Live updates on the Sri Lankan economic crisis: President Gotabaya declares an emergency amid protests.

  • April 2, 2022, 10:45 a.m.

Sri Lanka Economic Crisis Live Updates: Sri Lankan President Gotabaya Rajapaksa declared a nationwide public emergency late on Friday following violent protests over the country’s worst economic crisis in decades. The President invoked the tough laws allowing the military to arrest and detain suspects for long periods without trial as demonstrations calling for his ouster spread across the South Asian nation.

Anger against Rajapaksa’s handling of a deepening economic crisis in the island nation of 22 million people spiraled into violence late on Thursday, as hundreds of protesters clashed with police for several hours. A severe shortage of foreign currency has left Rajapaksa’s government unable to pay for essential imports, including fuel, leading to debilitating power cuts lasting up to 13 hours.

On a three-day visit to Delhi, Tamil Nadu Chief Minister M K Stalin on Thursday met PM Narendra Modi and urged the Centre to allow the state government to provide humanitarian aid to Sri Lankan Tamils. He said many of them are fleeing Lanka and coming to the state through the sea route in the wake of the economic crisis in the island-nation.

Sri Lanka Crisis: Live Updates Sri Lankan shares posted their worst week ever amid a power crisis. Follow the latest updates here.

08:18 (IST)02 APR 2022

A former ambassador pleads guilty to defrauding the Sri Lankan government. The

former Sri Lankan ambassador has pleaded guilty to diverting and attempting to embezzle USD 332,027 from the Sri Lankan government during its 2013 purchase of a new embassy building in Washington, D.C., the Department of Justice said.

Jaliya Chitran Wickramasuriya, 61, who now lives in Arlington, Virginia, served as Sri Lankan ambassador to the US from 2008 to 2014. On Friday, he pleaded guilty in the US District Court for the District of Columbia to a charge of conspiracy to commit wire fraud.

A media release said the charge carries a statutory maximum of five years in prison and potential financial penalties. According to court documents, from in or around late 2012 through November 2013, Wickramasuriya devised a scheme to defraud the government of Sri Lanka during its 2013 purchase of a new embassy building in Washington, D.C. by inflating the price of the real estate transaction by USD 332,027 and, at closing, diverting those funds from the government to two companies that had no role in the real estate transaction. 

02:12 (IST) – 02 April 2022

Sri Lanka's president declares an emergency amid protests

Sri Lanka's president declared a state of emergency in the island nation Saturday, a day after angry protesters demonstrated near his home demanding he resign and as plans were made for a nationwide protest over the country's worst economic crisis in memory.

President Gotabaya Rajapaksa invoked sections of the Public Security Ordinance that give him authority to make regulations in the interests of public security, preservation of public order, suppression of mutiny, riot, or civil commotion, or for the maintenance of essential supplies.

Under the emergency regulations, the president can authorise detentions, take possession of any property, and search any premises. He can also change or suspend any law. 

20:20 (IST) on April 01, 2022

Sri Lanka's January trade deficit stood at $859 million, the central bank said.

Sri Lanka's January trade deficit stood at $859 million, the country's central bank said in a statement on Friday.

The island nation's January imports rose 23.1% to $1.96 billion, while exports rose 17.5% to $1.10 billion, according to the statement. 

18:17 (IST) on April 01, 2022

Sri Lankan shares posted their worst week ever amid a power crisis.

Sri Lanka shares had their worst weekly fall ever on Friday, having extended losses to a fifth straight session, with the Colombo Stock Exchange halting trade for a third consecutive day as the country's economic crisis deepens.

    • The CSE All-Share index settled 4.86% lower at 8,471.43 points on Friday. For the week, the index tumbled 18.97%.
    • In the previous session, it clocked its worst quarterly performance since the quarter-ending December 2008, tumbling 27.2%.
    • The country's foreign exchange reserves have fallen 70% in the past two years to about $2.31 billion, with the nation struggling to pay for essential imports, including food and fuel. 

17:20 (IST), APR 01, 2022 54 people were

arrested after protests near the Sri Lankan President's home turned violent.

16:15 (IST) on April 1, 2022

In the picture, Mahinda Rajapaksa arrives at Gotabaya Rajapksa's residence.

Sri Lankan Prime Minister Mahinda Rajapaksa arrived at Sri Lankan President Gotabaya Rajapksa's private residence following overnight clashes in Colombo, Sri Lanka, Friday. Dozens of people were arrested in Sri Lanka following protests near the president's home demanding that he resign amid the country's worst economic crisis in memory, police said.

16:04 (IST) on April 1, 2022

In pictures: stone pelting, water canons, and tear gas: the stir in Sri Lanka turns violent.

