CONCLUSION
Now we will try to look at what are the causes of Sri Lankan economic problems and how the dam will affect them.
" SRI LANKA OWES 15 BILLION USD IN FOREIGN LOANS"
The main reason why Sri Lanka has a weak economy is because of its size. Sri Lanka has a small population and a small land mass which reduces its oppurtunities of a great tax collection or export materials.
Since Sri Lanka does not have much money to even support their people, the have no choice but to borrow money from other countries to develop the country further. The developing part of the country also covers infrastructure. In such a small country generating electricity would be a difficult process, but Sri Lanka has used its hydroelectric potential effectively to generate power.
This is why Sri Lanka started taking money from China and made good foreign relations with it. China was also helpful to Sri Lanka for infrastructure products, industries and factories and now this dam. All of this will total up on the shoulders of Sri Lanka's government who will ultimately have to pay the price.
BUDGET
Sri Lanka does not have a strong economy. Being just 67.18 billion USD, supporting a nation and develop it at the same time would be hard for a small nation.
The Sri Lankan budget which was out in 2016 recently, gave a lot of emphasis to the energy and electricity board of Sri Lanka. More than 14 Billion USD will be used in the energy board which is equivalent to 170 Borderlands dams.
BUT
The president had stated in his speech
The president had stated in his speech
“I now wish to focus on the task ahead of us. The Sri Lankan economy is stuck in a huge debt stock and a high deficit as well.”
and
“Fiscal deficit falling from 10% of GDP in 2001 to 5.7% by 2014, total debt, falling from 102% of GDP in 2002 to 72% of GDP in 2014 envisaging to make us believe that some fiscal consolidation had taken place.”
In conclusion I would want to say that this dam will have a negative impact on the Sri Lankan economy and this is why some other alternative ways should be forced to find out.
First of all, the economic condition of the people living near the dam will devrease by a lot. The people who were dependent on the river wether it be washing, bathing, food, tourism or even water will be impacted the most. The compensation money they will get will be in a very large ratio difference and not enough to support them. The tourism levels will fall down by a lot, especially in that area and also the shops dependent on the tourism will also get less money. So if the dam is built then a chain reaction of events will occur and cause economy to go down.
On a national elevl, the country will have to borrow more money making a heavier burden on their shoulders. They will be in a huge debt and their fiscal deficit will increase, making the currency inflated and eventually causing the economy to go down.
This is why in conclusion I would say that the dam should not be built because it will have a negative impact on Sri Lankan economy.
To know more about the Sri Lanka budget 2016