come to papa and be the open arms. ve the welcoming smile and the cheerful voice of our country and the region. be the heart, be the soul, be the energy that everyone feels during the world cup. kat are signed up to host the biggest show in football, but it's hoping the world will come to help john again, raska al jazeera, doha ah . clare. again, i'm fully back to bo with the headlines on al jazeera ukraine says it's forces have regained control of keith. suburb as fighting rages north west of the capitol boca hosta mel and her pain have been under attack for weeks now. the cities under curfew after heavy shelling on monday killed several people. the united nations secretary general says ukrainians are enduring a living. hell, antonio terrace has h russia to end the invasion. 10000000 ukrainians have been forced from their homes

and that on the move. but the war is going nowhere fast. for more than 2 weeks, mario ball has been encircled by the russian army and relentlessly bombed shelves and the thick 4 walked. even if multiple falls, ukraine cannot be conquered. city by city, streets, by streets hauls by holes, a russian quarter sentence, kremlin critic, alexia navarro. ne, to a further 9 years in a maximum security prison, his accused of embezzling donations from his anti corruption foundation of ali, denies it charges saying they are politically motivated for people have been killed or after a stabbing and car rhyming attack in the 70s. really city of their sheba, the accused assailant was shot dead by new really bus driver. the man has been identified as a former palestinian teacher. the united nation says more than 300000 children in

somalia are severely malnourished. the country is going through its worst drought in 40 years. more than half a 1000000 farmers and herders have lost their crops and animals search and rescue teams are looking for the cockpit voice recorders from the plane that went down in china's grungy province. on monday, the china eastern airlines flight was carrying a 132 people. no survivors have been found. and members of sher lancaster parliament have voted to amanda, controversial anti terrorism law. it comes 43 years after the legislation was 1st introduced as a temporary measure. the law had allowed security forces to detain suspects without trial. those are the headlines i'll be back with. the orange is here and use our right after inside story to stay with us. what happens in your. 1 it has implications all around the world to make these stories resonate requires talking

to everyday people. the mayor of the city are now sitting doing way with the current you wanted to get everybody. it's international perspective with the human side zooming way in and then pulling back out again. long lines for scarce fuel food shortages and power cuts shall anchor is running out of dollars to buy essential goods will an international bailout save its economy. and is there a risk of defaulting on its debt? this is inside story. ah hello, welcome to the program. i'm adrian finnegan. sheila anchor is facing its worst economic crisis since independence in 1948 international ratings agencies. a warning that it's on the verge of defaulting on its debt, it's usable, foreign currency reserves are plunged below $1000000000.00 limiting,

showing his ability to repay loans, and traders can't access dollars to buy imports. so, what does this all mean for us? we'll hankens, well, that's been a shortage of everything from fuel to food supplies. we'll get to our panel to discuss these issues in just a moment, but 1st, a report from august. here is victoria gate and p. soldiers that hundreds of petrol pumps shall anchors. government is deploy troops after 3 elderly people died while caring for hours to buy fuel in sweltering heat, shall anchors, foreign exchange reserves, dwindling rapidly, and it's struggling to pay for food, fuel and medicines. it buys from abroad, with its currency plunging in value. life's become difficult for many. robbie, don't forget to log on the green lock. my income is down by half. when you look at the expenses, werent it? higher level. the government says it's responding to complaints of stock piling and poor distribution, amman, collector by diary murray antonini on the need arose to get the military to

supervise the distribution of fuel. the military has been deployed to help the public not to curtail the human rights massage opposition parties and citizen groups have been holding protest around the country. accusing the government of being responsible for the economic turmoil president go to buy a raja paxil last week asked for a bailout from the international monetary fund. he appealed to the nation to make temporary sacrifices, julia barbie. dear hecky doc, by limiting the use of fuel and electricity as much as possible the citizens to can extend the support to the country at this time. i hope that you'll understand irresponsibly to the life with you at the silencing time period. the i m f says the government's foreign debt burden of $51000000000.00 is unsustainable and it has a $1000000000.00. so from bond that's due in july, many investors doubt colombo will be able to repay without a painful restructuring, victoria gate and b for inside story. well,

let's examine what's tons for lancaster foreign debt burden into an unprecedented economic crisis. it's tourism sector, a major foreign exchange. honor was battered by the easter attacks of 2019, and the corona virus pandemic. and now 2 countries that a vital to its tourist market or at war, russia and ukraine had been the 1st and 3rd largest source of visitors this year. a fail drive to become one of the world's 1st 100 percent organic farming nation also hurt food supplies. sure anchor was forced to import weiss the t crop. the nations topics board was devastated. was rank a once china, a major lender to restructure its debt, and it's secured a $1000000000.00 relief package from india. ah. all right, so let's bring in our guests. for today's discussion from colombo were joined by admission to mel executive director at head of research at verity research from new

