiencing similar situation. It is just the hope that drives people.

[Darker45]

It sounds really heartbreaking that even innocent children have to suffer. Lots of countries have experienced bankruptcy during this pandemic but we have no choice but to move on and rise again. It's a good thing that some countries are offering help. I believe that Sri Lanka and other affected countries could still rise and recover in the future. They only need support and help from other countries.

A lot of children have been made orphans around the world and the situation is not unique to Sri Lanka. It can be said that in the developed nations, better facilities exist for such children, while in the third world they are mostly left to their own fate. One factor contributing to this is that in the third world a lot of families tend to have 5-6 children each, and they are unable to take care of anyone else. Most of the time it is left to the religious organizations to do that work. And the outcome is not always positive, as a lot of shady things are associated with such organizations.

Yes, unplanned family is a big problem with countries facing food crisis. There will be people who are with good wealth, but they limit themselves with the number of kids. But, the poor also does the same in the name of god. What is happening with Sri Lanka is different in my view. The improper governing is the core reason for the prevailing situation. As said, more countries are experiencing similar situation. It is just the hope that drives people.

I sometimes feel that the poor people are wrongly blamed for being so. And this happens oftentimes not just in my country but also in other countries. While I do believe that families are responsible for their well-being including the proper growth of their children, I also believe that governments exist primarily to make sure such responsibilities are met.

Countless of times, poor people here in my country are blamed for their abject condition because of so many reasons. They are blamed because they are said to be lazy, have a lot of children, didn't study well when they were young, and so on when in fact the primary problem is that the government failed in building schools, provide proper irrigation, strengthen the health system including the continuous supply of contraceptives, and so on. 

I believe that Sri Lanka shares the same fundamental problem that is also faced by my country.

[DrBeer]

It sounds really heartbreaking that even innocent children have to suffer. Lots of countries have experienced bankruptcy during this pandemic but we have no choice but to move on and rise again. It's a good thing that some countries are offering help. I believe that Sri Lanka and other affected countries could still rise and recover in the future. They only need support and help from other countries.

A lot of children have been made orphans around the world and the situation is not unique to Sri Lanka. It can be said that in the developed nations, better facilities exist for such children, while in the third world they are mostly left to their own fate. One factor contributing to this is that in the third world a lot of families tend to have 5-6 children each, and they are unable to take care of anyone else. Most of the time it is left to the religious organizations to do that work. And the outcome is not always positive, as a lot of shady things are associated with such organizations.

Yes, unplanned family is a big problem with countries facing food crisis. There will be people who are with good wealth, but they limit themselves with the number of kids. But, the poor also does the same in the name of god. What is happening with Sri Lanka is different in my view. The improper governing is the core reason for the prevailing situation. As said, more countries are experiencing similar situation. It is just the hope that drives people.

I sometimes feel that the poor people are wrongly blamed for being so. And this happens oftentimes not just in my country but also in other countries. While I do believe that families are responsible for their well-being including the proper growth of their children, I also believe that governments exist primarily to make sure such responsibilities are met.

Countless of times, poor people here in my country are blamed for their abject condition because of so many reasons. They are blamed because they are said to be lazy, have a lot of children, didn't study well when they were young, and so on when in fact the primary problem is that the government failed in building schools, provide proper irrigation, strengthen the health system including the continuous supply of contraceptives, and so on. 

I believe that Sri Lanka shares the same fundamental problem that is also faced by my country.

A big drawback in countries with a high level of poor people is all sorts of humanitarian funds that just give money to such families. It is addictive that you can do nothing, have children - they will still give you money, food, clothes. This ultimately breeds global irresponsibility. People stop thinking about the need to restrain themselves, and most importantly, their desire to change something in life atrophies...
Therefore, the best way out is state programs for training, raising the level of knowledge of the poor, so that they HAVE the opportunity to gain knowledge and have the opportunity to fulfill themselves in a normal community, raising both their level and the level of their family

[Kakmakr]

When you have a "fake" pandemic with corrupt governments and rich pharmaceutical companies funding them, you have all the ingredients for a economic disaster. Now, I agree... Covid is real and people are dying from it, but most of those statistics are fake. (There are many false positive tests that are feeding the hysteria) [Get your hands on over the counter rapid Covid tests and test with water or fizzy drinks]

The mass hysteria has been fueled by government controlled media and the result was "lock downs" and unnecessary "quarantine" requirements. The smaller countries cannot afford to have long-term "lock downs" and the cracks quickly showed in their economy. Why was this done... Well, a lot of top government officials (kickbacks) and shareholders of Pharmaceutical companies got filthy rich.  

