“Many more” ready to deposit says Ravi K

Similar to the unidentified Belgian investor who is parking US $ 1 billion in deposits, there are “many more” ready to help Sri Lanka to defend its currency and bolster its reserves, according to Finance Minister Ravi Karunanayake.

Despite his ‘no question asked’ approach to inflows to the country has received a lot of flack from media, economists and corruption watchdogs alike, Karunanayake says these deposits will replace loans drawn at high interest rates.

“Why do you want aid when you can trade? Trade should substitute aid. Likewise why do you need loans, when you can have deposits? When deposits come, your reserves go up,” Karunanayake said during an interview with Mirror Business.

According to him, foreigners flocking to park their money in Sri Lanka, is an endorsement of the Sirisena-Wickremesinghe economic policies.

“Nobody basically has any corrupt motive because we are a clean government. So nobody runs after 6 percent loans when you can attract foreign deposits for one or two percent.”

Responding to the critics of his ‘no questions asked policy,’ Karunanayake assured that proper local and foreign guidelines in relation to ‘know your client (KYC)’ are being followed when inflows are allowed into the country.

“No money would come into the country without KYC. Those who criticize us should know better,” he asserted.

Another criticism levelled at this policy was the possibility of hot money moving into the country.
“In a world of cold climate where the economic turbulences are there, hot or cold money is not the answer.

The hot money, yes it is movable. But it is our policy that will make it stay,” Karunanayake said.

“We thank those people, we salute them. We’ll ensure that all the protection given in the KYCs and we want more of those moneys coming in,” he added. The minister further said the Sri Lanka could also expect inflows from countries in the European Union, Japan, China, Korea, India, and the USA during this year.

“Our foreign policy is based on ‘friends with all, enemies with none’. That’s the approach we want to take,” he said.

Sri Lanka’s rupee against the US dollar depreciated over 9 percent in 2015. The Central Bank in latter part of January 2016 said the rupee appreciated 0.1 percent.

Higher foreign debt, lower exports income and current global economic headwinds, particularly stemming from imbalances in the Chinese economy, have negatively impacted Sri Lanka’s economy.

The country is currently in talks with the International Monetary Fund (IMF) for possible BOP support.

- See more at: http://www.dailymirror.lk/105353/-Many-more-ready-to-deposit-says-Ravi-K#sthash.XGhdZvhL.dpuf

Charts often save words..

The invisible development ( asata nopenena sanwardanaya) and unidentified investors are new concepts we heard along with Yahapalanaya...

However I like to know why the impact of unidentified investors is not visible in forex charts..



Its visible the change since Jan 8 Samanala Viplawaya the moment you see above chart ... Yet where is the impact of UIs... ( Unidentified Investor)

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It in his Swiss account

This reminds me of a good quote by Upton Sinclair on this subject:

" it is difficult to get a man to understand something when his salary depends upon him not understanding it".

I wish to add:

"It is more difficult to get a man to understand something when he is dealing with non-monetary currencies"

Even if you like it or not, the yahapalanaya is losing its popularity much faster. Only a few die hard yahapalanaya fans still firmly believe that they will deliver but majority started knowing their colors. It's important to know what public think.

Maithri's facebook:
https://www.facebook.com/maithripalas/photos/a.10152437383531327.1073741826.365053451326/10153807007101327/?type=3&theater

Rajitha's facebook: https://www.facebook.com/Dr.RajithaSenaratne/photos/a.376101369129.159444.295625339129/10153679891214130/?type=3&theater

Ranil: https://www.facebook.com/ranil.wickremesinghe.leader/photos/pcb.731985370234305/731985280234314/?type=3&theater

Now check on MR's facebook:
https://www.facebook.com/PresidentRajapaksa/photos/a.10150985460841467.410021.197351301466/10153192231751467/?type=3&theater

yellow knife wrote:Charts often save words..

The invisible development ( asata nopenena sanwardanaya) and unidentified investors are new concepts we heard along with Yahapalanaya...

However I like to know why the impact of unidentified investors is not visible in forex charts..



Its visible the change since Jan 8 Samanala Viplawaya the moment you see above chart ... Yet where is the impact of UIs... ( Unidentified Investor)

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The reason is due to the new finance experts in the YP team.

They do offshore banking and commodity trading.

For example take the MALDIVES:
Most of the hotel bookings are done online and offshore. The Hotels in Maldives have FCY accounts in UK, France, Germany Dubai and other business-friendly Asian countries.

very little FCY enters the Maldives making it impossible for the Maldives Local banks to operate.
People cannot collect or remit FCY with ease and if ever it is restricted like the Sirimavo Bandaranakaye Government days of the pre-1977.

