Sri Lanka!

Sri Lanka, our southern neighbour, has never been out of problems for the last few decades. The idyllic retirement haven faced a civil war in its northern part that began in 1983 and ended in 2009, but with many thousand Tamils killed or taking refuge abroad. There is thus a deep incompatibility between various communities, the Majority Buddhists and the rest, Tamil Hindus, Muslims and Christians.

Rajapaksa family virtually controlled post-war Lanka, shuffling between the top portfolios. During this period, Sri Lanka shifted its loyalty towards China, offering cheap credits for its many unplanned and unviable projects. China’s objective was clear, to subjugate Sri Lanka and wean it away from India, and Sri Lanka fell into a debt trap. Sri Lanka presently owes US$ 51 Billion and has no means to repay at present with barely $25 million in reserves.

Sri Lanka has defaulted on its bond redemptions and loan repayments and has exhausted its foreign exchange reserves. Fuel supplies have become erratic, the long queues often taking 5-6 days to get a can full of fuel. Though vegetables and fruits are still available, grains and pulses have vanished and are fetching a huge premium in the black market. Sri Lankan currency has plummeted and still heading south with no scope of a stop in its slide.

The former PM, Mahinda Rajapaksa, reluctantly resigned after a spate of protests. His brother, Gotabaya, the current President, has finally agreed to resign after Sri Lankans landed on the streets and entered his home in protest. The protesters have torched the present PM Ranil Wickremasinghe’s home. Ranil has admitted that his country is bankrupt and has been seeking fuel from Russia on deferred payments.

Despite its stranglehold on Sri Lanka, China seems to have lost interest in the country, bogged down in the pacific with QUAD threats. India has assisted Sri Lanka with almost US$ 4 billion in aid, loans and swaps. The question is, what India could be doing in the future with Sri Lanka? Sri Lanka is a turncoat and had thumbed its nose at India not long ago when Mahinda dreamt of converting his country into a paradise-like Europe with China’s help.

Mahinda went on a building spree on borrowed funds from China, unwary of the pitfalls. He stopped imports of fertilisers, announcing 100% organic farming, resulting in a steep fall in production, including its cash crop, tea. There is no money to import life-saving medicines, milk, cooking gas or toilet paper. IMF has demanded the removal of subsidies on fuel and power, which will further complicate the situation. Tourism, another high revenue earner, suffered since the 2019 bombing of a church, killing 260 people. From untimely income tax cuts to antagonising the West and India, the Rajapaksas erred in most governance steps. They need a minimum of $6 Billion to stay afloat in the next six months, with a moratorium on its payments.

India has crucial geographical interests and must move Sri Lanka away from China and end its military infrastructure like seaports and airports, which are meant against our nation.

Jai Hind

Sampath Kumar
Intrépide Voix