Sri Lanka reaches deal on debt restructuring with bilateral creditors including China and France

Supporters of Sri Lanka’s President Ranil Wickremesinghe watch a televised speech in Colombo, Sri Lanka, Wednesday, June 26, 2024. (AP)
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Updated 27 June 2024
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Sri Lanka reaches deal on debt restructuring with bilateral creditors including China and France

  • The country defaulted on debt repayment in 2022
  • The IMF approved a four-year bailout program last March

COLOMBO:  Sri Lanka’s President Ranil Wickremesinghe announced a debt restructuring deal with countries including India, France, Japan and China in a televised address to the nation Wednesday. The agreement marks a key step in the country’s economic recovery after defaulting on debt repayment in 2022.

Sri Lanka is under an International Monetary Fund bailout program and the debt treatment deal is expected to reopen the doors to bilateral transactions and the resumption of foreign projects stalled when the island nation defaulted.

“This morning in Paris, Sri Lanka reached a final agreement with our official bilateral creditors. Similarly, we signed another agreement with China’s Exim Bank today in Beijing. ... Sri Lanka won,” Wickremesinghe said.

Sri Lanka declared bankruptcy in April 2022 and suspended repayments on some $83 billion in domestic and foreign loans amid a severe foreign exchange crisis that led to a severe shortage of essentials such as food, medicine, fuel and cooking gas, and hours-long power cuts.

Sri Lanka’s crisis was largely the result of staggering economic mismanagement combined with fallout from the COVID-19 pandemic, which along with 2019 terrorism attacks devastated its important tourism industry. The coronavirus crisis also disrupted the flow of remittances from Sri Lankans working abroad.

Additionally, the then-government slashed taxes in 2019, depleting the treasury just as the virus hit. Foreign exchange reserves plummeted, leaving Sri Lanka unable to pay for imports or defend its beleaguered currency, the rupee.

Wickremesinghe said with these agreements, Sri Lanka will be able to defer all bilateral loan instalment payments until 2028. Furthermore, Sri Lanka will be able to repay all the loans on concessional terms, with an extended period until 2043.

According to a previous president’s office statement, the agreements would cover $10 billion, but further details on the mode of restructuring were not immediately announced.

By 2022, Sri Lanka had to repay about $6 billion in foreign debt every year, amounting to about 9.2 percent of gross domestic product. The agreement would enable Sri Lanka to maintain debt payments at less than 4.5 percent of GDP between 2027 and 2032.

As Wickremesinghe addressed the nation, his supporters the watched the speech on a giant screen in the capital Colombo and celebrated the announcement by lighting firecrackers and partaking traditional milk rice.

The economic upheaval led to a political crisis that forced then-President Gotabaya Rajapaksa to resign in 2022. The Parliament then elected Wickremesinghe as president.

Sri Lanka suspended repayment of its debt as it ran short of foreign currency needed to pay for imports of fuel and other essentials. Shortages led to street protests that changed the country’s leadership. The IMF approved a four-year bailout program last March.

The economic situation has improved under Wickremesinghe and severe shortages of food, fuel and medicine have largely abated. But public dissatisfaction has grown over the government’s effort to increase revenue by raising electricity bills and imposing heavy new income taxes on professionals and businesses, as part of the government’s efforts to meet the IMF conditions.

After Sri Lanka declared bankruptcy, all projects funded by foreign loans were also halted.

on Wednesday, Wickremesinghe said the new agreements would pave way to resume the foreign funded projects such as highways, light railway and airport development and also initiate new projects too.


Australia urged to provide ‘emergency uplift’ visa for Palestinians fleeing Gaza war

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Australia urged to provide ‘emergency uplift’ visa for Palestinians fleeing Gaza war

  • Most refugees arrive in Australia on tourist visas and then apply for protection while they are on Australian soil
  • Rights groups say ‘tourist visa is not fit for purpose in these circumstances’ and a specialist protocol is needed to make applying for protection easier

LONDON: Campaigners for refugee rights have called on the Australian government to create an “emergency uplift” visa for Palestinians fleeing the war in Gaza.

The number of Palestinians applying onshore for protection in Australia almost doubled during May compared with the figures for April, the Guardian newspaper reported on Monday. The Home Affairs Department said 119 people from the “Palestinian Authority” applied for protection visas, up from 66 in April, 110 in March, 88 in February and 33 in January.

