When Sri Lanka's military finally defeated the Liberation Tigers in May 2009, having also slaughtered tens of thousands of Tamil civilians, President Mahinda Rajapakse and the rest of the Sinhala establishment were confident that not only would the Tamils now meekly acquiesce to Sinhala rule, but so would the international community. They were wrong on both counts. Not only have the Tamils endured the ravages inflicted on them during and after the war, they still stubbornly insist on their demand for self-rule. On the other hand, rather than embrace the Sinhala ethnocracy, the international community is doggedly pursuing its transformation into a liberal market democracy.

There has been some convergence between Tamil and international demands for an independent international investigation into the events of 2009 in Sri Lanka. The international community now largely supports the view that the manner in which the last stages of the war in Sri Lanka were fought may constitute crimes against humanity.

While China’s loans are an immediate de-facto handout for Chinese companies (which Sri Lanka is obliged through conditionalities to hire and purchase from), future Colombo governments will be left with the debts - at interest rates higher than other developmental lenders ask for.

In short, Colombo is borrowing from China but pumping the money into the Chinese – not Sri Lankan – economy.

The Sri Lankan state’s debt dependent and public sector heavy economic strategy is crowding out private investment, lowering domestic savings and foreclosing a sustainable economy in the long term, business and economic analysts warned this week.

The Central Bank’s growth projection were this week revised downwards by ratings agencies RAM Ratings and Standard & Poor’s who also warned that Sri Lanka’s long term growth depended crucially on cutting government spending.

Meanwhile, fear is silencing critics of the government’s economic policies, one business leader protested this week.

There appears to be no end to President Mahinda Rajapakse’s pompous self-regard. Having won the election and steam-rolled through the possibility of lifelong presidency, the president, through his ever obliging government, proclaimed the entire week, to be one of festivities, in order to commemorate his swearing in for a second term.