Friday, April 01, 2022

UK: Conversion therapy ban without trans and non-binary people is 'not a real ban'

In response to news of the UK government’s ban on ‘conversion therapy’ to go ahead but not cover trans or non-binary people, Lydia Parker, Amnesty International UK’s Programme Director, said:

“Conversion therapy is an abhorrent practice which tells LGBTI+ people they are ‘sick’ and ‘broken’.

“Such so-called ‘therapy’ can constitute torture or cruel, inhuman and degrading treatment and should be stamped out now with no excuses.

“A ban on conversion therapy that is not LGBTI+ inclusive is not a real ban on conversion therapy. Trans and non-binary people also need to be protected from this dangerous practice.

“Conversion therapy has no place anywhere in our society and we will continue to press for comprehensive bans in all parts of the UK.”


Minister met lobbyists ahead of conversion therapy U-turn, documents reveal

Revealed: Groups linked to anti-trans lobbying met Kemi Badenoch after privately urging equalities minister to drop conversion therapy ban

Adam Ramsay
Adam Bychawski
1 April 2022

Activists hand in a letter to the Cabinet Office calling for a ban on conversion therapy, 2021 |
ZUMA Press Inc / Alamy Stock Photo

A group that campaigns against trans rights has claimed credit for a government U-turn on ‘conversion therapy’ – as documents released to openDemocracy reveal its behind-the-scenes lobbying.

The LGB Alliance says it met with government ministers Mike Freer and Baroness Stedman-Scott in January this year to express “concerns” about the outlawing of the practice. Ministers had been pledging to ban it since 2018 – but, last night, ITV News revealed that the government now intends to exempt transgender people from protections.

Papers released to openDemocracy under the Freedom of Information Act show the LGB Alliance had earlier met with the equalities minister Kemi Badenoch in July 2020 after writing to her to argue against a ban on conversion therapy. But the government refused to disclose who was there, say what was discussed, or provide papers from the meeting.

Addressing Badenoch ahead of the meeting, the charity claimed that educational material relating to gender identity was “confusing” and said allowing trans people to self-identify was “harmful”.

In a separate briefing two months later, the organisation suggested to Badenoch that it should not be considered “conversion therapy” for psychotherapists to “examine” the “reasons” for young people being trans – an apparent precursor to the government’s decision to exempt anti-trans conversion therapy from its ban.

The LGB Alliance was founded in 2019 to oppose what it calls “gender ideology”, and has been called a ‘hate group’ by figures including Pride in London, Green Party co-leader Carla Denyer and the gay commentator Owen Jones. The organisation denies being transphobic but it has referred to trans women as “males identifying as females”. It was condemned by other LGBTIQ+ charities as “divisive and polarising”, and came under fire last year for apparently comparing LGBTIQ+ inclusion to bestiality.

Its founder Bev Jackson said in 2020 that she was “building an organisation to challenge the dominance of those who promote the damaging theory of gender identity”, while the organisation has similarly claimed that lesbian, gay and bisexual people’s “interests” are “under threat” from “attempts to introduce confusion between biological sex and the notion of gender”.

openDemocracy analysis of data released by the government additionally shows that the equalities minister had at least three further meetings with people or groups linked to anti-trans campaigning in the two years preceding the U-turn.

NHS England, in line with other expert bodies, has described all forms of conversion ‘therapy’ as ‘harmful’

Badenoch also met with Keira Bell and Paul Conrathe in May 2021 “to discuss how the proposed conversion therapy bill will effect [sic] under 18s questioning their gender,” according to government documents. Bell has made headlines as a rare example of someone who has ‘detransitioned’, and has campaigned to restrict the ability of other young people to access puberty blocking drugs. Conrathe is a lawyer and as well as working on Bell’s case against the clinic that treated her has also previously worked for anti-abortion groups. Twenty years ago, he opposed the equalisation of the age of consent for homosexual activity.

Finally, data released by the government also shows that ministers met with academic Anastassis Spiliadis last summer to discuss the impact of a ban on conversion therapy. Spiliadis’ research has been endorsed by the group Transgender Trend, which today hailed the conversion therapy U-turn and has previously been criticised by LGBTIQ+ charity Stonewall for “trying to spread damaging myths, panic and confusion” among young people.

Ministers also met with groups supportive of trans rights and the banning of conversion therapy, including Stonewall, the Conversion Therapy Surivors Group and the UK Council for Psychotherapy.

