{"id":83506,"date":"2022-01-06T18:42:09","date_gmt":"2022-01-06T18:42:09","guid":{"rendered":"https:\/\/websitedesigns.com.au\/elankanew\/?p=83506"},"modified":"2022-01-06T18:42:09","modified_gmt":"2022-01-06T18:42:09","slug":"there-is-no-money-left-covid-crisis-leaves-sri-lanka-on-brink-of-bankruptcy","status":"publish","type":"post","link":"https:\/\/websitedesigns.com.au\/elankanew\/there-is-no-money-left-covid-crisis-leaves-sri-lanka-on-brink-of-bankruptcy\/","title":{"rendered":"\u2018There is no money left\u2019: Covid crisis leaves Sri Lanka on brink of bankruptcy"},"content":{"rendered":"<div class=\"dcr-1nupfq9\" data-gu-name=\"headline\">\n<div class=\"dcr-krkkhw\">\n<div class=\"dcr-13a2edo\">\n<h1 class=\"dcr-125vfar\" style=\"text-align: center;\"><span style=\"font-size: 24px; color: #000000;\">\u2018There is no money left\u2019: Covid crisis leaves Sri Lanka on brink of bankruptcy<\/span><\/h1>\n<p><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-83507\" src=\"https:\/\/websitedesigns.com.au\/elankanew\/wp-content\/uploads\/2022\/01\/A-rice-wholesaler.jpg\" alt=\"A rice wholesaler\" width=\"600\" height=\"744\" \/><\/p>\n<div class=\"dcr-pn0kqp\" data-gu-name=\"media\">\n<div class=\"dcr-krkkhw\">\n<div class=\"dcr-16n5mgq\" style=\"text-align: left;\">\n<figure id=\"6554e5b6-4472-4085-88f5-cba84a0b5a2b\" class=\"dcr-13udsys\"><figcaption class=\"dcr-w6u133\"><span style=\"font-size: 16px; color: #000000;\"><span style=\"font-size: 16px; color: #000000;\"><span style=\"font-size: 16px; color: #000000;\"><span style=\"font-size: 16px; color: #000000;\"><span class=\"dcr-19x4pdv\">A rice wholesaler plies his trade in Pettah, a commercial hub in Colombo, Sri Lanka. The military has been given power to control prices of food essentials, such as rice.<\/span>\u00a0Photograph: Chamila Karunarathne\/EPA<\/span><\/span><\/span><\/span><strong><span style=\"color: #800080;\">Source:<\/span><\/strong><a style=\"color: #000000; font-size: 16px;\" href=\"https:\/\/www.theguardian.com\/world\/2022\/jan\/02\/covid-crisis-sri-lanka-bankruptcy-poverty-pandemic-food-prices\" target=\"_blank\" rel=\"noopener noreferrer\">Theguardian<\/a><\/p>\n<p style=\"text-align: justify;\"><span style=\"font-size: 16px;\">Half a million people have sunk into poverty since the pandemic struck, with rising costs forcing many to cut back on food<\/span><\/p>\n<ul style=\"text-align: justify;\">\n<li><span style=\"font-size: 16px;\"><a href=\"https:\/\/www.theguardian.com\/world\/series\/coronavirus-live\/latest\" data-link-name=\"in standfirst link\">Coronavirus \u2013 latest updates<\/a><\/span><\/li>\n<li><span style=\"font-size: 16px;\"><a href=\"https:\/\/www.theguardian.com\/world\/coronavirus-outbreak\" data-link-name=\"in standfirst link\">See all our coronavirus coverage<\/a><\/span><\/li>\n<\/ul>\n<\/figcaption><\/figure>\n<\/div>\n<p class=\"dcr-o5gy41\" style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">Sri Lanka is facing a deepening financial and humanitarian crisis with fears it could go bankrupt in 2022 as inflation rises to record levels, food prices rocket and its coffers run dry.<\/span><\/p>\n<p class=\"dcr-o5gy41\" style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">The meltdown faced by the government, led by the strongman president Gotabaya Rajapaksa, is in part caused by the immediate impact of the Covid crisis and the loss of tourism but is compounded by high government spending and tax cuts eroding state revenues, vast debt repayments to China and foreign exchange reserves at their lowest levels in a decade. Inflation has meanwhile been spurred by the government printing money to pay off domestic loans and foreign bonds.<\/span><\/p>\n<p class=\"dcr-o5gy41\" style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\"><a style=\"color: #000000;\" href=\"https:\/\/www.worldbank.org\/en\/news\/feature\/2021\/10\/16\/accelerating-economic-transformation-and-poverty-reduction-in-sri-lanka\" data-link-name=\"in body link\">The World Bank estimates<\/a>\u00a0500,000 people have fallen below the poverty line since the beginning of the pandemic, the equivalent of five years\u2019 progress in fighting poverty.