The Refugee Advice and Casework Service, which is helping some of the Palestinians, said the “absolute humanitarian disaster in Gaza” had caused “an increase in arrivals from Gaza and Palestinians seeking protection.”

It continued: “RACS has long assisted hundreds of Palestinians … due to their history of persecution, discrimination and statelessness, which has only been exacerbated in recent times. When people fear for their lives, they will do whatever it takes to find safety.”

RACS said the majority of refugees who arrive in Australia do not enter the country on refugee visas but on other types, including tourist visas, and then apply for protection when they are already on Australian soil. An emergency protocol is needed to make the application process for protection easier, the organization added.

Though some visitors’ visas can allow those entering the country to bring with them family members who are also fleeing the war, and to remain in Australia for 12 months, holders are not permitted to work, study or access healthcare.

The numbers of onshore protection claims are being driven up by those with shorter, three-month visas whose duration of stay is about to expire, the Guardian reported.

“The tourist visa is not fit for purpose in these circumstances and, really, Australia should be considering an ‘emergency uplift’-type visa, similar to that of the 449 visa, which was used for those Australia evacuated from Afghanistan, where families, communities and individuals can apply for or request of the Australian government at such times of dire need,” RACS said.

The Asylum Seeker Resource Center, another rights organization in Australia, said: “The tourist visa was recommended by the Australian government to help people flee to Australia, and should not restrict that person’s options for what visas they can apply for once they are here.”


Greek prime minister warns of dangerous summer for wildfires

Updated 52 min 22 sec ago
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Greek prime minister warns of dangerous summer for wildfires

ATHENS: Greek Prime Minister Kyriakos Mitsotakis said on Monday the country faced a dangerous summer for wildfires, with a prolonged drought and unusually strong winds contributing to tinderbox conditions.

Wildfires are common in the Mediterranean country, but hotter, drier and windier weather that scientists link to the effects of climate change has increased their frequency and intensity.

This weekend, dozens of fires broke out across Greece, including two close to the capital, Athens.

“It is a summer which is expected to be particularly dangerous ... the most difficult times are still ahead of us,” Mitsotakis said as he addressed his Cabinet.

“We had a very difficult June in terms of weather conditions with high drought and unusually high gusts of wind for the season,” he said, praising firefighters for managing to contain the weekend fires.

Mitsotakis said less than 100,000 square meters of land had been burned in the two fires, and that the damage was contained due to the response by state emergency authorities.

Greece has scaled up its preparations this year by hiring more staff and increasing training, after forest fires last year forced 19,000 people to flee the island of Rhodes and killed 20 in the north of the country.


From Ukraine and Syria to Sudan and Gaza, a new era of violence and conflict unfolds

Updated 24 min 9 sec ago
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From Ukraine and Syria to Sudan and Gaza, a new era of violence and conflict unfolds

  • Over a quarter of all battle deaths in the past 33 years occurred in the period between 2021 and 2023
  • One report documents roughly 190 different state-based conflicts involving 95 countries since 1990

DUBAI: A recent conflict trend analysis has confirmed that with each passing year the world has steadily grown more violent. The last three years in particular have emerged as the most tumultuous in three decades, painting a concerning picture of escalating global unrest.

Last year, there was an alarming surge in worldwide, state-based conflicts, hitting a high not seen since 1946. According to the Peace Research Institute Oslo’s “Conflict trends: A global overview,” 2023 alone saw an unprecedented 59 conflicts, marking it one of the most violent years since the end of the Second World War.

The report analyzes global conflict trends from 1946 to 2023, aiming to enhance policymakers’ understanding of their operational contexts.

Palestinian children run as they flee from Israeli bombardment in Rafah in the southern Gaza Strip. (AFP)

Siri Aas Rustad, research professor at the PRIO and lead writer of the report, said the findings indicate “the conflict landscape is becoming more complex,” with more actors involved in each country.

The report documented approximately 190 different state-based conflicts involving 95 countries since 1990.

The deadliest conflicts in recent memory highlighted by Rustad include the Tigray war in Ethiopia and the violence in Syria, with death tolls in each by most estimates exceeded 300,000.

Civil conflict in Afghanistan is thought to have caused more than 230,000 deaths, while the war between Russia and Ukraine is estimated to have claimed some 170,000 lives so far.

“When it comes to the longest conflicts, they are often not as deadly, with the two longest being the FARC insurgency in Colombia and the Israel-Palestine conflict,” she told Arab News.

