Debt restructuring talks unaffected by unrest, assure IMF and CBSL

Both the International Monetary Fund (IMF) and the Central Bank of Sri Lanka (CBSL) yesterday (11) assured that despite the recent unrest, political instability, and resultant islandwide curfew, technical-level discussions on Sri Lanka’s debt restructuring would be carried out as usual.

Issuing a statement in response to media queries, the IMF yesterday (11) stated that despite the unrest that has been created in the country with the resignation of Prime Minister Mahinda Rajapaksa, the virtual mission which was to commence from 9 May until 23 May is to continue, so as to prepare for policy discussions that will take place under a new government.

“On our virtual mission during 9-23 May, discussions at the technical level have just started and will continue as planned, so as to be fully prepared for policy discussions once a new government has been formed.”

Meanwhile, CBSL Governor Dr. Nandalal Weerasinghe stated that since technical discussions are a standard process, they will be carried out as usual; however, policy implementations will require decisions to be made by state authorities.

“Active state institutions should be there to approve and implement fiscal policy decisions,” Weerasinghe said.

This statement was issued following local economists as well as Citigroup Global Markets expressing their concern over the repercussions that the country may face due to the declared state of emergency as a result of the political instability in the island.

The economists assumed that the negotiations with the IMF might be delayed, and thus entering into the IMF programme would take over six months. At the same time, on Tuesday (10), Bloomberg cited Citigroup as saying that the investment banking company foresees a possibility of delays in bailout talks.

The IMF statement further read that they are following the developments in Sri Lanka and “are concerned about rising social tensions and violence”.

However, the IMF said that they are to remain committed to assist the country in line with the IMF’s policies.

On Tuesday (10), speaking to The Morning Business, former Ceylon Chamber of Commerce Chairman Chandra Jayaratne expressed that the discussions with the IMF relating to debt sustainability could be carried out by relevant officials such as CBSL Governor Dr. Weerasinghe and Treasury Secretary Mahinda Siriwardena, without endorsement from Sri Lanka, as there is no official government in place after the resignation of the Prime Minister.

However, Jayaratne added that when it comes to presenting the plans for debt repayment in the future based on forecasts, the endorsement of the Government is required in implementing certain policies, such as reduction of expenditure, increase of government revenue, transfers for the poor to ease their suffering and other reforms.

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Sri Lanka crisis: Ex-PM flees to naval base as arson attacks spread

Security forces are out in force across Sri Lanka with orders to shoot looters on sight amid continuing protests at the government’s handling of a devastating economic crisis.

Despite a nationwide curfew, there was a second night of arson attacks.

Shops near Colombo were torched, as well as a resort owned by former Prime Minister Mahinda Rajapaksa’s son.

The ex-PM is holed up in a naval base after resigning on Monday when fury erupted over fuel and food shortages.

At least nine people have been killed and about 200 injured in unrest since Monday.

It began when government supporters attacked protesters who are demanding that President Gotabaya Rajapaksa, the former PM’s younger brother, should leave office.

Opposition politicians have warned the violence could have been staged to give the army a pretext to take power. Rumours of a possible coup have been fuelled by the presence of large numbers of troops with armoured vehicles on the streets.

“When there is a dangerous situation in the country, powers are given to the military to deal with it,” Defence Secretary Kamal Gunaratne told a news conference.

“Don’t ever think that we are trying to capture power. The military has no such intentions.”

Sri Lanka had already seen weeks of protests over its dire financial situation, which has caused the Sri Lankan rupee to plunge, provoking severe shortages of basic items such as food, fuel and medical supplies.

The worst trouble overnight was in the north of the capital, Colombo, where rival groups set fire to shops in the town of Negombo.

On Monday night, mobs burned more than 50 houses belonging to politicians, while a controversial museum dedicated to the Rajapaksa family was also razed to the ground in their traditional heartland, Hambantota, in the country’s south.

Shops, businesses and offices are shut for a third day on Wednesday under a nationwide curfew in place until Thursday morning.

