so in the south limit, ukraine crisis is a new event and it needs to be viewed from different angles. we think that the ukraine crisis is the result of an erroneous policy of the west regarding ukraine and the problems associated with it. in order to correctly judge the ukraine crisis, despite the fact that these law mac republic has announced that it is fundamentally opposed to an armed conflict, as a means of resolving crises between countries, we must look into the roots of this crisis and its causes fessler to lonnie washington as long carried out direct and indirect, destructive interference in the internal affairs of the islam of republic. if you run against the background of recent events, there are a sufficient number of media documents and intelligence data about american interference in recent events in iran. interference in the internal affairs of other countries under the pretext of respect for human rights violates international law. this is a gross interference. there is sufficient evidence of this. while the rest of this

is christy, i is up next on the coast of everything will be back with ah, 4 months protest is called for new leadership. as for longest, filed into a devastating economic crisis. nation and you're in month of double digit inflation, rolling power blackouts, and severe shortages and food and medicine. scale longest form reserves are depleted to a point that it can no longer afford to pay for a central imports as the country defaulted for the 1st time in its history. so how

did it get here, and what are the repercussions? i'm christy i and you're watching the cost of everything. ah so how this like i get to this critical point? well, there's a combination of compounding factors like money, creation, unaffordable tax cars, a nationwide policy shift to organic or biological farming cobra, which lots of tours and trade and economic mismanagement. it's hard to really pinpoint the blame when it's really just a cascade of events. the government now lack sufficient warm reserves to pay for fuel and other key imports. and as we've discussed previously, fuel is the literal life, blood of nations and powers. everything from industry to basic heating and keeping the life on at home. for long as also a trade dependence economy and the country is very few dynamic exports and the

global price and supply side chalk have really disrupted the sectors severely. for instance, for longest textile factories were once considered vibrant and promising. but now the whole industry has come to a halt because of power cuts, and to top it off the government's policies of tax cuts in 2019 an unsustainable welfare measures, deprived the treasury of billions of rupees. to finance the resulting fiscal deficit, the government went on on a money printing spree, heating up the economy, and exerting downward pressure on the ruby. and for more on this, we bring you a sancho. we just think research fellow at the institute for policy studies in sri lanka. so what brought through longer to this cases in the 1st place? how did it run out of foreign reserves? if you look at the root cause, and so for this case,

if we need to go back in history, because after the independent link, i was experience in 2 kinds of different. one was the trade deficit or the the budget. and then we had to finance the definition 1st, it was mostly a bilateral donor, the various club donuts and the friendly nation for india. but around after 2 doesn't kevin started to bear heavily from the international capital my because the international, so in between 2000. i think 2009 to 2018 period to cover the road. 14000000000

u. s. b in a form. so short measure in and also high interest. then came the quote 19 reduced our returns into the country and also totally def 2 or 802018 for land and about 4500000000 in tours, but doesn't go into one. it was just less than 1000000000. so the things for in the position i know doesn't go into one and 2022. we had previously low for in the green. so as to the jeff acted the input. so for essential comedy and

government tried to maintain artificially lower rate though for him re depleted. finally, longer government had to let it go. so the great deck was you to buy about 80 mother and a person in the 5th grade. so they are right now by $800.00 to fill and go ahead to suspend all the dead payment it is it can reconsider that it's the default situation. so these days longer government enroll in negotiation with the credit. ready for their to start because possible i am if they loved if conditions continue,

warranty related to restructuring process and now are there any other follow effects of this crisis, or is this isolated? his sco longer here? are there any knock on effects for any other nations? we can see because he gives us of this financial crisis in the domestic economy. a few things. the shortage if you need a good feel and if not in a position to finance the boat as usual, for example, our phoebe and didn't gas shortage. but right now. ringback kind of east because the government views in drill or asian, it is. busy getting really well right now. so people have

a feel for day to day activities though it is not like before. and the same thing, if anything goes it couldn't get however, they are a lot of import control, seeing if it feeling i cannot to in the boat. so really goes it's bad right now. and you in the lot of important for the days in the economy and then industrial like construction industry, if ever did because so it's crazy mainly due to the boats content. and if i know

most of you, the high inflation rate within the i is it that the foot board and inclusion is very high, especially i think didn't last month the consumer price index. it was like about 9 to one year. right. so it's about 9 different this crisis may not affect the other countries, like there will be no contingency. because like if a small economy takes about 80000000000 u. s. economy. so there will be no fee via contagious effect on the economy. like go traded on our trading partners. so the credit to the only ebony that

may affect their country. our credit to our credit just kind of is like china, india jap. and they have a really bare braided loans to our country land. these are really big economy, so i think the amount of loans are added to feel like that may not affect the economy. you wouldn't do the, i will be a some delays in payment, especially if i did turn will be a good up on the school and the say bought, i mean some of the lower and real time to be rebate.

