Page 7 - Economic Crisis

Fallen Rajapaksas back Wickremesinghe as Lanka's creditors seek answers

Much has changed since demonstrators drove Gotabaya Rajapaksa from office in July, the climax of months of protests after record-high inflation and depleted currency reserves bankrupted the nation

UK PM Liz Truss says she'll slash taxes despite economic crisis

UK Prime Minister Liz Truss said Tuesday that she's ready to make unpopular decisions such as boosting bonuses for wealthy bankers in order to get the country's sluggish economy growing. Speaking before an emergency government budget statement on Friday, Truss said tax cuts were key to spurring economic growth, even though they benefit the wealthiest more than the poorest. We do have to take difficult decisions to get our economy right, Truss said. We have to look at our tax rates. So corporation tax needs to be competitive with other countries so that we can attract that investment. Truss, who has been prime minister for just two weeks a period overshadowed by the death of Queen Elizabeth II faces immediate pressure to deliver on her promises to tackle a cost-of-living crisis walloping the UK and an economy heading into a potentially lengthy recession. She has already announced a cap on household energy bills that means average costs for heating and electricity will be no more t

India starts debt-restructuring talks with Sri Lanka, vows support

"The discussions held in a cordial atmosphere symbolise India's support to early conclusion and approval of a suitable IMF programme for Sri Lanka," the High Commission said.

Nations' leaders meet at UN amid rising global turbulence, war, food crisis

Facing a complex set of challenges that try humanity as never before, world leaders convene at the United Nations this week under the shadow of Europe's first major war since World War II a conflict that has unleashed a global food crisis and divided major powers in a way not seen since the Cold War. The many facets of the Ukraine war are expected to dominate the annual meeting, which convenes as many countries and peoples confront growing inequality, an escalating climate crisis, the threat of multiple famines and an internet-fuelled tide of misinformation and hate speech all atop a coronavirus pandemic that is halfway through its third year. For the first time since the United Nations was founded atop the ashes of World War II, European nations are witnessing war in their midst waged by nuclear-armed neighbouring Russia. Its Feb 24 invasion not only threatens Ukraine's survival as an independent democratic nation but has leaders in many countries worrying about trying to preserve

Pak's economic loss due to massive floods might be over $40 bn: FM

The recent cataclysmic floods that have ravaged Pakistan may have caused over USD 40 billion in economic losses and damages, according to an initial assessment. The new number is even far higher than the USD 30 billion figure given by United Nations Secretary-General Antonio Guterres who was in the country on a solidarity visit last week. The figure of USD 40 billion losses was flagged in a flood response centre meeting of the National Flood Response Coordination Centre (NFRCC) on Monday where the Ministry of Finance presented an assessment report titled An Early Assessment of Flood Impact on Pakistan's Economy, The Express Tribune reported on Tuesday. The finance ministry's initial assessment report showed that economic losses were around USD 18 billion. Planning Minister and Chairman of NFRCC, Ahsan Iqbal said, The devastating conditions suggest that the scale of flood losses is in the range of USD 30 billion to over USD 40 billion." We are going through the process of a ...

6.3 mn people in SL facing moderate to severe acute food insecurity: Report

An estimated 6.3 million people in Sri Lanka are facing moderate to severe acute food insecurity and their situation is expected to worsen if adequate life-saving assistance is not provided

India faces its worst-ever economic crisis, heading towards disaster: Rahul

Congress leader Rahul Gandhi on Wednesday said India is facing its "worst-ever economic crisis" and is heading towards a "disaster", while also alleging that a handful of large businesses are controlling the country with the help of Prime Minister Narendra Modi. Speaking at the launch of the Congress' 'Bharat Jodo Yatra' at a rally here, Gandhi said during the British period, there was one East India Company that controlled the country, now there are three-four companies doing so. "Today, India faces its worst-ever economic crisis. The highest level of unemployment that we have ever seen and the country is heading into a disaster," he said. "Unfortunately, our friends in the media are fully controlled," the former Congress chief alleged in his speech that was being simultaneously translated into Tamil by an interpreter. Gandhi said everybody understands the economic situation in the country. However, one would never see unemployment or price rise on television and only the image of