A meeting between Sri Lanka’s political party leaders has been moved online over security concerns.

The streets of the capital, Colombo, bear the evidence of this week’s rioting – a heavy police presence, troops on the streets, and overturned and burnt buses after Monday’s violence.

Nonetheless, protesters continue to gather despite the curfew at Galle Face Green, the main protest site in Colombo. They insist President Rajapaksa has grossly mismanaged the economy and must stand aside.

He is the last Rajapaksa family member in office and the resignation of his brother as prime minister did nothing to placate demonstrators or bring calm.

Sri Lanka’s new President Gotabaya Rajapaksa (R) and his Prime Minister brother Mahinda Rajapaksa, pose for a group photograph after the ministerial swearing-in ceremony in Colombo on November 22, 2019.

Protesters blame Gotabaya (right) and Mahinda Rajapaksa for the current crisis
President Rajapaska says he is holding talks with other political parties aimed at forming a unity government. But the main opposition says it will not be part of the interim administration unless the president stands down.

At present, there is no clarity on which political parties might come together to form such a government.

The political stalemate comes as Sri Lanka attempts to iron out a bailout package with the International Monetary Fund (IMF) – the island’s $81bn economy is near bankruptcy.

It has suspended its foreign debt payments, largely because it cannot service loans from China that paid for massive infrastructure projects.

While the pandemic hit the vital tourism sector and shrank Sri Lanka’s earnings and foreign exchange reserves, experts say problems have been exacerbated by populist tax cuts in 2019 and a disastrous ban on chemical fertilisers in 2021 that devastated crop yields.

Protesters gathered in front of Trincomalee Naval Base in the north-east after reports that Mahinda Rajapaksa had fled there with his family after escaping from his Colombo residence when it was besieged by crowds on Monday night.

The military confirmed on Wednesday that he was inside the base.

“We took Mahinda to the naval base for safety reasons,” the defence secretary said.

Earlier, there had been rumours that Mr Rajapaksa and others in the family had fled to India, which the Indian High Commission in Colombo denied.

Sri Lankans are still reeling from the violence that has erupted. Many politicians are sheltering in safe houses or avoiding appearing in public.

“It is not at all safe, particularly for politicians on the government side,” Nalaka Godahewa, until recently media minister, told the BBC. His house was among those torched.

Mahinda Rajapaksa, once celebrated by the majority Sinhalese as a war hero for defeating the Tamil Tiger rebels, has suddenly become a villain. Many blame his supporters for targeting anti-government protesters, which then set off a chain of violent events.

The Rajapaksas have always stood together, but this time, their differences are out in the open. The problem appears to have started after Gotabaya asked the family patriarch Mahinda to “take one for the team” and resign.

How the family, who have dominated Sri Lankan politics for years, overcome this crisis is now an open question.

Guterres calls for dialogue to solve Sri Lanka crisis

UN Secretary-General Antonio Guterres wants Sri Lankans to find a solution through dialogue to the crisis in their country, whose Prime Minister Mahinda Rajapaksa resigned amid violent clashes spurred by an economic crisis, his Deputy Spokesperson Farhan Haq said on Monday.

“We continue to encourage all Sri Lankan stakeholders to find a solution to the current challenges through dialogue and with the interests of the country and the people in mind,” Haq said.

Mahinda Rajapaksa turned in his resignation to his brother, President Gotabaya Rajapaksa, as the nation was rocked by clashes between the supporters of the Rajapaksa family and its opponents, and by police, attempts to contain the protests.

Gotabaya Rajapaksa placed the island nation under curfew.

“We’ve also been concerned about the recent violence against peaceful protesters, and we urge calm and restraint, as well as respect for democratic rights, including the right… the freedom of expression and the right to peaceful assembly,” Haq said.

A member of parliament from the ruling party, Amarakeerthi Athukorala, was found dead after he fired into a crowd of protesters blocking his way and fled the place.

About 200 people were reported injured in the clashes around the country, including in front of the President’s residence.

