Ranil Wickremesinghe returns as Sri Lanka prime minister to address unrest


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Sri Lanka on Thursday appointed a new prime minister, a move President Gotabaya Rajapaksa hopes will quell weeks of worsening civil unrest in which at least nine people died this week and more than 300 were injured.

Ranil Wickremesinghe, a political veteran who has been prime minister of the island nation five times before, has the daunting task of leading his country through its worst economic crisis since independence.

Economic mismanagement, the Covid-19 pandemic and rising energy costs following Russia's invasion of Ukraine have drained state coffers, meaning Sri Lanka is running low on fuel and essential medicines and having daily power cuts.

Mr Rajapaksa, whose elder brother Mr Wickremesinghe replaced as prime minister, has called nationwide curfews and given security forces sweeping powers to shoot at anyone involved in looting or putting people's lives at risk.

Mahinda Rajapaksa, who resigned on Monday, has gone into hiding on a naval base and the president has warned of the risk of all-out anarchy.

Beleaguered Sri Lankan President Gotabaya Rajapaksa appointed Ranil Wickremesinghe as Sri Lanka's new prime minister on May 12. AFP
Beleaguered Sri Lankan President Gotabaya Rajapaksa appointed Ranil Wickremesinghe as Sri Lanka's new prime minister on May 12. AFP

Ordinary people have grown increasingly frustrated at disruptions to normal life.

"We have hit the bottom economically," said Nimal Jayantha, an autorickshaw driver queuing for petrol earlier on Thursday after the curfew was lifted.

"I don't have the time to do my job. By the time I stay in the fuel queue and get petrol, curfew will be imposed. I will have to go home without any money."

As well as dealing with mass protests, Mr Wickremesinghe must unite a fractured parliament to agree on a way out of a crisis that has seen inflation soar and foreign reserves dwindle.

"He has said from the beginning, parliament needs to come together to provide a solution to the crisis," Dinouk Colombage, media secretary from Mr Wickremesinghe's opposition United National Party, told Reuters.

"He is no stranger to dealing with economic and political challenges, having done so multiple times before."

President Rajapaksa promises sweeping reforms

President Rajapaksa has already promised sweeping reforms as a nationwide protest movement tips the country into turmoil.

The national disaster represents a fall from grace for the Rajapaksa dynasty, a family credited by millions of Sri Lankans for bringing a bloody civil war with Tamil separatists to an end.

In the aftermath of the conflict, which saw hundreds of thousands of civilians killed, both Rajapaksa brothers were accused of war crimes by the UN.

But on Wednesday, the president offered a conciliatory note to millions of protesters who say their families are going hungry amid the sharp economic decline.

"I am working to form a new government this week to control the current situation and prevent the country from falling into anarchy," President Rajapaksa said.

The also said he will also give away much of his powers to parliament and when some normality returns, take steps to abolish the country's powerful executive presidential system.

The embattled president's speech came as authorities sent armoured vehicles and troops into the streets of the capital Colombo on Wednesday. On Monday, pro-government mobs attacked peaceful protesters, triggering a wave of violence across the country.

Security forces have been ordered to shoot those deemed to be participating in the violence, as sporadic acts of arson and vandalism continued despite a strict nationwide curfew that began on Monday evening.

Asela Waidyalankara, a cybersecurity professional, said there was "chaos and crisis and uncertainty everywhere".

He said people expected clarity, but noted the speech was "vague and did not provide any answers".

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What vitamins do we know are beneficial for living in the UAE

Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.

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.”

FIRST TEST SCORES

England 458
South Africa 361 & 119 (36.4 overs)

England won by 211 runs and lead series 1-0

Player of the match: Moeen Ali (England)

 

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The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
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MATCH INFO

Everton 2 Southampton 1
Everton: Walcott (15'), Richarlison (31' )
Southampton: Ings (54')

Man of the match: Theo Walcott (Everton)

FIXTURES

Monday, January 28
Iran v Japan, Hazza bin Zayed Stadium (6pm)

Tuesday, January 29
UAEv Qatar, Mohamed Bin Zayed Stadium (6pm)

Friday, February 1
Final, Zayed Sports City Stadium (6pm)

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Premier League clubs spent £230 million (Dh1.15 billion) on January transfers, the second-highest total for the mid-season window, the Sports Business Group at Deloitte said in a report.

Updated: May 12, 2022, 3:21 PM