German travel vlogger in Sri Lanka plans to leave as money printing creates power cuts
ECONOMYNEXT – A German vlogger, Ken Abroad, who has captured the hearts of thousands of YouTube users in Sri Lanka, says he may cut his visit short and leave the country because printing money has created currency shortages and an electricity crisis.
“When you travel overseas, you encounter a lot of difficult situations,” Ken said in his latest YouTube video.
“But the challenges are getting worse, so I’m actually thinking about leaving Sri Lanka earlier than planned.”
“In Sri Lanka, we have power cuts of 6 to 8 hours a day. It’s not just me, many companies are struggling.
He said the power cuts meant there was no light, he couldn’t charge his laptop and there was no wi-fi. At night it was worse.
“A lot of restaurants are closing because they can’t operate,” he explained. “I can sit on the beach so that’s not a problem.”
However, he said he had to use the laptop for his work. Ken works online as a social media expert, according to his website, and is traveling through Asia where he also earns money from his youtube channel.
Ken had won the hearts of thousands of Sri Lankans both in Sri Lanka and living abroad, who usually give him advice and encouragement when he meets locals and thinks outside the box.
The generally positive and bubbly Ken said he didn’t like complaining and asked his Sri Lankan supporters to tell him why it was happening.
“I’m curious why we have power cuts in Sri Lanka right now.”
“So sorry to see you go, you were one of the most humble and my favorite bloggers to ever visit Sri Lanka,” YouTube viewer Vimukthi Mayadunne wrote in response.
“Thank you for sharing the beauty of my country with the world. So sorry for the current situation in this country, this pathetic and ignorant government is making one stupid decision after another, bringing new troubles to the country. Goodbye and travel safely.
Sri Lanka is facing a severe currency crisis after the central bank printed money to keep interest rates low to create a ‘production economy’ after cutting taxes.
However, when money is printed – liquidity injections are made – currency shortages appear in a pegged exchange rate regime, as outflows of dollars exceed inflows with monetary and exchange rate policies working in directions opposites.
#Sri Lankait’s #Rupee faces crisis after crisis because it operates a #Change rate supported by contradictory monetary and exchange rate policies. As I informed President Suharto of #Indonesia in 98, the only options are to #dollarize Where is. a currency board.https://t.co/k0tC8RZtEM
—Steve Hanke (@steve_hanke) September 10, 2019
Sri Lanka’s monetary collapse will accelerate unless swift action is taken: Bellwether
Sri Lanka isn’t Greece, it’s a Latin American-style soft-peg: Bellwether
Sri Lanka’s pegged central bank created currency shortages within two years of its establishment in 1950 and triggers currency shortages and currency crises every 4-5 years, especially when the United States prints money. money and tighten their policy.
Using mercantilist dogma, foreign shortages are then blamed on imports, trade deficit and current account deficit instead of money printing.
The central bank typically prints money to keep rates low as budget deficits rise, but in 2018 money was printed to keep rates low despite the budget deficit being reduced through new taxes.
Classical economists and analysts have called for the abolition of the central bank in favor of a currency board or for the country to be dollarized.
The International Monetary Fund has warned of currency instability, echoing warnings from domestic economists and analysts.
Ken’s thoughts on leaving Sri Lanka came as the UK warned British travelers of the economic crisis.
“The economic situation is deteriorating in Sri Lanka with shortages of basic necessities including medicine, fuel and food due to a shortage of hard currency to pay for imports,” the travel advice from the country said. United Kingdom to citizens.
“There can be long lines at grocery stores, gas stations and pharmacies. Local authorities may impose electricity rationing, leading to power outages.
Sri Lanka floated the currency, but mainstream economists said the policy interest rate needed to be raised.
“We need the support of you who are doing a great service to the country’s tourism during this current difficult situation, my brother,” Dhananjaya wrote.
“You can move to Colombo where there are only power cuts at night, like for an hour or for 2 hours only. We know you are a nice man from all the vlogs you have posted, so if you can stay for your valid full visa, that will be a great help and support for the local brother! ”
Colombo is on a state-run Ceylon Electricity Board 220 kV network, where several generators are connected. But the southern tourist areas are connected to the southern 132kV grid which needs the Samanalawewa reservoir to keep it well supplied.
When the CEB requested power cuts of one or two hours in early 2022 to save water, they were refused.
CEB this week received the green light to connect an unused private power plant to the ACE Embilipitiya grid to improve supply. (Colombo/March 14, 2022)