Eating the humble kavum with interest

What a pathetic situation it is when the nation is celebrating its New Year with a loan from its neighbour

Munching my favourite Konda Kavum, I paused to reflect as this is a New Year like no other. I am eating the humble kavum and not the proverbial pie but the kavum is loaded with interest – my kavum today is coming at a higher cost as the Aluth Avurudu festivities have been made possible due to the Indian credit line and there is an associated interest to pay. 

The credit line in the first instance is much more a result of geopolitical interests than due to an everlasting friendship dating back millennia. In desperate situations, real friends should in my view behave differently. Such reflections of course make the swallowing quite difficult though finally, I had to. 

Time for reflection, revolution or retribution, or all three? The incumbent finance minister is indicating that we have to arrest the airship – our economy – from the near imminent crash. He was earlier coming out with the statement that it is not wise to blame the laboratory for bad news when you have taken lots of sugar and then go for a blood sugar test. The new CB governor’s analogy of the car heading down a mountain slope and having to use breaks leaves nothing much to imagine. Near imminent crash of our economy is on both their lips. Seriously troubling statements but as we appear to be in the eye of this economic and political cyclone we do not have the option of seeing, hearing, and saying no evil. 

Acting swiftly and understanding what is in store for us as well as ensuring that we do not go under appears to be the sensible option. It is important to indicate at this point that what we do today or do not do is going to define us in the future. I do hope for Sri Lanka and believe we would pull through but also understand that we are yet to face the worse. One certainty is politicians of all colours stand exposed and they exist with minimal trust. 

I always hated standing in a queue waiting for my turn with the immigration officer while making a visit overseas. I similarly hated walking into an embassy in the process of obtaining a visa. The unimaginable hassle even in some cases even having to show your house deed is a degrading experience. Visa appears to be a big favour when it is given and the whole act is quite painful in my view as a citizen of a country. I must hasten to add that I have no animosity towards those public service personnel of another country. The reason when the officers take multiple looks from the document to your face and display all indications that this passport is a fake you know that there is scant recognition of the passport of my country. 

Well, the status of the passport simply reflects our contributions so far in nation-building – where we are with what we have done is reflected in that document we must understand. I must hasten to add that I am in no way unhappy over holding the passport, which I would continue to do so and with pride too. However, I am fully aware the quizzical looks and mistrust over the document are a result of our past – things we have done and or have failed to do. If a passport was the liability yesterday the very existence appears to be an issue today. Turn into news and you hear that a ship has come with fuel while km long queues are shown awaiting fuel. Then also you hear the balance of the loan existing given by India and what is left after deducting for this supply of diesel shipment, etc. 

I have no words but to say what a pathetic situation it is when the nation is celebrating its New Year with a loan from its neighbour. It is quite sure we have not moved to a respectful stable position since that fateful date of 4 February 1948. We have been reduced to a situation of living from ship to ship with borrowed money. How can one be proud of our activities for the past years if the results of all so far, had come to this situation? 

Even sadder to hear is that the worst is yet to come! No one is guilty and also not all are not guilty either but some are much more responsible than others. In the immediate past, one could, unfortunately, see several decisions resulting in this precipitous journey to the abyss.  For a period, I almost see the kind of management theory known as the mushroom method of management in force. This is coming from how mushroom is grown – keeping them in the dark and being fed with manure.

The elephant in our economic room is corruption. It is alleged that our loss due to corruption affects our GDP significantly. Corruption is so significant and almost indicates that this is the single most critical contributor or the one that drains GDP away. Whatever change of guard if this factor of destruction is not changed there is no salvation. Corruption has to be reduced and minimised with intent and the direction needs to be communicated well. That this course correction is taking place has to be felt. Allow the action to speak louder in this specific area.  

Ensuring the adoption of technologies, minimising layers of bureaucracies, and reducing government and politics in this small island (i.e. like PC system which is a pure white elephant!) is a must. Change whatever format and form may be, one thing is clear. Change has to address the perception of corruption and the serious erosion of trust. These must have contributed to the failure of FDI to rise since terrorism was taken care of. Lack of discipline and intolerance is quite visible. While zero corruption may be utopic there has to be concerted action and the stamping down on such practices. It is difficult to imagine Sri Lanka coming out of this mess without addressing this disease.

While the issue is considered economic and political, the solution not necessarily would be from these two areas. Now, this understanding maybe even harder to fathom than working.   Today the precipitation to this level came up with the lack of access to energy – be it gas, oil, or electricity and effectively hitting almost everyone directly. The absence of access goes on to demonstrate the power of darkness and the consequence of hunger. The crux of the issue was lacking dollars. The money supply chain went dry or was reduced to a trickle due to some steps taken. 

However, the structural possibility of this could happen was always on cards as we lack a healthy diversity in our economy. Just trace the tolerance the decision-makers have tolerated with a persistent balance of trade gap since independence and just compare that with what Singapore did. Money being quite central to all that we do, the situation in the country is quite instructive – if one is to leave the personal affiliation and see the provision of lessons. ‘How Nations Fail’ and ‘How Asia Works’ may have some fresh chapters awaiting their next editions or we may be a book all to ourselves!

Again remind seeking solutions through managing ratios, and rates are not going to work. Of course, in the immediate short term, there are no other ways either. Our activity canvas should be carefully looked at, ensure lessons from countries are taken, and must ensure factoring in the emerging opportunities so that we just do not take up history as the guidebook. It is high time that the movement of Saturn, etc. is kicked out and science given its due place. We have been quite blind to the emerging opportunities with few exceptions. The cluster at Homagama Tech City could well be Sri Lanka’s first innovation cluster and identified appropriately could be connected to yield a portion of GDP. The cluster managed well can send a completely different message. Here too we have to understand working outside our silos and collaboratively.  

Once placed on a roadmap for development there should not allow service functions to cripple progress in the name of a ‘way of working’. The contribution to corruption due to these regulations must be significant. Now that is where a system change is required. Remember we have to enter into an innovation-based knowledge economy era. We can still do so despite losing significantly our human capital due to brain drain. Billions of dollars spent on supporting an alternate educational system in the country are not right though it has emerged due to the serious problems of the national educational program.  

So what needs addressing is the latter and not having a complete control mentality over the former. Again the solution asks for innovation. Going back to my passport, I must point out that Sri Lanka is one of the very few countries where you can obtain your passport in one day and that is service excellence. So we can if we want to. The debt challenge emerged because of wrong investments, unsustainable consumption patterns, corruption, and over a period of time.  The private sector has to understand the importance of risk-taking coupled with investments in projects that have lasting value. That is a topic to explore further. If such thinking is not internalised then again one would see ‘wait and see’, ‘me too investments’ and increasing bank borrowing rates would deter growth through investments again.

I have finished by kavum and it is well on its way to being digested but still, I cannot easily digest the number of issues that have piled up in front of each one of us.