Sri Lanka is in dire economic straits caused by foreign exchange shortages.

It has sought financial arrangements with India and Bangladesh to import vital food supplies and oil to make up for shortages that have fuelled the protests.

Amnesty International ‘concerned about’ reports from #Rambukkana

Global Human Rights Defender Amnesty International states that it is concerned about disturbing reports after Police opened fire at protestors in Rambukkana today (19).

Moreover, Amnesty International has emphasized that authorities must always exercise restraint and use no more force than necessary.

 

 

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IMF to consider SL’s RFI request after India’s backing

The International Monetary Fund (IMF) has agreed to consider a request by Minister of Finance M.U.M. Ali Sabry (President’s Counsel) for a Rapid Financing Instrument (RFI), following representations made by India’s Minister for Finance and Corporate Affairs Nirmala Sitharaman on behalf of Sri Lanka, despite it being outside of the standard circumstances for the issuance of a RFI.

Both Finance Ministers held discussions with IMF Managing Director (MD) Kristalina Georgieva yesterday (19).

In a Tweet issued yesterday, Advisor to the Finance Minister Shamir Zavahir said that although Sabry had made a request for a RFI to mitigate the current supply chain issues, the IMF was initially of the view that it does not meet their criteria.

“However, India subsequently made representations on a RFI for Sri Lanka as well, and the IMF may consider this request due to the unique circumstances,” he added.

Meanwhile, in a press release issued yesterday, the Indian Finance Ministry said that during the meeting between Indian Minister for Finance and Corporate Affairs Nirmala Sitharaman and Georgieva on 18 April, Sitharaman had indicated that the IMF should support and urgently provide financial assistance to Sri Lanka.

“Georgieva particularly brought reference to the help India is providing to Sri Lanka during their difficult economic crisis and assured Sitharaman that the IMF would continue to actively engage with Sri Lanka.”

A statement by the Finance Ministry said that after Ali Sabry had made a request for a RFI, the IMF had informed Ali Sabry that India had also made representations on behalf of Sri Lanka about a RFI. The IMF had further informed Ali Sabry that they would consider the request, despite it being outside of the standard circumstances for the issuance of a RFI. The RFI provides rapid support for all member countries facing an urgent balance of payments related need and can be used in a wide range of circumstances.

Furthermore, Zavahir said that the negotiations with the IMF had started on a “positive note.”

“They see the recent steps taken to increase the interest rates, and calling for Requests for Proposals (RFPs) for the appointment of international financial and legal advisors, as good first steps towards a possible restructuring programme. In any event, the IMF appears to be positive towards granting an Extended Fund Facility (EFF). Ideally if this can be expedited, it can help stabilise things in the short term till long term solutions kick in,” he noted.

Minister Sabry is due to hold discussions throughout the week with other IMF officials and the World Bank.

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Sri Lanka crisis: Government seeks emergency financial help from IMF

Sri Lanka says it has requested emergency financial help from the International Monetary Fund (IMF) as bailout talks got under way on Monday.

The global financial organisation will consider providing the assistance after representations by neighbouring India.

Meanwhile, a leading rating agency warned Sri Lanka will see “a series of defaults” on its foreign debts after officials said it would halt payments.

It comes as Moody’s downgraded its assessment of bonds sold by Sri Lanka.

Sri Lankan officials, led by finance minister Ali Sabry, are in Washington this week for talks with the IMF as the South Asian nation faces its worst economic crisis in more than 70 years.

At a meeting, the IMF “commended on the steps already taken by [Mr Sabry] to mitigate the financial situation in Sri Lanka,” the country’s finance ministry said in a statement.

“[The] Minister of Finance has made a request for a Rapid Financing Instrument (RFI) with the IMF. IMF has subsequently informed Minister Sabry that India had also made representations on behalf of Sri Lanka for an RFI,” it added.

“It had been communicated that IMF will consider the special request made despite it being outside of the standard circumstances for the issuance of an RFI.”