<\/span><\/p>\n<p class=\"dcr-o5gy41\" style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">Inflation hit a record high of 11.1% in November and escalating prices have left those who were previously well off struggling to feed their families, while basic goods are now unaffordable for many. After Rajapaksa declared Sri Lanka to be in an economic emergency, the military was given power to ensure essential items, including rice and sugar, were sold at set government prices \u2013 but it has done little to ease people\u2019s woes.<\/span><\/p>\n<p><!--more--><\/p>\n<figure id=\"8c0a10a7-8c74-4d13-a308-a5c363f829db\" class=\" dcr-eiqqge\" style=\"text-align: justify;\">\n<div class=\"dcr-1b267dg\"><span style=\"font-size: 16px; color: #000000;\"><picture><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c125fa30c18126cadb73992bcd38418cb63e74f3\/0_0_3960_2640\/master\/3960.jpg?width=860&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=e96d689ed29e33dc9c6e5058b56dc4b6 1720w\" media=\"(min-width: 1300px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 1300px) and (min-resolution: 120dpi)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c125fa30c18126cadb73992bcd38418cb63e74f3\/0_0_3960_2640\/master\/3960.jpg?width=860&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=5cd384be3dc0f379d7681fb910c32afb 860w\" media=\"(min-width: 1300px)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c125fa30c18126cadb73992bcd38418cb63e74f3\/0_0_3960_2640\/master\/3960.jpg?width=780&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=f583bc1b26494e29697ac78cf0088816 1560w\" media=\"(min-width: 1140px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 1140px) and (min-resolution: 120dpi)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c125fa30c18126cadb73992bcd38418cb63e74f3\/0_0_3960_2640\/master\/3960.jpg?width=780&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=eddbb0c17561d1e4ece41a3687aa8961 780w\" media=\"(min-width: 1140px)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c125fa30c18126cadb73992bcd38418cb63e74f3\/0_0_3960_2640\/master\/3960.jpg?width=620&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=3430175291216cc67ca7caf97497f316 1240w\" media=\"(min-width: 660px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 660px) and (min-resolution: 120dpi)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c125fa30c18126cadb73992bcd38418cb63e74f3\/0_0_3960_2640\/master\/3960.jpg?width=620&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=34780d4c3bf26e14947860b092da47ea 620w\" media=\"(min-width: 660px)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c125fa30c18126cadb73992bcd38418cb63e74f3\/0_0_3960_2640\/master\/3960.jpg?width=605&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=2582ae7ea214a676638151ef1c0ecf33 1210w\" media=\"(min-width: 480px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 480px) and (min-resolution: 120dpi)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c125fa30c18126cadb73992bcd38418cb63e74f3\/0_0_3960_2640\/master\/3960.jpg?width=605&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=293cdf2653c63541a1ad8c6ead87bfe1 605w\" media=\"(min-width: 480px)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c125fa30c18126cadb73992bcd38418cb63e74f3\/0_0_3960_2640\/master\/3960.jpg?width=445&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=86ba4cc63872706d6e1b923210a920cf 890w\" media=\"(min-width: 375px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 375px) and (min-resolution: 120dpi)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c125fa30c18126cadb73992bcd38418cb63e74f3\/0_0_3960_2640\/master\/3960.jpg?width=445&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=8fd64b356545b0bfaf2c9b071c8d4751 445w\" media=\"(min-width: 375px)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c125fa30c18126cadb73992bcd38418cb63e74f3\/0_0_3960_2640\/master\/3960.jpg?width=445&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=86ba4cc63872706d6e1b923210a920cf 890w\" media=\"(min-width: 320px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 320px) and (min-resolution: 