UK PM Liz Truss inherits an economic storm, pledges to rebuild economy

Britain's new prime minister has pledged to rebuild the economy and ride out the storm gathering over the country, but Liz Truss faces a daunting job. She inherits an ailing economy on the brink of a potentially long recession, with record inflation that's forecast to worsen in coming months and millions crying out for government help to cope with soaring energy bills. Here's a look at the scale of the economic challenges that Truss faces and how she is expected to tackle them: HIGH ENERGY COSTS At the top of Truss' agenda is a cost-of-living crisis driven by spiralling natural gas and electricity costs. Starting in October, millions of households will see their average yearly energy bill jump to about 3,500 pounds (USD 4,000) almost triple what they paid a year ago. The bills are expected to continue to climb and could exceed 4,000 pounds in January. The sharp increases began last year, as economies worldwide recovered from the coronavirus pandemic and global demand for natural

Sri Lanka crisis a result of human rights abuses, economic crimes, says UN

Sri Lanka is facing a devastating economic crisis, a UN report has said, noting that impunity for past and present human rights abuses, economic crimes and corruption were the underlying causes for the island nation's collapse. The report, prepared by the UN Rights High Commissioner Michele Bachelet, was released on Tuesday, also suggested fundamental changes to address the current challenges and to avoid repetition of the human rights violations of the past. Interestingly, it comes ahead of the 51st session of the UN Human Rights Council Session, to be held in Geneva from September 12 to October 7, where a resolution on Sri Lanka is expected to be tabled. This is also the first time that the top UN body has linked the economic crisis with Sri Lanka's gross human rights violations. For sustainable improvement, it is vital to recognise and assist Sri Lanka to address the underlying factors, which have contributed to this crisis, including embedded impunity for past and present human

Rajapaksas and friends thought they owned Sri Lanka: Former president

Sri Lanka's former president Chandrika Kumaratunga on Tuesday blamed the Rajapaksa family for the country's current economic crisis, saying they and their friends thought they owned the nation and its assets and could get away with anything. Kumaratunga, Sri Lanka's first and only female president to date, said actions taken by the Rajapaksa regimes had led to a serious crisis situation in the country. "Not only the Rajapaksas, but the government representatives around them, their friends, and associates are also to be blamed for the prevailing crisis," the Daily Mirror, an online newspaper quoted the 77-year-old Kumaratunga as saying. Her remarks came during the opening of the new office of the Nawa Lanka Freedom Party' in Battaramulla. The party is led by former minister and Kalutara District parliamentarian Kumara Welgama. Kumaratunga said that the Rajapaksas and those who ruled the country after 2005 had thought they owned the country and its assets. "They thought they could a

Fitch warns of high risk Sri Lanka may default on local currency bonds

Fitch Ratings's 'CCC' rating on long-term local currency debt that was affirmed in May "reflects a high risk that local-currency debt will be included in debt restructuring

With no immunity, Sri Lanka's ousted prez Rajapaksa faces legal troubles

Sri Lanka's ousted President Gotabaya Rajapaksa, who returned home after seven weeks in exile following protests over economic hardships, could face legal action over forced disappearances of activists now that he has been stripped of constitutional immunity, a lawyer said Saturday. Rajapaksa flew to Colombo around midnight Friday from Thailand and was escorted under military guard to his new home in the capital. He has no pending court cases because he was protected by constitutional immunity as president. A corruption case against him during his time as a top defence official was withdrawn soon after he was elected in 2019. However, Rajapaksa will be served a summons next week to appear at the Supreme Court, where his immunity from testifying on the forced disappearance of two young political activists is challenged, said lawyer Nuwan Bopage, who represents the victims' families. He said Rajapaksa fled the country when he was about to be served a summons in July. The disappearanc

