Many have taken out loans with floating rates, which creates a risk of widespread bankruptcies.

Marina Malakhatko, a senior director at the consulting firm CORE.XP, told the Russian media outlet Kommersant that at least 200 shopping malls will be at risk of bankruptcy in 2025. She said some owners are already looking to sell their assets.

Debt servicing has become even tougher after Russia‘s Central Bank was forced to hike interest rates to 21 percent – the highest level in over 20 years.

The Union of Shopping Centres (STTs) estimates that half of the country’s shopping centres are facing high debt burdens.

Many have taken out loans with floating rates, which creates a risk of widespread bankruptcies.

Marina Malakhatko, a senior director at the consulting firm CORE.XP, told the Russian media outlet Kommersant that at least 200 shopping malls will be at risk of bankruptcy in 2025. She said some owners are already looking to sell their assets.

Debt servicing has become even tougher after Russia‘s Central Bank was forced to hike interest rates to 21 percent – the highest level in over 20 years.

Russians have also faced tax increases, as the Kremlin seeks to raise more money to fund its war in Ukraine.

Government spending on national defence is expected to rise to $120 billion (£93bn this year from $75 billion (£58bn) in 2023.

In the summer Putin signed off on a package of tax rises worth almost $30 billion (£23bn), tapping workers and companies to raise more funds for his Ukraine offensive.

Source

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Shares surged past $70 in early trade, giving the firm a market value of more than $9bn. They ended the day at about $58, still up more than 16%.

The long-awaited moment will inject more than $200m into Trump Media & Technology Group and hands the former president a stake worth more than $4bn.

Analysts say that is far more than the firm’s performance warrants.

Trump Media’s Truth Social, a Twitter-like service, brought in just $3.3m in revenue in the first nine months of last year and lost nearly $50m.

It says 8.9 million accounts have been created since the platform launched to the general public in 2022 as an alternative to mainstream sites such as Facebook, but it is not clear how many are active.

By comparison, the recently-listed Reddit currently has a market value of about $11bn. It boasts more than 70 million users and brought in $800m in revenue last year.

Kristi Marvin, chief executive of SPACInsider, compared Trump Media – which trades under the ticker DJT for Mr Trump’s initials – to a meme stock, in which prices are untethered from the business prospects.

Interest in Trump Media has also been fuelled by individual investors, as opposed to Wall Street firms, many of them apparently Trump supporters.

“Everybody expected to trade a little bit crazy today, which it has,” she said. “The real question is how does it trade a week from now, two weeks from now and nobody really knows.”

The deal to list Trump Media was first announced in 2021.

The move was accomplished via what is known as a SPAC, a merger with a publicly listed shell company, Digital World Acquisition Corp, which was expressly created to buy a company and take it public.

The deal was delayed by government investigations and other hurdles, but regulators cleared it earlier this year and Digital World shareholders voted in favour last week.

Ahead of the listing on the Nasdaq exchange, Trump Media officials called it a “pivotal moment” for the firm – and the wider media landscape.

“As a public company, we will passionately pursue our vision to build a movement to reclaim the Internet from Big Tech censors,” said Trump Media chief executive Devin Nunes, a former congressman.

“We will continue to fulfil our commitment to Americans to serve as a safe harbour for free expression and to stand up to the ever-growing army of speech suppressors.”

The debut comes at a critical moment for Mr Trump, who has been scrambling for cash to pay legal penalties and owns more than half of the firm’s shares.

He is currently barred from selling his holdings for about six months, making it difficult for him to tap the windfall immediately.

The company’s board, which is stocked with allies including one of his sons, could potentially change that rule, but analysts have said they think that would be unlikely to happen immediately.

If Mr Trump were to sell a significant chunk of his shares, it could hurt the share price.

Investors face other risks as well, tied to Mr Trump’s political fortunes and his 2024 presidential campaign.

A loss might be expected to hurt the share price, but a win could have the opposite effect, especially if it generated further demand from buyers hoping to curry favour with Mr Trump, said Michael Ohlrogge, a law professor at New York University.

However, Prof Ohlrogge said the current share price is “far, far elevated above what anyone would consider its fundamental value”.

