People wait to buy petrol at a fuel station in Colombo, Sri Lanka, in May 2022. EPA
People wait to buy petrol at a fuel station in Colombo, Sri Lanka, in May 2022. EPA
People wait to buy petrol at a fuel station in Colombo, Sri Lanka, in May 2022. EPA
People wait to buy petrol at a fuel station in Colombo, Sri Lanka, in May 2022. EPA

Opinion

Editorial

Is Sri Lanka the first domino in a new global crisis?

  • English
  • Arabic
Insight and opinion from The National’s editorial leadership

July 12, 2022

Yesterday, the office of Sri Lanka’s Prime Minister announced that Gotabaya Rajapaksa, the country’s President, is expected to step down tomorrow.

Mr Rajapaksa’s impending resignation, in response to nationwide protests over Sri Lanka’s biggest economic crisis in more than seven decades, may finally bring the country some respite. Whether it also marks the end of the beginning of a journey to economic recovery will depend on what happens next.

The rest of the world would be wise to pay heed to Sri Lanka’s crisis. Colombo’s plight – drowning in unsustainable levels of foreign debt amid a tough global market – is not unique in the post-Covid-19 developing world.

But Sri Lanka's case is particularly alarming. The country doesn’t have enough foreign currency to import fuel. Soaring inflation and the shortage of basic goods mean that very few of its 22 million citizens can afford to buy food, medicines and cooking gas. Those who can, find themselves trapped in long queues. Power cuts are common, and the healthcare system is on the brink of collapse.

The crisis is the outcome of a number of factors, not least the two decades of unsustainable borrowing on the part of the state to fund large projects that left the government strapped during the pandemic, when it needed cash the most. The tourism industry, which accounts for 12 per cent of GDP, was severely damaged by Covid-19. Other causes include populist policies that the Rajapaksa government implemented over the past two years, including cutting taxes and banning chemical fertilisers as part of its pivot to organic farming.

