say that talk about it at the end. now this is a deal mainly involving turkey and the turkish navy. turkey's been involved in lots of the negotiations along with senior us officials will i think learn a little bit more of that in the coming hours because president tuan is giving a news conference here and it's likely he'll be asked about it. clearly, ukraine is on board. the question is whether russia and took your on board and what final communications have to happen between the 2 presidents before this deal, which looks quite likely now can finally be done. and the course is not done until everyone agrees. the other comments, i think that were interesting on time when nato clearly is strengthened itself, it's got to new allies joining what he's comments about what the world is like now comparing it with the time of the cold war and the native sex general painting a very very grim picture, he said, we live in a more dangerous, a more unpredictable world. and then he added, it could get worse. you could have a full fledged conflict between russia and the nato. countries are really

a grim picture, but he says that's why the lions acting as it has is strengthening itself. and this is the right thing to do to show strength to protect the allies. what we've seen in recent days is a bowstring of the forces. the nato has closest to russia. there are 6 battle groups in the countries that are close to the russia. significantly, the u. s. is strengthened its forces. a battle group is in poland. it is going to have a permanent headquarters in poland for the 1st time. that's interesting because under an act treaty signed between russia and nato back in 1997, that we're not supposed to be no poem and bases anywhere near russia. the most significant thing, of course, all of course is the fact that there are 13 nato allies that now are going to be $32.00 and sweden and finland joining nato. he gave more details on that. he said the accession protocol will be signed on tuesday. then there's just one last steps

to be taken, and that's the ratification process. last, if occasion process, it requires all the different allies of nato, all the 30 countries to ratify the deal. and that is normally quite a long process. but i think given the circumstances they're going to try and speed it up in most countries that is done by the national parliament. so i think by the time, way ahead next year for the next summit, which isn't here. it's one of the frontline states in the lithuanian capital vilnius. i think you'll see around that north atlantic council table. you'll see 32 nato allies instead of 30. okay, james, by the 4th and madrid in speaking to us at the end of that speech that we just had that from the native chief young sultan burg, concluding date, 3 of the nato summit in madrid. we have heard a loss of announcements in the last couple of days. nato announcing plans which essentially will carry out the alliance is the biggest over hole since the cold war

. lot small on the story on our website. do check it out. out to 0 dot com. coming up. next is inside story. stay with us here on out there. ah. the worsening economic crisis in sri lanka, the government has restricted the sale of fuel that comes days after the prime minister says the economy has completely collapsed. so what school the crisis and what are the consequences? this is insight story. ah

hello, welcome to the program. i'm hashim aha, butler, sri lanka is facing an unprecedented economic meltdown. and people are suffering. pat old pumps are nearly dry and the government has suspended the sale of fuel for non essential services. while it looks for supplies from russia and cutter, it had already imposed electricity carts to save energy, and food and medicines are running short. people are angry, especially those who need fuel to earn a living. and despite pressuring a prime minister into resigning workers, and protest says, want to know why the same government is still in place. megan, by the way, that,

that, that an anti again, me, this is a huge injustice. fuel is an essential item for the people. there is no fuel, the whole country comes to a standstill. people elected this government with high hopes. it is because of the short sighted policies of the government that people are spending days in lineup. people and helplessly that they and their children can do their jobs or study lesson. and i see this as a huge crime. mom about mozambie, amid the petrol station, the wife is and the gas cute, the 2 children have gone to the kerosene shed. we can't afford anything, he says, nobody is taken responsibility for this. i don't know what the government is doing . at least put someone in charge. who can do something american i went out to i'm bet. even in our children don't have milk powder. there is no fuel for our husbands do their job. we don't have gas to cook women or in gas cues. the men of the house isn't if you'll kill children or milk powder q is how can live. we came to ask this government if they can govern them, please leave. but there are thieves of you may not know i. we came to the prime minister's private home to tell him about the injustice done to us. we don't have

weapons or water bottles or even 6. we are peaceful protesters will begin our discussion in a moment. let's look at house real anchor governor. it's vital tourism industry was already in crisis following the civil war that ended in 2009. the easter sunday bombings in 2019 and then the pandemic. but of the start of 2022 with oil and food prices rising, its suffered as sharp drop in his fine currency reserves. column before turned on its fall in debt for government was unable to buy and sell food and medicines and without fuel power cuts were imposed. for government saw the help of india, china and most recently the i m f. but with the little progress in may weeks of protest led to the resignation of prime minister by hinders or by sir of the cost of living has continued to sore.

