economy Archives

Daunting task for government amid sliding economy By Sunil Thenabadu The landslide resounding victory of the SLPP sweeping aside all opposing political parties in year 2020 like a “tsunami” would never have been even in the wildest dreams of any staunch supporter of the party. However the top-notch politicians prior to the postponed election knew well the pathetic situation our economy was in, was aware of a daunting task for any new government. Although the victory at the polls was a cake walk, astounding music to the ‘SLPP”, the new government which is burdened with an enormous intimidating state of affairs to place the system on track in the midst of a global recession and rising job losses. With negative growth predictions, no budget for the entire 2020, with negligible taxes figures with another hurdle is the climbing of tax issues in year 2021. So far, figures indicate at least half a million workers – directly and indirectly – have lost their jobs largely in ...

Lowering of interest rates of deposits only escalates bank profits – by Sunil Thenabadu in Brisbane The motive of the government decision to lower the interest rates of deposits was predominantly to engross the banks to lend at lower interest rates for entrepreneurs to boost the economy of the country which is in dire straits. However, would this proposal prove productive? Obviously not so practically or on paper.as at date if statistics are searched in relation to the benefit reaped by the entrepreneurs a much larger percentage of depositors have been deprived of receiving a sizeable interest component. The Fixed Deposit interest rates have been drastically reduced from around 11% per annum to alarmingly lower rate of just 4 % which has caused a financial distress for the depositors most are retirees who had invested their life long savings and gratuity money at retirement. With the escalating cost of living, with the ...