120dpi)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c125fa30c18126cadb73992bcd38418cb63e74f3\/0_0_3960_2640\/master\/3960.jpg?width=445&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=8fd64b356545b0bfaf2c9b071c8d4751 445w\" media=\"(min-width: 320px)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c125fa30c18126cadb73992bcd38418cb63e74f3\/0_0_3960_2640\/master\/3960.jpg?width=445&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=86ba4cc63872706d6e1b923210a920cf 890w\" media=\"(min-width: 0px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 0px) and (min-resolution: 120dpi)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/c125fa30c18126cadb73992bcd38418cb63e74f3\/0_0_3960_2640\/master\/3960.jpg?width=445&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=8fd64b356545b0bfaf2c9b071c8d4751 445w\" media=\"(min-width: 0px)\" \/><\/picture><picture><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"dcr-1989ovb\" src=\"https:\/\/i.guim.co.uk\/img\/media\/c125fa30c18126cadb73992bcd38418cb63e74f3\/0_0_3960_2640\/master\/3960.jpg?width=445&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=86ba4cc63872706d6e1b923210a920cf\" alt=\"A man pays for vegetables at a market in Colombo.\" width=\"600\" height=\"400\" \/><\/picture><\/span><\/div><figcaption class=\"dcr-18tbxhh\"><span style=\"font-size: 16px; color: #000000;\"><span class=\"dcr-19x4pdv\">A man pays for vegetables at a market in Colombo. Escalating prices have left those who were previously well off struggling to feed their families.<\/span>\u00a0Photograph: Allison Joyce\/Getty Images<\/span><\/figcaption><\/figure>\n<p class=\"dcr-o5gy41\" style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">Anurudda Paranagama, a chauffeur in the capital, Colombo, took on a second job to pay for rising food costs and cover the loan on his car but it was not enough. \u201cIt is very difficult for me to repay the loan. When I have to pay electricity and water bills and spend on food, there is no money left,\u201d he said, adding that his family now eats two meals a day instead of three.<\/span><\/p>\n<p class=\"dcr-o5gy41\" style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">He described how his village grocer was opening 1kg packets of milk powder and dividing it into packs of 100g because his customers could not afford the whole packet. \u201cWe now buy 100g of beans when we used to buy 1kg for the week,\u201d said Paranagama.<\/span><\/p>\n<p class=\"dcr-o5gy41\" style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">The loss of jobs and vital foreign revenue from tourism, which usually contributes more than 10% of GDP, has been substantial, with more than 200,000 people losing their livelihoods in the travel and tourism sectors, according to the World Travel and Tourism Council.<\/span><\/p>\n<p class=\"dcr-o5gy41\" style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">The situation has got so bad that long queues have formed at the passport office as one in four Sri Lankans, mostly the young and educated,\u00a0<a style=\"color: #000000;\" href=\"https:\/\/www.ft.lk\/top-story\/Lankans-lining-up-to-migrate\/26-726077\" data-link-name=\"in body link\">say they want<\/a>\u00a0to leave the country. For older citizens, it is reminiscent of the early 1970s when import controls and low production at home caused severe shortages of basic commodities and caused long queues for bread, milk and rice.<\/span><\/p>\n<figure id=\"1e38d439-4e4c-475e-bcb3-45716764a05b\" class=\" dcr-1sioudk\" style=\"text-align: justify;\">\n<div class=\"dcr-1b267dg\"><span style=\"font-size: 16px; color: #000000;\"><picture><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/bed30cafa05f261bbc9d4c999c37c0646d7a92d4\/0_266_7992_4795\/master\/7992.jpg?width=380&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=142f1bd9f7c4831a1c07a8c76607f7a3 760w\" media=\"(min-width: 1300px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 1300px) and (min-resolution: 120dpi)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/bed30cafa05f261bbc9d4c999c37c0646d7a92d4\/0_266_7992_4795\/master\/7992.jpg?width=380&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=61b24ec7371f4e6651af36e592d0a807 380w\" media=\"(min-width: 