eLanka

Wednesday, 24 Sep 2025
  • Home
  • Read History
  • Articles
    • eLanka Journalists
  • Events
  • Useful links
    • Obituaries
    • Seeking to Contact
    • eLanka Newsletters
    • eLanka Testimonials
    • Sri Lanka Newspapers
    • Sri Lanka TV LIVE
    • Sri Lanka Radio
    • eLanka Recepies
  • Gallery
  • Contact
Newsletter
  • eLanka Weddings
  • Property
  • eLanka Shop
  • Business Directory
eLankaeLanka
Font ResizerAa
Search
  • Home
  • Read History
  • Articles
    • eLanka Journalists
  • Events
  • Useful links
    • Obituaries
    • Seeking to Contact
    • eLanka Newsletters
    • eLanka Testimonials
    • Sri Lanka Newspapers
    • Sri Lanka TV LIVE
    • Sri Lanka Radio
    • eLanka Recepies
  • Gallery
  • Contact
Follow US
© 2005 – 2025 eLanka Pty Ltd. All Rights Reserved.
Home » Blog » Articles » Will the elation be short lived? – By Aubrey Joachim
ArticlesAubrey Joachim

Will the elation be short lived? – By Aubrey Joachim

eLanka admin
Last updated: March 25, 2023 6:12 am
By
eLanka admin
ByeLanka admin
Follow:
Share
8 Min Read
SHARE

Will the elation be short lived ? – By Aubrey Joachim

INTRODUCTION As of 2010, there were 45,159 Sri Lankans living in the US. Substantial immigration began in the 1990s when many fled the violence of the Sri Lankan Civil War. The majority of Sri Lankan-Americans live in the vicinity of either New York City (where there’s a Little Sri Lanka on Staten Island), central New Jersey, or Los Angeles.

Aubrey JoachimThere was dancing and jubilation in the streets. Firecrackers were lit in the suburbs. It was reminiscent of 1996 – when Sri Lanka’s national cricket team won the World Cup. Actually it was March 20th 2023 the day the ‘lender of last resort’, the International Monetary Fund – IMF – finally approved its life-line to the country a year after it defaulted on its loans and bonds. The 3 Billion Dollar loan is merely a trickle of what is needed and will just about keep the patient alive on life support. It is being drip fed in 9 tranches over 4 years, subject to strict conditions that the IMF will closely audit and scrutinise every 6 months. This is the 17th time that Sri Lanka has obtained an IMF rescue package – most of the previous have been aborted.

So what does this all mean to the nation and its people? Did those dancing in jubilation and setting off the firecrackers really comprehend the consequences of accepting the IMF loan? Medicine is always bitter and the IMF prescription is no different. The distaste is already being felt across the populace. Increased taxes, subsidies on many essentials being taken away and further pain on the horizon. However, one of the main conditions stipulated by the IMF – the first time it has ever been introduced into any rescue initiative – may prove to be the sticking point. Corruption has been in the Sri Lankan DNA for a long time and eliminating that trait may be a generational issue which will long outlive the IMF’s tolerance timeline. The President is promising to introduce tough new anti-corruption laws through the parliament but it is a well-known idiom that turkeys do not vote for Christmas. How then will this key IMF criterion be met? Will a second tranche of the loan ever hit the books?

The other challenging condition set by the IMF is for the unsustainable debt levels to be restructured within 3 months. This is a herculean task considering the diverse parties involved as creditors. The numbers tell a damning story. At the time the country defaulted on its debts a year ago the total outstanding was in excess of $52 Billion. The interest meter on this figure did not cease. Since the coffers ran empty various countries – mainly India as well as the World Bank have propped up Sri Lanka with credit lines which have also to be paid back at some point. The amount owing is steadily rising. Some $2 Billion of the old outstanding is due for settlement in a few months. Where will this amount be found? The President is also pleading of the lenders to accept a 10-year moratorium on loan payments. Will they oblige? The math does not look good.

While the paltry IMF offer will hardly scratch the surface of the issue it is hoped that it may unlock other sources of borrowing – to settle prior borrowings! It may also provide some confidence to global markets and investors to once more look favourably towards Sri Lanka. The key point however is that whatever funding that is attracted has to be judiciously managed. If the past is an indicator of the future, then the outlook is bleak. This is where those street side cheer groups have an important role to play and that is to hand over the economic reins to those who can and must change history. This expectation may also be ‘pie-in-the-sky’ thinking. Political wisdom is certainly not hard wired into the Sri Lankan DNA – at least in the past. It is left to see if the next generation can achieve a re-set. However, the young minds are being so confused with various political and social ideologies that a common sensible view may never be reached.

