4 ms·

Here’s a better article that is less ideological: https://www.news18.com/news/explainers/explained-why-sri-lankas-food-crisis-is-actually-a-forex-problem-416718

Here’s a better article that is less ideological: https://www.news18.com/news/explainers/explained-why-sri-lankas-food-crisis-is-actually-a-forex-problem-4167188.html https://www.news18.com/news/explainers/explained-why-sri-lan... In summary, Sri Lanka has been facing an economic crisis and is struggling to pay for imports with rising exchange rates. One of the effects of this has been a push to reduce dependence on foreign imports across many sectors — including fertilizer.

coldcode 5y ago
This should be the article discussed. It barely mentions organic farming, other than concerns about the lack of fertilizer.
- natmaka 5y ago
  Indeed. This is a political (since 2018) and mainly financial crisis, and an attempt to adopt some organic practices is one of the effects. http://www.srilankaguardian.org/2021/07/sri-lanka-manufactured-crisis.html http://www.srilankaguardian.org/2021/07/sri-lanka-manufactur... https://www.bbc.com/news/business-58390292 https://www.bbc.com/news/business-58390292
duxup 5y ago
>As the country saw an economic boom in the post-LTTE years, it increasingly turned to foreign borrowings through the issue of sovereign bonds. But outside of tourism and certain exports, the country hardly managed to ensure it was attracting enough FDIs and foreign funds to meet its rising debt obligations. So was this economic boom purely internal demand as a result of the borrowing?
- baybal2 5y ago
  > So was this economic boom purely internal demand as a result of the borrowing? Yes, correct. The two consequent previous governments borrowed like crazy to pull "economic development" like a rabbit out of a hat.
  - duxup 5y ago
    I guess it's common just sad to see. Not like you can "just do it and be a bigger economy / sell stuff" but you gotta get some sort of economic output that results in exports or ... something there if you're going to borrow, otherwise the result is inevitable.
  - imtringued 5y ago
    The problem isn't spending because governments are a macroeconomic and microeconomic entity bundled together. Everyone wants to present it as a moral failure but it is quite simple. When your country consists of one industry and that industry is gone, so is your country. You can borrow and spend money to diversify. Lots of successful countries have done it.
baybal2 5y ago
> In summary, Sri Lanka has been facing an economic crisis and is struggling to pay for imports with rising exchange rates. One of the effects of this has been a push to reduce dependence on foreign imports across many sectors — including fertilizer. I was following it as well, but still got dragged into off-topic. The root cause was the current Marxist government committing a complete fiscal suicide, and then trying ham-fistedly to ban people from spending their Dollars under every silly pretext. Sri Lanka is a DEEEPLY DEEEPLY indebted nation after two previous governments, the current opposition's one, and previous incumbent's government maxed out country's credit card to buy votes, and draw fictional economic growth from debt. P.S. And ironically, the complete economically inane political leadership will now smash Lanka's FX account even more by destroying the few of country's export items.

coldcode 5y ago

This should be the article discussed. It barely mentions organic farming, other than concerns about the lack of fertilizer.

natmaka 5y ago
Indeed. This is a political (since 2018) and mainly financial crisis, and an attempt to adopt some organic practices is one of the effects. http://www.srilankaguardian.org/2021/07/sri-lanka-manufactured-crisis.html http://www.srilankaguardian.org/2021/07/sri-lanka-manufactur... https://www.bbc.com/news/business-58390292 https://www.bbc.com/news/business-58390292

duxup 5y ago

>As the country saw an economic boom in the post-LTTE years, it increasingly turned to foreign borrowings through the issue of sovereign bonds. But outside of tourism and certain exports, the country hardly managed to ensure it was attracting enough FDIs and foreign funds to meet its rising debt obligations. So was this economic boom purely internal demand as a result of the borrowing?

baybal2 5y ago
> So was this economic boom purely internal demand as a result of the borrowing? Yes, correct. The two consequent previous governments borrowed like crazy to pull "economic development" like a rabbit out of a hat.
- duxup 5y ago
  I guess it's common just sad to see. Not like you can "just do it and be a bigger economy / sell stuff" but you gotta get some sort of economic output that results in exports or ... something there if you're going to borrow, otherwise the result is inevitable.
- imtringued 5y ago
  The problem isn't spending because governments are a macroeconomic and microeconomic entity bundled together. Everyone wants to present it as a moral failure but it is quite simple. When your country consists of one industry and that industry is gone, so is your country. You can borrow and spend money to diversify. Lots of successful countries have done it.

baybal2 5y ago

> In summary, Sri Lanka has been facing an economic crisis and is struggling to pay for imports with rising exchange rates. One of the effects of this has been a push to reduce dependence on foreign imports across many sectors — including fertilizer. I was following it as well, but still got dragged into off-topic. The root cause was the current Marxist government committing a complete fiscal suicide, and then trying ham-fistedly to ban people from spending their Dollars under every silly pretext. Sri Lanka is a DEEEPLY DEEEPLY indebted nation after two previous governments, the current opposition's one, and previous incumbent's government maxed out country's credit card to buy votes, and draw fictional economic growth from debt. P.S. And ironically, the complete economically inane political leadership will now smash Lanka's FX account even more by destroying the few of country's export items.