1300px)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/bed30cafa05f261bbc9d4c999c37c0646d7a92d4\/0_266_7992_4795\/master\/7992.jpg?width=300&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=e920b2064693db25189031cf0c5eec29 600w\" media=\"(min-width: 740px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 740px) and (min-resolution: 120dpi)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/bed30cafa05f261bbc9d4c999c37c0646d7a92d4\/0_266_7992_4795\/master\/7992.jpg?width=300&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=8cc87d1885ee28cbfbc26c9c927cdf62 300w\" media=\"(min-width: 740px)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/bed30cafa05f261bbc9d4c999c37c0646d7a92d4\/0_266_7992_4795\/master\/7992.jpg?width=620&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=a1fc755b0bdd1de5627e87cc81e38ac7 1240w\" media=\"(min-width: 660px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 660px) and (min-resolution: 120dpi)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/bed30cafa05f261bbc9d4c999c37c0646d7a92d4\/0_266_7992_4795\/master\/7992.jpg?width=620&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=fde002f49cc9463e9cdc9418772adb8d 620w\" media=\"(min-width: 660px)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/bed30cafa05f261bbc9d4c999c37c0646d7a92d4\/0_266_7992_4795\/master\/7992.jpg?width=605&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=ca27673365816c16122fa4ff8c4f7769 1210w\" media=\"(min-width: 480px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 480px) and (min-resolution: 120dpi)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/bed30cafa05f261bbc9d4c999c37c0646d7a92d4\/0_266_7992_4795\/master\/7992.jpg?width=605&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=aa73e06dc7e568fb11c5665954a244e8 605w\" media=\"(min-width: 480px)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/bed30cafa05f261bbc9d4c999c37c0646d7a92d4\/0_266_7992_4795\/master\/7992.jpg?width=380&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=142f1bd9f7c4831a1c07a8c76607f7a3 760w\" media=\"(min-width: 375px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 375px) and (min-resolution: 120dpi)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/bed30cafa05f261bbc9d4c999c37c0646d7a92d4\/0_266_7992_4795\/master\/7992.jpg?width=380&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=61b24ec7371f4e6651af36e592d0a807 380w\" media=\"(min-width: 375px)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/bed30cafa05f261bbc9d4c999c37c0646d7a92d4\/0_266_7992_4795\/master\/7992.jpg?width=380&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=142f1bd9f7c4831a1c07a8c76607f7a3 760w\" media=\"(min-width: 320px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 320px) and (min-resolution: 120dpi)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/bed30cafa05f261bbc9d4c999c37c0646d7a92d4\/0_266_7992_4795\/master\/7992.jpg?width=380&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=61b24ec7371f4e6651af36e592d0a807 380w\" media=\"(min-width: 320px)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/bed30cafa05f261bbc9d4c999c37c0646d7a92d4\/0_266_7992_4795\/master\/7992.jpg?width=300&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=e920b2064693db25189031cf0c5eec29 600w\" media=\"(min-width: 0px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 0px) and (min-resolution: 120dpi)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/bed30cafa05f261bbc9d4c999c37c0646d7a92d4\/0_266_7992_4795\/master\/7992.jpg?width=300&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=8cc87d1885ee28cbfbc26c9c927cdf62 300w\" media=\"(min-width: 0px)\" \/><\/picture><picture><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"dcr-1989ovb\" src=\"https:\/\/i.guim.co.uk\/img\/media\/bed30cafa05f261bbc9d4c999c37c0646d7a92d4\/0_266_7992_4795\/master\/7992.jpg?width=300&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=e920b2064693db25189031cf0c5eec29\" alt=\"A man working outdoors in Colombo\" width=\"600\" height=\"400\" \/><\/picture><\/span><\/div><figcaption class=\"dcr-18tbxhh\"><span style=\"font-size: 16px; color: #000000;\"><span class=\"dcr-19x4pdv\">One of the most pressing problems for Sri Lanka is its huge foreign debt burden.