The reason why is obvious.
Most of the Hotel owners are foreign investors and their accounts are filled with the proceeds of the tourists and visitors directly with going through the Central Bank or Exchange Control.

there are a few of the family members exclusive club who are allowed to do business and the rules do not apply in all instances.

The Maldives Tax legislation is also very weak and only implements the VAT. Most Hotels have two sets of books and the earnings on bookings are cooked up by not the chef but by the very create accountants and tax experts within the company.

Products are smuggled into the country and the tax authorities turn a blind eye to the shady and underhand dealings going on within.

FRANCE:

Iran and France do their bi-lateral trade despite all that happened as recent as Dec 2015. No questions asked. Money talks and Leaders walk the talk.

As long as their hands are well oiled there is no need for spoiling the fun!


Now back to the subject.

YP can wear rose glasses and do all the offshore banking which will not affect the consciences of anyone in particular and violate any of the rules and regulations.

China will own the land, and the rules of the new system will apply for the extended city (Like the Vatican) and no one is able to mess with the on-goings.

The Sri Lankan Soil is not blemished and tax evasion, harbouring of dirty money and tolerance of evil doesn't arise in this scenario.

Short of money laundering and piggy-back riding the LKR / USD FCY rate may drop and YK will have to revise the FCY chart accordingly very soon.

Just wait till JKH is revamped and all fetters of gun-shot decisions are made to ensure the Sri Lanka not only becomes the top most tourist destination but also the most friendly country to do business in the world!

Some people suffering from prolonged grief reaction. Might need help before things getting insane

Good one Hal

HAL9000 wrote:Some people suffering from prolonged grief reaction.  Might need help before things getting insane

The above FB links are peoples' voice and not mine. Why some people always try to wash out others when others try to express their ideas. Please be little neutral and don't attack personally.

I don't understand why some people are so selfish and don't see how many Sri Lankans are losing jobs. First construction workers, importers, small businesses, car dealers and now IT engineers and doctors. This list will become much longer as time goes on.

You don't feel the pain unless your job is under threat.

Some people are in the top 20 in almost all the companies listed at CSE and they don't feel the pain of losing a job but I know how it feels as I depend on a monthly salary.

Future 123 has a point. Please read along the lines.
Maybe a reshuffle and a change in the economic status particularly construction, exports and vehicle taxes might amend the situation for the better, if not, the pain will certainly be felt very soon.

Future123 wrote:The above FB links are peoples' voice and not mine. Why some people always try to wash out others when others try to express their ideas. Please be little neutral and don't attack personally.

I don't understand why some people are so selfish and don't see how many Sri Lankans are losing jobs. First construction workers, importers, small businesses, car dealers and now IT engineers and doctors. This list will become much longer as time goes on.

You don't feel the pain unless your job is under threat.

Some people are in the top 20 in almost all the companies listed at CSE and they don't feel the pain of losing a job but I know how it feels as I depend on a monthly salary.

Excellent Future!

Future123 wrote:The above FB links are peoples' voice and not mine. Why some people always try to wash out others when others try to express their ideas. Please be little neutral and don't attack personally.

I don't understand why some people are so selfish and don't see how many Sri Lankans are losing jobs. First construction workers, importers, small businesses, car dealers and now IT engineers and doctors. This list will become much longer as time goes on.

You don't feel the pain unless your job is under threat.

Some people are in the top 20 in almost all the companies listed at CSE and they don't feel the pain of losing a job but I know how it feels as I depend on a monthly salary.

well said..

Don't worry about other shoe-shine boys... official whitewashers of the yahapalana government

Good if people see that current situation the Country faces is partly due to the things that happened when the past Govt ruled and partly due to the new Govt with excess consumption (increasing salaries, etc without generating money) that this Govt initiated and due to some mistakes they did in not tightening the fiscal policy on time.

If someone says current economic situation is due to the current Govt, they have no idea about the how the Economic policy affects and things that happened. They also do not know things that are happening Globally which has a direct impact on us.

Also if someone says that new  Govt didn't make things worse, they also should be blind. Massive consumption related costs (though they maybe for good causes in most situations) , wrong fiscal policies have put the Country to a worse situation than it would have been with the previous Govt.

However, even worse is that for the first time i have seen, there is a significant lot of people who do not want the Country to progress - because they have been blinded by a petty political agenda. Criticism should always be there for a ruling Govt and should be to there to take the Country to next level of development and not for any political agenda.

Below is a message for all :

Shashimalla knows best as he has brushed shoulders with both sides of the team and either side of the ship (Stern and Bow).

So lets hear from you your balanced view on the current financial and political scenario and also I like to hear your own thoughts on the solution!