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How war in Ukraine turned Sri Lanka’s economic crisis into a calamity

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4 years ago

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hoppers buy groceries at Wellawatte Market in Colombo, Sri Lanka, on April 12, as the country warned of an unprecedented default and halted payments on its foreign debt

Life for Hasun Peiris began to unravel a year ago under the pull of powerful forces he didn’t understand.

Climbing food prices drained the 32-year-old woodcutter’s savings, and his family sold their truck. Hunger began to gnaw at their bellies, and they pawned off their gold.

Then, after war erupted thousands of miles away in Ukraine, diesel grew more and more scarce in Sri Lanka, leading to daily power cuts starting last month. Now, Peiris has been forced to scale back his lumber shipments — and his diet. What money he has goes to buying eggs for his pregnant wife.

“I can’t remember the last time I ate chicken or coconut milk,” Peiris said, sitting inside his half-finished house while his five employees idly sorted matchwood in the yard. It was another afternoon wasted, with no electricity or diesel to power his tools and make a living. “I’m afraid,” he said. “I don’t know how to continue.”

Sri Lanka is mired in an unprecedented economic crisis brought on by mostly domestic factors: Years of foreign-debt-fueled government spending, badly timed tax cuts, policies that hurt crop yields and a precipitous drop in tourism during the coronavirus pandemic have hollowed out its foreign reserves.

But Sri Lanka’s teetering finances were dealt another blow this year when war in Europe sent global fuel and food prices surging, turning the small country’s uphill economic struggle into something insurmountable.

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Sir Lanka said Tuesday it needed to suspend international debt payments to save its dwindling dollar reserves for importing fuel and food, both of which are in short supply here, contributing to a devastating inflationary spiral. Over the past six months, central bank data shows, market prices for rice and wheat have doubled.

Diesel prices have shot up 60 percent, leading to widespread shortages and blackouts that have fanned protests across the country demanding President Gotabaya Rajapaksa step down.

“Sri Lanka would be in crisis even if you didn’t have a war in Ukraine, but it’s compounding everything,” said Alan Keenan, an analyst at the International Crisis Group consultancy. “This is the Ukraine effect: a credit line for fuel you thought could last two months now lasts one. Even if you get a bailout, you’re buying less food, less fuel, less medicine.”

“Now,” Keenan added, “is a terrible time to be crashing your economy.”

Last week, the United Nations Food and Agriculture Organization warned that global food prices had risen to the highest level since it began tracking them in 1990, partly due to the war in Ukraine, a major wheat producer. Inflation, the agency’s chief said, will impose “extraordinary costs on global consumers, particularly the poorest.”

As Sri Lanka’s foreign currency reserves fell dangerously in February, the country negotiated a $500 million credit line with India to import oil, which not only powers transportation and industry across the island but also accounts for 40 percent of its electricity generation. That credit line will already be exhausted by this month, said finance minister Ali Sabry, who is seeking more emergency financing from India and other governments.

“Our import bill for essential fuel has almost doubled, particularly with the unfortunate situation in Ukraine,” Sabry said in an interview this week before his ministry announced it would default on nearly $50 billion in foreign loans to prioritize imports.

“Wheat prices have gone up. Freight prices have gone up. It’s all affecting our reserves in a big way,” he said. “Even the United States has high inflation. Everybody is suffering, more or less.”

Growing protests

So far, Sri Lanka’s protests have been mostly made up of young, middle-class professionals who grew up in a decade of relative prosperity, as the nation emerged from decades of civil war, expanded its manufacturing and white-collar jobs, and looked poised to become the next Asian success story.

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In the past year, these workers have seen their purchasing power and their middle-class futures evaporate. Families gather nightly in places such as the downtown waterfront of the capital, Colombo, to chant slogans against Rajapaska and honk their horns in protest. The atmosphere is festive, but frustration is mounting.

Jay Tissera, a 28-year old graphic designer, took a break from protesting outside the presidential office on a recent afternoon and smoked with his friends — a computer programmer and a journalist — in the shadow of a seaside tower that boasted $1.4 million apartments with sweeping views of the Indian Ocean and interiors designed by a French architect.