A RFI is usually granted to an IMF member nation with “urgent” funding needs, because of sharp commodity price rises, natural disasters or conflicts. It does not require the country to have a plan to restructure its economy.

Last week, the Sri Lankan government said it would temporarily default on $35.5bn (£27.3bn) in foreign debt as the pandemic and the war in Ukraine made it “impossible” to make payments to overseas creditors.

On Monday, Sri Lanka’s finance ministry confirmed that it would miss $78m in interest rate payments on international sovereign bonds.

A spokesperson told the BBC this was “in line with the government policy decision” to pause foreign payouts.

If the overdue interest rate payments are not made within a 30-day grace period, it would mark Sri Lanka’s first default on its foreign debt since its independence from the UK in 1948.

Asked if payment would be made within the grace period, the spokesperson said: “A decision in this regard will be published in due course”.

The country has seen mass protests in recent weeks as it suffers food shortages, soaring fuel prices and major power cuts as its reserves of foreign currencies are running low.

The latest rating from Moody’s suggests that overseas bonds issued by Sri Lanka are “likely in, or very near default”.

The rating agency said the country’s move to stop some payments “will lead to a series of defaults with the first coupon payments for the government’s international bonds coming due today, April 18, 2022.” A coupon is the interest payment due on a bond.

Moody’s added that the non-payment was “unlikely to be cured during the grace period”, as a debt restructuring programme with the IMF “will take time”.

Last week, two other major credit rating agencies also warned that Sri Lanka was on the brink of defaulting on its debts.

Credit ratings are intended to help investors understand the level of risk they face when buying a financial instrument, in this case a country’s debt – or sovereign bond.

International sovereign bonds make up the largest share of Sri Lanka’s foreign debt.

They are held by countries including China, Japan and India as well as major investment firms such as BlackRock, UBS and Allianz.

Meanwhile, the Colombo Stock Exchange is scheduled to remain closed all this week, due to the “present situation in the country”.

‘Sri Lanka is a case study on how not to run a country’

In the backdrop of public protests in Sri Lanka, Harsha De Silva, MP of the opposition Samagi Jana Balawegaya, spoke to TOI in Colombo:

How would you sum up the crisis?
It is a political, economic and social crisis like never before.

What were the early warning signs that the government missed?
Immediately after the presidential election in 2019, ahead of the parliamentary election, they cut taxes by almost a third. The rating agencies changed their outlook from ‘stable’ to ‘negative’, but the government ignored it and started printing currency. And the downgrades kept coming. Denial was their strategy. And it blew up into this.

Did the government fail to seek the right advice?
Absolutely. While we were in an unstable macro situation, unable to control inflation and exchange rates, besides being in the middle of a pandemic, the president, against expert advice, banned import of chemical fertilisers. And now the harvest of tea, export crops, plantation crops, grains and rice are down by 50%. IMF was willing to give us reserves to try and hold the Sri Lankan rupee at 230 (against the US dollar), which they said was the level it was going to fall to. But then it kept dropping and today we are at 330. The government was utterly negligent, inconceivably idiotic. This is a case study of how not to run a country.

Why did the government delay approaching the International Monetary Fund?
I don’t understand why they delayed it. Every independent economist in Sri Lanka and abroad advised the president that he should do it (approach the World Bank). But certain people, particularly, former central bank governor Ajith Nivard Cabraal (who resigned on April 4) and Basil Rajapaksa (former finance minister) thought they had some home-grown solution. I think they misdiagnosed the problem; or they diagnosed it, but didn’t want to accept the reality. They kept saying this is a liquidity problem. There was also a liquidity problem, but the bigger problem was a solvency problem. These people have been utterly negligent.

