The Rally For Unity crew has done a pretty neat timeline and infographic (click to enlarge) of the events that took place in Grandpass between June and August this year. Accurate information is crucial if anything is to be done about the upsetting problems we’re seeing today. IMO mainstream media, due to various restrictions, is failing at providing a cohesive and honest picture, a much needed vacuum for some solid citizen journalism to fill.
Sinhala and Tamil translations are on the way according to R4U’s Facebook page, which posted the below along with the graphic.
“What Really Happened in Grandpass?” – This infographic was developed to shed light on the events that unfolded at Grandpass from June to August this year. All information has been factually verified and vetted. Sinhala and Tamil translations will be made available by the weekend.
It is regrettable that certain groups can unduly influence and divide peacefully co-existing multi-ethnic communities. We encourage all Sri Lankans to remain vigilant against such interference and to continue to preserve goodwill among all communities.
The Krrish project has been making waves, if only for its absurd proportions. The complex’s tallest tower is going to be the third tallest residential tower, are you ready for this? In_the_world. I hear three quick bangs on a bell; the crowd goes wild as the fighter in the right corner shrugs off his glittering robe. All hail the Krrish project, destroyer of third world woes.
But seriously. I snooped around a bit (and by now this is relatively common knowledge) and found that Krrish doesn’t really have any completed real estate projects anywhere in the world. Closest thing they have is a few projects underway in Guragon, India. As a company laying claim to such a massive venture, Krrish has virtually no media mentions in India, and its only ties to solid listed corporate are a claim to own a stake in Cobra Beer. And in fact Krrish is better known for its brewery business than anything else.
It’s projected to bring about $560mn into the country. But that number exists only on paper. In reality these projects bring a fraction of that amount, usually 10%, and try to source the rest locally. Krrish, which hasn’t started building yet, is rumored to only have brought in $5mn, as a 10% down payment for the value of the land. The completed project will have some 750 apartments plus equal amount of office spaces, each of the apartments are priced at roughly a million dollars.
The plan is to pre-sell them to raise money to build. But as you can see from the chart below, demand for apartments hasn’t exactly been booming. If demand does not meet supply, the project will have to be abandoned. Far worse though, is the prospect of the project being bankrolled by a country eager for any kind of investment (especially something with a result so grandiose) ending up with the local banking system owning roughly $500mn of bad loans. And this will probably at the very least result in a major banking/debt crisis for the country. Just putting some thoughts out there. What does everyone else think?
The Central Bank just released the first six months of trade data for Sri Lanka. Trade is an important component of the Balance of Payments (BOP). Which computes the sum of a countries transactions with the rest of the world.
Sri Lanka’s BOP is perpetually in the red. In 2011, massive imports in consumer durables and investment goods made the negative balance worse. High imports last year were facilitated by low interest rates and a propped up exchange rate. But this year the government has tried to discourage imports by floating the rupee, increasing interest rates and actively discouraging banks from lending with a lending cap. There’s also the new taxes on vehicle imports that, together with other restrictions have just begun to impact durable imports in a big way.
The revenue the government gets from vehicle imports is important for its budget deficit (which is total government revenue less its spending). An increase in taxes like we’ve just seen is likely to actually reduce government revenue even further because potential vehicle owners will be completely discouraged to buy.
But so far this year, imports have failed to ease up as much as they were hoped to. And floundering global economies have reduced the demand for our exports. Globally, fuel prices are looking to rise but this will impact fuel imports less than local demand which is likely to increase the more we use thermal power in response to our ongoing electricity problem.
Sri Lanka’s GDP increased by 7.9% in the first quarter of 2012. But what does this mean exactly? I made the following infographic to explain. Click to see a larger and clearer image. I used data from The Department of Census and Statistics, The World Bank and Trading Economics. (*Image updated to correct a mistake in Sri Lanka’s annual GDP, which was showing the 2010 figure – 50bn).
UPDATE – Small error on the 4th tier where it says ‘Rupees Million’, Read that as ‘Rupees Billion’. Until I get around to editing it (Corrected – Jul 19).