“They point to this as development,” Tissera said, pointing up. “But you see, for years the people haven’t developed.”

So far, these demonstrations have been largely peaceful, but officials in both the ruling party and the opposition are worried about where they will lead. They fear a deeper rage could erupt if the poor, who are working overtime just to survive and have not joined the protests en masse, are driven to the streets by hunger.

Eran Wickramaratne, an opposition politician and former state minister of finance, said the government needed to import more food immediately. Last week, India began shipping 40,000 tons of rice to Sri Lanka. But Wickramaratne said it wasn’t enough.

“Those protests are now calm and collected but they might quickly take a different direction,” he said. Wickramaratne shook his head, then waved away the thought. “I don’t even want to imagine it,” he said.

Anger and despair

For many across the capital and on its outskirts, desperation is already setting in.

Outside a busy hospital, Pasinda Fernando, a young pharmacist, confessed with shame and anger that he was beginning to hoard heart medication for his most loyal customers because of a nationwide shortage in imported medicines. “I’m trying my best to reduce prices but the customers are suffering,” he said. “Only when we have a change in government will things get better.”

In another neighborhood, at the front of a line for gasoline that stretched three blocks, K.P. Wimalavathrne, a 61-year old rickshaw driver, said he was eating nothing except five balls of rice noodles a day and sleeping in his back seat. With so much of his time spent waiting for gasoline, “how else can I make money?” he asked, drawing murmurs of sympathy from the crowd of sweaty rickshaw drivers, all of whom had stood for more than two hours to fill up a small jerry can or soda bottle.

Down a coastal road, a group of fishermen were fuming at their elected leader about government officials sneaking into their diesel depot at night to fill up their own vehicles.

Fuel was practically out of reach already, said one of the men, Joseph Anthony Silva. The smaller skiffs lining the pier sit unused, with kerosene unobtainable. Ten-day fishing trips in the bigger boats have been cut to three days because diesel is so expensive, he said. Three meals a day have been cut to two.

Silva fretted about how to feed his family of five and pay loan sharks who he, and other fishermen, are increasingly indebted to as the community has floundered over the past year. Silva owes about $750, or several months’ income, at 20 percent interest, he calculated.

“The loan sharks’ business is so good they’re now open 24 hours a day,” interjected Linton Fernando, another fisherman with growing debts. “They come to our doors and shame us by taking away furniture and gold.”

If fuel and food prices don’t fall, the two men agreed, they would be ruined. As they spoke, a train emerged from a dense palm grove and rumbled across the inlet. Silva nodded toward the barreling locomotive. His mood darkened, his anger folded into despair.

“Soon, there will be no way out of debt,” he said. “No way except death.”

THE WASHINGTON POST

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Mother of Henry Nowak’s Killer Jailed for Three Years for Removing Murder Weapon

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8 minutes ago

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July 18, 2026

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Mother of Henry Nowak's Killer Jailed for Three Years for Removing Murder Weapon

Mother of Henry Nowak’s Killer Jailed for Three Years for Removing Murder Weapon

The mother of a man convicted of murdering an 18-year-old university student has been sentenced to three years in prison for removing the knife used in the killing from the scene of the crime. Kiran Kaur, 53, of St Denys Road, Southampton, was found guilty at Southampton Crown Court in May of assisting an offender after she took possession of the 21cm blade used by her son, Vickrum Digwa, to fatally stab Henry Nowak on 3 December 2025. The sentencing took place on 17 July 2026, with Judge William Mousley KC presiding.

Henry Nowak, an 18-year-old finance student from Essex, was walking home from a night out in Southampton when he was attacked by Digwa. The altercation began over a mobile phone, with Digwa using a ceremonial-style knife he carried in a cross-body sheath over his clothing. He claimed he carried it in keeping with the traditions of the Nihang warrior sect within Sikhism, though many Sikhs dispute descriptions of the murder weapon as a kirpan, saying a kirpan is a small ceremonial blade worn as an article of faith. Following the stabbing, Digwa lied to police, falsely claiming he had been the victim of a racist attack and that Nowak had knocked off his turban. This false narrative led to a shocking sequence of events: police officers handcuffed the dying teenager at the scene while he repeatedly pleaded that he had been stabbed. Bodycam footage released by the police showed Nowak telling officers multiple times that “I’ve been stabbed” and “I can’t breathe”. It took officers eight minutes to discover the fatal wound to his heart, and Nowak died “terrified” and “alone”. The case sparked national outrage, protests across Southampton, and accusations of “two-tier policing”.

