Covid-19 Exit Strategy - Demands Exit Strategy For Economic Crisis Too

There is an apparent reluctance in giving importance to this economic bankruptcy gaining velocity as the government decides to exit this phase of COVID-19 prevention

- Kusal Perera

On 12 May, writing a detailed piece to “Daily FT” on the Colombo Stock Exchange (CSE) debacle the previous day, Nisthar Cassim titled it “Stock market loses Rs. 84 b in seconds”. In his insightful write up he says, “During the two weeks between 09 March and 20 March the CSE lost Rs. 355 billion in value and yesterday’s fall extended the figure to Rs. 440 billion.” That loss apart, this year Sri Lanka is burdened with a foreign debt settlement and a servicing commitment of 4.8 billion US dollars, highest ever in the history of independent SL. During last week of April 2020 the government had printed currency notes to the value of 7.87 billion rupees, according to the CB of SL. That totals 213 billion rupees of new currency printed since the first week of March 2020. It is in such context of bankruptcy President’s Secretary Dr. Jayasundera made a controversial appeal to public servants, requesting them to donate their May salary or part of it, for the government to tide over a major financial crisis.

Yet there is an apparent reluctance in giving importance to this economic bankruptcy gaining velocity as the government decides to exit this phase of COVID-19 prevention. While the whole society is held in limbo, the economic crisis is not felt in day to day living. Outside all retail marketing in and around Colombo remains the actual economy of the country.