By F.F Mushfika

The crisis

The Financial Times announced as of May 19, 2022, that

“A 30-day grace period for missed interest payments on two international sovereign bonds expired on Wednesday, forcing Sri Lanka into what some analysts called a” hard” default as the country confronts an economic and political crisis. The last Moody’s rated sovereign borrower to default in Asia was Pakistan in 1999”

The on-going crisis in Sri Lanka is overwhelming. The country is moving towards bankruptcy. The economic downfall has become massive. The shallowness of the foreign reserve today has shunned the country from moving forward. Sri Lanka being one of the emerging countries depends tremendously on its foreign reserves to provide the essentials. Over to 73 years Sri Lanka has been declared officially to be facing its worst nightmare of encountering the consequences due to the huge downgrade of the economy in 2021. Today, there are hour and day-long queues for even kilometers distance for the essentials such as fuel and food. It has abundantly impacted the lower- and middle-class families.

Sri Lanka owing to its mismanagement of funds and other unhealthy strategies such as the tax-cut in 2019 and disregarding the import of fertilizers have intensified the ruination of the country’s economy to an extent that is stated as “unbelievable” by the commoners. At- present the country is waging its war-like battle daily to fulfill their basic needs. It has become extremely difficult to survive and people are lamenting, crying, and protesting for a change and immediate solutions to rectify the crisis at hand. Although, the struggle looks like an infinite travel, some are keenly presenting strategies and tactics to overcome this economic crisis. Concerning the people’s needs-a short-term goal, many immediate resolutions were taken. These includes taking loans from other countries such as India and China. Nonetheless, this has further amplified the problems for a greater calamity. The pricing is towering high which is congesting the lives of the citizens of Sri Lanka. In addition, with every wrong decision of the government, the innocent lives are at stake. Owing to the demonstrators the state is also seemingly attempting to satisfy the people with many techniques- except for the fact that the commoners continue to suffer.

Introduction

In essence to the background of the story, it is indispensable to mention that there has been serious discussion to rectify the crisis with a long-term goal. The International Monetary Funding bailout is one among them. Due to several political reasons and instability, Sri Lankans are failing to reach IMF successfully. The Opposition Party are constantly urging the government to bring about a thoughtful management of affairs. Several ideas were brought in by Harsha de Silva – a leading economist of SJB and Sajith Premadasa – the leader of the Party. On May 17^th, the latter tweeted that,

“The need of the hour is for all Sri Lankans living abroad to use the formal banking channels for remittances. This is what supporting the country at this moment looks like. If you can influence anyone to do so, please do it”

It has occurred that the contemporary economic disaster is exhausting the pathetic civilians to their knees. The instantaneous deliverances like borrowing funds from other nations to supply the demands has only escalated the crisis furthermore to a chaotic environment. Focusing on the bigger image of the problem, it is high time the Sri Lankans talk about remittances. The foreign remittances could therefore make significant changes to the draining foreign reserves. This could heighten the possibility of giving a hope to the country- if only it is being managed in an efficient manner.

What are foreign remittances for Sri Lanka today?

Foreign remittance is a mode of money transference that is done by a migrant worker who resides in abroad countries to their homeland for their respective family members and relatives. These money are vastly received by family members for the purpose of covering their expenses. In countries like Sri Lanka – remittance enormously influence the economic growth. This is because, the inflow of foreign funds is thereby preserved by the state to use it for the economic development by involving in effective transactions among other countries. It would further enhance the supplies to the country as well. However, in 2020 due to a global decline in the economy – the World Bank issued a warning of a downfall of 20%. This enormously effect lower in-come countries- which is what you are witnessing nowadays in Sri Lanka. In abundance to misgoverning of affairs by the ruling party, Sri Lanka has immensely thrown into debt and bankruptcy.

The demand of the SJB for the present crisis.

SJB - the “United People’s Power” who is a responsible Opposition is uniting with the government to explore into solutions to overcome the problem. Endorsing the protestors claim to oust the Rajapaksha Regime, the Party also stands for the country to resurrect. The recent tweet of Sajith Premadasa, necessitating the inflow of remittances into the country is an alarming factor. This not only will ensure the growth of the foreign reserve but also will direct the country for a positive change. Due to the allegations of corruptions unto the Ruling Party- influenced the country from restraining to receive the mandatory dollars. Coupling with the deep-rooted hatred towards the Rajapakshas by the permanent migrants or diaspora, appeared to have featured their opinion to refrain sending money to the country as a possibility of Fraud. These allegations are of the nature that it could completely cease a person from supporting the nation. As a positive element, Sri Lankan government emphasized on transparency of using the funds to the public – predominantly for the essential commodities.

As of now, Sri Lanka’s economy is crippling towards its deathbed. The remittances from the fellow Sri Lankans living in foreign countries could extremely change over the events. It could also stop from the country falling into its deepening debt trap. It could be the greatest solidarity a person can display upon his homeland.

Once, as stated by Dilip Ratha- an intellectual of international migration and its relationship with universal growth,

” Huge remittances could cause huge appreciation to the currencies. We need to ask ourselves, how do we measure the remittances, what effects do they have on social programs”

The positive conclusion of hope

Having discussed about the remittances and its impact on Sri Lankan economy, it is essential that these transfers are based on authorized banking channels. In that case, it could be one major aspect of a lifeline to the Sri Lankans. Regardless of several disadvantages or alleged frauds, Sri Lanka could once again stand if only the government muddled through this chaotic situation with a proper strategy of overseeing the funds economically. Hence, the possibility of uplifting the country by eliminating the challenging times of the people relies upon the government, once more.

“Duty is the most sublime word in our language. Do your duty in all things. You cannot do more. You should never wish to do less” – Robert E. Lee-

With that being said, let us believe that a change is only possible when the duties of oneself is fulfilled. Let us also believe that the diaspora and the workers unitedly shoulder the Sri Lankans to overcome the tragedy together. May the silent prayers of the citizens of Sri Lanka survive on practical hopes.