Colombo: Chamila Nilanti is tired of all the waiting. The 47-year-old mother of two spent three days in line to get kerosene in the northeastern city of Colombo, Sri Lanka. Two weeks ago, he spent three days queuing for LPG – but didn’t come home.
“I’m completely fed up, exhausted,” she said. “I don’t know how long we have to do this.”
few years ago Sri LankaThe U.S. economy was growing so strongly that it could provide employment and financial security to most of the people. It is now in a state of collapse, relying on aid from India and other countries as its leaders desperately try to negotiate a bailout with the International Monetary Fund.
What is happening in this 22-million South Asian island nation is worse than the typical financial crisis seen in the developing world: a complete economic collapse that left ordinary people struggling to buy food, fuel and other necessities and has brought political unrest and violence. ,
“It’s really accelerating into a humanitarian crisis,” said Scott Morris, a senior fellow at the Center for Global Development in Washington.
Such disasters are commonly seen in poor countries, sub-Saharan Africa or war-torn Afghanistan. They are rare but not unheard of in middle-income countries like Sri Lanka: 6 million Venezuelans have fled their oil-rich home country to escape an endless political crisis ravaging the economy.
Indonesia, once known as the “Asian Tiger” economy, endured depression-level deprivations in the late 1990s, which led to riots and political unrest and shed a strong man who had endured three decades. Took power. The country is now a democracy and a member of the Group of 20 largest industrialized economies.
Sri Lanka’s crisis is largely the result of economic mismanagement, combined with the result of the pandemic, which devastated its vital tourism industry, along with the 2019 terror attacks. The COVID-19 crisis also disrupted the flow of payments to Sri Lankans working abroad.
The government took large debts and cut taxes in 2019 to deplete the coffers as COVID-19 hit. Sri Lanka’s foreign exchange reserves declined, leaving it unable to pay for imports or defend its troubled currency, the rupee.
Ordinary Sri Lankans – especially the poor – are paying the price. They wait several days for cooking gas and petrol – in lines that can be more than 2 kilometers (1.2 mi) long. Sometimes, like Chamila Nilanthi, they go home without taking anything.
So far 11 people have died while waiting for petrol. The latest A 63-year-old man was found dead inside his vehicle on the outskirts of Colombo. Unable to obtain gasoline, some have given up driving and have resorted to bicycles or public transport to get around.
The government has closed urban schools and some universities and is giving civil servants a three-month holiday every Friday to conserve fuel and give them time to grow their own fruits and vegetables.
According to government data, food price inflation is running at 57%, and 70% of Sri Lankan households surveyed by UNICEF last month reported cuts in food consumption. Many families depend on the distribution and charity of government rice and donations from generous individuals.
With no cooking gas available, many Sri Lankans are turning to kerosene or open fire for cooking.
Wealthy families can use electric induction ovens for cooking, as long as there is no electricity. But most Sri Lankans cannot afford those stoves or the high electricity bills.
Angered by the lack of fuel, Sri Lankans protested, blocked roads and confronted the police. Fights break out when some try to jump further into the fuel lines. The police attacked the uncontrollable mob.
One night last week, a constable was seen assaulting a police officer at a petrol pump in a dispute over petrol distribution. The police officer was admitted to the hospital. The police and the army are investigating the incident separately.
The crisis is a blow to Sri Lanka’s middle class, which is estimated to account for 15% to 20% of the country’s urban population. He enjoyed financial security and an increased standard of living until it all fell apart.
Such a reversal is not unprecedented. In fact, it seems to be similar to what happened to Indonesia in the late 1990s.
The US Agency for International Development – which runs aid projects for poor countries – was preparing to close shop in Indonesia’s capital, Jakarta; The country did not seem to need help. “As one of the Asian tigers, it had made its way off the aid list,” recalls Jackie Pomeroy, an economist who worked on the USAID project in the Indonesian government before joining the World Bank in Jakarta.
But then a financial crisis – beginning when Thailand abruptly devalued its currency in July 1997 to combat speculators – spread to East Asia. Plagued by widespread corruption and weak banks, Indonesia was hit particularly hard. Its currency fell against the US dollar, forcing Indonesian companies to spend more rupees to pay off dollar-denominated loans.
business closed. Unemployment increased. Desperate townspeople returned to the countryside where they could grow their own food. The Indonesian economy shrank more than 13% in 1998, a Depression-level display.
Desperation turned to anger, and demonstrations against the government of Suharto, who had ruled Indonesia with an iron fist since 1968. “It very quickly rolled into scenes of political unrest,” Pomeroy said. “It became an issue of political transition and Suharto.” The dictator was ousted in May 1998, ending the autocratic rule.
Although they live in a democracy, many Sri Lankans blame the politically influential Rajapaksa family for the disaster. “It is their fault, but we have to suffer for their mistakes,” said Ranjana Padmasiri, who works as a clerk in a private firm.
Two of the top three Rajapaksa have resigned – PM Mahinda Rajapakse and Tulsi Rajapaksa, who was the Finance Minister. The protesters are demanding that the President Gotabaya Rajapakse Come down too. He has camped outside his office in Colombo for more than two months.