ah, let's now gather thoughts of our guests. joining us in colombo as jihan, herrera, executive director of the national peace council of sri lanka in nottingham is tammy another vin air gun lecture in the international human rice law at the university of nottingham in colombo, shire them. singer economists of the frontier research welcome to the program jihan when the prime minister says that the country's economy has completely collapse. what does that mean for sri lanka? is it a strong indication that the economy itself has become now dysfunctional? well, what we are really concerned about is that the playlist i saying the economy has collapsed, but he's not saying what 29 about it. what is the trend forward be expected to serve him? in fact, when he was appointed prime minister, a person who,

oh was a has only one seat in parliament. a bet has been a kindly still 5 times in the past. we expected and the people expected that he would be or take us out of this more asked that reaction because his experience of governance and his international connections, his, her knowledge about highlander procedure and governance in general. but we have been very disappointed since then, because what we see sentence is taking over is a progressive deterioration in those situations. the alliance for petro and diesel and cooking gas, i longer than ever. and in fact, there be no cooking as to the last 23 weeks or so. the power cups are once again growing up. the government has said that government officials should work from home

for the next indefinite period. schools are closed when shocking. yes. so when you say the economies class and what, why does that mean? you have to find a solution to this, not saying you see that the economy has got a sense of your really very upset and disappointed people are very angry about going to expect that much more from, from the friendliest and from the government. but what he also sees, that is like almost politics is usurer. the side we expected a small internal government and more party government that will govern for a short period of time. but what you're seeing is a big government that talks a lot more. he still being an intern for what purpose loan. we are actually quite upset tummy and is it fair to expect the prime minister running with some anger to fix over night the structural problems and many years of mismanagement in sri lanka?

many thanks to the serv. so broken question, i don't think so simply because ever since pose independence, like many other global solve countries, shoreline cation, the choke hold of a 3rd role delete that has enriched itself, but marginalize and are completely impoverished the peoples. and right now we are seeing the situation where the people have to pay the bill for a range of issues such as state of the populace. tax cuts of the ban on chemical fertilizers and but also for the world wide decline of government robber. and in the case of shamarka, excessive aiding the situation, we have seen the pandemic that had some devastating impact, but also the dwindling income through tourism after the use of bombings. now all of this is contributing to a situation that we haven't talked 6 to ensure long come. that was very much

instigated by a 3rd world elite learned, become a singer and others of what currently at home, like young said earlier, i have just only contributed to a situation where they have not really explained. well, are going to happen now. and i'm definitely to answer your question, not very positive that the same people were created, the problems are going to solve the problems in the very near future. admits in international orchestra on that is come from by him of the world bank. i certainly don't think that this problem will be solved. and nationally, there needs to be an international and in particular regional effort in form of a global sort solidarity among regional states. china. now what would you expect the prime minister to do when you look at the picture, this is what you get a very somber economic reality to have revenues. you don't have courtesy foreign

currency reserves you've been battered economically, the tourism industry has suffered massively. you to have you not generating revenues, you don't have cash to pay for services as how to move forward. you seem to be in a, in a vicious cycle here. very much so i mean, moving forward and to the fact that through lancaster fallen down to such a level, our reserves, effective knowledge might actually be close to 0 in terms of fine concerts over there. this challenges in meeting will be payments, are they, a government has to reserve state sec, their workers salaries contractors, all of that. so when you're at this point is actually valuable yet you can do that as a government has in want to get this all the like was said, but there are things that need to bring in confidence booked for now, but also bring in some sort of resolution for the future, what we're seeing right now is that you did off, these are really happening need a budget to come in really fast readable, fast on that restructuring negotiations. you need more fuss on making sure develop,

enter that we have that thing that helps the blood surviving this kind of context actually functions right now he's off nice. unique past on. and that's not something to have in the budget is not with the expect. an enduring budget is on the expected or coming sometime in august, when realistically should have had it at the very least. something marshall if brit . but it, that kind of delayed does not really bring ahead. we went into our multi lateral engagement that i am, every, the words bank you need. our credit doesn't really inspire comp because them you're dealing things. and then on the north side, but also with other part of the dealing the fact that the people are continuously calling for the president, designed for actual change in the dominant system, at least for the short them to an enduring arrangement hasn't really well. and that you need to complete his a concrete in the local economy. and that's part of the reason, right? for example, remington says on flowing into the form that is the export does not have confidence . and she loves and keeping money abroad. things that could help you not going to shorten that are also not looking for

a complete breakdown of trust in the system. call me just in the political system and without these kind of things changing and without actual action being taken on the glavic front, passed without delay. really, there is no practical way forward. things will get worse unless you see them jihan this. these are challenging times. however, the provide some sense of clarity, the tickler when it comes to the future. but i'd like to ask you this question. it was quite obvious since the thought of this crisis, though, one of the fundamental problems with sh lanka is that in relies heavily on impulse . but ultimately does not have enough revenues to pay for these revenue. for, for these inputs lossy, you paid something like $20000000000.00 for the import, but we're to have, you don't have the revenue to be able to do that anymore. yes, you're right. i mean, this is, this problem started montana or it is not her. only this government that is

