Lesson to learn from Sri Lanka crisis: Economist

PETALING JAYA: Malaysia should view the critical situation in Sri Lanka, where its people are suffering from serious shortages of food, fuel and other essentials, as a serious lesson rather than just news, as this could happen in any country where corruption is allowed to run rampant.

In this regard, senior economist Tan Sri Ramon Navaratnam said British Commonwealth countries and others should lend the country a helping hand as its people are suffering from hunger and poverty.

“I’m sure Sri Lanka was warned before by the International Monetary Fund (IMF) in a friendly manner to watch its economic growth and declining exchange rate, but it ignored the advice due to bad governance, and racial and religious war.

“They spent so much on the war which could have been saved for the people, including farmers and fishermen, and to provide basic necessities.

“All members of the British Commonwealth, including India, Malaysia and even third countries should provide something in kind, such as petrol, (liquefied petroleum) gas, (cooking) oil and rice, as immediate help because people in Sri Lanka are desperate.”

However, he said some countries may not want to support Sri Lanka in the belief that the country was the one that put its people in danger with racial conflict and dirty politics.

Navaratnam suggested IMF provides guidance on rectification and rehabilitation not only to Sri Lanka, but also to other countries facing similar situations in regard to corruption and law enforcement.

“Sri Lanka can only seek favours from countries close to it, but some may not provide it as their citizens may question the need to save a country that is mired in corruption.

“IMF can guide Sri Lanka and other countries with weak economies in many ways, such as cutting unnecessary expenditure, fighting corruption, introducing meritocracy, enforcing better rule of law and reducing bigotry to encourage foreign investments,” he said.

Meanwhile, retired HELP University Assoc Prof and journalist Krishnamoorthy Muthaly said countries around the world should gather and donate funds to Sri Lanka’s government so that it would be able to recover from economic shock.

Krishnamoorthy said assistance could also be provided through government-to-government aid where meals, fuel and clothes could be transported there via sponsored flights.

He added that the long-term solution lies in Sri Lanka’s ability to honour its debt obligations by increasing forex inflows through the expansion of its export of goods and services, as well as by providing facilities for foreign investment.

“Countries should step up to help raise funds for Sri Lanka and send the money to its government. This will assist in its economic recovery and spur growth.

“Many airlines would like to sponsor charity supplies to Sri Lanka, including food, clothes, fuel, cooking oil and other essential items and this should be done as soon as possible.”

Krishnamoorthy said the new Sri Lankan government should recover the allegedly illegal investments of former president Gotabaya Rajapaksa, which were said to have been used for personal benefit, including property purchases abroad.

He also emphasised that holding elections and electing the right leaders would be the best preventative measure for any country to avoid a similar situation in Sri Lanka, which was caused by massive corruption.

“Voters must choose wisely in the next Sri Lankan election. Wrong politicians at the helm can have devastating consequences for any country and its people. This is a lesson for everyone, including Malaysians. Don’t vote for corrupt leaders,” he said.

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