[DrBeer]

When you have a "fake" pandemic with corrupt governments and rich pharmaceutical companies funding them, you have all the ingredients for a economic disaster. Now, I agree... Covid is real and people are dying from it, but most of those statistics are fake. (There are many false positive tests that are feeding the hysteria) [Get your hands on over the counter rapid Covid tests and test with water or fizzy drinks]

The mass hysteria has been fueled by government controlled media and the result was "lock downs" and unnecessary "quarantine" requirements. The smaller countries cannot afford to have long-term "lock downs" and the cracks quickly showed in their economy. Why was this done... Well, a lot of top government officials (kickbacks) and shareholders of Pharmaceutical companies got filthy rich.  

You can talk a lot about conspiracies, data manipulation, pharmaceutical companies and other things...
One indicator is quite enough for me - the increase in mortality, both within the framework of the year and in monthly average annual indicators. After that, the real picture becomes clear both in terms of infection, and in terms of morbidity, and the real situation. I personally got sick in 2020, and I saw what was happening in hospitals. The situation is really negative, the prospects are incomprehensible, and there is clearly no positive in the near future. And we must understand that we all will have to live with this situation, and we will have to adapt to these changes.

[Fortify]

....


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.

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.

Many who mistakenly believed they could never be poor as long they work hard, will learn their error the hard way. By then it might be too late. But why must reality mimic a bad movie with obvious problems which people refuse to admit exist?

Let's face it, there are many countries around the world that struggle to support their population with productive industry and jobs. Some are very heavily reliant on tourism which got decimated during the pandemic, but it's likely these countries were on a rather wobbly foundation all along, this global crisis merely accelerated an inevitable decline. We see that countries that have a strong manufacturing or services base have faired much better, because what they create is exported in high demand. If the developed countries sneeze, the rest of the world catches a cold - we're seeing even the biggest economies struggling with inflation right now so it seems natural that smaller countries are going to have a tough time, let's hope it is relatively short lived.

[beerlover]

When you have a "fake" pandemic with corrupt governments and rich pharmaceutical companies funding them, you have all the ingredients for a economic disaster. Now, I agree... Covid is real and people are dying from it, but most of those statistics are fake. (There are many false positive tests that are feeding the hysteria) [Get your hands on over the counter rapid Covid tests and test with water or fizzy drinks]

The mass hysteria has been fueled by government controlled media and the result was "lock downs" and unnecessary "quarantine" requirements. The smaller countries cannot afford to have long-term "lock downs" and the cracks quickly showed in their economy. Why was this done... Well, a lot of top government officials (kickbacks) and shareholders of Pharmaceutical companies got filthy rich.  

This is the biggest problem that the world has right now. People who downplay the importance of it like you. If you accept that it is real and it kills people, why would you try to avoid having a protective situation? If you could have cancer by talking with people, wouldn't you avoid it? If you could have a heart attack, wouldn't you avoid it?

There are a lot of people all around the world who follow these rules because they do not want to die, is that really so hard to understand? I mean we all KNOW that people die from covid, so is it too much to ask everyone to be more careful so we do not die? Lockdowns makes sure that you get paid or stay at home while working and that way you will not talk with others face to face and have a chance to die.

You may disagree on numbers, I am 100% certain the numbers in my nation is fake on the reverse side, it is a lot more and yet reported lower, but that is not really important part is it? You may think that the numbers are lower in reality, but the death is real, people die, it is a fact, and you are telling me "let the people die so that economy stays strong"? How could you even consider that?