As Sri Lanka faces its worst economic crisis, protesters reached the residence of Sri Lanka's President, Gotabaya Rajapaksa, in Mirihina, demanding his resignation. The police resorted to water cannons and tear gas shells to disperse the demonstrators. 

15:37 (IST) on April 1, 2022

Dozens were

arrested in Sri Lanka following protests over the economy.

Dozens of people were arrested in Sri Lanka following protests near the president's home demanding that he resign amid the country's worst economic crisis in memory, police said Friday.

President Gotabaya Rajapaksa's office blamed "organised extremists" within the group of protesters for violence during Thursday night's demonstration, where police fired tear gas and a water cannon at thousands of protesters and arrested 54 people.

Nuwan Bopage, an attorney representing some of the suspects, said several of them were being taken for medical examinations for various injuries and would likely appear in court later Friday. 

 

At 13:58 (IST) on April 1, 2022,

54 people were arrested for protesting. The President's office blames "organised extremists" for violence.

President Gotabaya Rajapaksa's office blamed "organised extremists" within the group of protesters for violence during Thursday night's demonstration, where police fired tear gas and a water cannon at thousands of protesters and arrested 54 people. 

Nuwan Bopage, an attorney representing some of the suspects, said several of them were being taken for medical examinations for various injuries and would likely appear in court later Friday. 

13:18 (IST) on April 1, 2022

Can we eat our money? Prices high, supplies low, despair in Lanka

Vani Susai, a 31-year-old school teacher working in Batticaloa, in Sri Lanka’s eastern province, recalls the first signs of the economic crisis in the last week of January. "That Sunday morning, I ran out of gas. I called the agency to check for a cylinder and was told they could not deliver it for several days. I went in search of one, going from shop to shop. I finally found a cylinder after three hours. "

Two months later, the cooking gas supply is down to once a week. "Everybody goes to this one place on Sunday and stands in a queue that starts forming at 4 a.m.

Susai says that her usual monthly expense on essentials for a family of three, her mother, daughter, and her, was around Sri Lankan Rs 30,000 a month. "But this month, I have already spent Rs. 83,000. There is a shortage of milk powder. One has to struggle for rice and daal. There are seven hours of load shedding, but there are no candles. Many medicines have disappeared. My salary is Rs 55,000 and we can manage with cash sent by my husband. But can we eat the money? "

13:07 (IST) on April 1, 2022

Top 10 developments in the Sri Lanka crisis

The International Monetary Fund (IMF) has said that it will initiate discussions with Sri Lankan authorities on a possible loan program in the coming days. The discussions will follow Rajapaksa’s visit to Washington for talks with IMF officials, Reuters reported. Sources quoted by the news agency have also said that the island nation will also seek World Bank assistance after entering an IMF program.

Sri Lanka is facing its "worst inflation". According to Reuters, retail inflation hit 18.7% in March over the same period a year ago. The statistics department said that food inflation, meanwhile, reached 30.2% in March.

The government has instructed the Ceylon Electricity Board (CEB) to purchase diesel from LIOC, the Lankan subsidiary of the Indian Oil Corporation. The LIOC has agreed to release 6,000 MT of diesel to generate thermal power and help reduce the power cuts.

12:51 (IST) on APR 01, 2022

What happened during Jaishankar's recent visit to Sri Lanka?

Sri Lankan President Gotabaya Rajapaksa, Prime Minister Mahinda Rajapaksa and Finance Minister Basil Rajapaksa met with External Affairs Minister S. Jaishankar.

Among the host of agreements signed in the Sri Lankan capital Monday, he signed a Memorandum of Understanding for a Maritime Rescue Co-ordination Centre (MRCC) to be set up by Bharat Electronics Ltd at the Sri Lankan Naval Headquarters in Colombo.

Another MoU is for India to set up a hybrid solar and wind farm in the three islands off Jaffna, where Sri Lanka cancelled a similar Chinese project after Delhi objected to it on security grounds. The islands are very close to Rameswaram on the Tamil Nadu coastline.

Delhi has provided a $2.4-bn package of financial assistance in February and March. It is also appointing experts to assist Sri Lanka’s economic recovery and for various joint projects. 

01:12:27 (IST) on April 1, 2022

Protests will hit tourism and have economic consequences. Sri Lanka's Tourism Minister

While stating that people have the right to protest "constructively," Sri Lanka's tourism minister, Prasanna Ranatunge, said Friday, "The main issue Sri Lanka is facing is a forex shortage, and protests of this nature will hurt tourism and have economic consequences."

"Our stance is that people have the right to protest, but it should be constructive. What happened yesterday was the opposite, "the minister was quoted as saying by Reuters.