delhi javin, jacob's associate professor at the department of international relations and government studies at she's not a university. and also in colombo is bonnie fonseca, a senior researcher and attorney at law with the center for policy alternatives. a warm welcome to you all. great to have you with us on inside story today at mission . let's start with you. how did sri lanka get into this mess? how far back to the problems go? can the current situation be traced to a single event or events or time? thank you, adrian. great to be on the shore. it's an important question because i think the causality of the current crisis is attributed in many ways. i personally think that there is a single point that can be attributed for the crisis. and it is the tax cuts that happened consequent to the presidential election in 2019 in pull, filling

a promise of the presidential campaign manifesto. taxes were cut in a weird that reduced government revenue by about 25 percent and reduced the tax base of the country by about 33 percent. and a few months later, that led to a critical ratings downgrade that effectively cause re lanka to lose access to international financial markets. it was, as it were, the black listing downgrade now after losing access to financial markets, as through lanka kept repaying its debt. it's reserves kept coming down and as its reserves kept coming down, the ratings kept going down and it was a downward slide, which so luck i did not find a way to stem or stop. and the current situation is really the combination of that process into virtually 0 reserves. so i think if the dreading down brain had not

happened, so like i would have continued the normal equilibrium of borrowing to repay its debt. and if the tax cuts hadn't happened, which then caused it revenue to fall so much, that interest cost on revenue, government revenue rose to 70 percent, or which is perhaps the highest in the world. lebanon had that in 2019, before it went into default. and so that explains really the rating downgrade in april 2020 vision is one of the dangers that of sharon cook defaulting olive step right now. so i think, you know, i use the word defaults to describe restructuring as well. but if i make a distinction between an orderly default, which comes through a negotiated process of restructure and a disorderly default where you don't pay because you can't bear, and you haven't negotiated an alternate event, but the consent of your debt orders,

i think the bench is of sri lanka, getting into a disorderly before it is of course, many close to that process. and the only way to avoid a disorderly default now is to cause a great deal of pain to the local economy by withholding the dollars that come in through import exports and other means from paying for essential supplies of gas, full and medication. so i think thrill unpack, can avoid been disorderly default i yet for a few more months, but only at the, at great cost and pin to the local economy and people, but come july when days the 1000000000 dollar repayment. do i think that becomes a pivoting point? so sir lanka may need to engage quite quickly and proactively to start to negotiate and process to restructure that before the july international sabrin bond payment

have been been dollars become still very. i know that you agree with bunch of what we just heard. let's talk the politics of it. to what extent you think rank has problems or simply bad luck or down to economic management. we heard about about those tax cuts on the problems that they've caused. i mean, what responsible government would do that knowing, but it's gotta severely impact its ability to pay its way in thank you for having me in a timely discussion, considering the situation in the country. you talk about the political context and, and the reality. so we need to recognize that sri lanka is i'd have breaking mind people on the streets, protesting essential goods are not available. they're a hero is in every corner. and now we had 3 people who stayed in line to get for. and this all comes back to the lack of political leadership in

the press and government. now we had the tax cuts in 2019, but we also had a lot of policies or lack of planning. you turns in policies, for example, i guess talk about the fertilizer ban that happened with our really are planning pleased to address what the hardships would be faced by the people. so it's really coming to a lack of planned by the political leadership and contrast this to the political rhetoric in 20192020. when these government promise, we says so explained and prosperity and promised to take no credit government in terms of stability, economy growth, all of that was promised to be like trade and they got the majority in 20192020 elections. what has transpired after that is

a complete opposite and even now when they complete careless factor in sri lanka, when we don't want to know in the power cuts would happen, we don't know who we would have been tra la d. so tomorrow because accuser so long, they're still lack of information coming from the government. so really, it's a government that promised so much, but he's unable to deliver and doesn't seem to be able to communicate for providing to what extent does the roger parks or family after shoulder some of the, at least some of the blame for this crisis isn't, is it wise to have major government portfolios spread among members of one political dentistry. i mean, this is the big worry that we had the precedent for being elected very soon. he appointed the prior, his brother, the prime minister, and now we have 2 other by the brothers inc. happy land. we have several others

