<aside> 💡 A massive food and fuel crisis in Sri Lanka is fueling an upsurge of youth and farmer protests across the country. What’s worse is that it’s shaping up to be a blueprint for other poor nations in Asia.
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The people in Sri Lanka are experiencing massive fuel shortage, skyrocketing food and goods prices, and routine power shortages. Massive protests have emerged, and the government is reacting violently, several people have been killed and hundreds more wounded.
With massive debt and economic decline on his heels, Prime Minister Mahinda Rajapaksa, elder brother of President Gotabaya Rajapaksa, resigned from office last May 9, ending their nearly 20 years of dictatorship.
Protester holds Gota Go Home slogan in Colombo
Protests, however, continued despite the new PM Ranil Wickremesinghe swearing into office as he’s seen as someone close to the Rajapaksas and don’t offer the changes the activists demand.
Last week, Colombo officially defaulted on its debt to the World Bank and asked the IMF for a US$5.4 billion bailout. The IMF then forced Sri Lanka to take on austerity measures including budget cuts for social services, revision of taxes in exchange for more loans.
With massive debt distress being pointed as the major culprit of the current crisis, what’s happening in Colombo may spell a blueprint for similarly debt-distressed nations.
Several other countries, including Nigeria, India, Kazakhstan, Egypt, and Pakistan are highly likely to spiral down in the same way due to their large food inflation as well as increased debt servicing in the past 2 years.
“Gota Go Home” became the resounding call of the people’s actions since early 2022. The demand that Gota and his family steps down is central to these widespread unrest in Colombo and elsewhere.
Massive protests have emerged in the streets of Colombo and other major centers of Sri Lanka, estimated to have peaked at tens of thousands. The massive actions have started in early May as food, fuel, and medicine shortages, including 13-hour scheduled power shortages, disrupted the lives of most Sri Lankans.
Rajapaksa home torched by protesters
At the eve of the Rajapaksa resignation, protests from rural sectors as well as opposition forces merged in Colombo at the doorsteps of the PM. Rallying people were violently dispersed by over 20,000 so-called hired thugs and thousands of police forces.
Nine people died in what amounted to a violent, state-initiated crackdown. At least 78 persons were sent to the hospital, with 200 more injured. Protesters set the PM's home of origin on fire in response, and Rajapaksa needed to be rescued by the Sri Lankan military to escape.
Despite the new PM, protests continue in the capital and elsewhere as the crisis continues to put the lives and livelihood of the people of Sri Lanka in peril.
<aside> 📢 As of June 4, food prices have reached an inflection point of 133% increase compared to the year before. A man has reportedly died in a queue for fuel as government rations supply to poor population.
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For months since the end of 2021, Sri Lankans have been forced to wait in long lines to buy essentials such as medicines, fuel, cooking gas and food.
In January, headline inflation for food has reached 21%, including vegetables, rice and green chilies.
In February, rice prices have jumped to 500 rupees (USD 1.40) a kilo. Milk powder, including baby milk, have skyrocketed to 790 rupees for 400 grams.