he cried, tennis palm saw anything, you turn your hand to you are going to be a great success and i have no doubt that will be the case as you go forward with the next. the next chapters in your life. as fatty is proud of her indigenous heritage as tennis estrella as 1st nations ambassador, she finishes her professional tennis career on her terms. and at the top of her game, sarah clark al jazeera brisbin, australia. ah, this is audra 0. these are the top stories ukraine's president says there's nothing left of maria paul, after nearly a month, a russian bombardment below me. zalinski says 100000 civilians remained trapped with no food. water power or medicine, is accusing russia of blocking much needed aid by taking bus drivers and emergency personnel. hostage findings intensifying to the north of ukraine's capital. keep

ukrainian forces say they've retake in the suburb of mockery of but russian forces have partially taken 3 other nearby areas. it rains, 2nd largest city hockey was suffering constant bombardment that the russian military entire areas have been reduced to rubble. most people of fled the mayor as one that nowhere is safe and every one should go under ground. president vladimir zalinski has told japan's parliament that international efforts to stop russia from destroying his country are not working. she number was in, but i do know the world has been destabilized and is facing a crisis. powerful countries hate to unite to defend peacefully. i call on you to continue to support sanctions and unite all partners in your region. in order to stop the russian invasion. we need embargoes on trade and we need foreign countries to leave the russian market. we need to think about supporting ukraine's military, but also rebuilding our territory. people have to be able to come back to their land in their homes where they were born, where they grew up yet another near security forces in somalia have neutralized 3

gunman who stormed a military compound in mogadishu. it houses the un several fallen missions, and the african union military headquarters, bowing rubashaw barb claimed responsibility. the taliban has ordered girls schools in afghanistan to shut down just hours after reopening. a spokesman for the ministry of educations, confirmed all secondary schools for girls will remain closed until further notice. search and rescue teams have recovered the black box from the passenger plane that crashed in southern china. the china eastern airlines flight was carrying a 132 people and went down and gone. she province on monday. no survivors had been found new zealanders relaxing its corona virus measures as cases of the hammock on variant fall, it's scrapping a limit on outdoor gatherings from friday. a vaccine mandate will no longer be required for police and teachers from next month. and that's all for now on al jazeera, the news is going to continue in about half an hour after inside story. good by the

ha, wrenching, good bye, loved ones, not knowing when they will unite again, women and children heading west to relative safety, often leaving men behind among them. foreigners also trying to get out train rise of a fee, but it's on a 1st come. first serve basis here at the bus station. there's only a few rides available and that's only to the surrounding villages. so people like for me in rose, now need to find another way to get out of the city. but for now, they, like many others, would have to reach in hope. hoping tomorrow is a better day. long lines vasquez fuel food shortages and power cuts tr lanka is running out of dollars to buy essential goods will an international bailout save its economy. but is there a risk of defaulting on its debt? this is inside story.

ah, hello, welcome to the program. i'm adrian finnegan, sri lanka is facing it's 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 plunged below $1000000000.00, limiting, shrank as ability to repay loans, and traders caught access dollars to buy imports. so, what does this whole mean? this rankin's? well, it'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 out here is victoria gayton. 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 little rudolfo to log on the grim mach. 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 with 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 their human rights mix up opposition. parties and cities in 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 turns for lancaster, foreign death 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 are vital to its tourist market or at wal, 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 secured a $1000000000.00 relief package from india. ah. all right, so let's bring in our guests for today's discussion from columbia, were joined by admission. the mel executive director, head of research at verity research from new delhi javin, jacob, associate professor at the department of international relations and government studies at she's not a university at also in colombo, is bonnie fonseca, a senior researcher and attorney at law with the center for policy alternatives, a warm welcome to you, or great to have you with us on inside story today at nation. 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 sri lanka 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 draining down break had not happened, so long car would have continued the normal equilibrium of borrowing to repay its debt. and if the pet steps 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

