Police have extended a curfew in central Sri Lanka, as the International Monetary Fund asked the government in Colombo to "restructure" its mounting foreign debt and anti-government protests escalated across the island.
The IMF has requested the financial restructuring so a bailout programme can be finalised.
It came a day after the killing of an anti-government demonstrator triggered international condemnation.
The government promised an investigation into allegations that police had used excessive force to disperse those protesting over rising fuel prices and demanding President Gotabaya Rajapaksa's resignation over the worsening economic crisis.
Sri Lanka is in the grip of its worst downturn since independence in 1948, with regular power cuts, a severe shortage of fuel and other goods and record inflation causing widespread misery.
"I have already initiated an inquiry into the conduct of officers at Rambukkana," police chief Chandana Wickramaratne said as he ordered an indefinite curfew in the area.
The crowd was about to set a diesel tanker alight when officers opened fire to disperse protesters in Rambukkana, 95 kilometres east of the capital, police said in an earlier statement.
In the first fatal clash since anti-government protests broke out this month, at least 29 people including 11 policemen were wounded, officials said.
International concerns
Envoys in Colombo, including those from the US, Britain and Canada, expressed concern over the shootings and called for restraint from all sides as Sri Lanka opens bailout talks with the IMF in Washington.
"A full, transparent investigation is essential and the people's right to peaceful protest must be upheld," US ambassador Julie Chung said.
The British High Commissioner Sarah Hulton said: "I condemn violence in all forms and call for restraint."
And her Canadian counterpart David McKinnon said "those instigating violence must be accountable".
Within hours, police fired tear gas to break up another protest in the south of the island but there were no immediate reports of casualties, officials and residents said.
Police moved to disperse people occupying a main road and holding up traffic in Matara, 160km south of Colombo, residents said.
Protests spread across Sri Lanka against Tuesday's sharp increase in fuel prices and the shortage of diesel and petrol as the government seeks up to $4 billion from the IMF to overcome its balance-of-payments crisis and boost depleted reserves.
Trade unions have called a general strike on Wednesday to protest against the rising living costs.
Public transport fares are set to rise by 35 per cent on Wednesday after the price of diesel rose by nearly 65 per cent the day before. Bread has gone up nearly 30 per cent.
In Colombo, a large crowd has been camped outside the president's seafront office since April 9, demanding the leader step down.
Mr Rajapaksa acknowledged public anger over the ruling family's mismanagement on Monday, after appointing a new Cabinet to try to assuage fury over the crisis.
Sri Lanka's economic meltdown came after the coronavirus pandemic torpedoed vital revenue from tourism and remittances and the government last week announced a default on huge foreign debt.
IMF talks
Sri Lanka opened talks with the IMF in Washington this week after announcing its first default on external borrowings.
"When the IMF determines that a country's debt is not sustainable, the country needs to take steps to restore debt sustainability prior to IMF lending," the fund's country director Masahiro Nozaki said.
"Approval of an IMF-supported programme for Sri Lanka would require adequate assurances that debt sustainability will be restored."
The IMF said talks with Sri Lanka were still at an "early stage," but it was "very concerned" about the economic situation and the hardships suffered by people, especially the poor and vulnerable.
The IMF had previously warned Sri Lanka that its estimated foreign debt of $51bn was unsustainable.
Colombo's existing debt also means the country cannot apply for emergency financing, the fund said.
Business Insights
- As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses.
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Test
Director: S Sashikanth
Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan
Star rating: 2/5
Results
5pm: Handicap (PA) Dh80,000 1,400m; Winner: Faiza, Sandro Paiva (jockey), Ali Rashid Al Raihe (trainer).
5.30pm: Handicap (TB) Dh90,000 1,400m; Winner: Greeley, Connor Beasley, Helal Al Alawi.
6pm: Emirates Fillies Classic Prestige (PA) Dh100,000 1,600m; Winner: Marzaga, Jim Crowley, Ana Mendez.
6.30pm: Emirates Colts Classic Prestige (PA) Dh100,000 1,600m; Winner: Jawaal, Jim Crowley, Majed Al Jahouri.
7pm: Wathba Stallions Cup Handicap (PA) Dh70,000 1,600m; Winner: AF Ashras, Tadhg O’Shea, Ernst Oertel.
7.30pm: Handicap (PA) Dh80,000 2,200m; Winner: Somoud, Richard Mullen, Ahmed Al Mehairbi.
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
Strait of Hormuz
Fujairah is a crucial hub for fuel storage and is just outside the Strait of Hormuz, a vital shipping route linking Middle East oil producers to markets in Asia, Europe, North America and beyond.
The strait is 33 km wide at its narrowest point, but the shipping lane is just three km wide in either direction. Almost a fifth of oil consumed across the world passes through the strait.
Iran has repeatedly threatened to close the strait, a move that would risk inviting geopolitical and economic turmoil.
Last month, Iran issued a new warning that it would block the strait, if it was prevented from using the waterway following a US decision to end exemptions from sanctions for major Iranian oil importers.
Retirement funds heavily invested in equities at a risky time
Pension funds in growing economies in Asia, Latin America and the Middle East have a sharply higher percentage of assets parked in stocks, just at a time when trade tensions threaten to derail markets.
Retirement money managers in 14 geographies now allocate 40 per cent of their assets to equities, an 8 percentage-point climb over the past five years, according to a Mercer survey released last week that canvassed government, corporate and mandatory pension funds with almost $5 trillion in assets under management. That compares with about 25 per cent for pension funds in Europe.
The escalating trade spat between the US and China has heightened fears that stocks are ripe for a downturn. With tensions mounting and outcomes driven more by politics than economics, the S&P 500 Index will be on course for a “full-scale bear market” without Federal Reserve interest-rate cuts, Citigroup’s global macro strategy team said earlier this week.
The increased allocation to equities by growth-market pension funds has come at the expense of fixed-income investments, which declined 11 percentage points over the five years, according to the survey.
Hong Kong funds have the highest exposure to equities at 66 per cent, although that’s been relatively stable over the period. Japan’s equity allocation jumped 13 percentage points while South Korea’s increased 8 percentage points.
The money managers are also directing a higher portion of their funds to assets outside of their home countries. On average, foreign stocks now account for 49 per cent of respondents’ equity investments, 4 percentage points higher than five years ago, while foreign fixed-income exposure climbed 7 percentage points to 23 per cent. Funds in Japan, South Korea, Malaysia and Taiwan are among those seeking greater diversification in stocks and fixed income.
• Bloomberg
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
The specs
Engine: 6.2-litre supercharged V8
Power: 712hp at 6,100rpm
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Transmission: 8-speed auto
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Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
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match info
Maratha Arabians 138-2
C Lynn 91*, A Lyth 20, B Laughlin 1-15
Team Abu Dhabi 114-3
L Wright 40*, L Malinga 0-13, M McClenaghan 1-17
Maratha Arabians won by 24 runs
Banned items
Dubai Police has also issued a list of banned items at the ground on Sunday. These include:
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Political flags or banners
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Bikes, skateboards or scooters
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
More from Neighbourhood Watch:
The specs
Engine: 3.0-litre six-cylinder MHEV
Power: 360bhp
Torque: 500Nm
Transmission: eight-speed automatic
Price: from Dh282,870
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Dark Souls: Remastered
Developer: From Software (remaster by QLOC)
Publisher: Namco Bandai
Price: Dh199
