I'm going to do a single political thread on the #GotaGoGama #GoHomeGota #OccupyGalleFace protest and a threat it faces. Might be contentious, but please give alternative views.

#SriLankaCrisis #SriLankaEconomicCrisis #SriLanka

(1/20)
Starting off with a few disclaimers.

I think the protests are great for Sri Lanka, I think they've done permanent good already, I think they should continue.

I'm also not a political/social expert - so take this from that POV.

(2/20)
The response to the poll confirms something I was concerned about - that there is space for the protest to be attacked based on perceptions of elitism

If a Twitter poll of what protestors think is like this, I feel actual sentiment might be worse

(3/20)

What people perceive doesn't have to be reflected in reality. Even if the protest is 100% from the bottom 50% of Sri Lankans by income, it doesn't matter if there are thousands of Sri Lankans who have been led/manipulated to THINK it's by the rich.

Perceptions matter.

(4/20)
I think this also ties into a theory that once you exclude the top 1%, the rest of the top 10% or even 20% might not think they're actually rich - despite being so by every relative metric.

vox.com/the-goods/2267…

(5/20)
I think this is true in Sri Lanka as well. I did a recent poll that gave the idea that most people thought a 100k earning household is not that rich, and maybe even lower-class/bottom 50% of households

While "class" is subjective, numbers are not.

(6/20)
The numbers actually suggest that such a family would be in the top 20% of households by income, and that 80% of Sri Lankan families are poorer than that. I'd argue that makes them at least upper middle income.

Whenever I bring this stat up, it's hard to believe.

(7/20) Source: Household Income and Expenditure Survey 2019
I get why this is not a believable thought, that many of us on Twitter for example, are actually "rich". We might not feel rich, we have financial issues, we don't have money to just waste away, surely we can't be rich?

I agree. We aren't rich.

(8/20)
But Sri Lankans are poor. That's what this is really about. A vast majority of Sri Lankans live very different lives to well, most people I know, including myself.

The vast majority of Sri Lankans are poor and we need to be aware of this.

(9/20)
They're not in poverty by any means, and they have a lot of facilities too. Free healthcare, education, electricity across the country all means that a poor Sri Lankan lives a far better life than a poor Indian for example.

(10/20)
But that doesn't change the fact that a lot of Sri Lankans earn far less than we (those in WP+urban/suburban areas) think they do.

Of course, aspirations are also different - recommend Hans Rosling's excellent work on "levels" for more on this

gapminder.org/fw/income-leve…

(11/20)
But I think this difference between actual income levels and perception is critical to understand even the protests in Sri Lanka

The economic pain felt by someone with a family income of 100k, however difficult, is very different to someone earning less than that.

(12/20)
Now, I want to be clear again. I'm not saying the protests are elitist in reality. I think there's a wide range of people there.

But given the very different lived realities of Sri Lankans, what it can be PERCEIVED AS matters.

(13/20)
Of course, those in power have a clear incentive to highlight this. Those who support the Rajapaksas despite everything have an incentive to call the protests rich, entitled, parties, whatever.

The risk is that this might work.

(14/20)
Because as great as the protests are, I don't think anyone can genuinely argue it is perfect and there's nothing to improve on or make better. That's insanely arrogant, and I don't think many would agree that the protests are perfect in all ways.

(15/20)
These factors are what can delegitimize genuine citizen action, by making it seems elitist, by spreading division, not just on race/religion grounds, but also on the economics that impact a huge part of our lives.

Remember, we're in an economic crisis.

(16/20)
I'd argue that a key priority for citizen protests is the need to have an economic message too and cooperate with other protests across the country.

Stand in queues for those who can't. Fight against the decisions that brought us inflation. Do whatever we can.

(17/20)
Above all, it's critical to coordinate with people who feel the economic pain the most. This does require us to be self-aware and understand that despite all the terrible pain we face, economic and otherwise, a majority of Sri Lankans still have it worse.

(18/20)
My part in this, as is clear to me, is to explain the economics of it as much as possible. But if the rising divisions in the protests (and we can't ignore these can happen) are not addressed ahead of time, the great success of what has been achieved can be lost.

(19/20)
In the end, Sri Lanka is going through the worst economic crisis since independence. Struggling through this will be hard for all of us, but some more than others. We must stay united in this struggle, or else the consequences are too high to imagine.