responsible or that has to blame for this. this from a fairly long time ago will be waiting for the free market system. and her detached ourselves from our lawyer, commitment to a more egalitarian society. he had, he had a society that was more concerned about preserving social welfare socialist measures. but even at that time because you're consuming more than you're producing and is still focusing on generating greater production or b, benton for more trade typo or economy import export. but importing more and boring all the time, you are boring, so you look or the boring and they are consuming. and along with that, i think one very big problem in our country has been the lack of accountability that then politicians and public servants any. then they do engage in corruption,

they're not punished. so along the boring b, b, miss allocate resources. we, we went in for grandiose projects, airports without passenger, without the is coming in ships without of course, tons of carlos towering and south asia without being able to open it dearer, huge amounts of infrastructure and also a long corruption. and then there that is concern and for that chinese, the chinese rule has been pretty bad because they give us money, large amounts of money to tell us the necessary checks and balances that better, say a private sector investment would have all my to let it be brought with it. so the money is that the got the didn't use it and now we kind of pay all the loans that we took and that's i think that's all so. and if you look at our rules,

yes. so many luxury rapers. it's a, it's incredible issue. we must be end up in the gap between the rich and poor has increased. oh, so we have to restructure our economy. the we think me, we need a new generation. ok. and so there is a desire that is in fact that is epitomizing what the young protests are. the same business president school and also on 225 highland and jerry and deborah j king quality story terminal or could be the moment to reset the economic and political priorities. because when you look at the roger box as themselves, they have a ruled over a political dynasty, the pursuit an aggressive policy. but then we're getting indications of all those policies backfired to the point way in 2019 decided to massively cut taxes, which could have given the government something like $2000000000.00

a year. they end up having something like $15000000.00 in foreign currency today, which means they weren't able to pay for anything they would like to import. i mean, you got a very good point in the old previous because my very good point. i mean, the 3rd world believes in post independence for lanka is, is governed by dynasty, and they have passed on power from one to the other and borrowed money from one to the other and engaged in grunt those projects. it's like giving a credit card or several credit cards to a 16 year old child, that is the 3rd will delete right now. and, and in corporation or in collaboration rather with the international monetary fund and the world bank. we have seen that there is a new, liberal colonialism and new colonial colonialism

and encroaching upon the people in the country. so long as the one of the biggest mentioned before in the 970 was one of the 1st countries on the board with all that had opened up to a new liberal trading system. and the major, major medical repore and elite, sorry, had to use borrowed money in order to intoxicate its people by using also nationalists and, and religious extremism in order to enrich themselves. so what i am fearing right now is that the current government, like previous governments, are as young as i mentioned earlier, and not accountable. and they won't be held any accountable in the national setting as of now. but they also dealing with an international framework, namely the international monetary fund and the world beg at it. just like almost all the great lead from, you know, also said one,

the origins of that right from the origin of colonialism and those who lack of money are the same, was colonized before. and they are those who missed the manage all states and economies. and while we have and completely unaccountable and domestic elite, we have also an international elite that is unable to be held accountable, childless let's, let's dissect some of those components of this can nomic failure. you have a fair defaulting on debt payment. by the same time, you cannot but chase fuel from abroad just for the simple reason is that your local fuel company wishes or their ceylon corporation is ow, something like $700000000.00 to the point where western companies are saying you have to be careful dealing with sri lanka, from our onwards on. yes, i mean the underlying factors the by economy has to be, it has been around for

a while. i wouldn't actually they started in the seventy's. i think it started a much earlier than that. the fact that we had have a board driven system that that's not only in terms of, of a direct, in both consumption. that is, for example, the fuel for our cars. but he's also in terms of the raw materials, unifor, things like local production, this recent government that came in, for example, had as long as policy priorities look at production. some strong protection is policies which ultimately led to a lot of export acts as having some issues with it. it didn't really leads to a lot of financing going into those export activities about robbing to domestic consumption driven policies into policy that expanded upon the domestic consumption side. now, the more those tax cuts being in primarily at the reach and the idea that grow to help, you can have better industrialization with tax cuts. but we are seeing right now the con, the consequences of industrialization. we're not joining the scenery right now. we have our costs and not the kind of environment that is conducive to any sort of