NHS England, in line with other expert bodies, has described all forms of conversion ‘therapy’ as ‘harmful’. The practice (also called ‘reparative therapy’ or ‘gay cure therapy’) refers to any therapeutic approach or view that assumes one sexual orientation or gender identity is innately preferable to another, and attempts to change someone’s sexual orientation or gender identity on that basis. In practice, this means changing people’s orientation or identity to cisgender heterosexuality.
Trans people twice as likely to be targeted

Stonewall CEO Nancy Kelley said: “After years of delay, in which LGBTQIA+ people across the UK have continued to suffer as a consequence of conversion practices, it is devastating that the UK government is breaking its promise to implement an inclusive ban that protects all our communities from abuse. Trans people are nearly twice as likely to be targeted by conversion practices and any ban that is not trans-inclusive abandons those that are most at risk.

“Countries around the world are acting to ban this homophobic, biphobic and transphobic abuse, and it is shameful that the UK government is choosing which LGBTQIA+ people deserve protection. We call on the governments of Wales and Scotland to protect all our communities and make good on their promise to end conversion practices in their own jurisdictions, and on the government of the UK to change its stance on protecting trans people.”

LGBTQ rights campaigner Peter Tatchell told openDemocracy: “It seems very likely that the government was influenced by these trans-hostile lobbyists to abandon its original intention for a comprehensive trans-inclusive prohibition on conversion practices.”

He added: “10 Downing Street has been captured by the anti-trans lobby. This calls into question the prime minister’s commitment to the equality laws that explicitly protect trans people.”


Explainer: What is ‘conversion therapy’?

The UK government has reportedly stepped back from including protections for trans people in its banning of conversion therapy.

 Here's what you need to know

Kerry CullinanKhatondi Soita Wepukhulu
1 April 2022, 

Illustration: Inge Snip


'Conversion therapy’ claims to change a person’s sexual orientation, gender identity or gender expression.

The UK had pledged to outlaw it in England and Wales – but, on 31 March 2022, was reported to have stepped back from including protections for trans people. Elsewhere, Brazil, Ecuador, Germany and Malta have banned these practices, which range from ‘talk therapy’ to physical ‘treatments’. Several US states have done the same.

International health and human rights experts have condemned these treatments as “harmful” and “ineffective”. But they remain common in many places globally. A six-month investigation by openDemocracy in 2021 revealed that health centres in Uganda, Kenya and Tanzania – including some funded by foreign aid money – had offered or referred undercover reporters to providers of such anti-gay ‘therapy’.

If you haven’t heard of ‘conversion therapy’ before, here’s what you need to know.

What is conversion therapy?

The phrase ‘conversion therapy’ – sometimes also called ‘reparative therapy’ or ‘gay cure’ – is used to describe a range of practices to change, suppress or divert a person’s sexual orientation or gender identity. Medical experts say the basic concept is meaningless: LGBTIQ identities are not diseases, and cannot be ‘changed’ via any psychological or physical ‘therapy’.

The American Academy of Child and Adolescent Psychiatry says there is “no evidence to support the application of any ‘therapeutic intervention’ operating under the premise that a specific sexual orientation, gender identity, and/or gender expression is pathological”, and ‘conversion therapies’ “lack scientific credibility and clinical utility”.
Is it always physically violent?

No. You might have heard about the use of electric shocks, but ‘conversion therapy’ practices vary widely. They range from ‘talk therapy’, involving counselling, psychotherapy and faith-based interventions such as prayer, to physical ‘aversion therapy’, where the person is simultaneously subjected to a distressing sensation and a stimulus they associate with their sexuality or gender identity. Torture is also used, including so-called corrective rape.
Is it new?

While homosexuality has been stigmatised over time in many societies, Western scientists began to see it as a medical ‘disorder’ that could be ‘reversed’ in the late 19th century. Since then, LGBTIQ people have been subjected to many experiments. In the 1940s, homosexuality and ‘gender incongruence’ were classified as mental illnesses by Western medical associations, which spurred more efforts to find ‘cures’.

The rise of the gay rights movement in the 1960s and ’70s challenged these notions and practices, and the American Psychiatric Association (APA) removed homosexuality from its lists of mental illnesses in 1973. According to a 2020 report by the International Lesbian, Gay, Bisexual, Trans and Intersex Association (ILGA), more than 60 medical associations globally have condemned ‘conversion therapy’.
Does it work?

No. Numerous medical groups, including the APA, have questioned the efficacy and evidence for such ‘treatments’. The APA says that attempts to change an individual’s sexual orientation “may occasionally result in temporary behavioural changes for some […] for limited periods of time, but that such changes are often accompanied by depression, anxiety, and other symptoms”. For others, no changes happen.
Who provides ‘conversion therapy’?

