Like Sri Lanka, India is also facing fuel crisis. However some Indian
economic experts had analyzed the situation and expressed an opinion
which is applicable to Sri Lanka as well.
In 1970, America insisted that all petroleum (crude oil) dealings
should be in US dollars. Several countries purchased excess US dollar to
be kept in reserve. Whenever US dollar is strong these countries which
deal in US dollars faced price increases and adverse economic
conditions. Late Satham Hussain objected to this and wanted to deal in
Euro dollars. However America had suppressed this action. Now Iran is
breaking this US dollar linkage and is prepared to deal in Euro dollars.
Further it is reported that Iran is prepared to sell fuel to India based
on Indian rupee, and America had advised India not to deal with Iran.
This is considered as an interference in the sovereignty of India who
should be free to deal with any country.
It appears that Iran was prepared to sell natural petroleum gas to
India. It could be transmitted via pipe lines and even other countries
like Afghanistan, Pakistan and Sri Lanka could join in this deal.
America did not approve of this contract also.
It is high time for India/Sri Lanka to revise economic policies
without being influenced by America. Fuel crisis is a major problem to
our country and we should take steps to resolve the same. The following
steps are suggested;
a) Dealing in Euro dollars and if possible based on Sri Lankan
Rupees.
b) Consider purchase of natural petrol gas from Arab countries (Iran)
by having joint venture deal with India.
c) Reduce the balance of payment deficit.
d) There are foreign investors who have credit trading, currency
trading and share market participation with Sri Lanka. Regrettably some
investors take away all their investments immediately on facing adverse
economic problems which make matters worse. Several foreign countries
had nearly collapsed by this attitude of foreign investors. This action
should be controlled by the Central Bank of Sri Lanka like India which
had taken constructive measures.
e) Explore the possibilities of crude oil excavation in our county.
We should not sell this contract to foreign or local private
organizations.
Whilst admitting not to be an economic expert, I urge the economic
intellectuals to express their opinion for constructive action to
improve our economy.
- S. R. Balachandran
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