International

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

Published

4 years ago

April 17, 2022

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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International

Earthquake in Afghanistan Kills 8 Members of Same Family

Published

10 hours ago

April 4, 2026

Trends Admin

Earthquake in Afghanistan Kills 8 Members of Same Family

An earthquake in Afghanistan has killed at least eight members of the same family and injured others after striking late on Friday, officials said, deepening the humanitarian toll in a region prone to powerful temblors.

The 5.8‑magnitude earthquake struck at 8:42 p.m. local time (1612 GMT) on Friday, with its epicentre located in Badakhshan Province, according to the U.S. Geological Survey (USGS). The quake occurred at a depth of 186 kilometres (115 miles) beneath the surface, a depth that allowed the shaking to be felt over a wide area, including in the capital Kabul and other surrounding provinces.

Shaking was reported across multiple regions of Afghanistan, with residents describing rooms swaying and items falling from shelves, according to international news agency reports.

In Kabul Province, the Gosfand Dara area was among the most severely affected. Health Ministry spokesman Sharafat Zaman confirmed to AFP that eight members of a single household lost their lives when their home collapsed during the quake. A two‑year‑old child was the lone survivor from the family; the country’s disaster management agency said the boy sustained injuries and was receiving medical care.

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Afghan authorities have not yet detailed whether other deaths or injuries occurred beyond this household in Kabul Province, but tremors were widely felt from the northeast to the national capital and beyond.

Afghanistan sits in a seismically active zone along the Hindu Kush mountain range, where the Eurasian and Indian tectonic plates interact. This makes the region particularly susceptible to strong earthquakes that can cause widespread damage, especially in areas with fragile infrastructure.

In August, a much stronger magnitude‑6.1 earthquake struck eastern Afghanistan, flattening mountainside villages and killing more than 2,200 people, making it one of the country’s deadliest in recent memory. That disaster displaced tens of thousands, destroyed homes, schools and roads, and underscored Afghanistan’s vulnerability to seismic calamities.

The latest tremor serves as a stark reminder of that risk, particularly as communities still recover from past earthquakes amid ongoing economic hardship and limited emergency response capacity.

Humanitarian agencies and local officials are assessing the broader impact of Friday’s quake, and calls are mounting for more resources to support affected families, improve response capabilities, and enhance early warning systems.

Earthquake in Afghanistan Kills 8 Members of Same Family

International

Iran Crisis Escalates as Second US Warplane Crashes in Persian Gulf

Published

12 hours ago

April 4, 2026

Trends Admin

Iran Crisis Escalates as Second US Warplane Crashes in Persian Gulf

The already fragile security situation in the Middle East has taken a dramatic turn following reports that a second U.S. military aircraft has crashed in the Persian Gulf, intensifying tensions between the United States and Iran.

According to U.S. officials cited by The New York Times, a U.S. Air Force A-10 Thunderbolt II, widely known as the Warthog, went down near the Strait of Hormuz. The pilot was successfully rescued, but the exact cause of the crash remains unclear, with early indications suggesting a combination of operational risk and possible hostile engagement.

The incident occurred almost simultaneously with reports that an F-15E Strike Eagle fighter jet was shot down over Iranian territory. Iranian state media claimed responsibility, stating that its air defence systems intercepted the aircraft. U.S. officials have confirmed the loss of the jet, though investigations into the precise circumstances are ongoing.

Rescue operations for the downed F-15E crew are still underway. One crew member has been recovered alive and is receiving medical care, while search efforts continue for the second. The operation has drawn significant military resources, including air and naval support, amid concerns over the safety of personnel operating in hostile territory.

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Iranian state television further escalated tensions by urging civilians to report the whereabouts of the missing U.S. crew member or members, offering a reward for information. Analysts warn that such actions could complicate rescue missions and heighten the risk of further confrontation.

The A-10 aircraft is believed to have been operating in support of these rescue efforts when it crashed, underscoring the опасность of ongoing operations in the region. Reports indicate that U.S. rescue teams have encountered hostile conditions, including potential ground fire, making recovery efforts increasingly challenging.

U.S. President Donald Trump has intensified rhetoric amid the crisis, confirming earlier strikes on Iranian infrastructure, including a highway bridge near Tehran. He warned that Washington is prepared to escalate military action if necessary, while claiming that U.S. operations have significantly weakened Iran’s military capabilities.

The developments have placed renewed focus on the strategic importance of the Strait of Hormuz, a vital global oil transit route through which a significant portion of the world’s energy supply passes. Any disruption to this corridor could trigger major economic последствия, including spikes in global oil prices.

At the same time, the crisis unfolds against the backdrop of a proposed $1.5 trillion U.S. defence budget for fiscal year 2027, fueling debate over increased military spending and its implications for domestic priorities.

Diplomatic efforts to de-escalate tensions appear to have stalled. Iranian officials have dismissed the possibility of negotiations under current conditions, denying reports that Tehran is seeking a ceasefire and maintaining a hardline stance against Washington.

The near-simultaneous loss of two U.S. military aircraft marks a significant escalation in the conflict, raising concerns about a potential broader regional confrontation if tensions continue to rise.

Iran Crisis Escalates as Second US Warplane Crashes in Persian Gulf

International

Iran’s IRGC Threatens Google, Microsoft, Apple as ‘Legitimate Military Targets’

Published

1 day ago

April 3, 2026

Trends Admin

Iran’s Islamic Revolutionary Guard Corps (IRGC)

Iran’s IRGC Threatens Google, Microsoft, Apple as ‘Legitimate Military Targets’

Iran’s Islamic Revolutionary Guard Corps (IRGC) has issued a stark warning to major US technology companies, declaring them legitimate military targets amid intensifying conflict in the Middle East.

The warning, carried by the IRGC-linked Tasnim News Agency, named around 20 American and Western tech firms allegedly involved in intelligence, surveillance, and targeting operations. Companies highlighted include Google, Microsoft, Apple, Meta, Boeing, HP, and Tesla. The IRGC claimed these firms play a central role in identifying and tracking targets through artificial intelligence, cloud infrastructure, and ICT systems, making their facilities subject to attack.

The statement warned that attacks could begin from 8 p.m. local time on Wednesday if Iran continues to experience what Tehran describes as “targeted assassinations” of its leaders and military personnel. Employees and civilians near company offices and data centres were urged to evacuate immediately.

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The threats follow a dramatic escalation in hostilities between Iran and Israel, with the Israel Defense Forces (IDF) reporting more than 230 airstrikes in 24 hours, targeting Iranian military infrastructure. Tehran has accused Israel and the US of also hitting civilian and academic institutions, including Isfahan University of Technology and the Iran University of Science and Technology.

Analysts warn the IRGC’s threats signal a widening battlefield beyond traditional military targets, potentially including commercial tech infrastructure, cloud systems, and communications networks. Such attacks could disrupt internet connectivity, cloud services, financial systems, and regional communications across the Middle East and beyond.

While no confirmed large-scale attacks on these firms have occurred, the announcement raises concerns over the global implications of targeting technology infrastructure in modern conflicts. Experts say such threats highlight how digital and commercial assets are increasingly considered strategic military targets.

Tech companies named in the warning have largely refrained from commenting publicly but are reportedly reviewing security measures and contingency plans to protect staff and critical infrastructure in the region.

The IRGC’s declaration marks a new phase of geopolitical escalation, demonstrating the growing intersection of technology, military operations, and regional instability in the Middle East.