The Nugegoda St. Mary and St. John community development projects were opened on February 22, 1983, by J.R. Jayawardena then president and shouted for the entire world to hear.
‘IMF We cannot let you impose conditions on Sri Lanka. JR Jayawardene – “International financial institutions should stop pressuring us.”
“The Dawasa” 22.02.1983
Sri Lanka Joined the IMF for the first time through the intervention of JR. In 1950, JR obtained the 50th membership for Sri Lanka JR as the Minister of Finance. For the first time IMF aid to Sri Lanka was requested as JR advised to get help during the Dudley Senanayake government in 1965-70. In 1977, J.R.’s government, which came to power, requested assistance from the IMF within three months of it assume power. However JR who got IMF help and aid in September 1983 while negotiations are in progress once again to obtain IMF facilities , on 22 February 83 he shouted IMF in Washington to hear that we don’t dance the way IMF wanted.
Esmond Wickramasinghe, a close friend of JR’s and the father of the then-minister of education and youth affairs Ranil Wickramasinghe, gave this advice to JR. On November 23, 1984, the opposition leader at the time, Anura Bandaranaike, read a secret letter written by friend of JR, Ranil’s father to the U.N.P. working committee about the IMF.
Dear Speaker, I am now taking this story to another interesting place. My great friend Ranil Wickramasinghe said that people eat, drink, wear and live well. That people are now without trouble. Our Kalawana MP Sarath Muttettuugama MP gave him an answer. I am also getting ready to answer him in a different way.
But he probably didn’t even think that I would answer like this. He asked what crazy nonsense the SLFP opposition is saying. I’d say he’s talking like an idiot. I prove he talks trash. I am going to quote the words of Esmond Wickramasinghe, resident of No. 115, Fifth Lane, Colombo 03. He is a U.N.P. A member of the working committee. Father of Education Minister. The President’s closest friend. A brilliant brain member of the President’s kitchen cabinet.
‘Will you quote the father for the son…?’
Ronnie De Mel
‘Look at his father’s story about the country’s economy and cost of living. He says unemployment has increased and the cost of living has increased by 90%. See what the son is saying? What does father say?’
On July 30, 2009, President Mahinda Rajapakse was reminded of this speech by Anura and the letter that Esmond Wickramasinghe had written to JR and the UNP working committee by ‘Guruda Vigrahaya’. This is as a warning not to ingest IMF ropes. This section of the article is below.
‘Esmond, the father of Ranil, JR’s closest political advisor, once wrote him a letter. He advised not to swallow the ropes of the IMF and the World Bank in that letter. He had asserted that these groups both work to undermine the most favoured governments around the world and give them long ropes to pull them down. He claimed in that letter that these organisations were searching for countries that were facing economic ills and aggravating their economic conditions rather than solving it’.
The then opposition leader Anura Bandaranaike read this letter in Parliament.
‘The golden fish in the think tank of your President says to your president not to eat the long ropes of the World Bank and IMF and destroy the government…’
These are the words Anura used that day. What Esmond said about the World Bank and the International Monetary Fund is exactly right. The JVP told the same story that Esmond told. That was after forming the coalition government with Chandrika.
“Don’t destroy the government we built with difficulty by eating the ropes of the IMF and the World Bank…
“JVP told Chandrika. That’s why the IMF had to close down its Colombo office. When it appeared that the government of Mahinda Rajapaksa, who won the 2005 presidential election, was not ready to accept the IMF’s ropes, the IMF packed up went away.
Now the International Monetary Fund is back with a good long rope.
‘President Mahinda Rajapaksa, who is planning to hold a presidential election and a general election within the next six months, will have to face sudden price increases in the country due to the loan conditions of the International Monetary Fund…’
‘The National’ – 27.07.2009
This is the story of the famous Middle East newspaper ‘The National’ about the International Monetary Fund loan.
The people of Sri Lanka will have to face a difficult time due to international funds. The newspaper continues to say that subsidies will have to be cut to cover the losses of the oil corporation and the electricity board, so they will have to face big price increases.
‘Then why is the government eat this rope…?’
Therein lays the problem.
‘We got the biggest loan in history…’
The government proudly says.
The government has got crores of money. There is no war now. It is a big thing if wages are increased and the prices of goods are reduced….’
This is the story people tell when they hear the government’s talk about IMF loans.
There are people who say, ‘At least if the bus fare and electricity bill are reduced…’ People are waiting for a month or two at the most.
What will happen when the oil subsidy is cut and the price of oil increases, when the electricity subsidy is cut and the electricity bill increases, and the price of essential food items increases…?’ One prescription is written in such a way that such words can be taken out of people’s mouths
There are many governments that have fallen on after drinking medicine from the International Monetary Fund.
Because of this, the countries whose economies have become sick in the face of the world economic crisis are looking at the medicine tip of the International Monetary Fund to cure the disease with fear of their lives.
Bosnia requested a loan from the International Monetary Fund due to the economic crisis. On May 25, 2009, an International Monetary Fund media report said that if the loan conditions were to be fulfilled by the agency, there would be widespread social unrest in Bosnia. Political commentators say that the Bonzia government, which has become displeased with this, and the people will get even more disgusted.
Due to the economic crisis in Latvia, a big political crisis has arisen after going to borrow money from the International Monetary Fund. The reason for that is the fear that the allied parties of that country’s government have to fulfill to take this loan. The government’s partner parties say they cannot approve borrowing from the International Monetary Fund because the public will be displeased with it and the government will fall. But on July 29, 2009, Reuters reported that negotiations are underway to reach an agreement to take the loan.
Ukraine, which took a loan from the International Monetary Fund in October 2008, cut public employee salaries, cut pensions, removed gas price concessions and imposed it on the people. Hungary has also scrapped plans to cut civil service wages, cut bonuses and eliminate taxes on essential goods. The same thing happened in Iceland. No need to go further. Pakistan, a neighboring country, increased the electricity bill by 18% and cut the oil subsidy.
This is the dilemma faced by various countries of the world by borrowing under the terms of the International Monetary Fund.
‘Ranil’s government also took loans subject to the loan conditions of the International Monetary Fund…’ says the government.
It would be surprising if the government does not know that Ranil’s government was also defeated because it went to Tunduwa to borrow money from the International Monetary Fund.
Mahinda had to go home in 2015 as the ‘Guruda Vigraha’ said then in 2009 took IMF loans and to pay them held 2010 presidential election first, and later increase prices of goods to fulfil the conditions.
Even Chandrika lost the 2001 general election, trying to fulfil IMF conditions.
Ranil, who came to power in 2001, had to go home in 2004 because trying to fulfil IMF conditions. In the end, the total amount requested for Ranil was not given by the IMF.
In 2019, one of the reasons why Ranil lost his parliamentary seat was because of the IMF. As they say, he formulated price formulas and tax rates.
Then the how can one say Ranil will succeed taking IMF funds..?’
Those who say that should open the library of Ranil’s mansion and find the letter written by Ranil’s father to JR. As a working committee member, Ranil would also have received a copy of that letter.