A demonstrator presents Sri Lanka's new 'Wildlife Minister' at President Gotabaya Rajapaksa's Cabinet meeting room in Colombo. Huge crowds had poured into the city to protest in previous days amid months of unrest sparked by the country's economic collapse. Reuters
A demonstrator presents Sri Lanka's new 'Wildlife Minister' at President Gotabaya Rajapaksa's Cabinet meeting room in Colombo. Huge crowds had poured into the city to protest in previous days amid months of unrest sparked by the country's economic collapse. Reuters
Demonstrators take a break inside Prime Minister Ranil Wickremesinghe's residence in Colombo. Reuters
Demonstrators take a break inside Prime Minister Ranil Wickremesinghe's residence in Colombo. Reuters
Children play the piano inside the president's house in Colombo. Reuters
Children play the piano inside the president's house in Colombo. Reuters
A demonstrator poses for photographs where President Gotabaya Rajapaksa used to hold events. Reuters
A demonstrator poses for photographs where President Gotabaya Rajapaksa used to hold events. Reuters
People wait to visit the presidential residence in Colombo after President Gotabaya Rajapaksa fled amid the country's economic turmoil. Reuters
People wait to visit the presidential residence in Colombo after President Gotabaya Rajapaksa fled amid the country's economic turmoil. Reuters
Part of the private residence of Prime Minister Ranil Wickremesinghe was burnt by demonstrators. Reuters
Part of the private residence of Prime Minister Ranil Wickremesinghe was burnt by demonstrators. Reuters
Demonstrators vandalised part of Prime Minister Ranil Wickremesinghe's house in Colombo. Reuters
Demonstrators vandalised part of Prime Minister Ranil Wickremesinghe's house in Colombo. Reuters
Crowds flock to take a look inside the presidential palace in Colombo. EPA
Crowds flock to take a look inside the presidential palace in Colombo. EPA
Part of Prime Minister Ranil Wickremesinghe's private residence was burnt by demonstrators. Reuters
Part of Prime Minister Ranil Wickremesinghe's private residence was burnt by demonstrators. Reuters
People take a dip in a swimming pool at the presidential palace in Colombo. EPA
People take a dip in a swimming pool at the presidential palace in Colombo. EPA
Protesters pretend to hold a Cabinet meeting in the meeting hall of the president's official residence. AP
Protesters pretend to hold a Cabinet meeting in the meeting hall of the president's official residence. AP
Firefighters try to douse a fire at the residence of Sri Lanka's prime minister during protests in Colombo. AFP
Firefighters try to douse a fire at the residence of Sri Lanka's prime minister during protests in Colombo. AFP
People watch the blaze. AFP
People watch the blaze. AFP
An unidentified man poses for pictures while seated on President Gotabaya Rajapaksa’s chair at the presidential palace in Colombo, a day after it was overrun by anti-government protestors. AFP
An unidentified man poses for pictures while seated on President Gotabaya Rajapaksa’s chair at the presidential palace in Colombo, a day after it was overrun by anti-government protestors. AFP
Protesters rest on sofas in the prime minister's residence. AP
Protesters rest on sofas in the prime minister's residence. AP
Soldiers and police gather outside the burnt private residence of Prime Minister Ranil Wickremesinghe in Colombo. AP
Soldiers and police gather outside the burnt private residence of Prime Minister Ranil Wickremesinghe in Colombo. AP
A security officer inspects a police vehicle, a day after it was vandalised by protesters in front of the residence of Sri Lanka's prime minister. AFP
A security officer inspects a police vehicle, a day after it was vandalised by protesters in front of the residence of Sri Lanka's prime minister. AFP
Protesters stand on a vandalised police water cannon at the entrance to the president's official residence. AP
Protesters stand on a vandalised police water cannon at the entrance to the president's official residence. AP
Protesters sing and dance after storming the Sri Lankan president's official residence. AP
Protesters sing and dance after storming the Sri Lankan president's official residence. AP
Protesters crowd inside the president's official residence. EPA
Protesters crowd inside the president's official residence. EPA
Protesters cheer inside the president's official residence. EPA
Protesters cheer inside the president's official residence. EPA
A man picks up a tear-gas canister to throw it away as police try to disperse protesters in Colombo. AP
A man picks up a tear-gas canister to throw it away as police try to disperse protesters in Colombo. AP
An injured protester during an anti-government demonstration in Colombo. EPA
An injured protester during an anti-government demonstration in Colombo. EPA
The security forces fire tear gas and use water cannon to disperse an anti-government protest. EPA
The security forces fire tear gas and use water cannon to disperse an anti-government protest. EPA
A protester walks in front of police during an anti-government protest, calling for the resignation of the president over his alleged failure to address Sri Lanka's economic crisis. EPA
A protester walks in front of police during an anti-government protest, calling for the resignation of the president over his alleged failure to address Sri Lanka's economic crisis. EPA
Protesters gather inside the compound of Sri Lanka's Presidential Palace in Colombo. AFP
Protesters gather inside the compound of Sri Lanka's Presidential Palace in Colombo. AFP
Protesters are demanding that President Gotabaya Rajapaksa resigns. AP Photo
Protesters are demanding that President Gotabaya Rajapaksa resigns. AP Photo
Hundreds of people attended the rally. EPA
Hundreds of people attended the rally. EPA
Security forces fire tear gas to disperse an anti government protest rally. EPA
Security forces fire tear gas to disperse an anti government protest rally. EPA
Protesters throw back tear gas canisters fired by security forces. EPA
Protesters throw back tear gas canisters fired by security forces. EPA

Mr Rajapaksa’s economic team has approved several measures to mitigate the crisis, including a new corporate tax and declaring Fridays as holidays for non-essential public sector employees. The government has also reached out its neighbours in South Asia. Beyond receiving $4 billion worth of foreign assistance from India, it has requested from New Delhi a $500 million credit line to import fuel, fertilisers and rice. Colombo is also in talks with the International Monetary Fund for a bailout.

These are short-term remedies, however, and it has become painfully clear that the public considers the Rajapaksa government to be part of the problem and not the solution. The President’s eventual resignation, and the formation of a unity government, will be an essential first step towards assuaging angry protesters and restoring the rule of law. Early elections will also be key so that a government with a strong mandate is ushered in as quickly as possible.

