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US & India Scramble to Slice Sri Lanka


Akhand Bharat (Unbroken India) will absorb Sri Lanka in 10-15 years

blog: eesrilanka.wordpress.com

Before you study the economics, study the economists!

e-Con e-News 19-25 June 2022

• In April, Rashtriya Swayamsevak Sangh (RSS) chief Mohan Bhagwat publicly announced that India will become Akhand Bharat (Unbroken India) in 10 to 15 years. Bhagwat provided ‘the first timeline’ for the RSS goal of Akhand Bharat gorging on Sri Lanka, Myanmar, Nepal, Bhutan, Tibet, Bangladesh Pakistan, Afghanistan and the Maldives. India’s Prime Minister N. Modi rather calls Akhand Bharat a ‘cultural’ objective. The media tends to refer to the RSS as Mahatma Gandhi’s killers (and who knows how many other Gandhis, see Random Notes).

• Senior RSS and ruling Bharatiya Janatha Party (BJP) National General Secretary Ram Madhav met our President and their PM in mid-June, to secure the Adani encroachment. Another Indian delegation parachuted in this week to thwart US moves, right after the IMF perched to sign already negotiated sales. On Monday, the delegation from the US Treasury, which controls the Brettons Woods triplets – the World Bank, IMF and WTO – gatecrashes Colombo. Expect no staged demonstrations.

Hundreds of mechanised Indian fishing trawlers encroached on Sri Lanka’s seas again. This time ‘legally’, after a ‘breeding ban’, meant to replenish fish shoals, was lifted 2 days before. Northern fisher folk protested, appealing, not to Colombo but to India’s External Affairs Minister S. Jaishankar and TN Chief Minister M. K. Stalin, through their offices in Jaffna. Fisherfolk complain they lack adequate fuel.

     Coincidentally, an unnamed official of the Ceylon Petroleum Co. (CPC, which is being threatened with total privatization again) lamented the refusal by India’s Oil Corporation (LIOC), which controls one third of Sri Lankan’s retail fuel distribution, to import larger quantities of oil through the Trincomalee terminal, which they have also taken over. If the LIOC imported more fuel, Sri Lanka wouldn’t have to rely on India’s foreign credit for fuel imports, the official noted (see ee Sovereignty).

• Colombo’s stock market jumped high, after several weeks of enforced somnolence. Even the rupee was held steady. Why, the bullishness? The IMF arrived in town on Monday and US lame-duck President Joe Biden drew Sri Lanka’s ambassador into a handshake.

     India and the USA keep jostling to slice up the country, sending in ‘delegations’ of diplomatic and economic guns, one after another. EU Envoys, meanwhile, reminded Sri Lankato ‘consider European countries as friends’. We must have forgot. Canada’s envoy jumped a train to Jaffna (a site of ‘genocide’ according to his government, who are among the world’s leading experts on the subject). He tweetered that he thoroughly enjoyed the scenery and safety that Sri Lanka’s much-besieged rail lines offer (just after a worker fell off a bustling carriage).

     The much-feted Australian cricket team, who offered supposed dollar-free adrenalin boosts to fans of the colonial game, did not jump the trains, and took luxury road transport instead.

• Just as Australia’s former PM was casting his vote in their recent election on May 21, the commander of their Joint Agency Task Force Operation Sovereign Borders, Rear Admiral Justin Jones, revealed that a ship had ‘been intercepted in a likely attempt to illegally enter Australia from Sri Lanka.’ It was a perfectly timed doosra, even if that PM lost the match.

     No one is allowed to examine how these propaganda scenarios are engineered, which PR advisor implemented this: How the ship left Sri Lanka, who was on the ship, who ensured it would arrive just in time for election day, etc.

The attack on Sri Lanka’s rupee escalated after capitalists (traders, rating agencies, etc.) claimed they had no ‘confidence’ in the economy. They also insist this lack of trust is also because they are not allowed to fully monetize Sri Lanka’s immense resources of land and labor. Hence, the PM, with media present, handed out deeds to legally grant ‘ownership in coastal Puttalam, etc. The PM promises to issue between 1,000 and 3,000 deeds to land ‘owners’ weekly. These lands are expected to end up in the hands of foreign monopolists, as people are pushed into further debt.

Selling off Grandma’s Crown Jewels – Credit Suisse and Conservation International (CI), The Nature Conservancy (TNC), and the Worldwide Fund for Nature (WWF) – all Rockefeller-Exxon-linked experts in international finance and environmental conservation  – are dangling funds for ‘Debt for Nature Swaps’ (DFNS). DFNS grabs strategic ecological locations: In SL,  they will use the Human-Elephant Conflict (HEC, which ee calls a Plantation-Elephant Conflict), Sinharaja, Sri Pada, watershed streams and rivers, etc.

