Readers may recall some of my earlier posts about the dramatic developments this year in Sri Lanka. The country’s economy went into a deep dive, with essential supplies such as fuel for vehicles and cooking and medicines becoming unavailable, the prices of food skyrocketing, and inflation soaring. This caused massive hardships for almost everyone in the country, except of course for the very wealthy, with people waiting in long lines, sometimes for days, in order to get even the smallest amount of essential supplies.
The proximate causes of all this were two major decisions taken by the government: one to suddenly ban the import of chemical fertilizer, which devastated agricultural yields, and the other was the decision to pass a massive tax cut accompanied by printing money to cover the resulting deficit, leading to high inflation. The ultimate causes, though, were the long standing corruption and nepotism and incompetence that had been going on for decades but became most pronounced in the last government in which the president and prime minister and two cabinet members were all brothers of the same Rajapaksa family and another cabinet member was the son of the prime minister. Other members of the family were also given government positions, making the government essentially a family fiefdom.
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