While the civil war in Afghanistan spanned the past three decades, there were high fatalities during specific periods, including when American troops withdrew.

Ukrainian firefighters work amid the rubble of the Retroville shopping mall, a day after it was shelled by Russian forces. (AFP)

Nasr Arif, emeritus professor of political science at Cairo University and visiting professor at St Andrews University, describes the ongoing Palestinian conflict as among the deadliest in the past three years.

Nearly 40,000 people have been killed, 90,000 injured, and 15,000 are still missing and presumed dead, many buried under the wreckage of destroyed cities, according to Gaza’s health authorities.

“The ongoing conflict will set the whole region back to a pre-1977 situation, where societies in the Arab or Islamic world will reconsider peace deals with Israel,” he said.

Arif says that despite the willingness of several Arab states to normalize relations with Israel, the conduct of the Israeli army, as seen on social media, makes it impossible for governments to convince their societies otherwise.

“This will create a more hostile environment, and peace in the Middle East will require new approaches and leadership,” he said.

The only viable solution, according to Arif, is the establishment of a Palestinian state, without which the Middle East peace process will not survive.

INNUMBERS

• 59 Conflicts worldwide in 2023.

• 1.5m People killed in conflicts from 1990-2020.

• 190 Different state-based conflicts since 1990.

Source: Peace Research Institute Oslo

“Otherwise, the situation will resemble the post-Sept. 11, 2001, era, with the rise of extremist groups like Al-Qaeda and Daesh, leading to widespread individual acts of terrorism and retaliation,” said Arif.

Overall, he believes that identity politics and international intervention are to blame for the conflicts raging in Africa, Asia and Europe.

“These conflicts are often ignited and inflamed by international powers either from the same region or from a distance,” he told Arab News.

“Identity politics, whether ethnic, religious, or political, play a significant role, with international interventions supporting different parties, leading to higher casualties.”

Asif cites, as examples, NATO and the EU’s involvement in the Ukraine-Russia conflict, and meddling by outside powers in the affairs of Sudan, Iraq and Lebanon.

A tank of Eritrean army is abandoned along the road in Dansa, southwest of Mekele in Tigray region, Ethiopia. (AFP)

He blames foreign military support for Israel’s actions, in the face of accusations that its troops are not adhering to humanitarian or international laws, for the Gaza’s war’s high human toll.

Hamdy Abdel-Rahman Hassan, a professor of political science at Zayed University in Abu Dhabi, says the war in Gaza has intensified tensions in the Middle East, exacerbating regional instability.

“The conflict has led to widespread anger, with countries like Egypt and Jordan fearing a potential influx of Palestinian refugees,” he told Arab News.

Additionally, non-state actors in the Iran-led coalition known as the “Axis of Resistance” have expanded their attacks, targeting Israeli and American military positions and shipping lanes, prompting retaliatory strikes from Israel, the US and the UK, according to Hassan.

“This cycle of violence risks escalating into a broader conflict, which is why a ceasefire in Gaza (is) seen as crucial to mitigating the regional escalation.”

Even more worrying is the potential for the ongoing conflict to expand into a full-scale war and further destabilization, especially if it results in significant civilian casualties or more military confrontations, says Hassan.

Ukrainian rescuers hose down a destroyed residential building as they move rubble after a missile strike in Mykolaiv. (AFP)

As for the two-state solution widely cited as a possible antidote to conflicts in the Middle East, Hassan believes this may be further from reality than ever before.

On the other hand, Hassan attributes the increase in overall state conflicts to several interrelated factors, including advances in technology and unresolved regional tensions.

“Technological advancements have introduced new forms of warfare, such as cyberattacks and lethal autonomous weapons, making conflict resolution more complicated,” he said.

“Unresolved regional tensions and the breakdown of state institutions have fueled conflicts involving non-state actors, such as political militias and terrorist groups.”

Hassan also says that the increasingly evident effects of climate change are leading to more resource scarcity, thereby intensifying ongoing conflicts.

Examining the overall number of casualties between 2021 and 2023, the Uppsala Conflict Data Program documented around 600,000 battle deaths, a stark contrast to the preceding three years (2018-2020), which recorded approximately 180,000 deaths.