growth, any sort of development underlined now of foreign exchange reserves that the key part of it that it fell down sulu because after 2019, after the facts got really, really brought down all the financial status as well as the back of the panoramic shackles downgraded to find a couldn't accessing joshua capital market. so at that point, you know, should have done, he started stocking to a creditor, stopped engaging with the i m f and trying to come to some sort of solution to get out of the crisis. i'd rather just double down and he called them and i'm going solution, but he's missing what the consequences of the home going to just exchange rate. for example, using up all, all already has to be that you know, the finance, different, different kinds of things. we do what we call non tradable sectors, things that build up production, but without any real benefit in terms of the financial income to the country. and we are at that point right now where the consequences of all the really they can fail economy worse and it, and now we're facing those contraband. okay. we have many other angles to cover,

so i'll ask you questions and unexpected gentleman to give me some offer me some very brief answers. if you don't mind jihan. the prime minister is saying the only option available now for sri lanka is loans from international lenders. this is why the talking to the i m f and others and you know, the conditions that come most of the time attached to those loans or is it a good step forward? i think the way out for us is, is the international community, the good we have to now rely on the goodwill of the international. in fact, an i mediately sustained and we haven't heard for the last 2 months through indian crated lands. i mean, yeah. is it outside the rich anti and yeah, really grateful that india asked that foreman or to support us at this time of great, great, ne, ironically, he that i am, if used to be very controversial in our country, is still is to some extent are our people were told that if you go to the ins,

they impose all sorts of conditions on you. are they doing this watch over there? now, did you make us turn your liberal to us with the rest? but, and, you know, people, you know, maybe one dime has to come in because we think that is the i'm with comes in. they will ensure that the lawns that you had given to us will be used properly and it will not be stolen. it is so bad, and crude as that which has e few that was for in launch, we get that it'll be rob and i'm, if it's system shouldn't ensure lynette will not happen. and we think that even the other countries, ok, us japan, good minus in 1st get i've been reading coming and the team is going to make the on account of her image debatable as you know, because the people are really divided about the notion of having to seek the help from international or lenders. tamela you have 20 percent of sri lankan who

come from the middle class. those people had high hopes that life is going to be much better that it could be taken part in the political and economic or her sphere . now they feel betrayed, abandoned by their political elite. what's next for them? well, frankly, history shows that there will be in economic roles of the middle class who have been hoping to see greater share in the well well being of the states and the wealth of the state. history has taught them from greece, argentina, rule and eastern asian countries. where and there i have to disagree with young mentally because academic and research is pointing out to the devastating impact i. m f. world bank have also in the middle class and

also the most vulnerable because i do think that structural adjustment programs will and not only further further the new liberal ideology but also cut more on the state. leading to more impoverishment among the people. and the way forward in my frank view is to forgive that we have surrendered up to the m f world bank, india, china. they not doing this out of goodwill and philanthropy. they're doing that because they want something better structural adjustment around regional reasons. so am i to answer your question, i'm frankly afraid for the middle class and i want to see a downfall in the current economic structure. tell you what does it mean when you have inflation for food hitting 57 percent currently nowadays for lanka. yeah, i mean,

the significant father made rooms and for being a thing for the long as the fact that over the last 2 years long this young government decided that the best way forward was to print a massive amount of money, trillion dog rupees printed to be the positivity does monetize to that by cutting taxes we printed mommy and that's been absent lives. massive. and the thing is, the fact that we come down to start a new appointment is that you'd actually quite difficult to reverse that kind of situation as without actually having revenue raising measures. and right now we can't have massive revenue raising measures, especially want that bringing to have a lot of the short term which we end the fact that progressive taxation, while a good idea takes time to really commit to bring you might be further in patient coming up and that's of this really table on citizens of the country. those about that we have to deal with the confidence of a protection is ingred looking and anti international policies that the country had decided to go into. it would be

a mamma stuff to see the prime minister reversing those friends because when you look at this kind of situation, debt is at $51000000000.00. current consumer inflation, 30 percent of the foreign currency was a sense of something like 50000000. thank you. very much indeed, she hand pereira, time in until the gun and show you dancing. i really appreciate your insight and thank you to for watching. you can see the program again any time by visiting our website and just the dot com for further discussion. go to our facebook page that facebook dot com forward slash a jane site laurie. you can also join the conversation on twitter, our hand, that is a j inside body for me. how should i bother and the entire team here in the me ah

july. oh, dear. oh, march 25 years since it's hand over from british to chinese rule, but with time has cracked on on the closing voices, and i texted us citizens. what does the future hold from the headlines to the unreported? people empower investigates. they use an abusive power around the world to review and vote in a referendum and a new constitution. could it spell the end for the only democracy to emerge from the out of spring uprising? as india suffers unprecedented heat wave one or 18th goes to the fiery heart of the crisis center goal heads to the pole. with the main opposition parties, united can be reco powell away from the ruling party. july on al jazeera, both journalism, the police violently dispersing protest. this,

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