Sri Lanka to receive $3bn bailout but government faces corruption probe
Sri Lanka is to receive $3bn (£2.44bn) as part of a bailout plan to help the bankrupt nation which is also facing a humanitarian crisis.
The International Monetary Fund’s (IMF) executive board will give the country $333m (£272m) immediately to help it rein in its debt to sustainable levels.
However, the IMF funding will not immediately help millions of Sri Lankans, who are being squeezed by soaring costs of
living, high income taxes of up to 36% and a 66% increase in power tariffs.
Protests have been held across the country in recent months
Half of Sri Lanka‘s families have been forced to reduce portions they feed their children, according to a survey by Save the Children released this month.
Economic mismanagement coupled with the impact of the COVID pandemic left Sri Lanka severely short of dollars for
essential imports at the beginning of last year, tipping the island nation into its worst financial crisis in seven decades.
The office of President Ranil Wickremesinghe said the programme would enable it to access up to $7bn in overall
funding.
The economy has stabilised under President Ranil Wickremesinghe
“Sri Lanka is no longer deemed bankrupt by the world,” he said in a video statement.
“As our foreign currency improves, we will gradually lift import restrictions. In the first cycle we will bring in essential goods, medicines and goods needed for the tourism industry,” Mr Wickremesinghe said, adding that he expects to table the agreement with the IMF in parliament after making a detailed statement on Wednesday.
But the IMF has also said it is assessing Sri Lanka’s governance in the first case of an Asian country facing scrutiny for corruption as part of a bailout programme.
The senior mission chief for the IMF in Sri Lanka said the development lender was “conducting an in-depth governance diagnostic exercise which will assess corruption and governance vulnerabilities in Sri Lanka and provide prioritised and sequenced recommendations”.
“Sri Lanka will be the first country in Asia to undergo a governance diagnostic exercise by the IMF. We look forward to further engagement and collaboration with stakeholders and civil society organisations on this critical reform area,” Peter Breuer told reporters.
Sri Lankans took to the streets since last year demanding accountability for alleged corruption and demanding recovery of assets allegedly stolen by members of a former ruling family.
Since Mr Wickremesinghe took over from ousted ex-President Gotobaya Rajapaksa he has managed to reduce goods shortages and end hours-long daily power cuts.
The central bank says its reserves have improved and the black market no longer controls the foreign currency trade.
But Mr Wickremesinghe’s critics accuse him of shielding the Rajapaksa family, which still controls a majority of lawmakers in parliament, in return for their support for his presidency.
Just 36 aid trucks entered Gaza on Saturday – despite the humanitarian situation in the enclave worsening, Palestinian officials have warned.
According to the Gazan government’s media office, most of the humanitarian supplies were looted and stolen – “as a result of the state of security chaos that the Israeli occupation systematically and deliberately perpetuates”.
Officials say at least 600 truckloads of aid are required on a daily basis, adding: “The needs of the population are worsening.”
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Gaza nurse: ‘We’re rationing care’
A statement released late last night called for “the immediate opening of crossings, and the entry of aid and infant formula in sufficient quantities” – and “condemned in the strongest terms the continuation of the crime of starvation”.
Israel’s prime minister, Benjamin Netanyahu, refuted this – and accused Hamas of “stirring up a slanderous propaganda campaign against Israel”.
He said: “The cruelty of Hamas has no boundaries. While the State of Israel is allowing the entry of humanitarian aid to the residents of Gaza, the terrorists of Hamas are deliberately starving our hostages and document them in a cynical and evil manner.
“The terrorists of Hamas are deliberately starving the residents of the Strip as well, preventing them from receiving the aid.”
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Aid drops continue over Gaza
It comes as the Palestinian Red Crescent in Gaza said its headquarters in Khan Younis were hit by an Israeli strike, killing one staff member and injuring three others.
Footage posted on social media shows a fire broke out in the building.
Indirect negotiations between Hamas and Israel for a 60-day ceasefire, and a deal for the release of half the hostages still held in Gaza, ended in deadlock last week.
US President Donald Trump’s Middle East envoy told the families of the hostages yesterday that he was working with the Israeli government on a plan that would end the war.
Steve Witkoff arrives to meet families of hostages in Tel Aviv. Pic: AP
Steve Witkoff claimed that Hamas was willing to disarm to stop the conflict, despite the group’s repeated statements that it would not do so.
In response, Hamas said it would not disarm unless an independent Palestinian state is established with Jerusalem as its capital.
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After Mr Witkoff’s meeting with the families of the hostages, Hamas released two videos of an emaciated Israeli hostage, Evyatar David, who was abducted from the Nova music festival on 7 October 2023 and has been held in captivity in Gaza since.