Do you think there should be war-like action?
Yes. The only positive thing is that they have now appointed a professional as the governor of the central bank (P Nandalal Weerasinghe). The first thing he did after taking charge was to raise key interest rates by 700 basis points (7 percentage points) – a first. And, the opposition, not wanting to play politics at this time, supported him. A three-member advisory group on multilateral engagement and debt sustainability to advise the president has been constituted. It includes former governor of the central bank Indrajit Coomaraswamy, former chief economist of World Bank Shanta Devarajan and former director of the Institute of Capacity Development of the IMF Institute Sharmini Coorey.

Do you think India should help more? If so, how?
As a citizen of Sri Lanka, I must tell you the people of our country are thankful to the people of India. They have come to our help when we needed it the most. If India didn’t postpone what are called these Asian clearing union credits, that is payment for goods purchased coming due, we would have defaulted on some other loan three months ago. They have given us credit to buy food and medicine, given us credit to buy fuel. It is embarrassing for us to ask for food and medicines from anyone. It is tough for us, but we will come out of this and we will rise much faster.

Why did the opposition reject the president’s move to form a unity government involving opposition members?
The country is saying ‘Go home Gota’. How can we go against such sentiments? We said we are willing to take over the government and turn around the situation. We have the skills, the people, the connections. The way out now is by invoking the 21st amendment of the constitution to abolish the executive presidency. For this we need the support of two-thirds in parliament and a referendum. If Gotabaya agrees to that, a pathway will open to reset the economy. The referendum can happen along with a general election. Crises create opportunities. This is a good time to fulfil the promise of almost every presidential candidate since 1994 – Chandrika, Mahinda, Sirisena – to get rid of this concentration of power in one individual.

Can you give us a preview of the economic blueprint your team is working on?
First, we need to stabilise the macro-economy. We need to rein in inflation, hold the currency and have some meaningful intrastat. We should restructure jobs. We should revise taxes, rationalise expenditure, remove the stranglehold of government in the market by liberalising the trade and investment policy. We should focus on social safety banks because lower income people are getting hammered.

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US Report Against Human Rights Abuse in Sri Lanka

While acknowledging that Sri Lanka is a constitutional, multiparty, democratic republic with a freely elected government, the US State Department’s human rights report on the island nation for 2021 has few compliments to pay on the way it handled human rights issues. Abuses of various kinds were “significant” the report released on April 12 said.

According to the report, the government took “minimal steps” to identify, investigate, prosecute, and punish officials who committed human rights abuses or corruption. There were several reports that the government or its agents committed arbitrary or unlawful killings.

The report refers to the ‘Harm Reduction International’ to say that deaths in police custody increased during 2021. The press reported that Melon Mabula (alias “Uru Jawa”) and Dharmakeethilage Tharaka Wijesekara (alias “Kosgoda Tharaka”), were shot dead by police in May while they were in detention. The Bar Association of Sri Lanka condemned the killings.

On June 16, the Court of Appeal granted bail to former Director of the Criminal Investigations Department (CID) Shani Abeyesekera, who had been in pre-trial detention since July 2020 without charge for allegedly fabricating evidence in a 2013 case. Civil society considered his arrest in 2020 to be reprisal for his investigations into several high-profile murder, disappearance, and corruption cases involving members of the sitting government, including members of the Rajapaksa family.

Lack of accountability for conflict-era abuses persisted, the report stated. On January 11, the Attorney General’s Department (AGD) informed the Batticaloa High Court that it would not continue with the murder charges against the Tamil Makkal Viduthalai Pulikal party leader Sivanesathurai Chandrakanthan, aka Pillayan and five others for the 2005 killing of former Tamil National Alliance (TNA) member of parliament (MP) Joseph Pararajasingham. Pillayan, a former Liberation of Tamil Tigers Eelam (LTTE) cadre, had a plethora of allegations against him, but he became an ally of the Rajapaksas after the war.

On May 5, the Jaffna Magistrate Court ordered the release of six suspects in the October 2000 death of BBC Tamil reporter Mayilvaganam Nimalarajan, after the Attorney General advised the court that the government would no longer pursue the case. Nimalarajan was allegedly shot and killed by members of the pro-government Eelam People’s Democratic Party in his home in Jaffna.