<\/span>\u00a0Photograph: Vimukthi Embuldeniya\/Pacific Press\/Rex\/Shutterstock<\/span><\/figcaption><\/figure>\n<p class=\"dcr-o5gy41\" style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">The former central bank deputy governor WA Wijewardena warned the struggles of ordinary people would exacerbate the financial crisis, which would in turn make life harder for them. \u201cWhen the economic crisis deepens beyond redemption, it is inevitable that the country will have a financial crisis too,\u201d he said. \u201cBoth will reduce food security by lowering production and failing to import due to foreign exchange scarcities. At that point, it will be a humanitarian crisis.\u201d<\/span><\/p>\n<p class=\"dcr-o5gy41\" style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">One of the most pressing problems for Sri Lanka is its huge foreign debt burden, in particular to China. It owes China more than $5bn in debt and last year took an additional $1bn loan from Beijing to help with its acute financial crisis, which is being paid in instalments.<\/span><\/p>\n<p class=\"dcr-o5gy41\" style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">In the next 12 months, in the government and private sector, Sri Lanka will be required to repay an estimated $7.3bn in domestic and foreign loans, including a $500m international sovereign bond repayment in January. However, as of November, available foreign currency reserves were just $1.6bn.<\/span><\/p>\n<p class=\"dcr-o5gy41\" style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">In an usual approach, government minister Ramesh Pathirana said they hoped to settle their past oil debts with Iran by paying them with tea, sending them $5m worth of tea every month in order to save \u201c much needed currency\u201d.<\/span><\/p>\n<p class=\"dcr-o5gy41\" style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">The opposition MP and economist Harsha de Silva recently\u00a0<a style=\"color: #000000;\" href=\"https:\/\/www.dailymirror.lk\/main_image\/Economic-shutdown-likely-next-year-due-to-minus-reserves-MP-Harsha-de-Silva\/346-226639\" data-link-name=\"in body link\">told parliament<\/a>\u00a0that foreign currency reserves would be -$437m by January next year, while the total foreign debt to service would be $4.8bn from February to October 2022. \u201cThe nation will be totally bankrupt,\u201d he said.<\/span><\/p>\n<p class=\"dcr-o5gy41\" style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">Central Bank Governor Ajith Nivard Cabraal made public assurances that Sri Lanka could pay off its debts \u201cseamlessly\u201d but Wijewardena said the country was at substantial risk of defaulting on its repayments, which would have catastrophic economic consequences.<\/span><\/p>\n<p class=\"dcr-o5gy41\" style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">Meanwhile, Rajapaksa\u2019s sudden decision in May to ban all fertiliser and pesticides and force farmers to go organic without warning has brought a formerly prosperous agricultural community to its knees as many farmers, who had become used to using \u2013 and often overusing \u2013 fertiliser and pesticides, were suddenly left without ways to produce healthy crops or combat weeds and insects. Many fearing a loss decided not to cultivate crops at all, adding to the food shortages in Sri Lanka.<\/span><\/p>\n<figure id=\"ece2bab2-3057-4f93-86f1-59d38aae95f8\" class=\" dcr-eiqqge\" style=\"text-align: justify;\">\n<div class=\"dcr-1b267dg\"><span style=\"font-size: 16px; color: #000000;\"><picture><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/670653d853b6e6436d7957e139c25a86acfd845f\/0_0_5000_3333\/master\/5000.jpg?width=860&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=12b22b7d103918a243a952285280116a 1720w\" media=\"(min-width: 1300px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 1300px) and (min-resolution: 120dpi)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/670653d853b6e6436d7957e139c25a86acfd845f\/0_0_5000_3333\/master\/5000.jpg?width=860&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=94dcf023e40df2e848d7d335a2786933 860w\" media=\"(min-width: 