Technical Staff
July 16, 2022
On April 12, 2022, Sri Lanka defaulted on its international debt obligations for the first time in its post-independence history. But it did not take a long time for the government to fall. On July 13, 2022, Sri Lankan president Gotabaya Rajapaksa fled the country 1. President Gotabaya was elected in November 2019, but Rajapaksa family governed Sri Lanka from 2005 to 2015. Over the past two decades, Rajapaksas seems, at the minimum, committed gross mismanagement and governed with incompetence.
The current outstanding public debt of Sri Lanka amounts to approximately USD 50 billion. However, “between 2015 and 2019, 89.8 percent of new debt taken on by the government was used to pay back interest on outstanding loans accumulated by the end of 2014.” 2
Allegations of Corruption
Corruption must have been a primary driver for the devastating fall of Sri Lanka’s economy. But it is too early to confirm the allegations about the major corruption players in the Sri Lankan regime. However, it is plausible that for at least the past two decades, Sri Lanka’s public and private institutions had:
1. Ineffective prevalence of the rule of law,
2. Ineffective internal control,
3. Governance failure,
4. No match between authority and accountability,
5. Substantial doubts about the independence and effectiveness of the judiciary and
6. Shameful abuses of human rights.
Unaccountable and Absolute Power
In 1887, Lord Acton said, “power tends to corrupt and absolute power corrupts absolutely.” 3 When the dictator is not held accountable for his corruption, he transforms into a monster in his deeds, justifying them with illusions that have no basis in reality. He also surrounds himself with people who are proud of his job and do not misunderstand him. But for thousands of years, the corrupt ruler’s fate has been perdition, and his country’s fate has been turmoil and ruin. The difference between what happened in Sri Lanka and what happened in other nations such as Lebanon and Argentina is the velocity of collapse, not the disastrous outcomes of failing governments, corruption, and the collapse of good citizenship.
References
1. Ellis-Petersen, Hannah. “Sri Lankan President Gotabaya Rajapaksa Flees the Country | Sri Lanka | The Guardian.” the Guardian. www.theguardian.com, July 12, 2022. https://www.theguardian.com/world/2022/jul/12/sri-lanka-president-gotabaya-rajapaksa-fails-attempt-flee-airport?CMP=Share_iOSApp_Other.
2. Arudpragasam, Amita. “The Rajapaksa Brothers Ruined Sri Lanka’s Economy and Undermined the Rationale for Their Rule.” Foreign Policy. foreignpolicy.com, April 28, 2022. https://foreignpolicy.com/2022/04/28/sri-lanka-rajapaksa-protests-economy-corruption/.
3. Lord Acton writes to Bishop Creighton that the same moral standards should be applied to all men, political and religious leaders included, especially since “Power tends to corrupt and absolute power corrupts absolutely” (1887) | Online Library of Liberty. “Lord Acton Writes to Bishop Creighton That the Same Moral Standards Should Be Applied to All Men, Political and Religious Leaders Included, Especially since ‘Power Tends to Corrupt and Absolute Power Corrupts Absolutely’ (1887) | Online Library of Liberty.” oll.libertyfund.org. Accessed July 16, 2022. https://oll.libertyfund.org/quote/lord-acton-writes-to-bishop-creighton-that-the-same-moral-standards-should-be-applied-to-all-men-political-and-religious-leaders-included-especially-since-power-tends-to-corrupt-and-absolute-power-corrupts-absolutely-1887
Additional Sources
1. Hogg, Charu Lata. “Sri Lanka’s Old Political Order Has Collapsed. What Happens next? | Charu Lata Hogg.” the Guardian. www.theguardian.com, July 13, 2022. https://www.theguardian.com/commentisfree/2022/jul/13/sri-lanka-what-happens-next-president-imf-bailout?CMP=Share_iOSApp_Other.
2. Ellis-Petersen, Hannah. “‘The Family Took over’: How a Feuding Ruling Dynasty Drove Sri Lanka to Ruin | Sri Lanka | The Guardian.” the Guardian. www.theguardian.com, July 7, 2022. https://www.theguardian.com/world/2022/jul/07/the-family-took-over-how-a-feuding-ruling-dynasty-drove-sri-lanka-to-ruin?CMP=Share_iOSApp_Other.