In some countries, public and private medical establishments still provide ‘conversion therapy’ – as evidenced by openDemocracy’s investigation. In others, religious organisations have largely taken over this role, offering ‘therapy’ that usually involves prayer – often in publicly humiliating ways – as well as ‘counselling’.
Who undergoes ‘conversion therapy’?

Lesbian, gay, bisexual, transgender, intersex and queer (LGBTIQ) people undergo ‘conversion therapy’ practices in an attempt to modify, suppress or change their sexual orientation or gender identity to cis gender heterosexuality.
Are people forced to undergo this?

LGBTIQ people are often encouraged or pressured to undergo ‘conversion therapy’ by family members. We interviewed, in collaboration with local researchers, more than 50 survivors of these ‘treatments’ in Uganda, Kenya and Tanzania. Some said that their families threatened their safety, threatened to denounce them publicly or to stop paying their school fees if they did not agree to having this ‘therapy’.

Some LGBTIQ people choose to undergo ‘conversion therapy’ themselves, which is a “manifestation of the scourge of both societal and internalised homophobia and transphobia”, according to the human rights group OutRight Action International.
What are the consequences of ‘conversion therapy’?

Practices to change one’s gender and sexuality are “inherently degrading and discriminatory” said Kaajal Ramjathan-Keogh, Africa director at the human rights NGO the International Commission of Jurists.

Research has shown that these practices have lasting psychological effects. A 2018 US study found that young LGBTIQ people who reported undergoing 'conversion therapy' were “more than twice as likely to report having attempted suicide”.
Do any organisations support survivors of ‘conversion therapy’?

LGBTIQ people in East Africa who have undergone ‘conversion therapy’ and are seeking support can contact The Taala Foundation (Uganda), The Gay and Lesbian Coalition of Kenya (GALCK) and LGBT Voice (Tanzania).

Editor's note: This explainer on conversion therapy was originally published in July 2021. In the wake of news about the UK government's partial U-turn on banning the practice in England and Wales, we have republished it with minor amendments.


Turkish troops march into Iraqi Kurdistan villages, make threats

Turkish soldiers entered villages in the Bradost area to warn locals against cooperating with PKK militants in the nearby mountains, one well-informed source told The New Arab.


Dana Taib Menmy
01 April, 2022

Turkey has dozens of bases in Iraqi Kurdistan [Getty]

More than a hundred Turkish soldiers marched into villages in Iraqi Kurdistan on Thursday to threaten locals considering heading to nearby mountains housing militants.

The soldiers entered the villages of Lelkan, Khalifan and Halkeran in the Bradost area, a well-informed source from the area told The New Arab on condition of anonymity, fearing reprisal.

The soldiers "warned the villagers not to go to the nearby mountains, otherwise they would be targeted,” the source said.

“The soldiers did not let locals take photos and videos, and they only left the villages after several hours."

The source said that Thursday’s move by the Turkish army was to scare locals away from cooperating with the Kurdistan Workers' Party (PKK), an armed group that has been waging a decades-long insurgency against the Turkish state for greater rights for Kurds in Turkey.

The PKK has made parts of the Qandil mountain range that straddles Iran and Iraq their stronghold. Since the 1990s, the Turkish army has established dozens of military bases inside Iraqi Kurdistan with the stated aim of fighting off the rebel group.

The source said that Turkish forces have not allowed Bradost locals to go to their mountainside vineyards since 2017.

The New Arab contacted Ihsan Chalabi, mayor of the Sidakan sub-district under which Bradost falls, but he was not available for comment.

The presence of Turkish troops in the area was reported by some local news outlets.

Kurdsat News, a television channel linked to one of Iraqi Kurdistan's ruling parties, reported that the Turkish army made a incursion in the area with a depth of three kilometres which sparked panic among locals.

Roj News, an outlet affiliated with the PKK, reported that the “Turkish forces threatened locals of four villages from the Bradost area with retaliation if they made any threats to their bases.”

But Jabar Yawar, head of the ministry for Iraqi Kurdistan's armed forces, told The New Arab in a phone call that he was "unaware" of such news reports.

The Kurdistan Communities Union (KCK), the umbrella entity for the PKK and affiliated organisations, warned last week that Turkey was preparing to launch a new military operation against the PKK by mid-April - potentially with the support of Iraqi Kurdish forces.

Amnesty: New Law Threatens Free Expression in Tunisia

Reporting analysis or news which has any impact on Tunisia’s economy could result in a jail sentence under a new law Tunisia has just passed. The bill will have a significant effect on freedom of expression in the African country that kicked off the Arab spring just over a decade ago, Amnesty International said in a statement.

