Sri Lankan president admits mistakes led to economic crisis
Colombo(AP): Sri Lanka's president acknowledged Monday that he made mistakes that led to the country's worst economic crisis in decades and pledged to correct them.
President Gotabaya Rajapaksa made the admission while speaking to 17 new Cabinet ministers he appointed Monday as he and his powerful family seek to resolve a political crisis resulting from the country's dire economic state.
Sri Lanka is on the brink of bankruptcy, with nearly USD 7 billion of its total USD 25 billion in foreign debt due for repayment this year. A severe shortage of foreign exchange means the country lacks money to buy imported goods.
People have endured months of shortages of essentials like food, cooking gas, fuel and medicine, lining up for hours to buy the very limited stocks available.
During the last two and a half years we have had vast challenges. The COVID-19 pandemic, as well as the debt burden, and some mistakes on our part, Rajapaksa said.
They need to be rectified. We have to correct them and move forward. We need to regain the trust of the people.
He said the government should have approached the International Monetary Fund early on for help in facing the impending debt crisis and should not have banned chemical fertilizer in an attempt to make Sri Lankan agriculture fully organic. Critics say the ban on imported fertilizer was aimed at conserving the country's declining foreign exchange holdings and badly hurt farmers.
The government is also blamed for taking out large loans for infrastructure projects which have not brought in any money.
Today, people are under immense pressure due to this economic crisis. I deeply regret this situation," Rajapaksa said, adding that the pain, discomfort and anger displayed by people forced to wait in long lines to get essential items at high prices is justified.
The Cabinet appointments follow weeks of protests over shortages of fuel and food and demands that Rajapaksa, his politically powerful family and his government resign.
Much public anger has been directed at Rajapaksa and his elder brother, Prime Minister Mahinda Rajapaksa. They head an influential clan that has held power for most of the past two decades.
Thousands of protesters occupied the entrance to the president's office for a 10th day on Monday.
The president and prime minister remain in office, but some other relatives lost their Cabinet seats in what was seen as an attempt to pacify the protesters without giving up the family's hold on power.
Many senior politicians and those facing corruption allegations were excluded from the new Cabinet in line with calls for a younger administration, though the finance and foreign affairs ministers retained their positions to assist with an economic recovery.
Most of the Cabinet resigned on April 3 after protests erupted across the country and demonstrators stormed and vandalized the homes of some Cabinet ministers.
Opposition parties rejected an offer by President Rajapaksa to form a unity government with him and his brother remaining in power. Opposition parties have failed, meanwhile, to gain a parliamentary majority.
Last week, the government said it was suspending repayment of foreign loans pending talks with the International Monetary Fund. Finance Minister Ali Sabry and officials left for talks with the IMF on Sunday. The IMF and World Bank are holding annual meetings in Washington this week.
Sri Lanka has also turned to China and India for emergency loans to buy food and fuel.
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India & Israel elevate ties to special strategic partnership, vow to soon conclude free trade deal
Jerusalem (PTI): India and Israel on Thursday elevated their "time-tested" relationship to a special strategic partnership and agreed to soon firm up a "mutually beneficial" free trade deal even as Prime Minister Narendra Modi strongly backed the Gaza peace initiative, asserting that humanity must never become a victim of conflict.
Following talks between Modi and his Israeli counterpart Benjamin Netanyahu, the two sides inked a plethora of agreements to expand cooperation in areas of trade, agriculture, energy, cyberspace and digital payment.
India and Israel also vowed to expand their already close defence partnership by working towards joint development and joint production of military hardware under the framework of the transfer of technologies.
In his media statement, Modi said India's security interest is linked to peace and stability in the Middle East, adding that New Delhi fully supports the Gaza Peace Initiative.
"India's stance is clear: humanity must never become a victim of conflict. A path to peace has been created through the Gaza Peace Plan. India has fully supported these efforts," he said.
"In the future as well, we will continue dialogue and cooperation with all countries," he said.
PM Modi landed in Israel on Wednesday on a two-day visit. It is his second visit to Israel in nine years.
In his remarks, the prime minister said India and Israel have a united view that there is no place for terrorism in the world and both sides stand shoulder-to-shoulder in countering terrorism and its supporters.
"Our relationship is founded on the strong bedrock of deep trust, shared democratic values, and human sensitivities. Our bond has stood the test of every trial of time," he said.
"Today, we have taken the historic decision to elevate our time-tested partnership to the status of a 'Special Strategic Partnership'," he said.
The prime minister also announced the establishment of an India-Israel critical and emerging technologies partnership to impart a new momentum for cooperation in areas of artificial intelligence, quantum, and critical minerals. "I am pleased that an agreement has been reached for the use of UPI in Israel," he said.
The prime minister, referring to the threat of terrorism, said India and Israel will continue to confront the menace unitedly.
"India and Israel are completely clear that there is no place for terrorism in the world. In any form, in any expression, terrorism cannot be accepted," he said.
"We have stood shoulder-to-shoulder in opposing terrorism and its supporters, and we will continue to do so," he added.
India and Israel also discussed the implementation of the India-Middle East Europe Economic Corridor (IMEC) and cooperation under the framework of I2U2 (India-Israel-UAE-USA).