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In the immediate aftermath of the killing, Digwa handed the murder weapon to his mother. Instead of challenging her son or encouraging him to do the right thing, Kaur took the knife back to the family home on St Denys Road in Southampton and placed it among a larger collection of ceremonial and other weapons in her son’s bedroom. The weapon was not recovered by police until seven days after the attack, severely hampering the investigation. Judge Mousley told Kaur during sentencing that a “responsible parent would have challenged their son” and asked their child to “do the right thing”. He noted that by hiding the knife among other weapons, her actions “helped to conceal what it had been used for” and “added to your son’s pretence that he had done nothing wrong and that he was the victim”. He acknowledged that Kaur was unlikely to reoffend and that her motive was “mistakenly, to protect your son rather than for any personal gain”, but ruled that the seriousness of the offence required a custodial sentence to deter others.

Prosecutor Nicholas Lobbenberg described Kaur’s actions as “criminality of the highest order” and said her role was “crucial” in removing the murder weapon from the scene, contributing to Henry dying “terrified, alone and disbelieved”. Defence barrister Mark Watson argued that Kaur’s actions were a “spontaneous act carried out in a matter of moments” driven by an “instinctive desire to protect her child”, adding that she was “equally misled” by her son’s lies. Kaur, who appeared emotional in the dock and required a Punjabi interpreter, dabbed her eyes with a tissue as she was led away to begin her sentence.

Vickrum Digwa, 23, was sentenced to life imprisonment with a minimum term of 21 years on 1 June 2026 for the murder of Henry Nowak. His sentence was later referred to the Court of Appeal by the Solicitor General as potentially “unduly lenient”. It has also been confirmed that Digwa is seeking permission to appeal against his conviction and sentence. Following Kaur’s sentencing, Kelly Newman of the Crown Prosecution Service stated: “Those who seek to help murderers evade justice should be in no doubt that they too will be held accountable for their actions”.

An Independent Office for Police Conduct investigation into the police response remains ongoing, with two officers under investigation for potential gross misconduct, including failures to realise Henry needed urgent medical attention and the decision to arrest and handcuff him instead of providing first aid. Hampshire Police have apologised to the Nowak family. A full inquest into Henry Nowak’s death will be held at Winchester Coroner’s Court on 20 September 2027, examining whether any “act or omission by a police officer” caused or contributed to his death. Separately, Digwa, his father Moga Singh, 52, and his brother Gurpreet Digwa, 27, have pleaded not guilty to multiple weapons charges related to a large collection of weapons found at the family home, including machetes, swords, knuckledusters, and other offensive weapons.

Mother of Henry Nowak’s Killer Jailed for Three Years for Removing Murder Weapon

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US Approves $1.96B Precision Weapons Sale to Saudi Arabia Amid Iran Conflict

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2 days ago

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July 16, 2026

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US Approves $1.96B Precision Weapons Sale to Saudi Arabia Amid Iran Conflict

US Approves $1.96B Precision Weapons Sale to Saudi Arabia Amid Iran Conflict

The United States has approved a proposed weapons sale worth nearly $2 billion** to Saudi Arabia, a move aimed at strengthening the kingdom’s air defence capabilities amid heightened tensions across the Middle East. The US State Department announced on July 15, 2026, that it had authorised the possible sale of military equipment valued at approximately **$1.96 billion, including up to 20,000 Advanced Precision Kill Weapon Systems (APKWS-II) and related support equipment . The announcement comes as security concerns continue to mount in the region, with renewed hostilities between the United States and Iran and escalating tensions between Saudi Arabia and Yemen’s Iran-backed Houthi rebels . According to the State Department, the proposed sale is intended to improve Saudi Arabia’s ability to counter current and emerging threats, enhance the security of its territory, and increase military interoperability with the United States and allied forces .

