Navigating crisis

“The winds and waves are always on the side of the ablest navigators” - Edward Gibbon

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AT a recent book launch organised by Advocata Institute, former President Ranil Wickremesinghe made a startling statement.

A substantial section of the cognoscente on economics in our land perceives him as our preeminent strategic thinker.

Commenting on US tariffs he said, “US is a member of the OCC. And the US has signed on to the EFF and their time limits which means they must help us now... Otherwise they are in breach of the agreement.”

“They are preventing us from repaying bondholders, the former President pointed out adding, “And now we must tell the IMF...tell the bondholders to go to the US and collect the money.”

He hoped the current administration will succeed in getting the Trump tariff down as Sri Lanka “cannot survive with 30%”.

The gathering he addressed had many outstanding people in the field of finance and commerce.

None seemed to remember that Wickremesinghe in 2007 as leader of the Opposition and the UNP wrote to the foreign banks that a “future UNP government would not permit the repayment of the proposed US $ 500 million bond.” His Government did not repudiate the ISB debts. Instead, it tripled ISB borrowings.

The IMF is the Global Overseer ensuring good behaviour of debtor countries. The Land of Trump with a $ 36 trillion debt is exempt from its watch.

The US Dollar is the main global reserve currency - which the French have insistently maintained as 'an exorbitant privilege'.