1300px)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/670653d853b6e6436d7957e139c25a86acfd845f\/0_0_5000_3333\/master\/5000.jpg?width=780&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=e62d0981296d4891ef38472270e98dfe 1560w\" media=\"(min-width: 1140px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 1140px) and (min-resolution: 120dpi)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/670653d853b6e6436d7957e139c25a86acfd845f\/0_0_5000_3333\/master\/5000.jpg?width=780&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=5cbaa611dd62a7cae56ab1565a727bc7 780w\" media=\"(min-width: 1140px)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/670653d853b6e6436d7957e139c25a86acfd845f\/0_0_5000_3333\/master\/5000.jpg?width=620&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=516ffbc80f04fe66d66e29f21f3b4da6 1240w\" media=\"(min-width: 660px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 660px) and (min-resolution: 120dpi)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/670653d853b6e6436d7957e139c25a86acfd845f\/0_0_5000_3333\/master\/5000.jpg?width=620&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=25e7b989c0a706ce07deba74865f64c7 620w\" media=\"(min-width: 660px)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/670653d853b6e6436d7957e139c25a86acfd845f\/0_0_5000_3333\/master\/5000.jpg?width=605&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=9ba4272d6910e7b7662a8bc940ef2709 1210w\" media=\"(min-width: 480px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 480px) and (min-resolution: 120dpi)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/670653d853b6e6436d7957e139c25a86acfd845f\/0_0_5000_3333\/master\/5000.jpg?width=605&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=e8c7a34b9ff0f35b9aaaf0df7c8b7e19 605w\" media=\"(min-width: 480px)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/670653d853b6e6436d7957e139c25a86acfd845f\/0_0_5000_3333\/master\/5000.jpg?width=445&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=df4d2a26a93481110770727b552bdd2b 890w\" media=\"(min-width: 375px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 375px) and (min-resolution: 120dpi)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/670653d853b6e6436d7957e139c25a86acfd845f\/0_0_5000_3333\/master\/5000.jpg?width=445&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=3c28ce5f076406bb82591419eff38307 445w\" media=\"(min-width: 375px)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/670653d853b6e6436d7957e139c25a86acfd845f\/0_0_5000_3333\/master\/5000.jpg?width=445&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=df4d2a26a93481110770727b552bdd2b 890w\" media=\"(min-width: 320px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 320px) and (min-resolution: 120dpi)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/670653d853b6e6436d7957e139c25a86acfd845f\/0_0_5000_3333\/master\/5000.jpg?width=445&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=3c28ce5f076406bb82591419eff38307 445w\" media=\"(min-width: 320px)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/670653d853b6e6436d7957e139c25a86acfd845f\/0_0_5000_3333\/master\/5000.jpg?width=445&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=df4d2a26a93481110770727b552bdd2b 890w\" media=\"(min-width: 0px) and (-webkit-min-device-pixel-ratio: 1.25), (min-width: 0px) and (min-resolution: 120dpi)\" \/><source srcset=\"https:\/\/i.guim.co.uk\/img\/media\/670653d853b6e6436d7957e139c25a86acfd845f\/0_0_5000_3333\/master\/5000.jpg?width=445&amp;quality=85&amp;auto=format&amp;fit=max&amp;s=3c28ce5f076406bb82591419eff38307 445w\" media=\"(min-width: 0px)\" \/><\/picture><picture><img loading=\"lazy\" loading=\"lazy\" decoding=\"async\" class=\"dcr-1989ovb\" src=\"https:\/\/i.guim.co.uk\/img\/media\/670653d853b6e6436d7957e139c25a86acfd845f\/0_0_5000_3333\/master\/5000.jpg?width=445&amp;quality=45&amp;auto=format&amp;fit=max&amp;dpr=2&amp;s=df4d2a26a93481110770727b552bdd2b\" alt=\"A vegetable farmer removes weeds in his potato field in Keppetipola.\" width=\"600\" height=\"400\" \/><\/picture><\/span><\/div><figcaption class=\"dcr-18tbxhh\"><span style=\"font-size: 16px; color: #000000;\"><span class=\"dcr-19x4pdv\">A government decision in May to ban all fertiliser and pesticides has forced farmers to go organic without warning.