Police have extended a curfew in central Sri Lanka, as the International Monetary Fund asked the government in Colombo to "restructure" its mounting foreign debt and anti-government protests escalated across the island.
The IMF has requested the financial restructuring so a bailout programme can be finalised.
It came a day after the killing of an anti-government demonstrator triggered international condemnation.
The government promised an investigation into allegations that police had used excessive force to disperse those protesting over rising fuel prices and demanding President Gotabaya Rajapaksa's resignation over the worsening economic crisis.
Sri Lanka is in the grip of its worst downturn since independence in 1948, with regular power cuts, a severe shortage of fuel and other goods and record inflation causing widespread misery.
"I have already initiated an inquiry into the conduct of officers at Rambukkana," police chief Chandana Wickramaratne said as he ordered an indefinite curfew in the area.
The crowd was about to set a diesel tanker alight when officers opened fire to disperse protesters in Rambukkana, 95 kilometres east of the capital, police said in an earlier statement.
In the first fatal clash since anti-government protests broke out this month, at least 29 people including 11 policemen were wounded, officials said.
International concerns
Envoys in Colombo, including those from the US, Britain and Canada, expressed concern over the shootings and called for restraint from all sides as Sri Lanka opens bailout talks with the IMF in Washington.
"A full, transparent investigation is essential and the people's right to peaceful protest must be upheld," US ambassador Julie Chung said.
The British High Commissioner Sarah Hulton said: "I condemn violence in all forms and call for restraint."
And her Canadian counterpart David McKinnon said "those instigating violence must be accountable".
Within hours, police fired tear gas to break up another protest in the south of the island but there were no immediate reports of casualties, officials and residents said.
Police moved to disperse people occupying a main road and holding up traffic in Matara, 160km south of Colombo, residents said.
Protests spread across Sri Lanka against Tuesday's sharp increase in fuel prices and the shortage of diesel and petrol as the government seeks up to $4 billion from the IMF to overcome its balance-of-payments crisis and boost depleted reserves.
Trade unions have called a general strike on Wednesday to protest against the rising living costs.
Public transport fares are set to rise by 35 per cent on Wednesday after the price of diesel rose by nearly 65 per cent the day before. Bread has gone up nearly 30 per cent.
In Colombo, a large crowd has been camped outside the president's seafront office since April 9, demanding the leader step down.
Mr Rajapaksa acknowledged public anger over the ruling family's mismanagement on Monday, after appointing a new Cabinet to try to assuage fury over the crisis.
Sri Lanka's economic meltdown came after the coronavirus pandemic torpedoed vital revenue from tourism and remittances and the government last week announced a default on huge foreign debt.
IMF talks
Sri Lanka opened talks with the IMF in Washington this week after announcing its first default on external borrowings.
"When the IMF determines that a country's debt is not sustainable, the country needs to take steps to restore debt sustainability prior to IMF lending," the fund's country director Masahiro Nozaki said.
"Approval of an IMF-supported programme for Sri Lanka would require adequate assurances that debt sustainability will be restored."
The IMF said talks with Sri Lanka were still at an "early stage," but it was "very concerned" about the economic situation and the hardships suffered by people, especially the poor and vulnerable.
The IMF had previously warned Sri Lanka that its estimated foreign debt of $51bn was unsustainable.
Colombo's existing debt also means the country cannot apply for emergency financing, the fund said.
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
THREE
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UAE squad to face Ireland
Ahmed Raza (captain), Chirag Suri (vice-captain), Rohan Mustafa, Mohammed Usman, Mohammed Boota, Zahoor Khan, Junaid Siddique, Waheed Ahmad, Zawar Farid, CP Rizwaan, Aryan Lakra, Karthik Meiyappan, Alishan Sharafu, Basil Hameed, Kashif Daud, Adithya Shetty, Vriitya Aravind
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
Tips to stay safe during hot weather
- Stay hydrated: Drink plenty of fluids, especially water. Avoid alcohol and caffeine, which can increase dehydration.
- Seek cool environments: Use air conditioning, fans, or visit community spaces with climate control.
- Limit outdoor activities: Avoid strenuous activity during peak heat. If outside, seek shade and wear a wide-brimmed hat.
- Dress appropriately: Wear lightweight, loose and light-coloured clothing to facilitate heat loss.
- Check on vulnerable people: Regularly check in on elderly neighbours, young children and those with health conditions.
- Home adaptations: Use blinds or curtains to block sunlight, avoid using ovens or stoves, and ventilate living spaces during cooler hours.
- Recognise heat illness: Learn the signs of heat exhaustion and heat stroke (dizziness, confusion, rapid pulse, nausea), and seek medical attention if symptoms occur.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Our family matters legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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UAE rugby season
FIXTURES
West Asia Premiership
Dubai Hurricanes v Dubai Knights Eagles
Dubai Tigers v Bahrain
Jebel Ali Dragons v Abu Dhabi Harlequins
UAE Division 1
Dubai Sharks v Dubai Hurricanes II
Al Ain Amblers v Dubai Knights Eagles II
Dubai Tigers II v Abu Dhabi Saracens
Jebel Ali Dragons II v Abu Dhabi Harlequins II
Sharjah Wanderers v Dubai Exiles II
LAST SEASON
West Asia Premiership
Winners – Bahrain
Runners-up – Dubai Exiles
UAE Premiership
Winners – Abu Dhabi Harlequins
Runners-up – Jebel Ali Dragons
Dubai Rugby Sevens
Winners – Dubai Hurricanes
Runners-up – Abu Dhabi Harlequins
UAE Conference
Winners – Dubai Tigers
Runners-up – Al Ain Amblers
The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
UAE currency: the story behind the money in your pockets
INFO
What: DP World Tour Championship
When: November 21-24
Where: Jumeirah Golf Estates, Dubai
Tickets: www.ticketmaster.ae.
Springtime in a Broken Mirror,
Mario Benedetti, Penguin Modern Classics
Know your Camel lingo
The bairaq is a competition for the best herd of 50 camels, named for the banner its winner takes home
Namoos - a word of congratulations reserved for falconry competitions, camel races and camel pageants. It best translates as 'the pride of victory' - and for competitors, it is priceless
Asayel camels - sleek, short-haired hound-like racers
Majahim - chocolate-brown camels that can grow to weigh two tonnes. They were only valued for milk until camel pageantry took off in the 1990s
Millions Street - the thoroughfare where camels are led and where white 4x4s throng throughout the festival