Source: BBC

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This was discussed during a meeting between Uzbekistan’s Prime Minister Abdulla Aripov and his Kazakh counterpart, Alikhan Smailov.

The delegation of Uzbekistan, headed by Prime Minister Abdulla Aripov arrived in Almaty (Kazakhstan) to participate in the Eurasian Intergovernmental Council and Digital Forum.

At the meeting, the sides noted the rapid development of strategic partnerships and alliances between the two countries in the spirit of friendship, good neighborliness, and mutual respect, and representatives of both countries defined specific tasks for further development of multilateral relations.

They also emphasized positive growth dynamics between Uzbekistan and Kazakhstan in all directions.

In particular, the volume of trade has more than doubled over the past 7 years, important joint projects are being implemented in various sectors of the economy, and interregional and cultural-humanitarian cooperation is expanding.

At the meeting, the parties exchanged views on these and other topical issues on the agenda.

Meanwhile, trade turnover volume between Uzbekistan and Kazakhstan amounted to $4.3 billion.

Source: Trend

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These discussions transpired during a telephone conversation between Turkmenistan’s Minister of Foreign Affairs, Rashid Meredov, and the Minister of Foreign Affairs of Türkiye, Hakan Fidan.

During the dialogue, the two parties engaged in a comprehensive exchange of views on a range of pertinent issues concerning Turkmen-Turkish cooperation, fostering a constructive discussion environment.

The parties discussed the implementation of bilateral agreements reached at the highest state level, and also considered the possibilities of further increasing the potential of mutual partnership in the political, diplomatic, trade and economic spheres.

Furthermore, the heads of the foreign ministries agreed to maintain regular contacts between the Ministries of Foreign Affairs of both countries.

Meanwhile, Turkmenistan and Türkiye are strategically fostering the development of their bilateral relations, with both nations engaging in continuous discussions and collaborative initiatives to strengthen diplomatic ties and enhance mutual cooperation.

For example, recently representatives of Turkish Petroleum Pipeline Corporation (BOTAS), a state-owned crude oil and natural gas trading company, and Turkmengaz, Turkmenistan’s national gas company, have held a meeting to discuss prospects for exporting Turkmen gas to Europe via Azerbaijan and Türkiye.

Source: Trend

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As recently as the early 1980s, central bankers around the world could be heard moaning and groaning about having to hold physical gold reserves to back up their currencies. The trouble, expense and potential loss of picturesque cast metal in a world of infinite fiat money and digital bytes reflecting off satellites. It’s a trend: citizens would be amazed to learn that only around 8% of the money working as the lifeblood of economies around the world is in the form of coins and banknotes. Folding money is considered old-fashioned.

A banker might roll his eyes and joke to a colleague: “Imagine, we are continuing to pay out good money to pile up these shiny precious metal ingots in a vault, with armed guards. What is this, the Roman Empire?”

You do not hear that in the new Millennium. Disparagement of gold bullion has quieted, in an age of terrifying global debt overhang and failing trust in eqforeign counterparts and fiat currencies. As the world’s economies glide past an estimated one quadrillion dollars in debt instruments, and inflation eats away at everyone’s assets (but not those of the gold bugs and their holdings, notably, as gold, as recently as the 1970s going for US$ 32/oz., zips past US$ 2,000) the usefulness and credibility of the so-called “petrodollar” look increasingly unappetizing.

This would have been unthinkable had it not been for the foundation of the BRICS Group of nations. Its most unlikely beginning was with avaricious Goldman Sachs – of all people – who proposed a grouping of China, India and Russia, in mutual economic interest, pointedly excluding the USA, the “center of everything” since the end of World War II in 1945.

Hu Jintao, Manmohan Singh and Vladimir Putin got together on the sidelines of the 2008 Group of 8 (G8) meeting in St. Petersburg. Russia, now blackballed because of its “Special Military Operation” in Ukraine, was a G8 member, while India and China attended the gathering as part of a purported G8 “outreach” to emerging economies.

In 2009, the first summit of “BRICs” countries (excluding South Africa) took place in Russia. In 2010, at a foreign ministers’ meeting, the initial four agreed to invite South Africa, a formidable economic power on the continent.

