Apr
11
2023
Sri Lanka is one of the three largest recipients of lending from China. Their basic problem is spending more money than they have, and then limiting further what they have through regulation. The government there decided farms needed to switch to organic practices, banning chemical fertilizers and pesticides, which led to lower yields without being offset by higher prices. Food shortages followed.
The government needs to curtail its spending and devalue its currency. Part of that means reducing subsidies of inefficient businesses, that have been kept as corrupt enterprises to benefit powerful elites.