On June 24, the President issued a special presidential pardon to former Sri Lanka Freedom Party (SLFP) parliamentarian Duminda Silva, sentenced to death in 2016 for the 2011 killing of fellow SLFP MP Bharatha Lakshman Premachandra during local elections. On July 16, the President appointed Silva as the chairman of the National Housing Development Authority.

Disappearances during the war and its aftermath remained unresolved. In February 2020 the Office on Missing Persons (OMP) received authorization to issue Interim Reports to the relatives of the missing and disappeared. The Interim Reports and Certificates of Absence could be used by family members to legally manage the assets of missing persons and assume custody of children. But the families of the disappeared said that issuing death certificates for the missing and disappeared, without investigation and disclosure of what happened to them, only promoted impunity.

On August 4, the Attorney General’s Department announced its intent to drop charges against former Navy Commander Adm. Wasantha Karannagoda for alleged involvement in the abduction and disappearance of 11 persons from Colombo in 2008 and 2009 as the complaint against him was allegedly politically motivated. On December 9, Karannagoda was sworn in as Governor of North Western Province.

As of December 14, 2021, there had been no progress on the trial of seven intelligence officers accused of participating in the 2010 disappearance of Prageeth Eknaligoda, a journalist and cartoonist.

Civil society organisations asserted that the government, including the courts, were reluctant to act against security forces alleged to be responsible for past abuses.

On October 21, the Supreme Court ordered the IGP to launch a criminal investigation into the allegation that former State Minister of Prisons Lohan Ratwatte threatened to kill Tamil terrorist suspects in the Anuradhapura jail on September 12. But as of October 25, Ratwatte had not cooperated with the CID.

Under the Prevention of Terrorism Act (PTA), detainees may be held for up to 18 months without charge, but in practice authorities often held PTA detainees for longer periods, some for more than 10 years. Judges require approval from the AGD to authorise bail for persons detained under the PTA. The AGD provided such approval in some cases. However, the law requires the provision of counsel for those without counsel only in cases before the High Court and Court of Appeal.

On August 25, the Inspector General of Police told the press that the government had arrested 723 individuals for alleged involvement in the 2019 Easter Sunday bombings, and that 311 individuals remained in detention. According to civil society, almost all these individuals were being held without charge under various combinations of the PTA, the International Covenant on Civil and Political Rights (ICCPR) Act, and the penal code.

On August 28, the President appointed a three-member advisory board to make recommendations on holding or releasing individuals held under PTA detention orders. According to civil society, at year’s end the government had released 16 PTA detainees on the recommendation of the board.

The government arrested five prominent Muslims in 2020 and 2021 for alleged involvement in the 2019 Easter Sunday bombings and indicted three of them on speech-related offenses under the PTA. Poet Ahnaf Jazeem was arrested under the PTA

in May 2020 for a collection of Tamil poems he published that allegedly contained “extremist” messages But Amnesty International asserted that the writings actually spoke out against extremism, violence, and war.

On September 7, the international NGO ‘Freedom Now’ filed a petition on his behalf with the UN Working Group on Arbitrary Detention, noting that “Ahnaf’s poetry should be celebrated, not condemned.” He was released on December 16.

On March 16, authorities arrested former Western Province governor Azath Salley under the PTA after he criticized the cabinet’s decision to ban polygamy at a March 10 press conference. The arrest came after a ruling government MP filed a complaint alleging Salley had “direct or indirect” links to the Easter Sunday attacks. On December 2, the Colombo High Court acquitted Salley of all charges.

Political opposition and civil society raised alarm over the government’s Presidential Commission of Inquiry (PCoI) on Political Victimisation report, which alleged the previous government had targeted members of the existing government and their loyalists with politically motivated investigations and prosecutions. It was feared that the report would be used to get many guilty ruling party men off the hook.

