Re: Government Debt to GDP

[BackstageTop contributor]

I guess it depends on what the borrowings have been invested in. With high debt either you are in deep shit or minting profit. Or is that a simplistic view ?

Though I don't like the words you used, what you said is true. At the same time I would say if you create one elephant targeting tourism that will become White even the feasibility reports say its Jet Black...If you make more White Elephants at feasibility level targeting tourism soon all will become hard earning Black Elephants...

If you have only Nelum Kuluna no tourist want to visit that... Yet if you have Port city, Safari worlds, Mattala Airports, Hambanthtota Habour harboring passenger ships, Highways, monorails, expressways, Seminar Halls, Casinos, Tourist Hotels,,etc etc... all will be Black Elephants...Just construct one only and wait you can prove its a white elephant...

Government is putting ads saying Debt Trap...while increasing state debt to gdp in 2015...Instead of blaming the previous leader now its their turn to brainstorm and do something...

Thanks YK,
I shall refrain from commenting on Mattala and govt policies previous and past.
BTW which word didn't you like ? the slang for excreta ? So that I can note not to repeat in the future. I know people like ET, don't like too much slang and I am careful when responding to such.

[yellow knifeTop contributor]

No Harm....BS...

I can live among smokers without smoking... I can survive amidst drug addicts without getting into drugs..sponsor liquor parties without consuming liquor...

Go ahead... we belong to an old pattern where we believe less slangs in communication...

[කිත්සිරි ද සිල්වාTop contributor]

Excellent and thought provoking as usual YK.
Mud slinging is acceptable initially (as it is the protocol here in Asian and underdeveloped countries) but NATO boys have had enough time now to get their bearings right, so they should stop blaming the past.

[Yin-Yang]

Why can't our economist become a little creative?

One of the biggest issue we, as a country, face is the imbalance between imports and exports.

Why can't they be creative and implement something similar to 'carbon credit' for imports.

What I suggest is;

Whoever exports or bring in foreign currencies will be given 'imports credits' proportional to the value they bring in. For example, USD 1,200/- worth of exports will be allocated one unit of import credit.

Then, whoever wants to import anything need to have earned the equivalent amount of credits. For example, if someone wants to import USD 1,000/- worth of goods, he need to surrender one unit of import credits to the controller.

In addition to that, we can create a secondary market for 'import units' to trade. In that way, exporters will be double benefited with some additional gains by selling import units in the secondary market.

This mechanism will automatically make sure growth of exports faster than imports.

What do you feel about my 'Tikiri Molae'

[yellow knifeTop contributor]

Let me first agree with you Ying-Yang...

This our economy and even now Bulk Tea place a valuable position in our export tree..



TJL represent the modern effort of export and that's garments...

[කිත්සිරි ද සිල්වාTop contributor]

Good suggestion YY.
(My only fear is this system like many such trading / exchange is prone to abuse because of the corruptions. Get that issue out of the equation, things will start to fall in places).  

[yellow knifeTop contributor]

Let me disagree with you Y&Y

Your policy is called " Beggar thy neighbour policy"... You ( your nation ) want all the benefits of free trade and those who trade with you should always be in deficit...That is bad...

Practically every nation love what you said.. But free trade is a zero sum game...

China can never be ending in positive balance in trade account without US running into trade deficit...Today US understand that and there is no war because of that understanding.. If not What British did to China with opium would have repeated...

Now from our perspective of SL, we have to improve on manufacturing and export orientation...

[Yin-Yang]

In fact, I had thought of that.

In essence, the 'method' I proposed is a zero sum policy. At the end, the equilibrium will arrive when imports equal exports.

(The 20% gap will be a provision for gov to import essentials (such as medicine) without 'import credits')

[yellow knifeTop contributor]

Thanks and very good...

[Yin-Yang]

And another major problem faced by the farmers in the country is lack of a price assurance for their crops.

Time to time they get to streets demanding a solution.

We can find a simple, win-win solution by implementing a futures contract mechanism with a secondary market. That way, farmer would get a guaranteed price for future crops and buyers would be protected against unexpected price hikes.

And speculators also can use their talents creatively to earn something.

If you think creatively, you'll see that Stocks/futures market has simple solutions for all of these types of complicated problems.