Some critical economic and political issues relating to Sri Lanka were played out in world capitals this week. These related to economic talks with the European Union, bi-lateral talks with India and mending fences with the United States of America.Important in economic terms was talks in Brussels on the revision and updating of the European Union's scheme of Generalised System of Preferences or the GSP Plus. The EU wants to withdraw this facility from August this year.
“Thaaththa,” Bindu Udagedera asked, “what is all this fuss about the Greens electing a new leader?”
“Why, Bindu,” Bindu’s father Percy wanted to know, “who is making a fuss about it?”
“Why, thaaththa,” Bindu said, “everyone in the Green party is excited about it…”
The holding back of the third tranche of the IMF stand-by facility was as expected. How could any self respecting international institution that required a government to bring down the fiscal deficit to 7 per cent to continue the facility grant it when the deficit ballooned to 9.8 per cent? On the other hand, as some economists have pointed out, the IMF is eager to continue lending as they would otherwise be out of business.
Sri Lankans used the opportunity to convey a message to President Mahinda Rajapaksa. An aircraft carrying a banner said: "SRI LANKA FREE GEN. FONSEKA & RESTORE DEMOCRACY".
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