Arundathie Abeysinghe

President and Finance Minister Ranil Wickremesinghe has proposed taxing incomes starting at 100,000 rupees (US$ 270) a month. With inflation running at 70 per cent, this risks impoverishing the middle class. Discouraged by the economic situation, many Sri Lankan professionals plan to go abroad.

According to industry insiders, recent protests have put a dent on the country’s image. To counter this, a marketing campaign has been launched to attract European tourists. Currently, some 2,000 visitors arrive in Sri Lanka every day.

Cindy McCain visited the island nation for four days, meeting with President Ranil Wickremesinghe and inspecting agricultural development projects. Washington also donated a ship to the Sri Lankan Navy. Tamil MPs call for justice in connection with the atrocities perpetrated during the civil war.

Discussions are underway between central banks to allow Russian credit cards to operate in Sri Lanka. Last year almost 17,000 Russian tourists visited the island. The country is in economic recovery and also hopes to obtain a loan to buy fuel.

Some hospitals have stocks for only a few days. Imports have slowed due to the economic crisis and fuel shortages, affecting distribution to rural health facilities. The government will collect excess stocks and redistribute them as needed.

The deal includes US$ 2.9 billion to be disbursed over 48 months. The next steps will depend on Sri Lanka's ability to comply with the demands of the lending agency, which calls for financial transparency and a crackdown on corruption. Japan urges China and India to come together to assess Sri Lanka’s debt restructuring.

Families cannot guarantee three meals a day and most do not know when they will have their next meal. According to the UN agency the same situation could occur in other South Asian countries. Save the Children and the US Department of Agriculture have sent 3,000 tonnes of food.

According to official data from the Ministry of Finance, China is followed by Japan at 32% and India at 10%. The International Monetary Fund wants an agreement with the creditors to grant the short-term aid needed to tackle the crisis that has brought the country to its knees. Beijing would like to provide new loans rather than waive debt, for fear that other borrowers of Belt and Road Initiative loans will demand the same treatment.

The country’s economic crisis is driving people into the hands of traffickers. The journey to the Australian coast can take up to 21 days, cost up US$ 4,000, and is full of dangers. Some of those who want to leave tell their story.

The vessel is set to arrive on 11 August; India is none too pleased, afraid that China is using Sri Lanka as a military outpost. Chinese-built ports within the Belt and Road Initiative are the main target. China and India are Sri Lanka’s main creditors at a time when the island nation is struggling with an unprecedented economic crisis.

Newly appointed Prime Minister Dinesh Gunawardena has been tasked with coordinating consultations with political parties. President Ranil Wickremesinghe spoke to parliament after his election, urging MPs to join forces to change the system. The Samagi Jana Balawegaya and the Sri Lanka Freedom Party will work together on the basis of the proposals put forward.

Parliament elected the new head of state this morning with 134 votes. The veteran politician has a few friends among ordinary Sri Lankans who reproach him for his ties to the Rajapaksa family. The main opposition candidate, Dullas Alahapperume, won only 82 votes.