<\/span>\u00a0Photograph: Eranga Jayawardena\/AP<\/span><\/figcaption><\/figure>\n<p class=\"dcr-o5gy41\" style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">The government made a dramatic U-turn in late October and farmers are now struggling to cover the high costs of imported fertiliser without help.<\/span><\/p>\n<p class=\"dcr-o5gy41\" style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">\u201cThe costs of cultivating paddy [rice] have gone up astronomically \u2026 The government has no money for fertiliser subsidies. Many of us farmers are reluctant to invest money because we don\u2019t know if we will make any profit,\u201d said one farmer, Ranjit Hulugalle.<\/span><\/p>\n<p class=\"dcr-o5gy41\" style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">In an attempt temporarily to ease the problems and stave off difficult and most likely unpopular policies, the government has resorted to temporary relief measures, such as credit lines to import foods, medicines and fuel from its neighbouring ally\u00a0<a style=\"color: #000000;\" href=\"https:\/\/economynext.com\/sri-lanka-makes-progress-on-credit-lines-swap-from-india-during-finance-minister-visit-88468\/\" data-link-name=\"in body link\">India<\/a>, as well as currency swaps from India,\u00a0<a style=\"color: #000000;\" href=\"https:\/\/island.lk\/sri-lanka-likely-to-revert-to-us-400mn-foreign-currency-swap-with-india\/\" data-link-name=\"in body link\">China<\/a>\u00a0and\u00a0<a style=\"color: #000000;\" href=\"https:\/\/www.thehindu.com\/news\/international\/bangladesh-clears-currency-swap-facility-to-boost-sri-lankas-depleting-foreign-reserves\/article34651289.ece\" data-link-name=\"in body link\">Bangladesh<\/a>\u00a0and loans to purchase\u00a0<a style=\"color: #000000;\" href=\"http:\/\/www.adaderana.lk\/news\/77872\/sri-lanka-to-obtain-usd-36-bn-loan-from-oman-to-purchase-petroleum\" data-link-name=\"in body link\">petroleum from Oman<\/a>. However, these loans provide only short-term relief and have to be paid back quickly at high interest rates, adding to Sri Lanka\u2019s debt load.<\/span><\/p>\n<p class=\"dcr-o5gy41\" style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">Anushka Shanuka, a personal trainer, was among those who used to have a comfortable life but now is struggling to get by. \u201cWe can\u2019t live the way we used to before the pandemic,\u201d he said, saying the prices of vegetables had gone up by more than 50%.<\/span><\/p>\n<p class=\"dcr-o5gy41\" style=\"text-align: justify;\"><span style=\"font-size: 16px; color: #000000;\">\u201cThe government promised to help us but nothing came, so we are just managing the best we can. I don\u2019t know how much longer we can go on like this.\u201d<\/span><\/p>\n<footer><span style=\"font-size: 16px; color: #000000;\">\u00a0This article was amended on 6 January 2022. \u201cCultivating paddy\u201d refers to rice, not wheat as an earlier version said.<\/span><\/footer>\n<div class=\"dcr-16n5mgq\" style=\"text-align: justify;\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>\u2018There is no money left\u2019: Covid crisis leaves Sri Lanka on brink of bankruptcy A rice wholesaler plies his trade in Pettah, a commercial hub in Colombo, Sri Lanka. The military has been given power to control prices of food essentials, such as rice.\u00a0Photograph: Chamila Karunarathne\/EPASource:Theguardian Half a million people have sunk into poverty since [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":83507,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"aside","meta":{"footnotes":""},"categories":[20],"tags":[30630,40782,9316],"class_list":{"0":"post-83506","1":"post","2":"type-post","3":"status-publish","4":"format-aside","5":"has-post-thumbnail","7":"category-articles","8":"tag-ajith-nivard-cabraal","9":"tag-chamila-karunarathne","10":"tag-ranjit-hulugalle","11":"post_format-post-format-aside"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v25.9) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>\u2018There is no money left\u2019: Covid crisis leaves Sri Lanka on brink of bankruptcy<\/title>\n<meta name=\"description\" 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