[Darker45]

~snip~

~snip~

~snip~

I sometimes feel that the poor people are wrongly blamed for being so. And this happens oftentimes not just in my country but also in other countries. While I do believe that families are responsible for their well-being including the proper growth of their children, I also believe that governments exist primarily to make sure such responsibilities are met.

Countless of times, poor people here in my country are blamed for their abject condition because of so many reasons. They are blamed because they are said to be lazy, have a lot of children, didn't study well when they were young, and so on when in fact the primary problem is that the government failed in building schools, provide proper irrigation, strengthen the health system including the continuous supply of contraceptives, and so on. 

I believe that Sri Lanka shares the same fundamental problem that is also faced by my country.

A big drawback in countries with a high level of poor people is all sorts of humanitarian funds that just give money to such families. It is addictive that you can do nothing, have children - they will still give you money, food, clothes. This ultimately breeds global irresponsibility. People stop thinking about the need to restrain themselves, and most importantly, their desire to change something in life atrophies...
Therefore, the best way out is state programs for training, raising the level of knowledge of the poor, so that they HAVE the opportunity to gain knowledge and have the opportunity to fulfill themselves in a normal community, raising both their level and the level of their family

I've never heard of a single humanitarian program in my country which directly doles out money to poor families except perhaps during disasters and other calamities including this pandemic. Under normal circumstances, a dole out is never a good approach. I guess there are enough scientific studies to prove this.

I definitely agree that the best way out is for governments to provide all kinds of programs and projects for the people to gain access to knowledge, skills, and opportunities to have a better life. In the absence of which, it is both unjust and unfair to blame the poor for being so. After all, in many, if not all, poor countries, the problem is both systemic and structural and it is deeply embedded.

[Silberman]

That really sucks, however it was not impossible to predict at all, if that strain is as dangerous as it sounds I think we may have to accept a world in which for a long time vaccines will need to be developed to combat those new strains until they day comes in which almost everyone is immunized through the vaccines or by having contracted the virus, the question is if the economy will be able to hold out that long, as the inflation on the US is at its highest levels of the last 40 years.

I am not really surprised with the inflation figures. United States has approved multiple stimulus measures, totaling many trillions of USD. When they create money out of thin air, it is expected that the inflation rate may rise. And as far as vaccinations are concerned, I guess now we need to resign to our fate and get a new booster dose every six months, for the next 5-6 years at least. This is the new reality. We need to wear masks while going out, and in most occasions we need to follow the social distancing as well. The sooner we get adjusted to this, that better.

It is still difficult to accept for most people but that seems to be the case, however will the economy hold out? After all countries like Sri Lanka are having huge issues with their economy already and even the US which can literally create money when they want is also facing problems, unlike Sri Lanka they cannot go bankrupt, but if things get so bad that foreign countries begin to spend some of their reserves in dollars as they prefer to get something out of them than to lose their wealth at the hands of the US government then hyperinflation will be inevitable at that point.

[DrBeer]

I've never heard of a single humanitarian program in my country which directly doles out money to poor families except perhaps during disasters and other calamities including this pandemic. Under normal circumstances, a dole out is never a good approach. I guess there are enough scientific studies to prove this.

I definitely agree that the best way out is for governments to provide all kinds of programs and projects for the people to gain access to knowledge, skills, and opportunities to have a better life. In the absence of which, it is both unjust and unfair to blame the poor for being so. After all, in many, if not all, poor countries, the problem is both systemic and structural and it is deeply embedded.

I'm not ready to say what programs you have in your country, and whether they exist at all, I just know a lot of examples of thoughtless and senseless throwing money, for example, in the African republics. There, for many decades, the poor masses were taught that they would be constantly given money and everything they needed, albeit not in large volumes, but constantly. Yes, I support financial support for regions affected by natural disasters, military conflicts, etc.
And just to maintain, mind you - at the expense of working people, lazy and accustomed to doing nothing, people, this is stupid, and even criminal, in relation to those who really need ...

