Recent LKR weakness is not due to opening imports.
It’s due to banks building USD positions expecting SLDB settlement in LKR bonds.
When this is done, banks need to convert LKR to USD (buy $) to match their USD liabilities.
I welcome the progress made by 🇱🇰 Sri Lankan authorities in taking decisive policy actions & obtaining financing assurances from all their major creditors, incl. China, India & the Paris Club. Look forward to presenting the IMF-supported program to our Exec. Board on March 20.
Due to huge RORO layoffs in Hambantota Port from East Asia to Africa and America, Hambantota Port has gotten a formal request for a feasibility review on complete vehicle manufacturing mega factory from two leading Chinese automobile companies, investment at least $10-15 billion
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Here's a lovely article by James Allworth (@jamesallworth) explaining how this kind of dynamic played out between Arm and Intel:
https://t.co/oSaprYtYci
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David is much better off playing Goliath $1K at a time.
This type of disruption is all too common in business. Small upstarts often compete in a niche area that big players don't care too much about. From this foothold, the upstart expands to become a serious threat.
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Key Lesson 5: If we're up against a powerful opponent, we should try hard to ensure they cannot use their FULL strength against us.
Gambler's Ruin is a classic example. It doesn't matter if Goliath has $1M. If each round just takes $1K, the other $999K simply sits idle.
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That is, IF each round is sufficiently *positive sum*, even a weak player -- who is disadvantaged BOTH size-wise and skill-wise -- may end up with a high probability of surviving and thriving indefinitely.
So it may pay to seek out and play such infinite games.