but i think it is about do less than 2 individually. i think the government intention is to restructure about 10000000000 by level low and then 9000000000 of international. so thank you so much for coming on a sancho. we thing a research fellow at the institute for policy studies and sco longer, longer has been heavily reliant on credit lines advanced by a neighbor india to purchase fuel in recent months. but now the government is struggling to secure fresh fuel shipments to replenish stockpiles, as banks are reluctant to accept letters of credit when there's already $700000000.00 in overdue payments. the rapid decline of the countries middle class has plunged the country further into turmoil. the middle class is no longer able to

maintain their consumption, which is a pretty big problem in a country where consumers spending makes up 70 percent of his g d p. and when we come back, are we witnessing the worst economic crisis in so long as history? and so what countries are extending a hand to the asian country and at what price will have everything for the brain? the ah, ah, yes. now, can you? yes. so if it's deploy box near to melting in roden globe comes in a book that probably the lateral she radiates young will showcase in there

and let them know that sounds good. it's a why is it up to a boy? ah, [000:00:00;00] with a quote i'm in my chair. this is, laura doesn't want that much extra mom. but i know it's a program that y'all should already she received. it was up on the rug. is it the one or the board to look at those?

just trouble. it pretty much what ship when you might be able to be reduced. her mother is a global scope with the way the display of the room or the with the one you push with a do the one with

with ah, we are witnessing the worst economic crisis in school august history since it's independence. and now the economy has collapsed and the country has run out of the money. it needs to import essentials. so what constitutes as an essential or talking about basic items here? things like fuel, food and fertilizer. crop yields are shrinking from the lack of fertilizer which will spin off into a serious food crisis. in a recent assessment by the you and food and agriculture organization. 6.3000000 people. nearly 30 percent of the population are food insecure. 30 percent. this is caused by the record 90 percent food inflation. the nation is seeing which

makes state well such as rice, unaffordable for millions of families, the country is usually able to grow enough to feed its population of 22000000. but due to dwindling yields from 2 consecutive harvest, failures from shifting to biological farming things are now looking bleak. around 200000 fishermen are also out of work because they do not have fuel for their boats . and meanwhile, china has also loan a substantial amount of money to ski a longer china is the 3rd largest creditor after japan and the asian development bank. rather than thinking china screw longer, instead of blaming china for exacerbating the crisis. scale longer has bald heavily from china over the years to plug a budget shortfalls and trade deficits. but much of the money has been squandered on infrastructure projects that are part of china belt and road initiative. and let's break this down further and bring in aleisha,

where our research fellow at the institute for policy studies in through longer. thank you so much for joining us from there. so starting off, what do you think of this? do you agree or do you think your longest economic trouble stem from china and taking on too much debt from china? because the crisis was already going by 2019 become a growth rate was at no time laurie took 2.3 percent in 2019. so with this low growth rate, she's not having so many economic problems in the country is involved huge budget and a message trade which was on more than the g d p. and that was out lots to g d p ratio because about 84 percent. and then majority of dick was denominated in find currency. ready so silica was already having so many problems before the

pending meek and the enemy in 2020. it's a bit more of the ongoing problems that we had from beforehand. it's so for income b, o irving from fine exchange was the key component of the silicon economy. it's not going economy light a lot on earnings from the patio, the torrison effect and earnings from worker remington says. but however, with the turn of dependent me all these foreign exchange earnings, but a huge job blow. if we look at the apparel sector, private sector or does decrease. and at the same time that will supply side issues because lots of input problems outside the country. so that was important issues, but with the demand decline for as well as the price additional earnings from the

panels that we're going down at the same time. now the talk to them was a large foreign exchange trailer that also was already having issues because of the east of bombings in 2019. and then along with these and debbie and the chevron restriction earnings from the 20th and the results of the plan to a near the only or the walker image. and what kind of perform better than expected in 2020 of with the growth of 5.8. percent to over $7000000000.00. however, this was not a store for the sonata and economy in place because there were a lot of dick that was coming due. and when i went ahead and get the that on time and that as well as issues in the trade and having to import lots