[stompix]

And another piece of the puzzle is revealed...
https://www.bbc.com/news/world-asia-59993386

What a  surprise, another country is on the brink of bankruptcy because of the same idiotic plan of building a futuristic city. Not even going to comment on why would you choose Chinese partners to build a new city when just when you think of China's new city immediately you should see the images of so many ghost cities that were money pits for both the administration and the companies building them. When will this stupid trend end? You can't simply build cities from scratch, invest billions, get yourself in debt, on top of that offer a tax-free environment, and then hope for a miracle to rain money on you to pay your growing debt.

Unless you have plans to move your capital to a new location like Ankara or Brasilia it makes really no sense to build a city, even if you have a  small town there, simply you won't be able to find a job for everyone in a free market, do what the communist did with a planned economy and they will turn into dead cities in half a century.

Building a city for 100 000 poeple at the cost of half of the annual GDP....I think I've heard of a similar story somewhere, near a volcano if I remember correctly  

[DrBeer]

And another piece of the puzzle is revealed...
https://www.bbc.com/news/world-asia-59993386

What a  surprise, another country is on the brink of bankruptcy because of the same idiotic plan of building a futuristic city. Not even going to comment on why would you choose Chinese partners to build a new city when just when you think of China's new city immediately you should see the images of so many ghost cities that were money pits for both the administration and the companies building them. When will this stupid trend end? You can't simply build cities from scratch, invest billions, get yourself in debt, on top of that offer a tax-free environment, and then hope for a miracle to rain money on you to pay your growing debt.

Unless you have plans to move your capital to a new location like Ankara or Brasilia it makes really no sense to build a city, even if you have a  small town there, simply you won't be able to find a job for everyone in a free market, do what the communist did with a planned economy and they will turn into dead cities in half a century.

Building a city for 100 000 poeple at the cost of half of the annual GDP....I think I've heard of a similar story somewhere, near a volcano if I remember correctly  

So what are the problems? As it has become fashionable now - you make bitcoin an official means of payment, and that's it - the economy is saved, people are rich, all problems are solved Many have already done this, yes, they say after that you can do anything with the country and its economy, bitcoin will fix everything

[Sithara007]

And another piece of the puzzle is revealed...
https://www.bbc.com/news/world-asia-59993386

What a  surprise, another country is on the brink of bankruptcy because of the same idiotic plan of building a futuristic city. Not even going to comment on why would you choose Chinese partners to build a new city when just when you think of China's new city immediately you should see the images of so many ghost cities that were money pits for both the administration and the companies building them. When will this stupid trend end? You can't simply build cities from scratch, invest billions, get yourself in debt, on top of that offer a tax-free environment, and then hope for a miracle to rain money on you to pay your growing debt.

Unless you have plans to move your capital to a new location like Ankara or Brasilia it makes really no sense to build a city, even if you have a  small town there, simply you won't be able to find a job for everyone in a free market, do what the communist did with a planned economy and they will turn into dead cities in half a century.

Building a city for 100 000 poeple at the cost of half of the annual GDP....I think I've heard of a similar story somewhere, near a volcano if I remember correctly  

Well.. being a resident of South Asia, I have a better understanding of this situation. I am 100% sure that bribes and kickbacks are involved here. Some of the Sri Lankan politicians got themselves rich out of this deal, and China in return received some strategic piece of real estate. Port City is not the first unviable Chinese project in Sri Lanka. The first was with the Hambantota International Port (that one is now leased out to the Chinese on a 99-year term). Anyway, China is spending a total of $1.3 trillion on the One Belt, One Road initiative. No other country in Asia can match their money power.

[Obito]

That's cause they took that deal with China to build that port or something that involves global trade. China knew that they won be able to pay the project so now they mostly own the land that the structure was built in and at the same time China didn't risk that much because the money that they've loaned just got back to them by having a clause that they're going to only hire Chinese companies for the project.

[usekevin]

Half a million people have sunk into poverty since the pandemic struck, with rising costs forcing many to cut back on food

Sri Lanka is facing a deepening financial and humanitarian crisis with fears it could go bankrupt in 2022 as inflation rises to record levels, food prices rocket and its coffers run dry.