Spices market MedenineThe law comes amidst a major food crisis in the same region that was once the bread basket of ancient Rome. Staples like grain and sugar are becoming increasingly scarce, especially with the war in Ukraine disrupting one of the world's other major grain producers. (Photo: Bernard GagnonWikimediaLicense)“Decree-Law 2022-14, which went into effect on 21 March 2022, contains vaguely worded provisions that could lead to prison terms of between ten years and life …  for public debate of the economy,” Amnesty said.

The decree outlaws the spread of “false or incorrect news or information” that stops consumers from buying, and therefore contributes to price rises.

“While acts to influence markets through fraudulent means are legitimate grounds for concern, sweeping laws such as decree-Law 2022-14 open the door to unfair and abusive prosecutions,” Amnesty said.

The law comes amidst a major food crisis in the same region that was once the bread basket of ancient Rome. Staples like grain and sugar are becoming increasingly scarce, especially with the war in Ukraine disrupting one of the world's other major grain producers.

“Tunisia is already suffering a long-standing economic and financial crisis.” said Amna Guellali, Deputy Regional Director for the Middle East and North Africa at Amnesty International. “It is more important than ever that people in the country be free to discuss and debate the issues that affect them, including food security and goods supplies, without fear of prosecutions.”

“Instead of seeking to criminalize those who express themselves freely about good supplies, the authorities should step up their efforts to ensure that they disseminate reliable, accessible, and trustworthy information as the best way to counter misinformation and protect human rights,” she added.

More often than not, instead of protecting the public, such opacity only allows corruption and organized crime to fester. Shortages and scarcity already makes an environment particularly welcoming for criminality to exploit.

Decree-Law 2022-14 risks creating a chilling effect that dissuades people from openly discussing food supplies and food security for fear of reprisal, said Guellali.


Tunisia's President Kais Saeid rules out early elections after dissolving parliament

Meanwhile, parties from across Tunisia's political spectrum, including the powerful UGTT labour union urge Saied to hold quick elections, citing the country's constitution.


Tunisia's President Kais Saied, who said he will not hold elections any time soon, dismissed parliament on Wednesday [Getty]


Tunisia's president said late on Thursday he would not hold elections within three months after he dissolved parliament this week, the latest step in a march to one-man rule after brushing aside most of the democratic constitution.

Parties from across Tunisia's political spectrum and the powerful labour union have cited the constitution to demand that the president hold quick elections after announcing on Wednesday that he was dissolving parliament.

"I don't know how they get this interpretation," Saied said in the video of a meeting with Prime Minister Najla Bouden that was posted at midnight on the presidency's Facebook page.

Later on Thursday, US State Department spokesman Ned Price said Washington was deeply concerned at Saied's dissolution of parliament and reports that he would prosecute lawmakers who joined a session in defiance of the president on Wednesday.

"A swift return to constitutional government, including an elected parliament, is critical to democratic governance," Price said in an online video.

The United States has been a major donor to Tunisia since its 2011 revolution that introduced democracy and Saied's government is seeking international funding to avert a rapidly looming crisis in public finances.

Tunisia's political crisis escalated sharply on Wednesday when more than half the members of the parliament, which Saied suspended in July in a move his foes call a coup, held an online session to revoke his decrees.

The UGTT labour union, the most powerful political body in the country with more than a million members, had previously urged Saied to dissolve parliament and quickly call new elections.

The Islamist Ennahda, which was the biggest party in parliament and is the only one with a strong national organisation, has rejected Saied's dissolution of the chamber but said he should still hold elections within three months.

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Basma El Atti

The Free Constitutional Party, whose leader, Abir Moussi, is a supporter of the late autocratic president, Zine El Abidine Ben Ali, and a bitter foe of Ennahda, applauded Saied's move but also called for quick elections.

Moussi, whose party is ahead in opinion polls, said that according to the constitution Saied should call elections within three months.

Saied has previously said he will form a committee to rewrite the constitution, put it to a referendum in July and then hold parliamentary elections in December.

Ennahda head Rached Ghannouchi told Reuters on Thursday the party would boycott any referendum he called to restructure the political system unilaterally.

(Reuters)
African Refugees Fleeing Ukraine Held in Immigration Detention Facilities


Cristian Stefanescu/Deutsche Welle
Many African students say they have spent days getting to Ukrainian borders
 (file photo).

31 MARCH 2022
allAfrica.com
By Melody Chironda

Cape Town — More than four million people have now fled Ukraine for neighbouring countries amidst the Russian invasion. However, black and brown students who have fled have been detained by EU border authorities in what has been condemned as "clearly discriminatory" and "not acceptable", reports Democracy Now.