11:54 (IST) on April 1, 2022

 

Sri Lankan bishops say they are headed towards a "failed state" and ask politicians to not play a "blame game". The Catholic

bishops in the country stated that Sri Lanka was fast becoming a "failed state" and held "all successive governments to date" responsible for the state of affairs, the news agency AP reported.

The Catholic Bishops Conference said in a statement that "the current government, as well as those in the opposition, must adopt a conciliatory, not a confrontational approach."

11:29 (IST) on April 1, 2022

Sri Lanka is to turn off street lights in a deepening economic crisis.

Power Minister Pavithra Wanniarachchi said on Thursday that officials have been instructed to shut off street lights around the country to help conserve power, news agency Reuters reported.

This comes on top of the rolling power cuts, which last up to 13 hours, adding to the despair of the citizens. 

11:08 (IST) on April 1,2022.

 

IMF to start talks with Sri Lanka on loan request in coming days.

The International Monetary Fund will initiate discussions with Sri Lankan authorities on a possible loan program in the coming days, IMF spokesperson Gerry Rice said on Thursday, as the Asian country seeks to stave off a severe economic crisis.

Rice said the discussions would continue during the visit of Sri Lankan Finance Minister Basil Rajapaksa to Washington for the spring meetings of the IMF and World Bank next month. 

10:35 (IST) - 01 APR 2022

Sri Lanka lifts the curfew after violent protests over the economic crisis.

Police in Sri Lanka's capital lifted a curfew on Friday after protests in which dozens of people were arrested and several policemen were hurt near the home of President Gotabaya Rajapaksa over his handling of an economic crisis.

"We have arrested 54 people over the unrest last night. Several vehicles belonging to the army and police were burnt by the protesters, including two buses, one police jeep and several motorcycles, "a police spokesman, Senior Superintendent Nihal Thalduwa, told Reuters. Five policemen were injured and were in hospital, Thalduwa said.

Delhi, more than Beijing, has stepped in now to help Colombo resolve its economic mess. Besides extending a credit line, Delhi has started work on a series of joint projects, including the Trincomalee Oil Tank Farms, renewable power projects, and a cultural centre in Jaffna.

However, considering the complex history between the two countries, India should tread cautiously in this moment in Sri Lanka. While the two countries share centuries of spiritual, political, economic, and cultural ties, Sri Lanka is extremely sensitive about anything that impinges on, or is seen to impinge on, the autonomy of its foreign and domestic policies. It must also be made clear that Delhi’s involvement is for the sake of the Sri Lankan people, not to bail out the ruling Rajapaksa clan. 

09:32 (IST) on APR 01, 2022

The new refugees from Sri Lanka are driven by hunger, not war.

For decades, groups of Sri Lankan Tamils have come to Tamil Nadu, fleeing war and hostilities on the island. The 16 Sri Lankan Tamils who arrived on the Rameswaram coast in two batches on March 22 were, however, different. 

They were economic refugees, trying to escape a dire situation in Sri Lanka, which is reeling under a severe economic crisis. 

Indian intelligence agencies believe that as unemployment and skyrocketing inflation drive more and more people to desperation in the coming days and weeks, the numbers of these refugees are likely to only increase. 

(IST)-APR 1, 2022

MK Stalin seeks PM Modi’s nod to help Sri Lanka's Tamils.

On a three-day visit to Delhi, Tamil Nadu Chief Minister M K Stalin on Thursday met PM Narendra Modi and urged the Centre to allow the state government to provide humanitarian aid to Sri Lankan Tamils. He said many of them are fleeing Lanka and coming to the state through the sea route in the wake of the economic crisis in the island-nation. 

A man waits to purchase diesel at a fuel pump in Colombo, Sri Lanka, Wednesday, March 30, 2022. (AP)

Sri Lanka suffers from long power cuts and lacks foreign currency to import fuel.

Swathes of Sri Lanka faced prolonged power cuts on Wednesday as a deepening economic crisis roiled markets and buffeted businesses, with the government unable to pay for fuel shipments because of a foreign exchange shortage, an official said.

The country of 22 million people is seeking assistance from the International Monetary Funds (IMF), having slid into its worst economic crisis in decades as a result of badly-timed tax cuts, the impact of the COVID-19 pandemic and historically weak government finances. Sri Lankan shares fell more than 7%, prompting the Colombo Stock Exchange to halt trading twice.

Sri Lanka's foreign exchange reserves have fallen by 70% in the past two years and were down to a paltry $2.31 billion as of February, leaving Sri Lanka struggling to import essentials, including food and fuel.

Janaka Ratnayake, Chairman of the Public Utilities Commission of Sri Lanka, said the drawn-out power cuts were partly a result of the government’s inability to pay $52 million for a 37,000 tonne diesel shipment that is awaiting offloading. -- Reuters

Author : Rajdhani Delhi Representative

Rajdhani delhi representative

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