     Coincidentally (or astrologically) Sri Lanka’s ‘legal advisers’ Lazard and Clifford Chance, claim themselves to be world’s leading experts on DFNS. DFNS have been foisted on Belize (last month), Costa Rica, Uganda, the Seychelles, Indonesia and Philippines.

Vulture Sabotage – ‘Last Tuesday, a privately held bondholder (based in Caribbean tax hideout St. Kitts and Nevis) sued Sri Lanka in the US  District Court in Manhattan over the country’s alleged default on a $1 billion sovereign bond maturing in July. Hamilton Reserve Bank served a court summons to Sri Lanka’s Ambassador to the UN Mohan Peiris, just as an International Monetary Fund (IMF) staff mission arrived in Sri Lanka to continue talks on a bailout program.

     Their lawsuit states that the default is being ‘orchestrated by officials at the highest levels of government, including the ruling Rajapaksa family and accused Sri Lanka of excluding bonds held by domestic banks and other interested parties [China?] from an announced debt restructuring’.

     These ‘favoured Sri Lankan parties stand to be paid principal and interest in full, while the bonds’ –also broadly held by US pension funds  – remain indefinitely in default and unpaid, causing American retirees tremendous suffering from potentially massive losses of up to 80 percent of their original investment value,” lawyers for Hamilton Reserve were quoted as saying by Bloomberg (see Random Notes)

Everyone (almost) is crying for plan. Finally. After decades of assassinations, official and unofficial coups and terror, to prevent exactly that – at least industrial plans. Everyone – including that airy category called ‘artist’ – is even talking economics. Finally. Yet a plan for what? Economics for whom? The media’s politicians plan is to talk up ameliorating the pain soon to be inflicted by the IMF on the ‘vulnerable’ (only?).

ee reproduces a statement from the Coalition For Economic Democracy (see ee Focus). The CED examines odious debt and dedollarization. It only has one sentence at the end mentioning the dreaded word, ‘industry.’  Again, we note that Sri Lanka’s economic underdevelopment has less to do with ‘debt’ and mostly to do with the prevention of modern industrialization.

Flying Dollarseecontinues Dhanusha Pathirana’s important delving into Foreign Exchange & Sri Lanka’s Economic Collapse. He examines how dollar fly out through trade mis-invoicing or manipulation of export and import invoices by the corporate elite, and the ensuing expansion of black market for foreign exchange.’

     Voluble capitalist echo-chambers like EconomyNext, run-on economists like WA Wijewardena, and US-funded think tanks like Advocata, which usually blabber about the ‘rule of law’ have euphemized this ‘Black Market’ as a ‘grey market’ and a ‘kerb market’. ee wishes to assure readers that this so-called ‘Black Market’ is actually the whitest market of them all.  

• Outside of misinvoicing, etc., we wonder about the capital stolen by multinational corporations through technological rents, royalties, licensing rights, technical assistance fees, etc., prevention of technology transfer, and marketing know-how.

     No economist is willing to quantify how much of the so-called debt we owe was for buying imported machines, experts, ‘services’, etc.

     If there is no loud saturated and repeated call for real industrial policies to even make a pin, we will get the same set of merchants ruling us for ever, imposing their dream to turn Sri Lanka into a casino tax haven money laundering tourist brothel….


A1. Reader Comments

• ee’s grasp • IMF Delays ‘foreseen’

A2. Quotes of the Week

• Bankers love Sri Lanka’s shocks • Rich doing fine • Ministers demand headlines • UN’s Universal Grab • US Fed Sans Frontiers •  FB’s selective community standards • India Twists Arms • Cabinet & Commissions • South-South Integration • Europe’s Problems World Problems • Think Tanks Dunk Media

A3. Random Notes

Australia fakes refugee game • India Western Problems • Hamilton’s Killing • Cardinal & Napoleon • India’s Observer Research Foundation • US Foreign Policy Diaspora • US Moves on Thinktanks • Social Democratic Delusions • Mexico’s Emperor & Debt

B. ee Focus    

B1. Rise of Black Economy for Foreign Exchange & Sri Lanka’s Economic Collapse – Part II: Dhanusha Pathirana

B2. A Call for Debt Justice, Debt Cancellation & Transparency in IMF Negotiations: Coalition for Economic Democracy (CEDSL)

C. News Index

continued on…. https://eesrilanka.wordpress.com/2022/06/25/us-india-scramble-to-slice-sri-lanka/

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