Although all neighbouring EU countries pledged to accept refugees from Ukraine, as people flee across borders, a complicated story emerges of who is perceived and received as good, bad, and ideal refugees in modern Europe, reports Yvonne Su for The Conversation Africa.

An collaborative investigation, by The Independent, Lighthouse Reports and other media partners, revealed that Ukraine residents of African origin who have crossed the border to escape the war have been placed in closed facilities, with some having been there for a number of weeks.

Maud Jullien, an investigative editor at Lighthouse Reports, explains how the European Union's temporary protection directive creates a double standard by permitting Ukrainian citizens to enter neighbouring countries but barring third-party nationals from entering. Jullien has said that four students who have fled the Russian invasion are being held in a long-term holding facility Lesznowola, a village 40km from the Polish capital Warsaw, with little means of communication with the outside world and no legal advice. Polish border police confirmed that 52 third-country nationals who have fled Ukraine are currently being held in detention facilities in Poland.

The International Organisation for Migration (IOM) said they were aware of three other facilities in Poland where people who are not Ukrainian, and who have fled the war, are being detained. This is despite an EU protection directive dated March 4, 2022 which states that third-country nationals studying or working in Ukraine should be admitted to the EU temporarily on humanitarian grounds. It states that it also applies to "nationals of third countries other than Ukraine, residing legally in Ukraine, who are unable to return in safe and durable conditions to their country or region of origin".

Jeff Crisp, a former head of policy, development and evaluation at UNHCR, said it was "clearly unsatisfactory and discriminatory" for third-country nationals who have fled from Ukraine to be held in detention centres in EU states, "not least because of the trauma they will have experienced in their efforts to leave Ukraine and find safety elsewhere". He added: "They should be released immediately and treated on an equal basis with all others who have been forced to leave Ukraine," reports The Independent.

In March, some African countries intensified efforts to evacuate their nationals from Ukraine amid reports of mistreatment and racial profiling of Africans in war-ravaged Ukraine. The African Union urged governments to respect international law and assist all those fleeing from the war in Ukraine after African students raised concerns of discrimination at border points.

Deutsche Welle reported that some students are happily back with their families, but many remain stranded inside Ukraine and at border points with neighbouring Poland

Africa's Rice-Farming Villages More Prone to MalariaShare



      

Nairobi — Malaria has become more common in African villages with irrigated rice fields in the last 20 years, highlighting the need for improved cultivation methods to keep mosquito numbers low, a study suggests.

The study, published in the March edition of The Lancet Planetary Health, shows that since 2003, the number of mosquitoes found in rice farming villages rose six- to eight times more than in non-rice farming villages, with malaria cases almost twice as high in rice farming villages.

This is a change from what was seen in the 1990s when, in settings where malaria transmission was relatively intense, studies found no tendency for malaria incidence to be higher in villages with irrigated rice fields than in those without.

Malaria prevalence among villagers in rice-growing areas was similar to, or lower than, those in non-rice-growing areas. This became known as the "paddies paradox", explains Kallista Chan, study co-author and a doctoral candidate at the London School of Hygiene and Tropical Medicine (LSHTM).

"Rice fields are ideal breeding sites for African malaria mosquitoes," says Chan. "Their growing conditions are exactly those preferred by the malaria mosquitoes Anopheles gambiae: fresh sunlit water of two to ten centimetres in depth, still or very slow flowing and relatively clean."

The results were based on 53 studies conducted between 1971 and 2016 in 14 African countries including Burkina Faso, Cameroon, Cote d'Ivoire, Gambia, Kenya, Madagascar, Mali, Nigeria, Rwanda, Senegal, Sierra Leone and Tanzania.

Chan tells SciDev.Net that the study's focus was specifically on the role of agriculture in influencing malaria, and how practises can be adapted to curb malaria rather than fuel it.

He believes that antimalarial interventions such as medicines may be part of a short-term solution but are not sustainable.

"Malaria is a major public health problem in Africa," says Chan. "This region harbours over 90 per cent of all global malaria deaths and whereas in the last two decades there has been unprecedented success in reducing malaria transmission, rice-growing areas can remain as malaria hotspots, which can be a barrier to elimination."

He adds that rice-growing areas, especially those that are irrigated, are rapidly increasing in Africa because of population growth and changing consumer behaviour. Governments have been pushing for more rice production in Sub-Saharan Africa for the past decade.

Jo Lines, a co-author of the study and professor of malaria control and vector biology at LSHTM, says that the agricultural sector should lead efforts in identifying malaria-free rice cultivation practices, with technical input such as diagnosis and treatment from health experts.

The findings of the study also need to be flagged at country and continental-level to align efforts for rice farming-based malaria control, she says.