Padamsiri said resignation is not enough. “They can’t easily go away,” he said. “They should be held responsible for this crisis.”
“I’m completely fed up, exhausted,” she said. “I don’t know how long we have to do this.”
few years ago Sri LankaThe U.S. economy was growing so strongly that it could provide employment and financial security to most of the people. It is now in a state of collapse, relying on aid from India and other countries as its leaders desperately try to negotiate a bailout with the International Monetary Fund.
What is happening in this 22-million South Asian island nation is worse than the typical financial crisis seen in the developing world: a complete economic collapse that left ordinary people struggling to buy food, fuel and other necessities and has brought political unrest and violence. ,
“It’s really accelerating into a humanitarian crisis,” said Scott Morris, a senior fellow at the Center for Global Development in Washington.
Such disasters are commonly seen in poor countries, sub-Saharan Africa or war-torn Afghanistan. They are rare but not unheard of in middle-income countries like Sri Lanka: 6 million Venezuelans have fled their oil-rich home country to escape an endless political crisis ravaging the economy.
Indonesia, once known as the “Asian Tiger” economy, endured depression-level deprivations in the late 1990s, which led to riots and political unrest and shed a strong man who had endured three decades. Took power. The country is now a democracy and a member of the Group of 20 largest industrialized economies.
Sri Lanka’s crisis is largely the result of economic mismanagement, combined with the result of the pandemic, which devastated its vital tourism industry, along with the 2019 terror attacks. The COVID-19 crisis also disrupted the flow of payments to Sri Lankans working abroad.
The government took large debts and cut taxes in 2019 to deplete the coffers as COVID-19 hit. Sri Lanka’s foreign exchange reserves declined, leaving it unable to pay for imports or defend its troubled currency, the rupee.
Ordinary Sri Lankans – especially the poor – are paying the price. They wait several days for cooking gas and petrol – in lines that can be more than 2 kilometers (1.2 mi) long. Sometimes, like Chamila Nilanthi, they go home without taking anything.
So far 11 people have died while waiting for petrol. The latest A 63-year-old man was found dead inside his vehicle on the outskirts of Colombo. Unable to obtain gasoline, some have given up driving and have resorted to bicycles or public transport to get around.
The government has closed urban schools and some universities and is giving civil servants a three-month holiday every Friday to conserve fuel and give them time to grow their own fruits and vegetables.
According to government data, food price inflation is running at 57%, and 70% of Sri Lankan households surveyed by UNICEF last month reported cuts in food consumption. Many families depend on the distribution and charity of government rice and donations from generous individuals.
With no cooking gas available, many Sri Lankans are turning to kerosene or open fire for cooking.
Wealthy families can use electric induction ovens for cooking, as long as there is no electricity. But most Sri Lankans cannot afford those stoves or the high electricity bills.
Angered by the lack of fuel, Sri Lankans protested, blocked roads and confronted the police. Fights break out when some try to jump further into the fuel lines. The police attacked the uncontrollable mob.
One night last week, a constable was seen assaulting a police officer at a petrol pump in a dispute over petrol distribution. The police officer was admitted to the hospital. The police and the army are investigating the incident separately.
The crisis is a blow to Sri Lanka’s middle class, which is estimated to account for 15% to 20% of the country’s urban population. He enjoyed financial security and an increased standard of living until it all fell apart.
Such a reversal is not unprecedented. In fact, it seems to be similar to what happened to Indonesia in the late 1990s.
The US Agency for International Development – which runs aid projects for poor countries – was preparing to close shop in Indonesia’s capital, Jakarta; The country did not seem to need help. “As one of the Asian tigers, it had made its way off the aid list,” recalls Jackie Pomeroy, an economist who worked on the USAID project in the Indonesian government before joining the World Bank in Jakarta.
But then a financial crisis – beginning when Thailand abruptly devalued its currency in July 1997 to combat speculators – spread to East Asia. Plagued by widespread corruption and weak banks, Indonesia was hit particularly hard. Its currency fell against the US dollar, forcing Indonesian companies to spend more rupees to pay off dollar-denominated loans.
business closed. Unemployment increased. Desperate townspeople returned to the countryside where they could grow their own food. The Indonesian economy shrank more than 13% in 1998, a Depression-level display.
Desperation turned to anger, and demonstrations against the government of Suharto, who had ruled Indonesia with an iron fist since 1968. “It very quickly rolled into scenes of political unrest,” Pomeroy said. “It became an issue of political transition and Suharto.” The dictator was ousted in May 1998, ending the autocratic rule.
Although they live in a democracy, many Sri Lankans blame the politically influential Rajapaksa family for the disaster. “It is their fault, but we have to suffer for their mistakes,” said Ranjana Padmasiri, who works as a clerk in a private firm.
Two of the top three Rajapaksa have resigned – PM Mahinda Rajapakse and Tulsi Rajapaksa, who was the Finance Minister. The protesters are demanding that the President Gotabaya Rajapakse Come down too. He has camped outside his office in Colombo for more than two months.
Padamsiri said resignation is not enough. “They can’t easily go away,” he said. “They should be held responsible for this crisis.”