in government, in cabinet as well as other positions in government. and the question is, when you have such a lot of pos been turned in one family, and remember this, it's not just the family, but they have really concentrated pass through constitution means as well as the constitution amendment response called the 20th amendment, which friday, greater pass to the executive presidency. so we have the most powerful executive presidency in this country in the history of sri lanka. and we also have family rules are very limited checks and balances, but it's also one family that seems to be making the decisions. but leaving a side expert who should be consulted or should be part of that process. so a lot of issues and i would say the government, but it was, it's the family that needs to be blamed for the scare. us drove and we heard the

india, the true anchor has so secured a 1000000000 dollar relief package from india is india got a wide to shrine cuz rescue oh, you know, should i go to a neighbor? i don't think you have much of a choice in this matter. india will do what it can as best as it can. i mean, she has a very specific set of demands requests from india and i think it is already in the process of getting much of this. i think there are some positive signs. i think it's just been announced that indian tourism to feel guys picking up it's all to be i mean a like what ought to set of order to receive from russia and ukraine no longer be able to travel the presence of indian to this is i think going to be a big b plus for the shrunken economy. but i think also on other matters and get assistance to ongoing infrastructure projects and getting credit lines

indian loans. i think all of this at the indian government will certainly be a great deal of attention to supporting. so i'm going what we'll wait. ok, i want to ask you another question, but it's related to something that i want to 1st of all to put to nations. all that back with you just a moment. jovan mission, to what extent has chinese debt played a huge role in, in sure lancaster current predicament. i remember at the time the chinese involvement drank was 1st announced that was dire warnings over the country, becoming indebted to china. and those warnings ultimately proven to be correct. so thank you. are indian. i think chinese debt is not the largest quantum. are off putting debt. that's relock a house to repay. and it also is not in the form of international submarine bonds where capital payments come as bullet payments. so consisting of about 23 percent

of foreign debt rest says or 20 percent of the debt being with international summit in bonds. i would say chinese, that cannot be considered to be the crux of the problem as the student can, we have a separate problem that the money that it borrowed from china and other places india included, were invested in projects that didn't have an adequate return. and that in general, compound and it's that problem. but in many ways it is the international summer in bonds that have been borrowed without much concern for how well they have been invested either. and that are turning out to be critical for sri lanka in terms of it's that sustainability at the moment. okay, thanks for that. let me go back. been to, to germany cuz i just wanted to, to clear something up about china's role in showing because economy to establish what's in it for india. i think from, from what anesha we're saying that,

but it's not financial incentives. here we're, we're talking more about perhaps geo political influence. india, of course, concerned about china's influence right throughout the region. to what extent is israel anchors current crisis? going to mean that it will become a pawn in regional politics in this battle for influence between india and china. well, 1st of all, i think we need to get those things clear. i mean, the grant is right in saying that, you know, the cross, the problem might not be chinese loans per se. but i think there is a certain tendency to reckless economic policies, reckless political behavior that china encourages. i think that really is a problem that not just re lanka, but pockets on but all bunch of other countries around the world have faced as

a result of chinese assistance, better should have projects and so on. and india sort of wanting has always been on this front, that there's a lack of accountability. there's a lack of transparency for standards of the environment of labor management and one that come with chinese assistance chinese investment. so these are the 2 aspects that need to be very clear. now in terms of india concerns from the general to the fact that i think 1st and foremost, india is what it really about the state of ignite of hers and the impact on the local people right now. and i think my 2 panelists aided out this quite well. you know, i mean, fund reserve, the depleted hoarding. she, duncan, p s christ economy can still be is not good for india either in its neighborhood. i mean, even with the instability, the political instability,

and i think what one of the said about, you know, the, the family that i just got the family controlling or taking a dominant role in politics. i think this is a matter of concern also from a political point of view. and this is precisely for the situation that the chinese government ends up exploiting. and i think that really is a big concern. it's not just the aspect of it, it's just, ah, sudden, political behavior, a certain kind of politics that you know in going from china or support from china encourages i think that really is should be a concern. but i mean as ok, but funny, as i see, you know that what are the dangers then for true anchor of becoming further indebted to india? oh, i think there are lots of dangers at the present moment. one needs to be looking at