Fighters from a local armed pro-government group Gatia in the town of Menaka, Mali. (AFP)

“The three preceding decades (1990-2020) saw a total of 1.5 million killed,” said the PRIO’s Rustad, meaning more than 25 percent of all battle deaths reported in the past 33 years occurred between 2021 and 2023.

Despite these shocking numbers, Rustad pointed out that a high number of conflicts does not necessarily translate to a high level of battle deaths, as the majority of fatalities occur in just a few conflicts.

In fact, most of the 59 conflicts recorded are relatively small in scale, according to Rustad. “What we see is that while the number of conflicts is increasing, the number of conflict countries is going down,” she said.

Conflicts were recorded in 39 countries in 2022, dropping to 34 in 2023, indicating a concentration in fewer nations.

In fact, nearly half of the countries experiencing conflict in 2023 were engaged in more than one ongoing conflict, and seven countries were simultaneously involved in more than three.

“Taking this together with the high number of internationalized civil wars and the relatively high number of extreme violent conflicts, we see that the global conflict landscape is becoming more complex and difficult to maneuver for states as well as organizations such as the UN, World Bank, and EU,” Rustad said.

Zayed University’s Hassan says a spike in levels of organized crime and urban violence has highlighted the fragility of the rule of law in many regions.

“The strain on international cooperation has diminished the global capacity to prevent and resolve conflicts, contributing to the complexity and persistence of modern violence,” he said.

According to him, the war in Gaza is not without significant repercussions for the global system, challenging peace and security on multiple fronts.

A man rushes an injured child to hospital after an Israeli bombing in central Gaza Strip. (AFP)

“The strategic rivalry among major powers has created opportunities for regional and middle powers to assert themselves, rejecting the current international order,” said Hassan.

He points to North Korea, saying that it has taken advantage of the war in Ukraine to enhance its missile capabilities and strengthen ties with Russia, complicating global security dynamics.

Similarly, according to him, Iran has leveraged international instability to bolster its regional influence, supplying military support to Russia and challenging Western hegemony.

“These actions underscore the broader impact of regional conflicts on the international system, where weakened mechanisms for conflict resolution and diminished US dominance have emboldened actors to pursue their agendas aggressively, further destabilizing global peace and security,” Hassan said.

Echoing this sentiment, Cairo University’s Arif says the trend over the last three decades signifies the end of the unipolar international system, which was dominated by the US after the collapse of the Soviet Union between 1989 and 1992.

A Palestinian child pushes another child in a wheelbarrow between destroyed buildings in Khan Yunis, in the southern Gaza Strip. (AFP)

“The American-led world order has failed to bring peace, as evidenced by the ongoing conflicts,” he said, echoing a commonly held view across the Middle East.

“The disregard for international law and organizations, highlighted by the US use of veto power to protect Israel during ceasefire negotiations, signals a collapse of the current international system.”

Ultimately, Arif says, the situation calls for a rethinking of the international order and organizations, starting with the UN Security Council, so that a new system capable of effectively addressing global conflicts can be developed.


Blinken defends Biden, saying he restored global confidence in US leadership

Updated 01 July 2024
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Blinken defends Biden, saying he restored global confidence in US leadership

  • Blinken said people around the world were looking at what Biden has done since coming into office
  • Global media outlets expressed alarm at Biden’s debate performance against Donald Trump

WASHINGTON DC: US Secretary of State Antony Blinken on Monday responded to criticism of President Joe Biden’s performance in last week’s debate, saying his policies over the past 3-1/2 years have boosted confidence in American leadership in the world.
With global media outlets expressing alarm at Biden’s debate performance against Donald Trump, Blinken was asked at a Brookings Institute event what “friends and foes” around the world should know about US leadership under Biden.
Blinken said people around the world were looking at what Biden has done since coming into office, not just one night, and that they appreciate his policies.
“They’ve seen a president who’s reinvested America, reinvested America in the world, reinvested in these alliances, in these partnerships in ways that they seek and want,” Blinken said.
Many Americans expressed dismay at both candidates after last Thursday’s 90-minute debate on CNN. Biden, the 81-year-old Democratic incumbent, his voice hoarse from a cold, stumbled over some answers and trailed off during others. Republican Trump, 78, repeated a series of outrageous contentions that have been proven false many times, including claims that he actually won the 2020 election, but Biden did not refute them.
It was the first time since Thursday that Blinken, top US diplomat and a long-serving aide to Biden, was asked about the debate. He stressed Biden’s performance in office.
“If you look at surveys around the world, for what they’re worth, you see it again and again and again, that confidence in American leadership has gone up dramatically over the last 3-1/2 years,” he said.
“That doesn’t just happen. ... It’s the product of policies that we pursue, it’s the product of our engagement. And they see President Biden having led the way in all of those different areas, and in ways that are bringing people together and focused in the same way on the challenges that we have before us and that are common to so many other countries.”
Biden supporters had hoped the debate would dispel worries that he was too old for another term, but instead it fed concerns. Some Democrats have called for Biden to drop out of the race.
Biden’s performance raised cries of alarm in global media. France’s newspaper Le Monde compared Biden to a shipwreck. Britain’s left-leaning Daily Mirror called his performance a “gaffe-strewn nightmare.” The Sydney Morning Herald said “Trump monstered Biden. The Democrats can’t win with Joe.”