Lanka's ex-President Gotabaya returns home, gets special security, bungalow

Sri Lanka's former President Gotabaya Rajapaksa has been given special security and a state bungalow for accommodation on his return here from Thailand where he fled amid months-long mass protests over the country's worst economic crisis, officials said on Saturday. Rajapaksa, 73, was accorded a warm welcome as he returned to Colombo from Thailand amid tight security on late Friday. He was festooned with flowers by a welcoming party of ministers and politicians as he disembarked at Colombo's Bandaranaike International Airport from Bangkok via Singapore. The former president wanted to move into his private residence at Mirihana in Colombo's eastern suburb of Nugegoda. However, security considerations prevented him from going to his private residence where he always lived even after becoming the president in 2019, officials said. After being welcomed by lawmakers of the ruling Sri Lanka Podujana Peramuna (SLPP) party, Rajapaksa left the airport in a motorcade heavily guarded by armed

Amid economic crisis, Sri Lanka's parliament passes interim budget

The interim budget was presented to Parliament on August 30 by President Ranil Wickremesinghe

Issue of creditor equatability important: India on Lanka IMF loan

With the IMF announcing a loan of about USD 2.9 billion to Sri Lanka, India on Thursday said it has been advocating assistance to the crisis-hit country and underlined that the issues of "creditor equitability and transparency" are important. The IMF on Thursday announced that it will provide Sri Lanka a loan of about USD 2.9 billion over four years under a preliminary agreement to help the bankrupt island nation tide over its worst economic crisis and protect the livelihoods of the people. Sri Lanka is going through its worst economic crisis since its independence in 1948 which was triggered by a severe paucity of foreign exchange reserves. Asked about the development, Ministry of External Affairs Spokesperson Arindam Bagchi said, "We have seen the press release by the IMF regarding the staff-level agreement...the IMF release said the objectives include restoration of macroeconomic stability, debt sustainability, protecting the vulnerables, stepping up structural reforms." "We als

Ex-Sri Lankan president Gotabaya likely to return on Saturday: Reports

Former Sri Lankan president Gotabaya Rajapaksa, who fled the country following an uprising against his government over the island-nation's worst-ever economic crisis, may return to the country from Thailand on Saturday, according to media reports on Thursday. Rajapaksa, 73, fled the country on July 13 after months-long mass public demonstrations demanding his immediate resignation on July 9 gained momentum after protesters stormed the President's House in Colombo and several other state buildings in the capital. Rajapaksa will return back to the country on Saturday, a source close to him was quoted as saying by the Daily Mirror news portal. Having gone to the Maldives on a Sri Lanka Airforce plane, the former president proceeded to Singapore from where he sent in his resignation on July 13. Later, he flew to Thailand, seeking temporary shelter. Thailand's foreign minister Don Pramudwinai has said that Rajapaksa can stay in the country for 90 days because he is still a diplomatic ..

IMF strikes $2.9 bn deal with Sri Lanka to recover from financial crisis

IMF said that the economy is expected to contract by 8.7 per cent in 2022 and inflation recently exceeded 60 per cent, of which the impact has been disproportionately borne by the poor

Sri Lanka introduces five-year multiple entry tourist visa scheme

In an effort to boost the tourism industry amid the economic crisis, the Sri Lankan govt on Tuesday said the island nation has extended its multiple-entry tourist visa to five years

Sri Lanka's economy continues to deteriorate, inflation rate spikes in July

The economic situation has continued to deteriorate in Sri Lanka, with the headline inflation rate spiking to another record high in July, World Food Programme (WFP) said on Tuesday

Floods inflict $10 bn loss on Pakistan's economy, says FM Miftah Ismail

The Minister however, did not have the details of the losses faced by each sector of the economy at the moment