The attorney general filed indictments against human rights lawyer Hejaaz Hizbullah for speech-related offences under the PTA, ICCPR Act, and penal code on March 12. He remained in detention at year’s end, more than 20 months after his April 2020 arrest. The UN High Commissioner for Human Rights Michelle Bachelet in her September 13 update at the UN Human Rights Council (UNHRC) raised concerns regarding the application of the PTA, citing Hizbullah and Jazeem by name.

A Muslim businessman, Fazl Muhammed Nizar, was detained by police under the PTA for a January 9 Facebook post accusing the government of using heavy-handed tactics to govern.

There were reports of harassment and intimidation of journalists when covering sensitive issues. Reporters alleged that the authorities, sometimes in government vehicles, surveilled journalists, especially those covering protests.

The US report further said that the 20th constitutional Amendment (20A) of 2020 is marked by a “broad expansion of executive authority that activists said would undermine the independence of the judiciary and independent state institutions.” Institutions such as the Human Rights Commission and the Election Commission are subverted by granting the President sole authority to make appointments to these bodies with Parliament afforded only a consultative role.

The Colombo cascade: Sri Lanka halts debt payments, raising fears it could be the first of many emerging market economies to collapse

Sri Lanka is a country which has lived through multiple catastrophes since winning its independence from Britain in 1948.

Most calamitously, there were three decades of civil war between the majority Sinhalese and the minority Sri Lankan Tamils.

Yet throughout this troubled history, the government in Colombo has never reneged on its debts.

But with protesters on the streets complaining about soaring food and fuel prices and the leadership of the ruling family, the finance ministry felt it had few other choices but to suspend payments.

It stressed the country’s uninterrupted record of paying its way through thick and thin, adding that to continue to do so ‘was no longer tenable.’

Sri Lanka is no Argentina, which has formally defaulted on its debt nine times since 1827 and twice in recent decades.

As the country seeks to deal with what IMF boss Kristalina Georgieva describes as ‘crisis on top of crisis’ – the pandemic followed by the war in Ukraine – it decided it has no other choice but to try to reshape the financial and economic landscape.

In spite of past strife, Sri Lanka with its highly talented, well-educated government elites, is not the first nation which would be thought of as sparking a global meltdown.

Its difficulties, however, mirror a huge build-up of debt, social inequality, poverty and hunger across emerging markets and the developing world during Covid.

The Western nations have been so focused on their own health and economic disruption in the pandemic that the rest of the world barely has received any attention.

A report, just compiled by the UN trade and development arm Unctad, warns ‘we are on the brink of a global debt crisis.’

Before the Ukraine war, developing countries were on average spending 16pc of export earnings on servicing debt. The figure among smaller and island states is twice that.

To place matters in perspective, Germany’s debt obligations when they were reorganised (effectively written off) by its creditors in 1953 never exceeded 3.4 per cent of exports.

Sri Lankans protesting in Galle Face reject PMs offer for talks; vow to continue

Sri Lankans protesting outside the most powerful building in Colombo – The President’s Office – demanding the resignation of the President and the Government, have rejected Prime Minister Mahinda Rajapaksa’s offer for talks.

“We did not come here for talks. We are here to demand that you and the government resign,” said one youth protestor at the protest site which is now known by them as GotGoGama.

Almost all others echoed the same sentiment rejecting the offer for discussions.

“I’m willing & prepared to meet with citizens currently engaged in the protests at Galle Face to hear their thoughts & complaints. Understanding that this is a tough time for all of us, I invite them to meet & discuss any possible, plausible courses of action for the sake of Sri Lanka,” the Prime Minister tweeted, while also sending a statement to the media.

Hundreds have stayed put there since Saturday (9) despite bouts of heavy rain, saying they will not leave until the president, prime minister, and the government resigns.

Dozens of tents filled with donations including water, food, and medicine to sustain protesters, occupy the lawns and streets of Galle Face.

Men, women, and children from all walks of life have rallied at Galle Face, waving the country’s golden lion flag, chanting slogans, and holding up placards with hand-written messages

The Occupy Galle Face protesters say they have had enough.