The meltdown faced by the government, led by the strongman president Gotabaya Rajapaksa, is in part caused by the immediate impact of the Covid crisis and the loss of tourism is compounded by high government spending and tax cuts eroding state revenues, vast debt repayments to China and foreign exchange reserves at their lowest levels in a decade. Inflation has meanwhile been spurred by the government printing money to pay off domestic loans and foreign bonds.

The World Bank estimates 500,000 people have fallen below the poverty line since the beginning of the pandemic, the equivalent of five years’ progress in fighting poverty.

Inflation hit a record high of 11.1% in November and escalating prices have left those who were previously well off struggling to feed their families, while basic goods are now unaffordable for many. After Rajapaksa declared Sri Lanka to be in an economic emergency, the military was given power to ensure essential items, including rice and sugar, were sold at set government prices – but it has done little to ease people’s woes.

Anurudda Paranagama, a chauffeur in the capital, Colombo, took on a second job to pay for rising food costs and cover the loan on his car but it was not enough. “It is very difficult for me to repay the loan. When I have to pay electricity and water bills and spend on food, there is no money left,” he said, adding that his family now eats two meals a day instead of three.

He described how his village grocer was opening 1kg packets of milk powder and dividing it into packs of 100g because his customers could not afford the whole packet. “We now buy 100g of beans when we used to buy 1kg for the week,” said Paranagama.

The loss of jobs and vital foreign revenue from tourism, which usually contributes more than 10% of GDP, has been substantial, with more than 200,000 people losing their livelihoods in the travel and tourism sectors, according to the World Travel and Tourism Council.

The situation has got so bad that long queues have formed at the passport office as one in four Sri Lankans, mostly the young and educated, say they want to leave the country. For older citizens, it is reminiscent of the early 1970s when import controls and low production at home caused severe shortages of basic commodities and caused long queues for bread, milk and rice.

The former central bank deputy governor WA Wijewardena warned the struggles of ordinary people would exacerbate the financial crisis, which would in turn make life harder for them. “When the economic crisis deepens beyond redemption, it is inevitable that the country will have a financial crisis too,” he said. “Both will reduce food security by lowering production and failing to import due to foreign exchange scarcities. At that point, it will be a humanitarian crisis.”

One of the most pressing problems for Sri Lanka is its huge foreign debt burden, in particular to China. It owes China more than $5bn in debt and last year took an additional $1bn loan from Beijing to help with its acute financial crisis, which is being paid in instalments.

In the next 12 months, in the government and private sector, Sri Lanka will be required to repay an estimated $7.3bn in domestic and foreign loans, including a $500m international sovereign bond repayment in January. However, as of November, available foreign currency reserves were just $1.6bn.

In an usual approach, government minister Ramesh Pathirana said they hoped to settle their past oil debts with Iran by paying them with tea, sending them $5m worth of tea every month in order to save “ much needed currency”.

The opposition MP and economist Harsha de Silva recently told parliament that foreign currency reserves would be -$437m by January next year, while the total foreign debt to service would be $4.8bn from February to October 2022. “The nation will be totally bankrupt,” he said.

Central Bank Governor Ajith Nivard Cabraal made public assurances that Sri Lanka could pay off its debts “seamlessly” but Wijewardena said the country was at substantial risk of defaulting on its repayments, which would have catastrophic economic consequences.

Meanwhile, Rajapaksa’s sudden decision in May to ban all fertiliser and pesticides and force farmers to go organic without warning has brought a formerly prosperous agricultural community to its knees as many farmers, who had become used to using – and often overusing – fertiliser and pesticides, were suddenly left without ways to produce healthy crops or combat weeds and insects. Many fearing a loss decided not to cultivate crops at all, adding to the food shortages in Sri Lanka.

The government made a dramatic U-turn in late October and farmers are now struggling to cover the high costs of imported fertiliser without help.

“The costs of cultivating paddy [wheat] have gone up astronomically … The government has no money for fertiliser subsidies. Many of us farmers are reluctant to invest money because we don’t know if we will make any profit,” said one farmer, Ranjit Hulugalle.

