Essayer OR - Gratuit
Sri Lanka should stop appeasing Trump
Daily FT
|July 29, 2025
THE Triffin dilemma, identified by economist Robert Triffin, highlights the conflict faced by a country whose currency serves as the global reserve.

To meet international demand, it must supply large amounts of its currency, often through trade deficits, which can undermine confidence in its long-term value while conflicting with domestic economic priorities.
The supply of US dollars to the global economy is primarily achieved through international trade, requiring the US to run persistent trade deficits. This structural necessity reflects the Triffin dilemma—a conflict between domestic economic goals and the global demand for the dollar as the world's reserve currency.
Trump's policy failures
President Donald Trump’s tariff-driven trade policies reflect an inconsistent and irrational response to this paradox. By attempting to reduce trade deficits through protectionism, while maintaining the dollar’s dominance, his approach fails to reconcile the fundamental contradiction at the heart of the dilemma. A strong dollar undermines US manufacturing competitiveness, while a weaker dollar risks diminishing international confidence and investment.
Manufacturing jobs have not only shifted from the US to low-wage countries in the Global South, but also to high-income nations like Europe and Japan, both of which maintain significant trade surpluses with the United States.
Since the 1980s, the dollar’s share of global foreign exchange transactions has surged from under 50% to over 85%, reinforcing its reserve status—but at a cost. US national debt has ballooned from around $ 10 trillion in 2008 to over $ 36 trillion today. This debt accumulation, partly a result of supplying global dollar liquidity, has begun to erode investor confidence. For the first time, US Treasury bonds were recently downgraded, prompting significant capital outflows from the bond market.
Cette histoire est tirée de l'édition July 29, 2025 de Daily FT.
Abonnez-vous à Magzter GOLD pour accéder à des milliers d'histoires premium sélectionnées et à plus de 9 000 magazines et journaux.
Déjà abonné ? Se connecter
PLUS D'HISTOIRES DE Daily FT

Daily FT
Be warned of thieves and nuisance-makers in AI space
Last week, I met Pradeep Devaiah, Chairman and CEO of Bangalore based PDA Trade Fairs? in Colombo who can speak authoritatively on how innocent people become victims of cyberspace criminals.
5 mins
September 22, 2025
Daily FT
Moose Clothing opens first-ever store at One Galle Face Mall
MOOSE Clothing Company has opened its first-ever retail store at the iconic One Galle Face Mall in Colombo.
1 min
September 22, 2025

Daily FT
Senaka Alawattegama appointed Director/ CEO of Kelani Valley Plantations
KELANI Valley Plantations PLC (KVPL), part of Hayleys Plantations, has appointed industry veteran Senaka Alawattegama as Director/Chief Executive Officer, effective 1 August.
1 min
September 22, 2025

Daily FT
SLB and Sports Ministry reward 12 medal-winning shuttlers at South Asia Regional Championship
SRI Lanka Badminton (SLB), in cllaboration with the Sports Ministry, conducted a presentation ceremony to reward the young shuttles who secured an impressive haul of 24 medals at the recent Badminton Asia South Asia Regional Championship 2025 held in Thimphu, Bhutan, The ceremony was held at the SLB Headquarters at Maitland Place in Colombo on 19 September, where players were presented with cash rewards and cer-titicates, issued for the very frst time by the conductors ofthe competition, Badminton Asia (BA).
1 mins
September 22, 2025
Daily FT
Emirates opens new flight crew training centre
EMIRATES has announced the opening of its new flight crew training centre, which aligns with the airline’s strategic growth.
2 mins
September 22, 2025
Daily FT
Public Rights Movement raises alarm over Litro tender changes, calls for probe
THE National Movement for the Protection of Public Rights has voiced strong concern over recent changes made to Litro Gas Lanka's tender process for importing liquefied petroleum gas (LPG), warning that the move could undermine the profitability of the State-owned enterprise (SOE) and compromise national energy security.
1 mins
September 22, 2025
Daily FT
KPMG experts discuss SVAT abolition and road ahead
SRI Lanka’s tax framework is undergoing a pivotal transformation with the abolition of the Simplified Value Added Tax (SVAT) scheme, effective 1 October 2025.
3 mins
September 22, 2025

Daily FT
Rockland commemorates 101 years with Chairman's Awards ceremony
ROCKLAND Group recently celebrated its 101st anniversary with the third annual Chairman's Awards.
1 mins
September 22, 2025

Daily FT
Phoenix rising: How Colombo Stock Exchange symbolises nation’s remarkable resurrection
TO truly understand the story of a nation, one need not look further than the pulse of its stock exchange. It is a living, breathing entity that discounts the future, processes the present, and is invariably haunted by the ghosts of the past. For 16 tumultuous years, the Colombo Stock Exchange (CSE) has been the most honest narrator of Sri Lanka’s modern saga—a tale of euphoric triumph, devastating despair and now become the forward barometer of Sri Lanka’s economic rebirth.
9 mins
September 22, 2025

Daily FT
Govt. holds pre-Budget discussion on maritime transport and logistics sector
A pre-Budget discussion related to the maritime transport and logistics sector was held last week at the Presidential Secretariat under the patronage of Labour Minister and Economic Development Deputy Minister Dr. Anil Jayantha Fernando.
1 min
September 22, 2025
Listen
Translate
Change font size