Sri Lanka’s solution to its debt problem will, and should be, specific to its particular needs. Its crisis has already galvanised ordinary Sri Lankans and rallied together people of all ethnic, religious and cultural groups, creating a rare moment for a country whose history was blighted by decades-long ethnic strife that led to civil war and the eventual rise of majoritarian rule. Economic rejuvenation would be impossible without stitching together Sri Lanka’s complex social fabric that has been damaged for far too long.

But this week’s events in Colombo may be simply the first of a series of debt-fuelled reckonings to come in emerging economies, if the international community is not cognisant of the scale of the problem. In March, the IMF warned that 23 African countries are now either in debt distress or at a high risk of it. In some of these countries, as well as others, facing a similar problem, debt-funded spending was done too unwisely or inefficiently – failing to bring about the economic growth or tax revenues required to pay it back. The pandemic made things difficult, but the root of the problem is the same as it has always been for a number of countries: a lack of accountability for state finances and irresponsible lending practices from the international community.

In Sri Lanka, protesters’ demands for the government to reform are finally being taken seriously. For others, the time to shape up is now.

The%C2%A0specs%20
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2-litre%204-cylinder%20mild%20hybrid%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E7-speed%20S%20tronic%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E265hp%20%2F%20195kW%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20370Nm%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3Efrom%20Dh260%2C000%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20now%3C%2Fp%3E%0A
On Women's Day
Jawan
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3EAtlee%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Shah%20Rukh%20Khan%2C%20Nayanthara%2C%20Vijay%20Sethupathi%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E4%2F5%3C%2Fp%3E%0A
57%20Seconds
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Rusty%20Cundieff%0D%3Cbr%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EJosh%20Hutcherson%2C%20Morgan%20Freeman%2C%20Greg%20Germann%2C%20Lovie%20Simone%0D%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2%2F5%0D%3Cbr%3E%0D%3Cbr%3E%3C%2Fp%3E%0A
Tomorrow 2021

White hydrogen: Naturally occurring hydrogenChromite: Hard, metallic mineral containing iron oxide and chromium oxideUltramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica contentOphiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on landOlivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour

French business

France has organised a delegation of leading businesses to travel to Syria. The group was led by French shipping giant CMA CGM, which struck a 30-year contract in May with the Syrian government to develop and run Latakia port. Also present were water and waste management company Suez, defence multinational Thales, and Ellipse Group, which is currently looking into rehabilitating Syrian hospitals.

A Dog's Journey 

Directed by: Gail Mancuso

Starring: Dennis Quaid, Josh Gad, Marg Helgenberger, Betty Gilpin, Kathryn Prescott

3 out of 5 stars

On Women's Day
While you're here
Full list of brands available for Instagram Checkout

Adidas @adidaswomen

Anastasia Beverly Hills @anastasiabeverlyhills

Balmain @balmain

Burberry @burberry

ColourPop @colourpopcosmetics

Dior @dior

H&M @hm

Huda Beauty @hudabeautyshop

KKW @kkwbeauty

Kylie Cosmetics @kyliecosmetics

MAC Cosmetics @maccosmetics

Michael Kors @michaelkors

NARS @narsissist

Nike @niketraining & @nikewomen

NYX Cosmetics @nyxcosmetics

Oscar de la Renta @oscardelarenta

Ouai Hair @theouai

Outdoor Voices @outdoorvoices

Prada @prada

Revolve @revolve

Uniqlo @uniqlo

Warby Parker @warbyparker

Zara @zara

Match info

Arsenal 0

Manchester City 2
Sterling (14'), Bernardo Silva (64')

MATCH INFO

Euro 2020 qualifier

Croatia v Hungary, Thursday, 10.45pm, UAE

TV: Match on BeIN Sports

Transgender report
SQUADS

UAE
Mohammed Naveed (captain), Mohamed Usman (vice-captain), Ashfaq Ahmed, Chirag Suri, Shaiman Anwar, Mohammed Boota, Ghulam Shabber, Imran Haider, Tahir Mughal, Amir Hayat, Zahoor Khan, Qadeer Ahmed, Fahad Nawaz, Abdul Shakoor, Sultan Ahmed, CP Rizwan

