Sri Lanka’s economic crisis goes from bad to worse .As intimated by the Prime minister Ranil by next August Small and medium enterprises will collapse and about 100,000 people will lose their jobs. The banking system is set to collapse due to the mandatory payments on ”forward transactions” which need to be settled by USD and also the impact of increasing bad debtors. The only solution for the crisis is IMF.
The IMF has officially announced its support to the Sri Lanka. Following the discussion had with Ali Sabri, Masahiro Nozaki Special Envoy for Sri Lanka made that announcement . Nozaki declared that that process would begin once a stable government is in place.
However, last week Masahiro Nozaki expressed his deep dismay on prevailing political situation . There are two main reasons for it.
1. The new cabinet is being a proxy of Mahinda Rajapaksha who chased from the power
2. All the four major political parties in Sri Lanka have exploded internally
The current cabinet is a proxy of Mahinda. It can be understood through the grid below.
On the other hand, the main political parties in Sri Lanka, SLPP, SJB, SLFP and UNP have exploded internally.
1. The SLPP is now broken into several pieces. Minority parties have detached . Specially SLPP has been irreversibly shattered mainly because giving posts to anti-gota personnel and not giving posts to those who committed to bringing Gotabaya to power. The Gota-Mahinda conflict also lying in a crucial juncture.
2. About 10 SJB MPs have planned to be non-partisan. Sarath Fonseka is preparing to seize power from the weakening SJB Party. It is possible that Sarath Fonseka will soon become the Leader of the Opposition.
3. Although Ranil grabs Sajaba MPs, the pillars of the UNP are disappointed with the party leadership . Naveen, Ravi, Arjuna and Lakshman’s group are facing this fate .They have already held talks with the frustrated Pohottu, SLFP and minority leaders.
4. The SLFP is on the verge of a natural death
In diplomatic parlance, ” Deep dismay ” means that the relevant matter is something impossible . Hence , Masahiro Nozaki is disappointed about the current situation means that nothing would happen. Talks with IMF is white elephant.
Although Ranil was said to be a great diplomat, now appears said claim is untrue. Ranil, who came forward to defend Rajapaksa, could face a tragic fate.
In the forthcoming election, All four major political parties will be washed away and two new alliances will be formed.