Jayasuriya and Senaratne: Brief Comments on Razeen Sally’s Evaluation

Sisira Jayasuriya, 22 December 2014

Dear Michael, I am with Razeen on this – on the pessimistic side. The boom in SL is temporary, based on a credit bubble and a public sector investment boom that is very wasteful and linked to policies that undermine the long term viability of Sri Lanka’s international competitiveness in global markets, hence unsustainable in the long term, particularly in the context of the current global situation. That said, a a further boost to stock prices etc following a likely strong Rajapakse victory in the election is quite possible, and Chinese funds can extend the boom. But it will only mean that the inevitable bust, when it comes, will be bigger.

In haste. Best for Christmas and new Year!  Sisira

Kalana Senaratne, 2 January 2015

Dear Prof Roberts, I am not in a position to give a detailed evaluation. But very briefly – I am in broad agreement with Dr. Sally’s assessment of the current situation Sri Lanka is in. A key issue arising from the ‘economic and geo-politico economic aspects’ of the article is the question about our relations with the West and India. Here again, my very brief and general view is that the present Rajapaksa-regime lacks the ability to make any meaningful improvement. To the question Dr. Sally’s colleague at NUS once asked (i.e. ‘Can Asians Think?’), we have indeed given a splendid answer.

All the best, Kalana