By 2011, now a five-country organization—with the “S” now standing for South Africa— formed up, mostly in aversion to the increasingly inconvenient burden of dealing in dollars. Joining together with a BRIC Currency could alleviate the heavy burden incurred by US dollar-denominated debt, in a zero-sum game, always favoring the wealthy western economies: interest rates soared, as the US Fed struggled against inflation.

About this time, certain countries quietly started selling their USD reserves and stowing away tons of shiny gold bars. Note that it was not simply the “mavericks” who did not care for the damage inflicted on their economies by the Fed: the Finance Minister of Norway, never thought of as “anti-American” nation, publicly belly-ached about having to sell his country’s precious hydrocarbon reserves in dollars.

The other alarming factor was the lethal weaponization of the dollar. With the ignominious ouster of the Shah of Iran and the subsequent hostage crisis, billions of dollars of Iranian assets were “frozen” in the USA. When the Federal Republic of Germany went to reclaim their gold bullion from the Bank of New York they were first brushed off and later found many bars had been melted down and recast.

Around the planet, Uncle Sam began to be perceived as an unreliable, if not unscrupulous relative, who would turn on you and pocket your valuables if you did not behave his way. Whatever happened to Khaddafi’s tons of gold, spirited off by NATO pirates?

The buzzword was “dedollarization”. Appealing though the notion might be to those whose billions are locked away by Washington, it is worthwhile to pause and consider how much time went by and effort was expended in setting up the Euro. The EU, certified in 1957 by the “Luxemburg Treaty”, took a full forty-two years of hard work, before Maastricht was hammered out, in 1999.

The most recent BRICS Summit, hosted by President Cyril Ramaphosa of South Africa in August of this year, received endorsement from outliers like Algeria, Argentina, Bahrain, Bangladesh, Egypt, Indonesia, Iran and Saudi Arabia.

Member countries might be active in their economics, trade, and finance relationships, including payment protocol, but it is an unbalanced interdependence, pitting a behemoth like the PRC against, say, Argentina. An advanced economy cannot create a common currency with a primitive one, as one is too dependent on the other: interdependence implies balance. Politics alone won’t do the job.

Bear in mind that with all the grunting and shoving toward de-dollarization, currency trading in USD still constitutes 88 per cent of the total. Global reserves sit at 60 per cent in USD, 20 per cent in Euros and only 2 per cent in Renminbi. National debts are mostly in USD. It was amusing to watch Argentina hurriedly swap their Renminbi, disbursed after a recent large purchase from the PRC, for billions of dollars.

ASEAN gave it a shot, looking to set up the “Asian Currency Unit” (ACU); that yielded nothing, except for a convenient swap facility, eventually known as “Local Currency Settlements” (LCS), still functioning as of this writing.

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When Ranil Wickremesinghe took over as Sri Lanka’s president in July after a popular uprising ousted his predecessor, the South Asian island nation was engulfed in its worst economic meltdown in 75 years.

Since then, President Wickremesinghe has managed to a keep a lid on mass protests, improve supplies of essentials and on Monday, secured a nearly $3 billion bailout from the International Monetary Fund (IMF) that opens the door to restructuring about $58 billion of debt and receive funding from other lenders.

On March 20, the IMF approved a $3 billion Extended Fund Facility (EFF) to support Sri Lanka amid its economic crisis. The approval is expected to pave the way for other financial institutions to extend support to the bankrupt South Asian country.

He has done that despite a deeply unpopular government, his own party commanding just one seat in the 225-member parliament and having to rely for support on the party of the man he replaced.

Hours-long power cuts and queues for fuel that led to the downfall of former President Gotabaya Rajapaksa are gone, thanks partly to a fuel rationing system. Tourists are returning, remittances are recovering and foreign exchange reserves are rising, though the economy is still contracting. But due largely to significant hikes in income taxes and power tariffs that were needed to get the IMF on board, the government of the 73-year-old is no favourite of the people. According to a “Mood of the Nation” poll run in February by private think-tank Verité Research, the government’s approval rating was 10%, the same as in October but higher than an all-time low of 3% in June, when Rajapaksa was in power. Only 4% were satisfied with the way things were going in Sri Lanka, down from 7% in October but higher than 2% in June.

