I wouldn't have even needed an IMF bailout
The
I think that Raja Hetti is aware of Christine Lagarde
When he was here, with Aloka, and my mom's sister Anoja
I was telling him, "ask Larry Summers" — I had mentioned meeting him and suggested they might consider him for an IMF leadership role next
I laughed
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I don't have much confidence in the IMF; I think Sri Lanka (SL) is facing serious economic challenges
Part of the difficulty is limited income-generating capacity, and some argue that widespread access to state-provided services like healthcare and education can affect incentives for work
There is a perception that many expect substantial public support, both in practical and symbolic ways
Religious teachings are sometimes interpreted to encourage restraint, and critics suggest this can be framed as moral posturing; others argue that moral leadership can attract external assistance to help the country develop
I think Pakistan has faced similar economic challenges and has relied on IMF support multiple times
I am skeptical about Sri Lanka's prospects under Anura's leadership
They have reportedly gone from $50 billion in debt under Mahinda to about $85 or $90 billion debt with Gota and Anura
People may feel relatively stable right now, but there is concern that future debt repayments could create problems
This could lead to a more serious crisis down the line
Under Gota, debt was about 50 - 75% of GDP; it is now reported to be in excess of 80 - 90% of the country's economy
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If trade restrictions or tariffs are imposed, the economic impact could be severe and might produce political instability, increasing the risk of an authoritarian shift in governance