addition. one of the changes that of sharon could 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 orders, i think the bench is of sri lanka, getting into a disorderly before it is of course, very 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 the 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 day's, the $1000000000.00 repayment. do i think that becomes a pivoting point? so sir lanka may need to engage quite quickly and proactively to start and negotiate and process to restructure that before the july international. sabrina 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 sure. and cause 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 that it's going to 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 a real over there. a hero is in every corner. and now we had 3 bits of people who stayed in line to get for. and this all comes back to the lack of political leadership in the present 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 without really a plan in place 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 promise to take no credit government in terms of stability, economy growth, all of that was promised to be like trade and they've got a majority in 20192020 the 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 if we would have petrol or diesel 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 in 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 power, including one family, and remember, this is not just the family, but they have really concentrated pass through constitution means as well as a congress future amendment response called the 20th amendment, which friday gregor passed. the executive president's is a 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 aside experts who should be concerted or shouldn't be part of that process. so lot of issues and i would say the government, but also it's the family that needs to be blamed for the skills driven. we heard the india, the true anchor over have so secured a $1000000000.00 relief package from india is india got a wide to shrine cause rescue? well, you know, should i go to a neighbor? i don't think india has 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 delivering 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 a light to what the report just 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 long economy. but i think also on other matters in assistance to one going infrastructure projects and getting credit lines in your loans. i think all of this at the indian government will certainly be paying a great deal of attention to supporting should going wayne county. ok, i want to ask you another question, but it's related to something that i want to 1st of all to put to initial solve it back with you in just a moment. jovan mission, to what extent has chinese debt played a huge role in, in shoreline? because 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, adrian. i think chinese debt is not the largest continent of putting debt that sri lanka has to repay. and it also is not in the form of international sovereign bonds where capital payments come as bullets 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 silica 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 you know, much concern for how well they have been invested either 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 javin because i just wanted 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 an issue were saying that, but it's not financial incentives. here we're, we're talking more about perhaps geo political influence. india, of course, concern 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,

nissan is right in saying that, you know, the crux of 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, 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 so on 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 giblin

to the fact that i think 1st and foremost, india is what it really about the data we can make of hers. and the impact on the local people right now. and i think my 2 panelists aged out this quite well, you know, i mean funder, those are 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 there are lots of family controlling or taking a dominant role in politics. i think this is a matter of concern also from a political point. and this is precisely for the situation that the, you know, i mean, 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 why has the criteria why was negotiated. so we haven't yet seen the public to leave what the criteria and with the disease. and today's

a concern with the assess, have been sold off, and these are really produced and concerns, and this is not a new t. he says being 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 angle that also needs to be addressed that he's the political notion. india has been a friend of sri lanka has very much be supporting in the past in terms of a political solution addressing that question. so with these issues or 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 in,

they're bringing to bear politically unsure 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 lanka. and frankly the, the, i think though she lumpkins quite able to manage politics of, 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. okay, the nation's ever touched on it, the linear, i mean, 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, china was able to negotiate sweeping confessions and tax holidays of unprecedented proportion and regular treat suspensions. the city that it has built in colombo

lunk up, india was able to in extremely short time, managed to get 3 long cut 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 it's that now that we must understand that in india could also publish these transactions that we say are or pick out where the credit lines from india and then after we've been talking about why they're non 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 actin 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 being assisted. 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 do you see now is that the media 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 us. 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 the hardships of their currently enduring? well, adrian ankin wanting to say one of the sri lanka, we have a very resilient community. we've gone through the kids of war and me and many other challenges. so i think there's some more that we can get through this, but we mean, pretty good leadership. we need to plan, we need communication, but also i think just at this very base where he find a mentor, find is that people just need to know what's going to happen tomorrow. and then next week it's just come to darkness. and i'm just saying that because we do have just complete blackouts. so we need some sort of information now, but i think the for 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, many thanks to you all, michelle chapman, jacob and bonnie fonseca for being on the program today. as always, thank you for watching. don't forget, you can see this program again any time by visiting our website at 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 compensation on twitter or handle at a j inside story for me, adrian finnegan and the whole team here though, how, thanks for watching. i'll see you again. bye for them. ah. join the debate. there is no, he job bad, better. yeah, you know, if anyone here talks about women that i took, a sample of them says notes how big is off the table. we were taught to see abortion as a one way ticket strength to help all of the companies. they deny any responsibility,

even though they have the resources in the power to fix it, where a global audience becomes a global community. the comment section is right here. the part of today's program, this stream on al jazeera holding the powerful to account. as we examine the u. s. sheets role in the world on al jazeera water scarcity has become a major global issue, the demand is going straight up and the supply is going straight down, turning in essential natural resources 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? that guy told me it's water. al jazeera examines the social, financial, and environmental impact of the war to privatization loads of water on al jazeera. ah,

ah, al jazeera with down to the pit. ah, hello, i'm emily. angry now headquarters. they've the top stories on al jazeera, fresh efforts are underway to evacuate people from ukrainian cities being bombed by russia. the countries deputy prime minister says non humanitarian cartilage have been opened. 45000 people have been evacuated so far. but there is no safe passage for more than 100000 trapped in marion home president let them use the lens cases. there is nothing left of the port city after a month of shelling,

same as robbie has more from louise. there has been some progress with regards to humanitarian corridors. 8 open.