There are no known approval ratings for Wickremesinghe as president. “He’s ready to face the people’s anger in the short term, to ensure long-term stability and growth in the country,” said Dinouk Colombage, Wickremesinghe’s director of international affairs. “Even though the president only has one seat in parliament, him carrying forward his agenda, bringing forth the reforms, once the results start showing, I think the people will come out in open support of him.”

Born into a prominent family of politicians and business-people with large interests in the media, the lawyer and six-time prime minister has little support beyond wealthy urban voters. His ability to make policy depends to a great extent on the support of the Sri Lanka Podujana Peramuna party, largely controlled by the Rajapaksa family.

For now, Wickremesinghe is enjoying that support, and he said on Sunday that his country was on the right track There’s fuel now, there’s electricity, there’s fertiliser and by April, there will be enough rice and other foodstuff,” he said at an event in Colombo. “We will no longer be declared a bankrupt nation, but a nation that can restructure its debts.”

The bailout is expected to catalyse additional external support, with funding expected from the World Bank and the Asian Development Bank to the tune of $3.75 billion, the IMF said in a statement.

In recent months, Wickremesinghe successfully negotiated economic support from top lenders China, India and Japan, culminating in the IMF bailout. He flew to Japan in October to apologise for the cancellation of Japanese-funded projects under Rajapaksa, which convinced Tokyo to back Sri Lanka’s request for the IMF bailout.

The Paris Club of creditors, which includes Japan, earlier this year gave financing assurances to support the IMF deal. A Japan-funded $1.8 billion light-railway project, which was suspended in 2019, is among infrastructure projects that Sri Lanka is now trying to restart.

But Sri Lanka still needs to renegotiate its debt, a potentially drawn-out process where Wickremesinghe, who is also the finance minister, will have to deal with demands from China, India and other creditors. He still has to turn around the economy, which shrank 7.8% in 2022 and is expected to contract by 3% this year.

Implementing further reforms under the IMF programme, reducing record-high interest rates and controlling inflation will also continue to pose challenges for Wickremesinghe, who has faced trade union strikes after the tax and power hikes.

Critics say Wickremesinghe’s economy-first approach ignores political and systemic reforms – like stronger anti-corruption measures and more transparency in government decision-making – as demanded by mass protesters who banded together as the “Aragalaya” movement last year.

“One year on, there is no real structural change in governance or system change,” said Bhavani Fonseka, senior researcher at Colombo-based Centre for Policy Alternatives. “The president does take this line that his priority is addressing the economy over everything else, but you can’t have that silo-ed approach and think people are going to be okay with it.”

A crisis-weary public may still have to absorb years of continuing hardship as Sri Lanka tries to fix its economy during the four-year IMF programme, warned Jayadeva Uyangoda, a senior political analyst. “Wickremesinghe has managed to neutralise the Aragalaya and that was a major success, but the economic and social crisis goes on,” he said.

“Economic stability will take at least another couple of years.”

Source : Reuters

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London (07/11 – 70)

President Ranil Wickremesinghe, at the helm of the United National Party (UNP), has orchestrated a remarkable turnaround for Sri Lanka’s tumultuous economy, tackling persistent challenges with a steadfast determination that has garnered widespread support across the national and international communities.

Upon assuming office, Wickremesinghe confronted an array of pressing issues, including severe electricity shortage resulting in daily power cuts, soaring inflation, an all time low foreign reserve value and scarcities in essential commodities such as fuel and milk powder. Swift and strategic actions within his first six months in power yielded tangible results, with the electricity crisis resolved and power outages becoming a thing of the past. Notably, the restoration of a stable supply of fuel and commodities has revitalised the country’s markets, marking a significant shift from the uncertainties of pre-Ranil Sri Lanka.

Sri Lanka’s President Ranil Wickremesinghe tackled persistent challenges with a steadfast determination that has garnered widespread support across the national and international communities, including managing the IMF program.

Despite the persistent specter of inflation, the president’s administration has implemented measures to mitigate its impact, gradually stabilising the economy and fostering an environment conducive to growth. The successful repayment of a substantial USD 200 million loan from Bangladesh underlines the administration’s commitment to fiscal prudence, earning commendation both domestically and internationally.