More Read

Down the memory lane (
Down the memory lane – By Charles Schokman
Kingswood College, Kandy-by Kalani-eLanka
Horton Plains: A Jewel of Sri Lanka’s Highlands – By Malsha – eLanka
Sri Lanka’s Floral Wonder: The 12-Year Bloom of Strobilanthes at Horton Plains – By Bhanuka – eLanka

While the so called ‘system-change’ that may address some of the above issues may take decades to realise the country at this point is badly in need of a robust short and medium term strategy and business plan. Above all it needs the fortitude to implement the initiatives. The government and its advisors need to look for the low hanging fruit first in order to bring its financial house in order. Government spending, loss making State Owned Enterprises as well as unsustainable subsidies must all be addressed. The tax base needs to be widened even though the cheer squads may not be pleased. And the big end of town must not be allowed to wriggle out of the tax net. Already the multi-million rupee earners are squealing. Existing production capabilities – agricultural as well as manufacturing – need to be lifted to the next level to generate more income.

While the opening up of capital markets and investment flows may occur such inflows must be harnessed towards both working capital as well as capacity building. Every piece of public infrastructure must provide a payback and above all the build-costs must be true and fair. New opportunities must be exploited based on a long term vision combining the country’s geographic positioning as well as its workforce. Already ideas are floating around for establishment of a supply chain hub and entering the digi-tech industries.  The question though is, has Sri Lanka already lost its best young brains to other countries? If so then converting such ideas to reality may be in doubt.

The IMF has thrown a life-line. It is now up to the leaders and the citizens to put their shoulders to the wheel and push. It is not easy to push uphill, but push they must. So for all those cheering mobs whose first act at hearing the IMF decision was to burn their few rupees in firecrackers, let the elation not be short lived.

More Read

Asian elephant with Sri Lanka junglefowl and butterfly in tropical forest
From Birds to Butterflies: Showcasing Sri Lanka’s Rich Natural Heritage – By Nadeeka – eLanka
Asia Cup 2025: ‘There was a difference of two boundaries’ – Dasun Shanaka rues missed chances after Bangladesh defeat By rathnam_nayak
Sri Lanka’s new wildlife guide: A passport to eco-tourism growth – By Ifham Nizam
Sri Lanka Sets $2.5 Billion Tea Export Target by 2030 with Boost in Production

Aubrey Joachim is a Sri Lankan expat who is an Australian citizen and is a Past Global President of the Chartered Institute of Management Accountants (CIMA) UK.

TAGGED:IMFIMF loanSri LankaSri Lanka’s national cricket team
Share This Article
Email Copy Link Print
Previous Article winner Booker Prize winner Shehan Karunatilaka on writing a good sex scene – By Benjamin Law
Next Article School Cricket The Royal-Thomian Cricket Match: Its History-by Michael Roberts
FacebookLike
YoutubeSubscribe
LinkedInFollow
Most Read
10 Pictures With Fascinating Stories Behind Them!

“A PICTURE SPEAKS A 1000 WORDS” – By Des Kelly

Look past your thoughts so you may drink the pure nectar of this moment

A Life Hack for when we’re Burnt Out & Broken Down – By Uma Panch

Narration of the History of our Proud Ancestral (Orang Jawa) Heritage. by Noor R. Rahim

eLanka Weddings

eLanka Marriage Proposals

Noel News

Noel News

Noel News

Noel News- By Noel Whittaker

EILEEN MARY SIBELLE DE SILVA (nee DISSANAYAKE) – 29 September 1922 – 6 April 2018 – A Woman of Value an Appreciation written by Mohini Gunasekera

K.K.S. Cement Factory

Dr.Harold Gunatillake’s 90th Birthday party

Sri Lanka's women's cricket squad in Melbourne

Cricket: Sri Lanka’s women’s squad in Melbourne

- Advertisement -
Ad image
Related News
Sri Lanka hosts the Asia Pacific Motorsport Championship 2025! 01
Articles

Sri Lanka hosts the Asia Pacific Motorsport Championship 2025!

Elanka newsletter
Articles eLanka Newsletters

eLanka Newsletter -21st September 2025 – 3rd Edition – Sri Lankans In Australia

Articles

Foods that can naturally support better sleep

Articles Photos

Fabulous Sri Lankan fare and great music makes the Springvale RSL the place to be. By Trevine Rodrigo in Melbourne.

Articles Cricket News

Watch Asia Cup 2025 (T20) Sri Lanka Cricket Match Highlights

  • Quick Links:
  • Articles
  • DESMOND KELLY
  • Dr Harold Gunatillake
  • English Videos
  • Sri Lanka
  • Sinhala Videos
  • eLanka Newsletters
  • Obituaries
  • Tamil Videos
  • Dr. Harold Gunatillake
  • Sunil Thenabadu
  • Sinhala Movies
  • Trevine Rodrigo
  • Michael Roberts
  • Photos

eLanka

Your Trusted Source for News & Community Stories: Stay connected with reliable updates, inspiring features, and breaking news. From politics and technology to culture, lifestyle, and events, eLanka brings you stories that matter — keeping you informed, engaged, and connected 24/7.
Kerrie road, Oatlands , NSW 2117 , Australia.
Email : info@eLanka.com.au / rasangivjes@gmail.com.
WhatsApp : +61402905275 / +94775882546

(c) 2005 – 2025 eLanka Pty Ltd. All Rights Reserved.