Thursday, March 10, 2016
The Chickens have come home to roost – we are in a debt crisis!
I found it amusing when I saw that Fitch had downgraded our Sovereign Debt, that there was a threat to arrest the head of Fitch in Sri Lanka and imprison him for treason! Yes when you downgrade debt, then our cost of borrowing goes up.
This means that in a stroke of a pen, we have to pay Billions more for borrowing, and EACH AND EVERY ONE OF US HAS TO PAY IT, so we should all go and lynch him, right!
The link above in Sinhala describes this problem quite sensibly and is worth reading.
As usual we have put the cart before the horse! We should be lynching the Rajapakse Administration, and Mahinda Rajapakse himself for getting us in this mess in the first place. If he had not borrowed so much on white elephants, we would NOT be in a mess. He understands politics and how to fool people, but he DOES NOT understand economics and that you have to repay loans with interest, and to pay interest the investments must earn a rate of return in excess of the cost of that borrowing.
Having said that THIS GOVERNMENT ALSO MUST SHARE some of this blame, as they added to the woes of the Country, by promising the most incompetent and inefficient and resources draining section, namely the Public Service, a pay raise of Rs10,000 per month per head, which we just cannot afford to pay! We in the private sector are working doubly hard, so that the wastrels in the public sector can earn more, and make life in our area more difficult, because all our workers want to leave, as the Govt. pays more for less or no work!!
Mr PM and MR President we really feel it now, as you are rewarding incompetence, and you are generating dissatisfaction amongst the most productive workers of Sri Lanka, the private sector, to the point they want to leave as it does not pay to work, when they see their neighbor leave for work later, and return earlier, is not stressed, and has a bigger paycheck, and further is taking bribes, just to pass the files from one desk to the other.
WILL YOU NOT BE MAD IF YOU ARE THE WORKER? The trouble is you are the MP, in Parliament, completely oblivious to the suffering of the Private Sector, burdening him more with 15% tax rate that he has to pay for the TV or Fridge that he is saving to buy, by working overtime, too.
Mr Prime Minister, you and your MPs, only see the lazyness of the Public Sector every day. You don’t see the productivity of the Private Sector, so you cannot appreciate its sacrifice, and in turn being given a RAW deal by you!
It is time you announce a PRODUCTIVITY DRIVE FOR PUBLIC SECTOR NOW to put the fear of God on the 14lakhs of workers who are bleeding this Country dry - Most are traitors of the Country.