One dead after police fire on protesters in Sri Lanka amid bailout talks with IMF

Protesters block a railway line in Rambukkana on April 19, 2022. (AFP)
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Updated 20 April 2022
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One dead after police fire on protesters in Sri Lanka amid bailout talks with IMF

  • “A full, transparent investigation is essential & the people’s right to peaceful protest must be upheld,” the US Ambassador to Sri Lanka, Julie Chung, said in a tweet

COLOMBO: Sri Lankan police fired live ammunition to scatter protesters on Tuesday, killing one person and injuring a dozen more, as the country sought rapid financial assistance from the International Monetary Fund (IMF) to ease a worsening economic crisis.
Demonstrations have raged across the South Asian island country of 22 million people for weeks, voicing anger against the government’s mishandling of the economy that has led to shortages of essentials and prolonged power cuts.
Mihiri Priyangani, director of the Kegalle Teaching Hospital, said at least one protester was killed and 12 injured were hospitalized, including two in critical condition, after clashes broke out between demonstrators and police in the central town of Rambukkana.
The deceased person — the first fatality since the largely peaceful protests began last month — had likely been shot, Priyangani told Reuters. “We are suspecting gunshot injuries but need a post-mortem to confirm the exact cause of death.”
Disturbances erupted after police asked protesters to move away from a key railway line which they had blocked for hours, police spokesman Nalin Thalduwa said.
“To control the situation, police fired at the protesters,” Thalduwa told Reuters.
“Several injured policemen have also been hospitalized,” he said, adding live ammunition and tear gas had been used to repel a crowd pelting stones and other objects. “Police are still in the area and attempting to restore calm.”
Some rights groups and foreign diplomats called for restraint and condemned the violence in Rambukkana, where police imposed a curfew late on Tuesday.
“A full, transparent investigation is essential & the people’s right to peaceful protest must be upheld,” the US Ambassador to Sri Lanka, Julie Chung, said in a tweet.
Analysts have flagged political instability as a serious risk as Sri Lanka looks to negotiate a loan program from the IMF, with a delegation headed by Finance Minister Ali Sabry kicking off formal talks in Washington on Monday.
The government is looking for assistance to help top up its reserves and attract bridge financing to pay for essential imports of fuel, food and medicines.
Shamir Zavahir, an aide to Sabry, said on Twitter that Colombo had asked for an IMF loan under the rapid financial instrument (RFI) window, meant for countries needing urgent balance-of-payment support. But the global lender was initially not inclined to grant the request, he said.
“The IMF has subsequently informed Minister Sabry that India had also made representations on behalf of Sri Lanka for an RFI,” Sri Lanka’s finance ministry said in a statement.
“It has been communicated that IMF will consider the special request made despite it being outside of the standard circumstances for the issuance of an RFI.”
An IMF spokesperson had no immediate comment on the finance ministry’s request.
A source familiar with the matter said that IMF talks with Sri Lanka had just started and would take time to reach any agreement. The biggest impediment is Sri Lanka’s unsustainable debt, which must be restructured before the Fund can lend any more money to the island under its rules — a process that would involve China, one of its biggest creditors, the source added.
IMF Managing Director Kristalina Georgieva tweeted https://twitter.com/KGeorgieva/status/1516396945404747778 after a meeting with Sabry on Tuesday that they discussed policy actions and would “work together toward mapping a pathway to #SriLanka’s recovery.”
Critics say the financial crisis arose from the effects of financial mismanagement by successive governments, exacerbated by the coronavirus pandemic, and as rising prices of fuel sapped foreign reserves. Fuel, power, food and medicines have been running low for weeks.

INDIA WEIGHS IN
Sri Lanka is seeking $3 billion in the coming months from multiple sources including the IMF, the World Bank and India to stave off the crisis, Sabry told Reuters earlier this month.
Both India and China have already extended billions of dollars in financial support to Sri Lanka. Sabry met Indian counterpart Nirmala Sitharaman https://twitter.com/finminindia/status/1516125985044779011?s=24&t=OhOONx... on the sidelines of the IMF deliberations, and both sides said they agreed to deepen their cooperation.
“India will fully support the deliberations of Sri Lanka with the IMF, especially on the special request made for expediting an extended fund facility,” Sabry’s office said, citing his meeting with Sitharaman.
Last week, Sri Lanka’s central bank said it was suspending repayment on some of its foreign debt pending a restructure.
In the commercial capital Colombo, protests demanding the ouster of President Gotabaya Rajapaksa have dragged on for more than a week.


Rubio says technical talks with Denmark, Greenland officials over Arctic security have begun

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Rubio says technical talks with Denmark, Greenland officials over Arctic security have begun

  • US Secretary of State on Wednesday appeared eager to downplay Trump’s rift with Europe over Greenland

WASHINGTON: Technical talks between the US, Denmark and Greenland over hatching an Arctic security deal are now underway, Secretary of State Marco Rubio said on Wednesday.
The foreign ministers of Denmark and Greenland agreed to create a working group aimed at addressing differences with the US during a Washington meeting earlier this month with Vice President JD Vance and Rubio.
The group was created after President Donald Trump’s repeated calls for the US to take over Greenland, a Danish territory, in the name of countering threats from Russia and China — calls that Greenland, Denmark and European allies forcefully rejected.
“It begins today and it will be a regular process,” Rubio said of the working group, as he testified before the Senate Foreign Relations Committee. “We’re going to try to do it in a way that isn’t like a media circus every time these conversations happen, because we think that creates more flexibility on both sides to arrive at a positive outcome.”
The Danish Foreign Ministry said Wednesday’s talks focused on “how we can address US concerns about security in the Arctic while respecting the red lines of the Kingdom.” Red lines refers to the sovereignty of Greenland.
Trump’s renewed threats in recent weeks to annex Greenland, which is a semiautonomous territory of a NATO ally, has roiled US-European relations.
Trump this month announced he would slap new tariffs on Denmark and seven other European countries that opposed his takeover calls, only to abruptly drop his threats after a “framework” for a deal over access to the mineral-rich island was reached, with NATO Secretary-General Mark Rutte’s help. Few details of the agreement have emerged.
After stiff pushback from European allies to his Greenland rhetoric, Trump also announced at the World Economic Forum in Davos, Switzerland, last week that he would take off the table the possibility of using American military force to acquire Greenland.
The president backed off his tariff threats and softened his language after Wall Street suffered its biggest losses in months over concerns that Trump’s Greenland ambitions could spur a trade war and fundamentally rupture NATO, a 32-member transatlantic military alliance that’s been a linchpin of post-World War II security.
Rubio on Wednesday appeared eager to downplay Trump’s rift with Europe over Greenland.
“We’ve got a little bit of work to do, but I think we’re going to wind up in a good place, and I think you’ll hear the same from our colleagues in Europe very shortly,” Rubio said.
Rubio during Wednesday’s hearing also had a pointed exchange with Sen. Tim Kaine, D-Virginia, about Trump repeatedly referring to Greenland as Iceland while at Davos.
“Yeah, he meant to say Greenland, but I think we’re all familiar with presidents that have verbal stumbles,” Rubio said in responding to Kaine’s questions about Trump’s flub — taking a veiled dig at former President Joe Biden. “We’ve had presidents like that before. Some made a lot more than this one.”