The proposed package includes 10,000 air-to-air guidance sections and 10,000 air-to-ground guidance sections for the Advanced Precision Kill Weapon System II . The equipment also includes LAU-131 rocket launchers, Mk-152 high-explosive warheads, Mk66 rocket motors, proximity fuzes, practice warheads, spare and repair parts, technical documentation, training equipment, and logistics support services . The APKWS-II is not a missile in the traditional sense. Rather, it is a laser-guidance kit, built by BAE Systems, that converts standard 70mm Hydra unguided rockets into precision-guided weapons . This conversion matters because it takes a rocket that would otherwise fly in a straight, unguided line and gives it accuracy rivaling far more expensive missiles, all while keeping the unit cost somewhere between $15,000 and $22,000 . By comparison, a single AIM-120 AMRAAM air-to-air missile costs approximately $1 million**, while an AIM-9X Sidewinder costs about **$450,000 . The affordability of APKWS-II has turned it into the US military’s weapon of choice for a very specific and increasingly common problem: shooting down cheap, one-way attack drones and low-end cruise missiles without burning through interceptors that cost fifty or a hundred times more than the target they are destroying . According to BAE Systems, the APKWS-II has a maximum effective range of approximately 6.5 kilometres when fired from helicopters and up to 14 kilometres from fixed-wing aircraft, achieving an accuracy of roughly two metres from the designated target . Saudi Arabia is expected to deploy the system on its AH-64E Apache attack helicopters and F-15SA fighter jets .

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The approval comes amid escalating military exchanges across the Middle East. The Iran war began in February 2026 following coordinated US and Israeli strikes on Iran’s nuclear facilities, missile infrastructure, and senior military leadership . Iran responded with sustained waves of ballistic missiles, cruise missiles, and one-way attack drones targeting Israel as well as military infrastructure across the Gulf, including Saudi Arabia . The arms sale also follows a series of Houthi attacks on Saudi territory. On July 13, 2026, the Houthis launched missiles at Abha International Airport in southern Saudi Arabia after the Yemeni government struck Sanaa airport in an attempt to divert a flight carrying a Houthi delegation returning from the funeral of Iran’s Supreme Leader . The Houthis blamed Riyadh for the attack, raising fears of renewed conflict . Just two days before the arms approval, Saudi Arabia said its air defences intercepted ballistic missiles launched by Yemen’s Houthi militia toward the kingdom’s southern regions . The kingdom has spent years fighting Houthi rebels across its southern border, absorbing repeated drone and missile attacks aimed at its territory . This latest request builds directly on a much smaller purchase Saudi Arabia made in March 2025, when the State Department approved a $100 million sale covering 2,000 APKWS-II guidance kits . The jump from 2,000 units to a potential 20,000 signals Saudi Arabia is moving from testing the system in limited numbers toward building a large, sustained stockpile meant to last through years of continued regional tension .

The State Department stated that the proposed sale would “support the foreign policy and national security objectives of the United States by improving the security of a Major non-NATO Ally that is a force for political stability and economic progress in the Gulf Region” . Officials emphasised that the transaction would enhance Saudi Arabia’s ability to deter current and future threats while improving interoperability with US, regional, and NATO forces . The principal contractor for the deal is BAE Systems, based in Nashua, New Hampshire . Implementation will require the assignment of 15 additional US government and 15 US contractor representatives to Saudi Arabia for an extended period to support program and technical reviews, training, and maintenance support . The proposed sale has been forwarded to the US Congress for review, a mandatory step before the transaction can be finalised . Congress has the authority to object to such sales, although major defence deals involving longstanding US allies are often approved. As of July 16, 2026, no congressional leaders or committees have filed formal objections or joint resolutions of disapproval . The State Department noted that the proposed sale “will not alter the basic military balance in the region” .

In a separate move, the State Department also authorised a $484 million Foreign Military Sale to Kuwait for C-17 Sustainment and related equipment . The Kuwait package includes aircraft components, parts and accessories, modification and support equipment, spare and repair parts, ground handling equipment, communications equipment, software support, technical documentation, training, and logistics services . The State Department said Kuwait’s C-17 fleet “directly support[s] US and coalition operations around the world,” underscoring the aircraft’s role in Washington’s military operations .