The 24-year-old looked skeletal, with his shoulder blades protruding from his back. He was heard saying that he had not eaten for three days. The distressing videos show him digging his own grave, he said in the footage.
Two videos of an emaciated Israeli hostage, Evyatar David, have been released by Hamas, after US special envoy Steve Witkoff this week met with the families of the hostages.
The now 24-year-old looks skeletal, with his shoulder blades protruding from his back, and says he has not eaten for three days.
The distressing videos show him apparently digging his own grave.
He worked in a restaurant, according to a video posted by Labour Friends of Israel, before he was abducted from the Nova music festival on 7 October 2023.
Since then, he has been held in captivity in Gaza, and the videos suggest he is being kept in dark tunnels and surviving on scarce portions of lentils and beans.
Gaza itself is suffering “man-made mass starvation” because of Israel’s blockade on aid to the enclave, the head of the World Health Organization (WHO) has previously said.
Evyatar David before he was captured by Hamas. Pic: Hostages and Missing Families Forum
In the video, Evyatar David writes on a hand-made calendar on the wall of a tunnel
In the second video, released on Saturday, Mr David – according to the English subtitles – says: “I haven’t eaten for three days.”
The captions continue as he speaks while in an underground tunnel: “There’s no [sic] enough food. I barely get drinking water.”
The video shows him talking through what he ate in July, which has been recorded on a handmade calendar hung up on the side of an underground Gaza tunnel.
Speaking while under captivity and under duress, he adds: “They give me what they can get.”
At the end of the video, he is digging a hole. The subtitle reads: “This is the grave where I think I’m going to be buried in. Time is running out.”
He then appears to break down, crouching on the floor and leaning his head on his arm while still clinging to the shovel.
A poster released by the Hostages and Missing Families Forum with photos of Evyatar David released in 2023, February this year and July
In a statement, his family said: “We are forced to witness our beloved son and brother, Evyatar David, deliberately and cynically starved in Hamas’s tunnels in Gaza – a living skeleton, buried alive.
“Our son has only a few days left to live in his current condition.”
They added: “Israel and the international community must oppose Hamas’s cruelty and ensure that our Evyatar immediately receives proper nutrition.
“The intentional starvation, torture, and abuse of Evyatar for propaganda purposes violate even the lowest standards of humanitarian law and basic human decency.”
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Gaza nurse: ‘We’re rationing care’
‘Famine’ looms in Gaza
On Friday, US special envoy Steve Witkoff visited a site where the US and Israel-backed Gaza Humanitarian Foundation (GHF) has been distributing food in Gaza.
Read more: ‘Little confidence’ US Gaza delegation would see full picture
The controversial GHF scheme has been widely condemned, including by the UK government, after fatal shootings ever since it was set up earlier this year.
According to the United Nations’ human rights office, at least 859 people have been killed “in the vicinity” of GHF aid sites since late May.
The Israel Defence Forces has repeatedly said it “categorically rejects the claims of intentional harm to civilians” and has blamed Hamas militants for fomenting chaos and endangering civilians.
Meanwhile, the UN’s Integrated Food Security Phase Classification (IFSPC) this week said a “worst-case scenario of famine” was sinking in across the besieged enclave.
It has also said more than 20,000 children have been treated for acute malnutrition since April.
Families of the 50 hostages still in Gaza are concerned they are also starving, and blame Hamas.
On Saturday, Gaza’s health ministry said a further seven Palestinians had died of malnutrition-related causes in the past 24 hours, including a child.
Rescue crews searching for five trapped Chilean miners have discovered a body.
A section of the copper mine had collapsed on Thursday following a strong, 4.2-magnitude tremor.
The remaining four miners are still missing – and rescuers are vowing to continue their search with “strength and hope”.
A man reacts during a vigil at an entrance to El Teniente mine complex. Pic: Reuters/Pablo Sanhueza
Andres Music, general manager of El Teniente mine, said: “This discovery fills us with sadness, but it also tells us that we are in the right place, that the strategy we followed led us to them.”
Crews are trying to drill through 90m (295ft) of rock to reach the trapped miners, but Mr Music said they had not yet made contact with the workers.
Just over a fifth of the blocked underground tunnels have been cleared, with teams hoping to get through about 15m to 20m (49ft to 66ft) every 24 hours using heavy machinery.
He said rescue efforts would continue with increased caution, which could slow progress.
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Two people are now known to have died as a result of the collapse.
Another miner, Paulo Marin Tapia, was found dead on Thursday shortly after the incident.
Codelco, which owns the mine, said the identity of the second man is yet to be confirmed.
Nine other miners were injured.
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