Two of India’s neighbours are in crises, though of different sorts. In Pakistan the Prime Minister Imran Khan is facing a no-trust motion that he is likely to lose as the opposition has come together vowing to defeat him. This could result in political turmoil in that country, especially since Khan in an address to the nation has said he would not resign and using a cricket analogy, said he would fight till the last ball. The debate on the no-confidence motion that started on March 31 was adjourned and is expected to continue on April 3, now described as day of reckoning. Developments in Pakistan on that date will decide the outcome of the current crisis there.
While this is happening in Pakistan, it is a completely different sort of crisis in Sri Lanka, where the people are actually suffering and there is little hope of a quick reversal.
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Sri Lanka is in the throes of an economic crisis that is possibly the worst it has ever faced. There are queues for fuel (stations are guarded by armed personnel to avoid riots) and food, prices of essentials have risen, there are 10-hour power cuts all leading to protests as the government desperately attempts to seek foreign aid. Latest reports state that the country has no diesel and that street lights will be switched off to save electricity. What set off the crisis in Sri Lanka is reportedly being described as mismanagement of finances and tax cuts that combined with the pandemic. The main reason for this is that the island nation’s government has no money to pay for essential imports. It all occurred as Sri Lanka saw a 70 per cent drop in foreign exchange reserves over the past two years that led to a devaluation of the currency. As per estimates, the country could have just USD 2.31 billion left in reserves.
Recovering economically is going to be an uphill task for Sri Lanka. All international ratings agencies have downgraded the country mainly due to worries of the debt default. Suggestions coming in from international experts are to include a medium-term repayment structure of the debt as this would lessen the current burden on the people, buying some time. The long term solution is still elusive and that is what the island nation requires, so that it can see the glimmer of hope in the future.
There is widespread anger in the country. The people complain as they stand in queue for supplies during the day and then as they spend the evening hours in the dark due to the load shedding. There are reports of some even going hungry as trucks are not bringing in supplies from the ports to the interiors mainly due to lack of fuel. The country has seen bad times in the past – the oil crisis of the 1970s, the long civil war that saw thousands die are recent ones – but this one could be the worst it has experienced, the Sri Lankans believe. And, the situation is not expected to improve soon, which will only fuel the resentment that has already brewed.
Assistance has been coming Sri Lanka’s way. India has extended aid via a $1 billion line of credit so that the neighbouring country can purchase essentials such as fuel, food, medicine, with the External Affairs ministry even coming to the rescue of a Sri Lankan hospital that had suspended surgeries due to lack of medical supplies. Being neighbourly, India is also sending diesel to Sri Lanka which will reach there on the weekend. The country, however, will require much more aid from the international community to ride over the current situation and emerge from it.