Viral campaign urges Wimbledon to sever ties with Barclays

Updated 01 July 2024
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Viral campaign urges Wimbledon to sever ties with Barclays

  • Graphic spoof adverts appear across London condemning tennis tournament’s links to bank
  • Protesters gather outside of venue to tell spectators about Barclays’ involvement in the fossil fuel industry, Israeli military

LONDON: An insurgent advert campaign has been launched across London criticizing the Wimbledon tennis tournament’s commercial relationship with Barclays Bank.

Adverts on billboards, bus shelters and the London Underground have been replaced with messages by a group called Brandalism highlighting Barclays’ ties to the fossil fuel industry and arms companies supplying the Israeli military.

One image, featuring a tennis player bleeding on a court, is accompanied by the words: “From Gaza to global warming, we’re making a killing.”

Another of a banker and tennis player shaking hands bears the sentence: “Partners in climate crime and genocide.”

The world-renowned annual tennis event, run by the All England Tennis Club and famed for its grass courts, all-white uniforms and spectators eating strawberries with cream, begins on Monday, with organizers under pressure to sever ties with Barclays, who campaigners accuse of using the tournament to “cover up” its activities.

On Monday, protesters gathered outside the venue, with one telling people queuing for tickets through a megaphone: “We’re here because we want you to know that Barclays, a major sponsor of Wimbledon, must be ostracized.”

One of the protestors, Rafela Fitzhugh, 55, told The Guardian: “Barclays are a massive funder of companies investing in the bombing of Gaza and we are putting pressure on them to stop.

“They’re pumping money into the slaughter of women and children,” she added.

“They only got out of apartheid South Africa when there was enough pressure was put on them and that’s what we’re doing now.”

Another protester held a sign that said: “Wimbledon strawberries tainted with Palestinian blood, courtesy of Barclays.”

Kit Speedwell, a spokesperson from Brandalism, told The Guardian: “Wimbledon’s cherished strawberries and cream image has been thoroughly sullied by its decision to partner with Barclays, the most toxic bank in Europe, while the bank continues to pour millions into the arms trade and fossil fuel companies driving climate chaos.

“Wimbledon must stop providing cover for Barclays’ grotesque lack of morals and immediately end the sponsorship deal.”

Artist Matt Bonner, who worked on the Brandalism campaign, said: “Barclays continues to bankroll fossil fuel companies like Shell and BP, which is why we’re showing Wimbledon that this partnership is an endorsement of the bank’s complicity in climate breakdown. There’s no tennis on a dead planet.”

Another creative, Lindsay Grime, said: “Wimbledon needs to wake up to the fact that Barclays is a totally toxic partner, sullying their tournament by association.”

Grime’s contribution to the campaign is a spoof advert showing money stained with blood falling out of a tennis player’s pocket.

As well as being Europe’s largest financial backer of the fossil fuel industry, Barclays is estimated to hold shares worth about £2 billion ($2.53 billion) in companies supplying the Israeli military.

On Friday, a Barclays spokesperson told The Guardian: “We are proud of our partnership with Wimbledon. Like many other banks, we provide financial services to companies supplying defence products to the UK, NATO and its allies.

“We are also financing an energy sector in transition, including providing $1 trillion of sustainable and transition finance by 2030 to build a cleaner and more secure energy system.”

A spokesperson for the All England Club said: “Our ambition to have a positive impact on the environment is a core part of putting on a successful championships. We know this is one of the defining challenges of our time and we are fully committed to playing our part. Barclays is an important partner of ours and we are working closely with them in a number of areas.”