US Approves $1.96B Precision Weapons Sale to Saudi Arabia Amid Iran Conflict

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Trump unveils plan for US control of Strait of Hormuz, seeks payment for security

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5 days ago

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July 13, 2026

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Trump unveils plan for US control of Strait of Hormuz, seeks payment for security
US President Donald Trump

Trump unveils plan for US control of Strait of Hormuz, seeks payment for security

US President Donald Trump has announced plans for the United States to assume control of the strategically important Strait of Hormuz, declaring that Washington should be compensated for protecting one of the world’s busiest maritime trade routes as tensions with Iran continue to escalate.

Speaking during a telephone interview with Fox News’ Fox & Friends, Trump said the US would become the “guardian” of the Strait of Hormuz and ensure that the critical shipping lane remains open for international commerce.

“We’re going to keep the strait, and we’ll probably run it. We’ll become the guardian of the strait. Maybe we’ll call it the guardian angel of the strait. And we should be reimbursed for that,” Trump said.

The US president argued that countries benefiting from the security of the waterway should contribute financially to its protection.

“We’re going to guard it. We’re going to get paid for guarding it—a lot of money. We’re going to be reimbursed because the other nations are very wealthy. They’re on our side, and we can’t be expected to do that for nothing,” he added.

Trump later expanded on the proposal, suggesting that commercial cargo passing through the Strait of Hormuz could be subject to a 20 per cent transit charge to offset the cost of US security operations in the region.

His remarks came amid a sharp deterioration in relations between Washington and Tehran, following renewed military exchanges that have heightened fears of a wider regional conflict.

Iran recently announced the closure of the Strait of Hormuz, citing security concerns after a series of missile and drone strikes involving Iranian and US forces.

Tehran said commercial shipping through the strategic waterway would remain suspended until what it described as the restoration of “stability and calm.”

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Trump accused Iran of reneging on previous agreements designed to keep the waterway open for international navigation.

“We had a deal. It was a done deal, and then they broke it. They always break it. We’ve had 10 deals with these people, and so we’re just going to hit them very hard,” he said.

Meanwhile, Iran’s Islamic Revolutionary Guard Corps (IRGC) insisted that the only way to restore normal maritime traffic through the Strait of Hormuz is for the United States to halt its military operations in the Gulf.

The Iranian military warned that continued US intervention could further destabilise the region and disrupt global oil and gas supplies.

The latest confrontation follows several days of missile and drone attacks between the two countries, with Iran claiming responsibility for strikes on US military installations in the Gulf, while Washington launched retaliatory attacks on Iranian military targets.

The renewed hostilities have effectively undermined a temporary understanding reportedly reached between the two countries last month to reopen the Strait of Hormuz and reduce military tensions while diplomatic negotiations continued.

The Strait of Hormuz is regarded as one of the world’s most strategically significant maritime chokepoints, linking the Persian Gulf with the Gulf of Oman and the Arabian Sea.

An estimated 20 per cent of global seaborne crude oil and a substantial share of the world’s liquefied natural gas exports pass through the narrow waterway every day, making it indispensable to global energy markets.

Major oil-exporting countries, including Saudi Arabia, Iraq, Kuwait, Qatar and the United Arab Emirates, rely heavily on the route to transport crude oil and natural gas to international markets.

The renewed tensions have already sent global oil prices higher as investors worry that prolonged disruption of shipping through the Strait of Hormuz could tighten energy supplies, increase transportation costs and fuel inflation worldwide.

Trump’s proposal has also generated international legal debate, with maritime law experts questioning whether any nation can unilaterally assume control of or impose transit charges on an international waterway governed by international maritime law.

Diplomatic observers warn that any attempt to enforce such a policy could further complicate already fragile relations in the Middle East and heighten geopolitical risks in one of the world’s most volatile regions.

Governments, energy companies and international shipping operators are expected to closely monitor developments as the security situation in the Gulf continues to evolve.

Trump unveils plan for US control of Strait of Hormuz, seeks payment for security

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