Managing the International Monetary Fund (IMF) program has presented its share of challenges, but President Wickremesinghe’s deft navigation of these complexities has underscored his administration’s dedication to responsible economic governance and effective policy implementation.

An assertive move that defined his tenure was the swift handling of disruptive protests that posed a threat to public order. Upholding the rule of law, President Wickremesinghe quelled dissenting voices with the assistance of law enforcement, demonstrating his resolve to ensure the seamless functioning of the government and the preservation of social stability.

The persistent opposition from the communist factions in Sri Lanka, notably including the Marxist-Leninist former armed insurrectionist Janatha Vimukthi Peramuna (JVP) political party and its affiliated front organisations such as the Frontline Socialist Party (FSP) and the Inter-University Student Federation (IUSF), commonly known as ‘Anthare,’ continues to pose a challenge to President Ranil Wickremesinghe’s administration. After failing to launch armed insurrections against the state in the 70s and 80s, these groups have been known to mobilise protests, riots, and disruptive activities, often with the intention of undermining public peace and stability. Additionally, the communist-influenced trade unions across various sectors have resorted to strikes and sit-ins, leveraging their collective power to impose self-serving demands and disrupt the normal functioning of key industries. Notably, the Aragalaya movement, also influenced by communist elements, underscored the pervasive influence of such groups within the social and political fabric of the nation. President Wickremesinghe’s firm and resolute approach to tackling these disruptive forces has effectively marginalised their impact, marking a stark departure from the previous administration’s inability to address similar challenges. His unwavering stance against agitators and hooligans has relegated these disruptive elements to the fringes of the political landscape, highlighting his adeptness in managing volatile political dynamics and ensuring the preservation of public order and stability.

President Wickremesinghe’s political journey is marked by intrigue and challenges, with his lineage and astute leadership consolidating his position within the UNP. The rift with Sajith Premadasa, the current opposition leader, exemplifies the complexities of Sri Lankan politics. Despite internal divisions and external pressures, President Wickremesinghe’s ability to secure the presidency with a solitary parliamentary seat underscores his political acumen and resilience in the face of adversity, leaving an enduring imprint on the nation’s political landscape.

As President Ranil Wickremesinghe continues to navigate the intricacies of governance and policymaking, his commitment to fostering economic stability and upholding social order serves as a testament to his leadership and vision for a prosperous Sri Lanka. With a resolute stance against disruptive elements, President Wickremesinghe has solidified his position as a bulwark against political turbulence, ensuring that the nation marches forward on a trajectory of progress and prosperity.

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Brussels (08/11 – 50)

On March 20, the IMF approved a $3 billion Extended Fund Facility (EFF) to support Sri Lanka amid its economic crisis. The approval is expected to pave the way for other financial institutions to extend support to the bankrupt South Asian country. IMF program was made possible largely due to the untiring efforts of the President Ranil Wickremesinghe.

The IMF links financial assistance to a country to policy reform, a conditionality that usually imposes political as well as economic changes in the recipient nation. The logic behind IMF conditionality is multifold. It is supposed to prevent moral hazard by governments that receive loans. These conditions allow the IMF to monitor the behavior of the recipient states and allegedly promote best practices and good governance.

Sri Lanka has been to the IMF 16 times before; five of these since 2000. The full amount of the IMF loan was not disbursed on six occasions because Sri Lanka did not fully comply with the conditions of the loans. This included the previous EFF in 2016, when the conditions imposed by the IMF built additional pressure on the domestic economy. There has been much skepticism about Sri Lanka adhering to the more stringent IMF conditions this time around.

Despite the skepticism that prevails among journalists and economists, the IMF is very happy about the progress Sri Lanka is making on the commitments it made as a part of the IMF’s four-year EFF to the country.

An IMF delegation, which was in Colombo recently to assess the progress of the agreement, is optimistic. IMF Director of Asia and Pacific Department Krishna Srinivasan told a press conference in Colombo on May 15 that the Sri Lankan government has shown “commitment to the reform effort” that is a part of the agreement with the IMF.  He added that the “authorities are making good faith efforts to negotiate with all the creditors, both private creditors and official creditors.”

