Wednesday, April 4, 2012

Why IMF rescued Rajapaksa regime of Sri Lanka

Sri Lanka government was finally rescued for the moment by non other than the bitchy western imperialist International Monetary Fund (IMF).

US$ 426.8 million is big money and foreign currency the country needs badly.

Unless IMF decided to release the seventh tranche of the Stand-by Arrangement, the country would be in a more severe balance of payment crisis that could soon show the end of the road to the Rajapaksa family regime.

Sri Lanka floated rupee, increased fuel price and electricity tariff to qualify for the IMF loan and perhaps the government will re-start pegging the rupee in its short-sighted economic policy that looks OK until the crisis hits it harder at the next point of the spiral.

The opposition says the vehicle tax increase was also to appease the IMF but I do not think that such an institute is mad enough to suggest such prohibitive and lunatic taxes.

Perhaps the government did so in its rage to survive as it was not sure of the IMF loan because it thought Western super powers that they blame from morning to night would block it.

Then, the western imperialists have again given a lifeline to the Rajapaksa regime. Why? Perhaps they also might like a 'powerful' enemy.

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