Donald Apat, programme manager of Global Fund Malaria Project at Amref Health Africa, says that the study could have important implications amid the growth of urban populations.

These findings, according to Apat, show that with rapid unplanned urbanisation, especially in Sub-Saharan Africa, leading to more demand for food and other services, there is a risk of introducing crop production practices that increase the transmission of vector-borne diseases and indeed, malaria.

Proper management of the rice fields and development of a holistic malaria control strategy based on local data should be put in place to stem the menace in rice-growing areas, says Apat.

"Adoption of malaria vector control practices at scale in these settings would include personal protection using insecticide-treated bed nets, improved housing designs and screening of windows, doors and eaves, among others," he tells SciDev.Net.

Environmental management is also crucial for the elimination of malaria and should be part of national strategic plans geared towards malaria control and subsequent elimination, according to Apat.

"This calls for multisectoral collaboration integrating health actions with sectors responsible for agriculture," Apat explains, adding that communities should be empowered to participate in initiatives that would contribute to sustainable rice food production while also helping to control malaria.

This piece was produced by SciDev.Net's Sub-Saharan Africa English desk.

Knee-Deep in Debt, Food Shortages, Depleting Foreign Reserves: How Did Sri Lanka Get Here?

A foreign exchange crunch in Sri Lanka has led to a shortage of essential goods and power cuts that last up to 13 hours a day.

New Delhi: Sri Lanka is grappling with the worst economic crisis in decades, which has spiked the prices of essential commodities like rice, milk powder, cooking gas and fuel.

For instance, one kilogram of basmati rice currently costs between Rs 300-800 as compared to around Rs 90-200 in India. While sugar costs around Rs 290, 400 grams of milk powder is selling for Rs 790. A cup of milk tea costs Rs 100 as compared to Rs 25 in October 2021.

News reports said that school exams were cancelled because Sri Lanka ran out of paper.

People have taken to the streets demanding Sri Lankan President Gotabaya Rajapaksa’s resignation for failing to address the worst economic crisis in the island nation.

With skyrocketing prices of essential goods, Sri Lankan Tamil refugees are crossing the sea and arriving in Tamil Nadu. According to news reports, an estimated 2,000 to 4,000 refugees may land in the southern state of India.

Tamil Nadu chief minister M.K. Stalin on Friday, April 1 met Prime Minister Narendra Modi to discuss the Sri Lanka economic crisis, offering to extend support. Stalin is on a three-day visit to the national capital.

According to news reports, a foreign exchange crunch in Sri Lanka has led to a shortage of essential goods and power cuts that last up to 13 hours a day. Due to power cuts, Sri Lanka’s stock market on Friday halted trading for 30 minutes – the third suspension in two days.

But how did Sri Lanka get here?

The Wire’s Sumedha Pal had spoken to R. Ramakumar, professor at the Tata Institute of Social Sciences, who explained the roots of the Sri Lankan economic crisis.

Sri Lanka has two major sources of income – exports and tourism.

While exports contribute around 23% of the country’s GDP, the tourism sector contributes around 12% of the GDP.

Sri Lanka is majorly dependent on the export of non-food items like rubber, tea, garments, coconut, spices etc. The exports of these commodities suffered as global commodity prices fell over the past decade, Ramakumar wrote in a Twitter thread.

The country imports essential items such as rice, wheat, wheat flour, pulses, sugar and medicines. It imports 100% of its petroleum needs too. And that was affected due to a decline in the country’s foreign reserves.

Simply put, Sri Lanka doesn’t have enough dollars to buy essential import items from other countries.

Watch | How Worrying Is Sri Lanka’s Economic Crisis?

How did Sri Lanka’s foreign reserves deplete?

According to Ramakumar, Sri Lanka’s economic growth rate has been steadily declining since 2012. In the absence of export growth, the country’s current account deficit [exports – imports] widened.

A decline in exports leads to less foreign currency into the country. However, this was not the only reason why foreign reserves started to deplete.

The Easter bomb blasts of 2019, which killed about 253 people, took a severe hit on the flow of tourists in the country. This led to major strains on the foreign exchange reserves.

As per DW, there was a 70% drop in tourists after the attacks. However, towards the end of the year, it started to revive slowly.

But the COVID-19 pandemic in March 2020 made the situation worse.

Sri Lanka was faced with a triple whammy due to the pandemic: tourist inflows and tourism revenues fell further; exports of tea and rubber declined due to lower demand; and remittances, another booster to the foreign exchange reserves, also fell as Lankans across the globe lost jobs.

Therefore, the country faced an acute shortage of foreign currency or a balance of payment crisis.

