Skip to content
Search

Latest Stories

Bankrupt Sri Lanka begs diaspora to send cash

Bankrupt Sri Lanka begs diaspora to send cash

Sri Lanka urged its citizens overseas to send home money to help pay for desperately needed food and fuel Wednesday after announcing a default on its $51 billion foreign debt.

The island nation is in the grip of its worst economic crisis since independence in 1948, with severe shortages of essential goods and regular blackouts causing widespread hardship.


Authorities are weathering intense public anger and spirited protests demanding the government's resignation ahead of negotiations for an International Monetary Fund bailout.

Central bank governor Nandalal Weerasinghe said he needed Sri Lankans abroad to "support the country at this crucial juncture by donating much needed foreign exchange".

His appeal came a day after the government announced it was suspending repayments on all external debt, which will free up money to replenish scant supplies of petrol, pharmaceuticals and other necessities.

Weerasinghe said he had set up bank accounts for donations in the United States, Britain and Germany and promised Sri Lankan expatriates the money would be spent where it was most needed.

The bank "assures that such foreign currency transfers will be utilised only for importation of essentials, including food, fuel and medicines", Weerasinghe said in a statement.

Tuesday's default announcement will save Sri Lanka about $200 million in interest payments falling due on Monday, he said, adding that the money would be diverted to pay for essential imports.

Weerasinghe's appeal has so far been greeted with scepticism from Sri Lankans abroad.

"We don't mind helping, but we can't trust the government with our cash," a Sri Lankan doctor in Australia told AFP, asking for anonymity.

A Sri Lankan software engineer in Canada said he had no confidence that the money would be spent on the needy.

"This could go the same way as the tsunami funds," he told AFP, referring to millions of dollars the island received in aid after the December 2004 disaster, which claimed at least 31,000 lives on the island.

Much of the foreign cash donations meant for survivors was rumoured to have ended up in the pockets of politicians, including current Prime Minister Mahinda Rajapaksa, who was forced to return tsunami aid funds credited to his personal account.

- Snowballing crisis -

Sri Lanka's snowballing economic crisis began to be felt after the coronavirus pandemic torpedoed vital revenue from tourism and remittances.

The government imposed a wide import ban to conserve dwindling foreign currency reserves and use them to service the debts it has now defaulted on.

But the resulting shortages have stoked public resentment, with day-long lines forming across the island for petrol and kerosene, the latter used for cooking stoves in poorer households.

At least eight people have died while waiting in fuel queues since last month.

The country's Sinhalese and Tamil communities are marking their traditional new year this week but the shortages have sabotaged the ritual of making milk rice at an astrologically auspicious time, with both ingredients scarce.

Economists say the crisis has been made worse by government mismanagement, years of accumulated borrowing and ill-advised tax cuts.

Sri Lanka's main opposition SJB party said Wednesday that government members responsible for the crisis should face criminal prosecution.

Crowds have attempted to storm the homes of government leaders, and security forces have dispersed protesters with tear gas and rubber bullets.

Thousands of people were camped outside President Gotabaya Rajapaksa's seafront office in the capital Colombo for a fifth straight day of protests Wednesday calling for him to step down.

More For You

11th UK Gatka Championship

All winners received medals and trophies

UK Parliament

11th UK Gatka Championship ends with Welsh debut and £1,000 support for Gatka Akharas

Highlights:

  • The 11th UK National Gatka Championship was hosted near Cardiff, marking the first time in Wales.
  • Winners included Roop Kaur (girls), Navjot Singh (boys), and Gurdeep Singh (men’s).
  • Gatka Federation UK awarded £1,000 to each participating Akhara to support martial arts promotion.
  • Chief guests included MP Tanmanjeet Singh Dhesi and Harjeet Singh Grewal, President of the World Gatka Federation.

Gatka Championship marks Welsh debut

The 11th UK National Gatka Championship concluded on a high note near Cardiff, Wales, showcasing the traditional Sikh martial art with flair. Seven leading Gatka Akharas participated, thrilling spectators with their lightning-fast strikes, precision moves and elegant techniques.

Inauguration by global leaders

The tournament was inaugurated by Harjeet Singh Grewal, President of the World Gatka Federation (WGF) and the National Gatka Association of India (NGAI). He was joined by Tanmanjeet Singh Dhesi MP, President of Gatka Federation UK, alongside other dignitaries including Jagbir Singh Jagga Chakar, President of Wales Kabaddi Club, and community leaders from the Haveli Hotel Pontyclun.

Keep ReadingShow less
Vantara

The site, located in Gujarat, houses hundreds of elephants, as well as 50 bears, 160 tigers, 200 lions, 250 leopards, and 900 crocodiles. (Photo: Instagram/Vantara)

India court probe clears Ambani family’s animal centre

AN INDIAN Supreme Court-ordered investigation has cleared a large private animal facility run by the son of Asia’s richest man, rejecting allegations of wildlife violations.

Vantara, described as the “world’s biggest wild animal rescue centre,” is operated by Anant Ambani, son of Reliance Industries chairman Mukesh Ambani.

Keep ReadingShow less
Starmer

Starmer, who has faced negative coverage since taking office in July 2024, defended the appointment process.

Reuters

Starmer: I would not have appointed Mandelson if aware of Epstein ties

PRIME MINISTER Keir Starmer said on Monday he would not have appointed Peter Mandelson as UK ambassador to Washington had he known the extent of his links with convicted sex offender Jeffrey Epstein.

This was Starmer’s first public statement since dismissing Mandelson last week. The prime minister is facing questions over his judgement, including from Labour MPs, after initially standing by Mandelson before removing him from the post.

Keep ReadingShow less
Trump

Trump said the suspect had been arrested earlier for 'terrible crimes,' including child sex abuse, grand theft auto and false imprisonment, but was released under the Biden administration because Cuba refused to take him back.

Getty Images

Trump says accused in Dallas motel beheading will face first-degree murder charge

US PRESIDENT Donald Trump has described Chandra Mouli “Bob” Nagamallaiah, the Indian-origin motel manager killed in Dallas, as a “well-respected person” and said the accused will face a first-degree murder charge.

Nagamallaiah, 50, was killed last week at the Downtown Suites motel by co-worker Yordanis Cobos-Martinez, a 37-year-old undocumented Cuban immigrant with a criminal history.

Keep ReadingShow less
Starmer Mandelson

Starmer talks with Mandelson during a welcome reception at the ambassador's residence on February 26, 2025 in Washington, DC.

Getty

Starmer under pressure from party MPs after Mandelson dismissal

PRIME MINISTER Keir Starmer is facing questions within the Labour party after the sacking of US ambassador Peter Mandelson.

Mandelson was removed last week after Bloomberg published emails showing messages of support he sent following Jeffrey Epstein’s conviction for sex offences. The dismissal comes just ahead of US president Donald Trump’s state visit.

Keep ReadingShow less