1/ From a piece I wrote a few months ago but never got around to publishing. Vast majority of Sri Lankans have access to poor quality of life, and in a crisis, my view was that we should ideally focus on them. The piece is linked at the end.

#EconomicCrisisLK #lka #SriLanka
2/ Of course, this is very much personal view and there are many flaws in this argument as its oversimplified a lot. But my hope was that this serves as a good basis to think and talk about inequality in Sri Lanka.
3/ The main idea is that concept of "middle class" or "lower class" or "upper class" is way too subjective and moral. Becomes very difficult to talk and make decisions based on it. Recent tax debate shows this as well.
4/ Instead, I proposed applying a version of what Hans Rosling deemed as the "Levels" of inequality globally. Of course, adapted to SL. Idea is that instead of income first, what matters in specific aspects of QOL that people have access to, and then how much that costs.
5/ Using Rosling's approach as a base, I broke down QOL Levels in SL into 4 categories as below. This is subjective of course, and others can have different breakdowns, but as an approach I hope this format makes sense.
6/ Using amenities data from HIES 2019, I ended up with the following numbers for how many people would be in each "Level". Key here is that very few people fall into L1 and L4, but very many in between.
7/ 2019's expenditure numbers can also give a more "academic" understanding of what this meant in 2019 by daily/monthly/per capita expenditure. Of course, these numbers would be very different now, but the underlying amenities likely not.
8/ Many differences across provinces, so this is a breakdown of the levels by regions. However, issues pop up in this approach here due to geographic differences in amenities (eg-difficulty to access firewood in Eastern Province).
9/ For me, the benefit of this type of approach is that it allows to better understand what "QOL" really needs to be saved and protected in a crisis - since we have limited resources. Should someone who's already well be protected at the cost of someone who's already suffering?
10/ While that idea is "obvious", this also helps put into perspective how poor Sri Lankans really are. To me, it helps me understand my place in the SL income distribution a lot better and thereby, feel better about sacrifices I have to make too.
11/ This is not to say that there is NO cost for a L4. There is - but I feel it's a different type of cost (at absolute worst, moving to a smaller house) compared to the cost that a L2 might face (literally starving). Both sides need to be taken into acount in policy IMO.
12/ I'm also not having a L5 or L6 for 2 reasons.

1 - no credible data so it's an academic exercise only.
2 - I feel once you reach L4, you've "made it" in the context of a poor country. I'd personally rather help more people get to L4 than help L4 become L5 and L6.
13/ When there is such a deep crisis, we will have to make difficult choices. We must try our hardest for these choices to result in the least pain possible for as many people as possible. For me, an approach like this helps prioritize. I hope it can do the same for you too.
14/ Link to the article -

medium.com/@chayu.damsing…

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More from @ChayuDamsinghe

Oct 15
1/ These tax changes are sudden and unexpected, cause pain, and feel unfair for many. I'm going to try and make some sense of why this ended up so and what we can do about it.

#EconomicCrisisLK #SriLankaEconomicCrisis #lka #SriLanka #TaxHike
2/ Personal views not reflecting anyone else. Twitter is also not a great place for this due to character limits - so this interview I did might be a better explanation.
3/ To start with - yes, these taxes are painful. There's no question about it. Yes, the pain will be different for different people - someone might have to cut down on a night of drinks with friends while someone else might struggle with debt.
Read 25 tweets
Oct 15
1/ Corruption and tackling it is a key question, especially now that tax hikes have come in place. Noting down my thoughts on it and how we can move forward regarding the problem in my view.

#EconomicCrisisLK #SriLankaEconomicCrisis #lka #SriLanka #Corruption
2/ As always my personal view. This is how I see corruption in SL rather than any academic or "correct" way to see it (which doesn't exist obv). So discussion and questions welcome!
3/ I personally think of corruption as happening in one of 5 ways.

1. Outright theft and low-level bribes
2. Political expenses
3. Crony projects
4. Crony policies
Read 19 tweets
Jul 24
With the new government finally expected to bring in an interim budget in August (fingers crossed), lets look at government expenditure, how high it really is, and what we can do about it.

#SriLanka #EconomicCrisisLK

(1/25)
Despite some belief that Sri Lanka has high expenditure levels, and we need to "cut down" on this - this is actually not the case.

Looking at the data shows that Sri Lanka actually has quite low government expenditure by global and regional standards.

(2/25)
If we look at a bunch of other countries that have similar debt related issues, this trend is even stronger - Sri Lanka's government expenditure is much lower than these other countries and in fact has been falling for a while

(3/25)
Read 26 tweets
Jul 12
Time for a series of polls, at least of my Twitter audience. Remember, Twitter polls are anonymous.

Do try to answer the lot, promise it'll be interesting!

(also please don't read too much into the wording of the answers!)

Question 1: Do you want GR out from the presidency?
Question 2: Do you want RW out from the premiership/presidency?
Question 3: Do you want Sajith Premadasa as President/Prime Minister of a multiparty government?
Read 10 tweets
Jul 9
For good intentions and bad, a question coming up now is "What happens if #GoHomeGota succeeds?"

A lot of false info and lies floating around about this, so let me try and clarify to best of my ability

#අරගලයටජය #EconomicCrisisLK #GoHomeRanil for reach

(1/20)
Disclaimer first, especially since political content. Politics is not my expertise, so take THAT aspect with a grain of salt. Will do my best to keep this analysis economic. But still personal opinion

(2/20)
There are three elements in which a change in governance can be affected and comments are made on.

1. Economic reforms
2. IMF negotiations
3. Debt negotiations

I feel all of these work worse under a GR led government

(3/20)
Read 20 tweets
Jul 9
A small thing on Steven Hanke and his push for a currency board.

He works for the Cato Institute, a free-market think tank pushing for right-wing policy. That's fine, people can have views. But important to be AWARE of this bias.

Here are a few extracts from Hanke:
"A Dollarization Mission for Secretary Pompeo"

"If Secretary Pompeo wants to make life even more difficult for Beijing’s renminbi promoters, he should grab the mantle and start promoting the use of the U.S. dollar. "
"There are two ways to expand the use of the greenback, which is already the world’s premier currency. Both would require countries with unreliable central banks that produce junk currencies to replace their junk with the greenback. "
Read 6 tweets

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