(20/20)

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More from @ChayuDamsinghe

Apr 16
I promise I'll try my best to make this not-boring, but let's talk taxes in Sri Lanka.

#SriLanka #SriLankaEconomicCrisis #lka (also #GotaGoGama #OccupyGalleFace #අරගලයටජය #GotaGoHome2022 for reach)

(1/24)
Our tax revenue before 2019 was about 11-12% of GDP. After the tax cuts, this came down to around 8%. Both in comparison to around 12-14% in non-debt expenditure (about 16% in 2019 due to election goodies)

Explained how this was a problem here


(2/24)
In an attempt to make this easier to digest, going to bring back Rehan (our rich guy), Pasan (who I've made less poor than he was), and a new fellow Ayesh who's basically in poverty.

Rehan earns 500k a month. Pasan earns 50k. Ayesh earns 15k.

(3/24)
Read 24 tweets
Apr 15
Let me try and explain the Uganda banknote mess as much as I can and how it relates to Sri Lanka and how it doesn't.

#SriLanka #SriLankaEconomicCrisis #lka (also tagging #GotaGoGama #OccupyGalleFace for the reach)

(1/22)
As I understand it, there are 2 separate issues here, which may be linked together in a way we don't yet know.

1. Uganda's own money laundering issues
2. De La Rue printing Ugandan money and SLA airlifting it

(2/22)
Lets start with Uganda's own issues.

Uganda has had money laundering concerns for a while, and especially terrorist financing issues. This is unfortunately true for some countries in Sub Saharan Africa.

(3/22)
Read 23 tweets
Apr 13
What will happen to Sri Lanka, economically, over the next few months, especially to its people?

The answer isn't pretty, but it's something to prepare for.

#SriLankaProtests #SriLanka (Also tagging #GotaGoGama #GoHomeGota #OccupyGalleFace #අරගලයටජය for reach)

(1/11)
Let's assume there's some sort of political stability at some point. What that is doesn't really matter too much to this thread's outcomes, it just extends the timeline if it's delayed.

With that out of the way - what will SL need to come out of this?

(2/11)
As long as we keep engaging with the IMF and our creditors, it should hopefully bring enough confidence that there will be some inflows (bilateral, remittances, export conversions, aid) that allow the urgent essential shortages to ease across the next month or two.

(3/11)
Read 11 tweets
Apr 13
Going to explain depreciation, how the official market failed and the unofficial market took it up, and what's needed for the two to come together.

#SriLankaEconomicCrisis #SriLankaCrisis #SriLankaProtests

(1/20)
Exchange rate is basically the value of a currency in terms of other currencies. Eg- 1 USD is worth XX LKR and vice versa.

Depreciation is when 1 currency loses value against another. Eg- 1 USD going from 200 LKR to 300LKR

Appreciation is opposite.

(2/20)
What determines this value?

Simplified, this is through a demand and supply mechanism. The more demand for a currency, the stronger (appreciation) it will get. The less demand for a currency/more supply, the weaker (depreciation) it will get.

(3/20)
Read 21 tweets
Apr 13
Let me go through how remittances work and make a plea, please send money to Sri Lanka.

#SriLankaEconomicCrisis #SriLanka #ProtestLK #EconomicCrisisLK (also #GoHomeGota #GoHomeGota2022 #GotaGoGama for reach)

(1/11)
Think of remittances as when money from outside SL comes into SL on a personal basis.

This can either be

A. From a foreign account to your own local account

or

B. From your foreign account to someone's local account.

(2/11)
Let's take A first.

In this case, your dollars are sent to a bank account held by a local bank. Now, as long as those dollars are there, the bank can allocate those dollars for other purposes, ie for an outflow of dollars.

No Rajapaksas involved.

(3/11)
Read 11 tweets
Apr 13
Going to quickly explain what reserves are and how corruption can/cannot play into it.

#SriLankaEconomicCrisis #SriLanka #ProtestLK #EconomicCrisisLK
(1/9)
Think of reserves as a "portfolio of assets" owned by the Central Bank. It'll have cash, some bonds, some gold, some other assets with the IMF, etc.

Often denominated in USD or another global currency. Ours is USD.

(2/9)
So reserves are used for 3 broad purposes.
1. To bridge any dollar income/expenses gap the country has - release money from reserves
2. To intervene in foreign exchange market to affect the currency
3. To show confidence internationally that the country has backup money

(3/9)
Read 9 tweets

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