But there’s more…

Due to the pandemic, the government raised budget expenditures and cut taxes, lowering the country’s revenue. Therefore, fiscal deficit exceeded 10% in 2020 and 2021.

Meanwhile, the government on April 29, 2021 decided to ban the import of chemical fertilisers and any other agrochemicals to make the Indian Ocean nation the first in the world to practice “organic-only” agriculture. The move was aimed at reducing pressure on forex reserves.

However, this decision severely impacted tea, rubber and other non-food item exports, which accounted for a bulk of dollar earnings.

As per a report in Al-Jazeera, tea is Sri Lanka’s single biggest export, bringing in more than $1.25 billion a year, making up almost 10% of the country’s export income.

The government’s move further led to a sharp rise in prices of daily food items. Sugar, rice and onions have soared over twice, with sugar even touching record Rs 200/kg; kerosene oil and cooking gas prices are surging.

Ramakumar in his blog post has explained how the decision to ban chemical fertilisers was taken under the pressure from President Rajapaksa’s group of advisors that included a medical doctor, who reportedly convinced him that the use of chemicals in agriculture was leading to the spread of chronic kidney disease. Sri Lankan scientists have in fact argued that there are no links between the use of chemicals as farm inputs and kidney disease.

The Rajapaksa government later partially lifted off the ban; however, the damage was already done.

Knee-deep in debt

Sri Lanka is already knee-deep in debt, which is now running at around $51 billion. A bailout from the International Monetary Fund (IMF) seems to be the only option in such cases. However, IMF loans come with their own stringent terms and conditions.

For instance, as Finshots explained in its newsletter, “They’ll probably ask the government to severely cut their spending programme, or likely recommend privatising loss-making public sector companies etc.”

And, these moves will likely be extremely unpopular in a country that’s already struggling to make ends meet.

Sri Lanka – which must pay about $4 billion in debt this year – will also seek World Bank assistance after it enters into an IMF programme, Reuters reported, citing two sources familiar with the matter.

Watch | How Worrying Is Sri Lanka's Economic Crisis?

How did Sri Lanka arrive at this situation? 
And can the situation improve?

Sumedha Pal

India’s neighbouring country Sri Lanka is facing its biggest economic crisis. 
The country is on the verge of going bankrupt. The situation is such that petrol, 
diesel and other fuel is being sold under the supervision of the army.

But what is the reason for this? And can the situation improve?

Sri Lanka crisis forces 13-hour blackouts, hospitals stop surgery



Power regulator urges government employees to work from home to save fuel and hospitals suspend routine surgeries as economic crisis deepens.

A woman works inside a shop attached to her house during a power cut in Colombo
 [Dinuka Liyanawatte/Reuters]

Sri Lanka has announced nationwide 13-hour daily power cuts from Thursday and more hospitals suspended routine surgeries after running out of life-saving medicines, as the cash-strapped island’s economic crisis deepens.

The South Asian nation of 22 million people is in its worst economic crisis since independence in 1948, sparked by an acute lack of foreign currency to pay for even essential imports.

The state electricity regulator said it was extending Wednesday’s 10-hour power cut by another three hours from Thursday, enforcing a 13-hour rolling nationwide blackout.

The Indian Ocean island nation had been under severe electricity rationing since the start of the month and the monopoly said an earlier increase in power outages from seven hours to 10 hours was imposed because there was no oil to power thermal generators.

More than 40 percent of Sri Lanka’s electricity is generated from hydropower, but most of the reservoirs were running dangerously low because there had been no rains, officials said.

At least two more hospitals reported suspending routine surgeries because they were dangerously low on vital medical supplies, anaesthetics and chemicals to carry out diagnostic tests, and wanted to save them for emergency cases.

The country’s biggest medical facility, the National Hospital of Sri Lanka in the capital, said it had also stopped routine diagnostic tests. An official added, however, that the facility continued to receive power supply from the national grid.

Sri Lanka power crisis
A man tries to fix his three-wheeler engine using a mobile phone torch on a main road during a power cut in Colombo [Dinuka Liyanawatte/Reuters]

The country’s electricity regulator has urged more than a million government employees to work from home to save fuel.

“We made a request to the government to allow the public sector, which is about 1.3 million employees, to work from home for the next two days so we can manage the fuel and power shortages better,” Janaka Ratnayake, chairman of the Public Utilities Commission of Sri Lanka, told Reuters news agency.

Amid the country’s worst economic crisis in decades, foreign exchange reserves have fallen by 70 percent in the past two years and were down to a paltry $2.31bn as of February, leaving Sri Lanka struggling to import essentials, including food and fuel.

