Covid crisis leaves Sri Lanka on brink of bankruptcy

[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.

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[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.