Nepal
Paras Khadka (captain), Gyanendra Malla, Dipendra Singh Airee, Pradeep Airee, Binod Bhandari, Avinash Bohara, Sundeep Jora, Sompal Kami, Karan KC, Rohit Paudel, Sandeep Lamichhane, Lalit Rajbanshi, Basant Regmi, Pawan Sarraf, Bhim Sharki, Aarif Sheikh

Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

MORE ON AFGHANISTAN
Whiile you're here
While you're here
While you're here
On Women's Day
Last-16

France 4
Griezmann (13' pen), Pavard (57'), Mbappe (64', 68')

Argentina 3
Di Maria (41'), Mercado (48'), Aguero (90 3')

Sweet%20Tooth
%3Cp%3E%3Cstrong%3ECreator%3A%20%3C%2Fstrong%3EJim%20Mickle%3Cbr%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EChristian%20Convery%2C%20Nonso%20Anozie%2C%20Adeel%20Akhtar%2C%20Stefania%20LaVie%20Owen%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E2.5%2F5%3C%2Fp%3E%0A
Getting%20there%20and%20where%20to%20stay
%3Cp%3EFly%20with%20Etihad%20Airways%20from%20Abu%20Dhabi%20to%20New%20York%E2%80%99s%20JFK.%20There's%2011%20flights%20a%20week%20and%20economy%20fares%20start%20at%20around%20Dh5%2C000.%3Cbr%3EStay%20at%20The%20Mark%20Hotel%20on%20the%20city%E2%80%99s%20Upper%20East%20Side.%20Overnight%20stays%20start%20from%20%241395%20per%20night.%3Cbr%3EVisit%20NYC%20Go%2C%20the%20official%20destination%20resource%20for%20New%20York%20City%20for%20all%20the%20latest%20events%2C%20activites%20and%20openings.%3Cbr%3E%3C%2Fp%3E%0A
The Specs:

The Specs:

Engine: 2.9-litre, V6 twin-turbo

Transmission: 8-speed automatic

Power: 444bhp

Torque: 600Nm

Price: AED 356,580 incl VAT

On sale: now.

Lexus LX700h specs

Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor

Power: 464hp at 5,200rpm

Torque: 790Nm from 2,000-3,600rpm

Transmission: 10-speed auto

Fuel consumption: 11.7L/100km

On sale: Now

Price: From Dh590,000

Specs

Engine: 51.5kW electric motor

Range: 400km

Power: 134bhp

Torque: 175Nm

Price: From Dh98,800

Available: Now

Brief scores:

Newcastle United 1

Perez 23'

Wolverhampton Rovers 2

Jota 17', Doherty 90' 4

Red cards: Yedlin 57'

Man of the Match: Diogo Jota (Wolves)

MATCH INFO

Uefa Champions League, last 16, first leg

Ajax v Real Madrid, midnight (Thursday), BeIN Sports

Springsteen: Deliver Me from Nowhere

Director: Scott Cooper

Starring: Jeremy Allen White, Odessa Young, Jeremy Strong

Rating: 4/5

The Birkin bag is made by Hermès. 
It is named after actress and singer Jane Birkin
Noone from Hermès will go on record to say how much a new Birkin costs, how long one would have to wait to get one, and how many bags are actually made each year.

UAE currency: the story behind the money in your pockets
The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE.