The drawn-out power cuts on Wednesday were partly caused by the government’s inability to pay $52m for a 37,000-tonne diesel shipment that was awaiting offloading, Ratnayake said.

“We have no forex to pay,” he said, warning of more power cuts over the next two days. “That is the reality.”

Widespread protests

Sri Lanka’s main fuel retailer said there would be no diesel, the fuel most commonly used for public transport, in the country for at least two days.

Local broadcasters reported widespread protests across the country demanding fuel for private vehicles, which are also used for public transport.

There were no reports of violence, but hundreds of motorists blocked main roads in several towns while dozens demonstrated outside the Central Bank of Sri Lanka in Colombo demanding the removal of governor Ajith Cabraal.

Officials from the state-owned Ceylon Petroleum Corporation urged queueing motorists to leave and return only after imported diesel is unloaded and distributed.

Fuel prices have also been repeatedly raised, with petrol costs nearly doubling and diesel up by 76 percent since the beginning of the year.

Colombo imposed a broad import ban in March 2020 to save foreign currency needed to service its $51bn in foreign debt. But this has led to widespread shortages of essential goods and sharp price rises.

The government has said it is seeking a bailout from the International Monetary Fund while asking for more loans from India and China.

Sri Lanka’s current predicament was exacerbated by the COVID-19 pandemic, which badly hit tourism and remittances. Many economists also blame government mismanagement including tax cuts and years of budget deficits.

The country’s statistics office on Wednesday announced economic growth of 3.7 percent for the 2021 calendar year, before the crisis began to bite – up from a record contraction of 3.6 percent the previous year.

SOURCE: NEWS AGENCIES

Solomon Islands Won’t Allow Chinese Military Base In a Bid to Reassure Australia

(Bloomberg) -- The Solomon Islands won’t allow China to build a naval base off its coast under a proposed security pact, the Pacific Island’s leader pledged, in a bid to ease the concerns of nearby Australia.  

Prime Minister Manasseh Sogavare said in a statement Friday that his government understood the consequences of giving Beijing’s warships a safe harbor some 2,000 kilometers (1,200 miles) from the Australian coast, and wouldn’t allow that to happen. 

“Government is conscious of the security ramifications of hosting a military base and it will not be careless to allow such initiative to take place under its watch,” he said. “Contrary to the misinformation promoted by anti-government commentators, the agreement does not invite PRC or any other countries for that matter to establish its military base here,” Sogavare said, using an acronym for the People’s Republic of China. 

The Solomon Islands confirmed it wanted to broaden its “security and development cooperation” to new countries last Friday, after copies of a draft security agreement with China were leaked on social media. Ministers from Australia and New Zealand voiced concern about the regional impact of such a deal, which would allow Beijing to deploy soldiers and military police to the country if requested by the local government. 

Although China has the world’s largest navy by some measures, it has denied claims it’s trying to build a “string of pearls” of bases to project power further from its coasts. Still, the U.S. Defense Department said in its annual report on the Chinese military in November that the country may be using commercial maritime ties to establish a more robust logistics network for its navy.

The draft Solomons Island agreement gives Beijing the ability to “make ship visits to, carry out logistical replenishment in, and have stopovers in” the Pacific Islands’ waters, according to the leaked copies. 

Sogavare said if China wanted to set up a naval base in the Pacific, it would have done so with Papua New Guinea or Fiji, regional nations that have longstanding bilateral ties with Beijing. The Solomon Islands has only had formal relations with Beijing since 2019, when it switched allegiance from Taiwan.   

Chinese Foreign Ministry spokesman Zhao Lijian said Friday that security cooperation between China and the Solomon Islands was designed to “protect people’s safety and property.” “There’s no military element to such cooperation,” he added at a regular briefing in Beijing. “Media speculation is purely unfounded and driven by ulterior motives.”

©2022 Bloomberg L.P.

 

U.K. Ministers Won’t Block Chinese Takeover of British Chipmaker

Britain’s national security adviser Stephen Lovegrove was asked by Prime Minister Boris Johnson to review the sale of Welsh-based Newport Wafer Fab to Nexperia NV last August to see if there were “real security implications.”

Lovegrove has now concluded that the takeover can go ahead, the person said. The decision was first reported by Politico.

Nexperia Hits Back at U.K. ‘Sneering’ at China Ties in Chip Deal

The move to allow Nexperia to acquire the U.K. chipmaker sparked alarm among lawmakers in Johnson’s ruling Conservative party, who argued it was a national security concern because the Netherlands-based firm is ultimately owned by China-headquartered Wingtech.

Both the Department for Business, Energy and Industrial Strategy and Johnson’s office had no immediate comment.

©2022 Bloomberg L.P.