. but you know where we are all set of very unprecedented now little kind. so we'll have to see how things play out. but the reason negotiations and the opening of the line of credit research a lot of questions as to what are the criteria, what was negotiated. so we haven't yet seen the public domain what the criteria and where this is. today's a concern where the asus have been sold off and these are really produced and concerns, and this is not a new thing. he says been there for a while in terms of the need to national on negotiation line of credit. these concerns are going to be taken on board and there's also one and i mentioned with the indian anger that also needs to be addressed that he's a political notion. india has been a friend or sri lanka has very much be supporting in the past in terms of

a political solution addressing that question. so these issues are so good grief in terms of the present conversations where you're to see. so i think india has a special place that has always had a space at her place, but we are in a very novel situation. so we have to see what was actually negotiated before we can come in on this drug. or do you agree with that? i mean, what, what, what sort of influence come india bringing to bear politically and she will anchor to ensure better economic management. you know, i think we've learned to our lessons from too much political intervention in any of our neighbors. i think our primary concern at the moment is economic situation in inter longer and frankly the, the, i think the she lumpkins quite able to manage politics off, you know,

balancing india and china. i think they do this pretty well. they're pretty savvy at it. the problem really is a question of economic management and economic incompetence. and you know, and that's the solution that she don't going to have to find. you know, it's not something that i do the chinese or the indians or the i am this can help with by giving loans. i mean, it's a, it's a domestic issue. so there are limits to what india can do in for longer. and i agree, i mean, in terms of the lines of credit and terms of management, there certainly should be transparency and should write to us for transparency on these whether it is from india or from china. initially, it cannot be selected from if you want. ok, nations ever touch on it, the linear, i mean i, i like to come in on that. yeah, yeah. i think that that's a very important role for dynamic to play. but in coming to that, let me just discuss the india and china dynamic a little bit. i think, you know,

it is difficult to suspend the new that there hasn't been some element of bilateral opportunism exercised by both china and india in sri lanka, time of difficulty at china was able to negotiate sweeping confessions and tax holidays of unprecedented proportion. and regular st. suspensions, the city that it has built in colombo lunk up, india was able to him extremely short time managed to get sri lanka to lease out you know, quite a valuable asset in terms of oil tanks in the trend kamali port. and both of these transactions really happened. as 3 lancaster difficulties started to emerge. and there was hope that i, the china india would help build 3 land out of the difficult it was facing with

regard to its debt. now, we must understand that in india could also publish these transactions that we sell or pick out where the credit lines from india and when, after we've been talking about right, there are none transparent. and so lincoln's are very worried. i don't think it should be only up to the silicon government to be transparent about these transactions. india could also, i think, proactively be transparent and showed good faith in that in what's being done. so i think we may need to keep in mind a lot that we are. we are sort of certainly not critiquing in the country. we understand the countries acting self interest, but it would probably be important to understand that that element of that that is going on at the, at the same time as so like i've been assistant. so let me calculate i m f. yes, very, very, very quickly because i, we're running out of time. ok. so i maybe we can come back. i think, you know,

when india initially gave credit to so i can said look, if you want us to roll over this credit with like you to get into a program with i m f, it's as tying assistant to improvement in behavior. ok. but what you see now is that india is offering credit lines in a pick sort of forms without paying it the good behavior. and i think that's something that india can revise the way to approach. ok. but anyway, i've got about 30 seconds left on, i'm sorry, but is there any sort of lice at the end of the tunnel for the people of such rancor at the moment with all of the hardships of the currently enduring? well, adrian ankin wanting to say one of the sri lanka, we have a very recently and community we've gone through the kids. so want to know me and many other challenges. so i think there's some more that we can get through this, but we need to get leadership. we need a plan, we need communication. but also,

i think just at this very base where he pundum into mind is that people just need to know what's going to happen tomorrow. and then next week it's just come key to darkness. and i'm just saying that because we do have just complete blackouts. so we need some sort of information and plan, but i think people will come together, but we need leadership as well. great, thank you so much. i'm sorry to have to cut you short, but we are out of time unfortunately, but many thanks to you all. michelle bell chub and jacob and bonnie fonseca for being on the program today. as always, thank you for watching. don't forget, you can see this program i get any time by visiting our website of al jazeera dot com for further discussion. join us our facebook page. that's a facebook dot com forward slash ha inside story and you can draw the conversation on twitter or handle at a j inside story for me, adrian finnegan and the whole team here. doha,

thanks for watching. i'll see you again. bye. for now. some journeys are tougher than others, but this field trip is even tougher. according to the truck, it's dangerous to do a world follows them. iraq and truck drivers. indeed during their life, just to make a living drive, they might break your mirror or even kill because a pool is known for from a noun to 0. what is gay city has become a major global issue. the demand is going straight up and the supply is going straight down, turning an essential natural resource into a commodity traded for profit. just because it's life doesn't mean it cannot be priced. what about the guy that can't afford it?

and that guy told me it's water. al jazeera examines the social, financial, and environmental impact of a lot of privatization notes of water on al jazeera. ah, [000:00:00;00]

with mm. whole, ah, this is al jazeera ah, hello. this is in use our own al jazeera, fully back the bulb with extensive coverage of the war in ukraine. ukraine 2nd largest cities under constant bombardment, russia defense, many 3 posts,