In an attempt to temporarily ease the problems and stave off difficult and most likely unpopular policies, the government has resorted to temporary relief measures, such as credit lines to import foods, medicines and fuel from its neighbouring ally India, as well as currency swaps from India, China and Bangladesh and loans to purchase petroleum from Oman. However, these loans provide only short-term relief and have to be paid back quickly at high interest rates, adding to Sri Lanka’s debt load.

Anushka Shanuka, a personal trainer, was among those who used to have a comfortable life but now is struggling to get by. “We can’t live the way we used to before the pandemic,” he said, saying the prices of vegetables had gone up by more than 50%.

“The government promised to help us but nothing came, so we are just managing the best we can. I don’t know how much longer we can go on like this.”

https://www.theguardian.com/world/2022/jan/02/covid-crisis-sri-lanka-bankruptcy-poverty-pandemic-food-prices

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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.

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.

Many who mistakenly believed they could never be poor as long they work hard, will learn their error the hard way. By then it might be too late. But why must reality mimic a bad movie with obvious problems which people refuse to admit exist?

Srilanka economy was far enough compared to many of the developing country in asian region.Even Srilanka get some investments benefits from the china.Which is grow with the trust on each other.Srilanka give a port for the lease to china and which leads for the China growth in the Asian Region.

[stompix]

Anyway, China is spending a total of $1.3 trillion on the One Belt, One Road initiative. No other country in Asia can match their money power.

That pales in comparison with FDI numbers, especially since we're talking about multi-year funding, Japan just issued 200 billion last month over another 300 billion to encourage post covid spending and investment, 1.3 trillion would not be something out of the ordinary if it wouldn't go in total money pits.
Either way to date it hasn't produced anything remarkable, and far more and more issues that were never there before. What China forgets in those deals with 3rd world countries is that although they could get those countries in debt their dictators could simply choose to nationalize back all the infrastructure taken, just how countries in South America do this one by one every decade.

As it has become fashionable now - you make bitcoin an official means of payment, and that's it - the economy is saved, people are rich, all problems are solved Many have already done this, yes, they say after that you can do anything with the country and its economy, bitcoin will fix everything

Definitely true, I still don't get it why to date we still don't have each city in the world building a new city close to it to boost the economy. What could go wrong, get a token for each city and we're going to have a flood of money even Noah would get scared.

[Sithara007]

That pales in comparison with FDI numbers, especially since we're talking about multi-year funding, Japan just issued 200 billion last month over another 300 billion to encourage post covid spending and investment, 1.3 trillion would not be something out of the ordinary if it wouldn't go in total money pits.
Either way to date it hasn't produced anything remarkable, and far more and more issues that were never there before. What China forgets in those deals with 3rd world countries is that although they could get those countries in debt their dictators could simply choose to nationalize back all the infrastructure taken, just how countries in South America do this one by one every decade.

Well.. times have changed. Third world countries can't just take all the investment from richer nations and then decide to kick them out without any compensation in the name of nationalization. The last country to do that was Venezuela and we all know how it turned out for them. International laws are quite strong in this regard and doing so against China with it's multi-million army is even more dangerous. Till date, I haven't heard of any country refusing to payback their dues to China. Either they need to pay the installments on time, or they need to enter in to a deal of debt servitude.

[cabron]

That's cause they took that deal with China to build that port or something that involves global trade. China knew that they won be able to pay the project so now they mostly own the land that the structure was built in and at the same time China didn't risk that much because the money that they've loaned just got back to them by having a clause that they're going to only hire Chinese companies for the project.

Leasing port and selling the port to China is actually a fad to countries today. Even Germany and Greece have ports owned by China because they know having Chinese businesses and imports from China will make their economy grow. The whole world relies on China with products of any kind. US ports are partly owned by China like the ports in Los Angeles and Seattle. The reality is that world needs China for the products we all need and we couldn't just make war on the world's biggest trading partner.

The world is shifting already and we turn our heads instead of acknowledging that is it what is it because businesses from around the world moved to China. There is the need to get out from there but the labor in our own country is just too unprofitable for business owners.