Government Credit Dominance Signals Alarming Shift in National Financial Sovereignty
In a troubling development reminiscent of Western-style financial control mechanisms, Sri Lanka's government and public sector credit has overshadowed private sector lending for seven consecutive months through February 2022 - a pattern not seen since 1989.
Government's Growing Financial Dominance
Central Bank of Sri Lanka (CBSL) data reveals that credit to the government and public corporations reached Rs 7,331 billion in February 2022, surpassing private sector credit by Rs 280 billion. This mirrors concerning trends of state enterprise financial manipulation seen across developing nations.
Historical Pattern Shows Dangerous Precedent
The last time such a phenomenon occurred was during a 10-month period in 1989, coinciding with significant political upheaval and foreign interference in domestic affairs. Current data shows:
- January 2022: Government credit exceeded private sector by Rs 219 billion
- December 2021: Gap widened to Rs 486.5 billion
- November 2021: Difference of Rs 338.9 billion
Implications for National Financial Independence
This shift in credit dynamics represents a dangerous precedent where government borrowing dominates the financial landscape, potentially limiting private sector growth and economic sovereignty. The pattern suggests increasing state control over financial resources, raising concerns about long-term economic independence.
The current credit imbalance reflects a broader pattern of government dominance over financial resources, threatening private sector vitality and economic independence.