Read part three: the age of the electric vehicle begins

Read part two: how climate change drove the race for an alternative 

Read part one: how cars came to the UAE

Pathaan
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Siddharth%20Anand%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Shah%20Rukh%20Khan%2C%20Deepika%20Padukone%2C%20John%20Abraham%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
SPEC%20SHEET
%3Cp%3E%3Cstrong%3EProcessor%3A%3C%2Fstrong%3E%20Apple%20M2%2C%208-core%20CPU%2C%20up%20to%2010-core%20CPU%2C%2016-core%20Neural%20Engine%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EDisplay%3A%3C%2Fstrong%3E%2013.6-inch%20Liquid%20Retina%2C%202560%20x%201664%2C%20224ppi%2C%20500%20nits%2C%20True%20Tone%2C%20wide%20colour%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMemory%3A%3C%2Fstrong%3E%208%2F16%2F24GB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStorage%3A%3C%2Fstrong%3E%20256%2F512GB%20%2F%201%2F2TB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EI%2FO%3A%3C%2Fstrong%3E%20Thunderbolt%203%20(2)%2C%203.5mm%20audio%2C%20Touch%20ID%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EConnectivity%3A%3C%2Fstrong%3E%20Wi-Fi%206%2C%20Bluetooth%205.0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBattery%3A%3C%2Fstrong%3E%2052.6Wh%20lithium-polymer%2C%20up%20to%2018%20hours%2C%20MagSafe%20charging%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECamera%3A%3C%2Fstrong%3E%201080p%20FaceTime%20HD%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EVideo%3A%3C%2Fstrong%3E%20Support%20for%20Apple%20ProRes%2C%20HDR%20with%20Dolby%20Vision%2C%20HDR10%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EAudio%3A%3C%2Fstrong%3E%204-speaker%20system%2C%20wide%20stereo%2C%20support%20for%20Dolby%20Atmos%2C%20Spatial%20Audio%20and%20dynamic%20head%20tracking%20(with%20AirPods)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EColours%3A%3C%2Fstrong%3E%20Silver%2C%20space%20grey%2C%20starlight%2C%20midnight%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIn%20the%20box%3A%3C%2Fstrong%3E%20MacBook%20Air%2C%2030W%20or%2035W%20dual-port%20power%20adapter%2C%20USB-C-to-MagSafe%20cable%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh4%2C999%3C%2Fp%3E%0A
Company info

Company name: Entrupy 

Co-founders: Vidyuth Srinivasan, co-founder/chief executive, Ashlesh Sharma, co-founder/chief technology officer, Lakshmi Subramanian, co-founder/chief scientist

Based: New York, New York

Sector/About: Entrupy is a hardware-enabled SaaS company whose mission is to protect businesses, borders and consumers from transactions involving counterfeit goods.  

Initial investment/Investors: Entrupy secured a $2.6m Series A funding round in 2017. The round was led by Tokyo-based Digital Garage and Daiwa Securities Group's jointly established venture arm, DG Lab Fund I Investment Limited Partnership, along with Zach Coelius. 

Total customers: Entrupy’s customers include hundreds of secondary resellers, marketplaces and other retail organisations around the world. They are also testing with shipping companies as well as customs agencies to stop fake items from reaching the market in the first place. 

While you're here
The national orchestra
The national orchestra
MOUNTAINHEAD REVIEW

Starring: Ramy Youssef, Steve Carell, Jason Schwartzman

Director: Jesse Armstrong

Rating: 3.5/5

The Bio

Name: Lynn Davison

Profession: History teacher at Al Yasmina Academy, Abu Dhabi

Children: She has one son, Casey, 28

Hometown: Pontefract, West Yorkshire in the UK

Favourite book: The Alchemist by Paulo Coelho

Favourite Author: CJ Sansom

Favourite holiday destination: Bali

Favourite food: A Sunday roast

Anxiety and work stress major factors

Anxiety, work stress and social isolation are all factors in the recogised rise in mental health problems.

A study UAE Ministry of Health researchers published in the summer also cited struggles with weight and illnesses as major contributors.

Its authors analysed a dozen separate UAE studies between 2007 and 2017. Prevalence was often higher in university students, women and in people on low incomes.

One showed 28 per cent of female students at a Dubai university reported symptoms linked to depression. Another in Al Ain found 22.2 per cent of students had depressive symptoms - five times the global average.

It said the country has made strides to address mental health problems but said: “Our review highlights the overall prevalence of depressive symptoms and depression, which may long have been overlooked."

Prof Samir Al Adawi, of the department of behavioural medicine at Sultan Qaboos University in Oman, who was not involved in the study but is a recognised expert in the Gulf, said how mental health is discussed varies significantly between cultures and nationalities.

“The problem we have in the Gulf is the cross-cultural differences and how people articulate emotional distress," said Prof Al Adawi. 

“Someone will say that I have physical complaints rather than emotional complaints. This is the major problem with any discussion around depression."

Daniel Bardsley

More on Afghanistan
New schools in Dubai
Updated: July 12, 2022, 3:00 AM