Ranil Wickremesinghe took over as President of Sri Lanka in July 2022 when the country was in the middle of its worst economic and political crisis since independence in 1948. On March 20, 2023, the IMF approved a $3 billion Extended Fund Facility (EFF) to support Sri Lanka amid its economic crisis.

Peter Breuer, IMF’s Senior Mission Chief for Sri Lanka, Asia, and Pacific Department said they “see things developing more or less in line with expectations.”

Srinivasan added that Sri Lanka had to complete a number of prior actions before the IMF approved its bailout package. These actions were extensive and required a significant commitment from the Sri Lankan government.

Among these are cost-reflective of a number of goods and services that the government had subsidized for decades.  Sarwat Jahan, the IMF Resident Representative in Sri Lanka said the Ceylon Petroleum Corporation (CPC) and Ceylon Electricity Board (CEB) would have to recover their costs until the end of the IMF program.

The government met all these requirements, which shows that they are serious about implementing the reforms necessary to address the country’s economic crisis, Srinivasan said.

The conditions attached to IMF loans often involve actions aimed at discontinuing industry subsidies, avoiding exchange rate manipulation, adjusting budget priorities, and regulating wage levels. Leaders, who face diverse political limitations, differ in their willingness to engage in an agreement with the IMF and make compromises in these four areas.

Considering that IMF loan conditionality agreements usually involve implementing fiscal austerity measures, leaders with larger winning coalitions will encounter more challenges when attempting to negotiate an agreement for IMF financing.

On the other hand, when a regime maintains power through a narrower network of closely-connected supporters, he or she finds it easier to enter into an agreement with the IMF.

Miles Kahler, a senior fellow for global governance at the Council on Foreign Relations in Washington, DC, in his 1993 book chapter titled “Bargaining with the IMF: Two-Level Strategies and Developing Countries,” outlines two key aspects of domestic politics that influence the process of loan negotiations: firstly, the degree to which a technocratic elite is insulated from economic interests, and secondly, the frequency with which elites face political challenges like elections.

Another factor that can impede the formation of a loan agreement is the presence of multiple veto actors, such as a separation of powers or the existence of multiparty governing coalitions.

Kahler says that when a country has a higher number of veto actors capable of obstructing a loan agreement, the scope of domestic political consensus becomes narrower, resulting in increased negotiation costs for the IMF. Typically, the count of veto actors is determined by assessing the number of parties in a government coalition in countries where genuine political competition exists.

This explains why it was extremely difficult for former President Gotabaya Rajapaksa, who came into power through a coalition of populism and with the support of a number of interest groups, from big businesses to professional associations, to enter into negotiations with the IMF.

On the other hand, Wickremesinghe is the head of the United National Party, a political party that obtained around 250,000 votes from 15 million eligible voters. He has one MP in Parliament, Wajira Abeywardana, who is a staunch loyalist. Wickremesinghe is backed in parliament by the Sri Lanka Podujana Peramuna (SLPP), whose MPs depend on him for political survival and would vote for any legislation that he brings forth.

Sri Lankan legislators are entitled to several perks at the end of the full tenure of five years and most of the SLPP MPs that back Wickremesinghe are adamant on completing their terms. Wickremesinghe has also indicated that there will be no elections until the economy is stabilized and it is likely that the first election Sri Lankans will see is a presidential election, probably in 2024.

Therefore, Wickremesinghe can implement the IMF recommendations completely, as he is not answerable to any political coalition or interest groups. Neither does he face an election. Wickremesinghe’s personal ideology also aligns with that of the IMF. It is unlikely that these factors were ignored by the IMF when the loan was approved and when they evaluate whether Sri Lanka will adhere to IMF conditionalities.

Source

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London (05/11 – 44.44)

Benjamin Wey, a Chinese-American financier, founder of Fintech Holdings and a history of legal trouble, is suing Sri Lanka for $250 million. Wey claims that he was assured by Sri Lanka’s central bank governor that the country would repay a $250 million bond. However, Sri Lanka defaulted on the bond in April 2022.

Wey is seeking to collect the full amount of the bond, plus interest. He has filed a lawsuit in the US District Court for the Southern District of New York.

