So here we go again. Diesel up by 36% or Rs31 to 115 a litre! Petrol by 12 and Kerosene, the poor man's fuel by Rs35 and so all subsidies on fuel are now in balance, as requested by the IMF to give Sri Lanka the latest tranche of US$800M to bail the country out of a debilitating balance of payments crisis.
The powers are blaming the West for all the ills. Again it will be the USA blamed for the crisis in Iran, which will prevent the needed crude oil from Iran to power our refinery. It is more difficult to use other crude oils to refine as the refinery in Sapugaskanda is designed for the particular type of crude that Iran provides.,
The reality is that the Government has FAILED miserably in its economic policy, and as a step towards devaluation, is increasing the fuel prices to the required levels before devaluation, rather than have to resort to it after devaluation, so that they can achieve two ends. Namely blame the US for the oil price hike, due to its interference in Iran, and also to prevent, stocking up on fuel, if a devaluation is imminent as it results in an inevitable oil price hike. SO it is to avoid political fallout that this step was taken in advance, to save the government's bacon, by blaming the bully US rather than its real nemesis, bad policy and planning, along with wholesale first family corruption and bad management of the economy for our ills.
It is difficult to see if they succeed in fooling the people yet again, so that they will not agitate for change, but no matter what icing they try to put on it, it is the sheer arrogance of economic policy and of its proponents that is the stark reality. It is now coming home to roost and we the people are paying the price. As long as there are apologists for the government it will take a long time to accept what is apparent to people with common sense, that you cannot spend money you do not have, and there will come a time when we will have to make good the debts we have piled up.
What is more galling for the average person is that the govt. borrowed at high rates of interest to defend the rupee, to the tune of more than $2Billion, basically wasted and squandered which the future generations have to pay, but more to the point borrowed heavily in foreign currency namely in dollars from Chinese entities, at high rates of interest than is otherwise available to finance grandiose and unproductive projects because they involved millions of dollars of bribes to the powers which the voter was successfully fooled into believing was money well spent!!!!
The power of the state will be used to suppress dissent, prevent wage increments, and otherwise impoverish the poor, when price hikes are inevitable at every step of the way. That is the modus operandi of the current government, and those who oppose it will not be left alone.
I believe the chickens will come home to roost at some time when they get fed up being left out of the coop, and one day the treachery of the elite will be laid bare, and I hope that day is near and not far for the sake of the people and the future generations of the people in this country.
The Headlines of all the papers should read " the govt. gives in to the IMF hook line and sinker, despite all the rhetoric to the contrary" So do not believe what they have to say in the future as they have betrayed the people.
But our press is muzzled and they do not have the balls to tell the people the truth! So we have to resort to blogging to keep the people informed as to what has happened and is to happen, while the leaders are fiddling with our money as we speak.
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