if it happened, how it would affect the Stock market?
සමහරු කියනවා ලංකාව බංකොලොත් වෙනවා කියලා ලබන අව්රුද්දෙ මුල. ඔබ හිතනවද එහෙම වෙයි කියලා? කරුමෙට හරි උනොත් කොලඹ කොටස් වෙලඳපොලට මොකක්ද වෙන්නෙ?
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That is a false propaganda by 'Bankrupt Bala Vegaya'. When you become a 'Senior investor' you will understand.Junior investor wrote:some says that Sri Lanka will be bankrupted by early months of 2021. do you agree?
if it happened, how it would affect the Stock market?
සමහරු කියනවා ලංකාව බංකොලොත් වෙනවා කියලා ලබන අව්රුද්දෙ මුල. ඔබ හිතනවද එහෙම වෙයි කියලා? කරුමෙට හරි උනොත් කොලඹ කොටස් වෙලඳපොලට මොකක්ද වෙන්නෙ?
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In my opinion they are looking at present where pandemic has affected global economy and the past where country suffered from 'bond virus'.RJ1010 wrote:Every negative outlook about Sri lanka cannot be dismissed as “international propaganda”. Multiple rating agencies including Citi have warned about what’s in store for Sri Lanka in 2021.
http://www.ft.lk/top-story/Denial-is-not-a-strategy-Citi-cautions-Sri-Lanka/26-710033
The Citi comments perfectly sums up the situation. Sri Lanka badly needs to fire up its revenue to survive. I’m really hoping the export oriented initiatives and opened up tourism including port city will help later in 2021/22.
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RJ1010 wrote:I believe the ratings are given with a forward 1 yr situation in consideration. So the ratings downgrades for next 6-12months I would say is justifiable with the current status. SL is taking Chinese borrowings to payoff debt. That is the biggest issue. Yes China will help SL payoff debts but borrowing from China will keep on putting SL in that ‘Chinese debt trap’.
Imagine a person builds a house on a loan... and then takes loan upon loan to pay the previous one off. Not ideal. Person needs to earn and grow its money to payoff debts so that one day it will be debt free.
Same principle applies to SL. They will take loans to pay off loans. How long will that go on? SL is building the base to increase earnings with increased exports, opened up tourism, FDI for port city etc. The revenue from these will come later in 2021/22. So once SL can fulfill those debt payments with money generated on its own all these ratings will also get revised upwards.
And by that time hopefully the rupee should not get depreciated and inflation should be controlled. So significant risks are there.
Although I don’t take any politician sides I believe current SL govt has that vision to move from borrowings to self sustaining enviorenment. As a Sri Lankan I hope to see this approach succeed.
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