The lawsuit is a major setback for Sri Lanka, which is already facing a severe economic crisis. The country is struggling to repay its debts, and the lawsuit could make it even more difficult to secure a bailout from the International Monetary Fund (IMF).

The US government has intervened in the lawsuit, and it is unclear how the case will be resolved. However, it is likely to drag on for several years, and it could further destabilize Sri Lanka’s economy.

Notorious financier, Benjamin Wey wants to collect from Sri Lanka, the full amount of the $250 million bond plus interest. He has filed a lawsuit in the US District Court for the Southern District of New York.

Wey is a controversial figure. He was arrested in 2015 on charges of fraud, but the charges were dropped. He was also sued for sexual harassment, and he settled the case for $5.65 million.

Wey is the founder of Fintech Holdings, a holding company that owns several businesses, including Hamilton Reserve Bank (HRB). HRB is the entity that is suing Sri Lanka.

Sri Lanka is facing a severe economic crisis. The country is struggling to repay its debts, and it has been forced to default on several bonds. The crisis has led to widespread shortages of food, fuel, and other essential goods.

The IMF has offered to bail out Sri Lanka, but the government has been slow to agree to the IMF’s terms. The lawsuit filed by Wey could further complicate the negotiations with the IMF.

It is unclear how the lawsuit will be resolved. However, it is likely to drag on for several years. The case is complex, and there are many legal issues that need to be resolved.

The lawsuit could also have a significant impact on Sri Lanka’s economy. If Wey is successful, it could force the country to default on even more debt.

This could further destabilize the economy and make it even more difficult for Sri Lanka to recover from the crisis.

The lawsuit is a major setback for Sri Lanka, but it is also a test of the country’s legal system. If Sri Lanka is able to defend itself against the lawsuit, it will send a message to other investors that the country is a safe place to do business.

The outcome of the lawsuit will also have implications for the IMF. If the IMF is seen as being unable to protect its borrowers from predatory lawsuits, it could discourage other countries from seeking bailouts from the IMF.

The lawsuit is a complex and far-reaching case. It will be interesting to see how it is resolved and what impact it has on Sri Lanka, the IMF, and the global economy.

Source : Lanka News Line

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London (15/11 – 67)

The streets in Colombo, Sri Lanka, erupted into celebration on July 13, 2022 after weeks of peaceful protests forced then-President Gotabaya Rajapaksa to flee the country. Rajapaksa, long implicated in war crimes when he was defense secretary, had presided over an economic catastrophe amid allegations of widespread corruption and impunity.

But a year later, despite some superficial changes, there is no sustained improvement in the country’s economic situation that impinges many people’s human rights. The acute shortage of fuel that was the most visible feature of the economic crisis has eased. But more than six million people – nearly 30 percent of the population – are food-insecure and require humanitarian assistance, according to the United Nations. Seventeen percent of children under age five have stunted growth.

A year after Rajapaksa, Sri Lanka remains in crisis. The new leadership under President Ranil Wickremesinghe struggles with the economic situation and seemingly failed to uphold basic human rights and bring accountability to the country.

Meanwhile, the new president, Ranil Wickremesinghe, has used the police and military to crack down on protests. While the previous government had announced a moratorium on the use of the draconian Prevention of Terrorism Act, Wickremesinghe used the law to detain student protest leaders.

A revised counterterrorism law proposed by the new administration would have handed sweeping powers to the police, the military, and the president and created a set of new speech-related offenses. The government was forced to pause the legislation amid widespread outrage, but authorities are nevertheless using other laws to clamp down on free speech.

The government also continues to pursue abusive policies against minorities, such as “land grabs” in the north and east, targeting Tamil and Muslim-owned land, including places of worship, on a variety of pretexts.

Tamils seeking to memorialize people who died in Sri Lanka’s 1983-2009 civil war are subject to intimidation and banning orders. Relatives of victims of enforced disappearance, who are campaigning for truth and accountability, are kept under surveillance by the intelligence agencies. Minorities in the north and east face restrictions on expression and association far greater than in the rest of the country.

Sri Lanka remains in an economic, political, and human rights crisis. President Wickremesinghe should recognize that upholding rights and pursuing accountability for grave crimes is essential to addressing the country’s problems.

Source: Human Rights Watch

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