of goods of at the higher exchange, i'm getting a lot of pressure on the exchange rate. it creates a lot of issues in the body. next change from now when we talk about the foreign exchange, artificially maintain the exchange rate at about $200.00 to put us down the for a long time. and that's created to the lot of impact on remington in but what could be done because the informa attendance for the remittance of the baby to a higher exchange rate. so many people didn't want to send through the former channels and shows of foreign currency coming into the country. took a job to keeps towards the end of some 2020 by 2021. the shorter the position not to decline significantly. like in 2019 we had about $4600000000.00 us dollars

a result. but by 2021 it declined to $1800000000.00 which was higher than in 2022. it declines. father with all this bullshit and political issue that was going on and down the existing pressure in the foreign currency, the sudden floating off against the us dollar. and then that was a huge depreciation off the 3 lamp and will be so all in all at one point she was as low as the t 1000000. both foreign exchange reserved in the $150000000.00 only as one fund. so this is how the situation evolves to become a tight and the next day institution in the country. and now what are the next steps for sco lanka?

is there a way out of the debt crisis in terms of the crises? the, the whole gamut of thing for right now is in the process restructuring the work of the i m s. um. but currently we have reached the extended phone set to the day of the month for us $1.29 or a 48 month plan. so with this, what should i spend into achieving this? so i can meet stability and also what you did sustain ability. so in terms of inability, once you do need to do is we have to kind of get the support of our creditors and their willingness so that we can restructure the debt and the pates over a reasonable time in a reasonable manner. but however, the talk going on in front and then also going forward to luck,

i will need to secure funding as the bilateral partners on the list. because to bridge the gap in the finances apart from that also has to control the fiscal side of the economy. that is the percent the revenue and the government expenditure is maintained within a ranch. and as part of these i, you i in that restructuring package, substantial component. the macro stability built in was the ability and adjusting last making government institutions and also possibly looking at the non public sector workforce, the currency and credit of a nation really all depends on confidence. and now that's a longer has defaulted. there's absolutely no confidence in the currency anymore.

the government or the credit of the nation are outside investors. so can you longer rebuild itself? i think the, the confidence in the currency, the critical issue is one of the main reasons why. even though the mon, my going to be turned as the was to do before. so then obviously the party. now investors also have a low confidence in that you're not going economy and they will not send as much as they would otherwise. so the on demand, the thing is to take out of the macro economic indicated in the country and it should not be stability that it will consolidate. and that is a realistic exchange rate. and then that is some stability and exchange rates. and there is commitment by the political parties and the government towards capitalizing the economy. and that is consistent policies coming up so that that is

in this department to invest. and now how are the daily lives of citizens being affected by this crisis? what hardships are they facing? the 3 long population is pictured by the that we discussed. on the one hand, the inflation is having a huge impact on everybody's lives for lifestyle and much thing, par and all so that it's a little shar pages actually in terms of the 10 months. the distribution of was as what has, has been some sort of transportation issues, but now it is easing off but not normal yet. so because of that, the daily life is because it would not have the public transportation as frequent as you would want to. and then that the social safety nets have to come into effect because the low income population,

it's not really struggling with this inflation and the economy situation in the country. and unless that protection because of them coming in the night will be even worse. because the daily wage find it very difficult to meet ends with the current ambition and then the, the income that they're on right now. but a show where our research fellow at the institute for policy studies in grid longer . thank you so much for joining us. and now as always, there are winners and losers. the losers are unfortunately, the citizens of ski longer than nearly 22000000 people who are educated and form a solid middle class and have a median income among the highest in south asia. now the very same people are living on the edge unable to buy, even the basics. grocery shells are barren and food is expensive. a kilo of

tomatoes is selling for a $150.00 rupees, while acute potatoes and selling for $220.00 rupees. carrots go for a whopping $490.00 rupees. as transportation cost skyrocketed for farmers with no petrol. now that represents an increase of over 75 percent in the last 12 months. meanwhile, wages have not kept up. the inequalities in the countries have deepened during this crisis. as a small sliver of the population is managing just fine. wealthier school long fans with access to funds outside the country can more easily ride out the inflation pressures and falling rupees. so how will this crisis play out? how well the i m f step in to support your langa and who will resume power? only time motel, thanks for watching. i'm christy i and i'll see you next time as we continue to

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