A lot of shelling, a lot of panic, about desperate to basically try and keep seemingly people away as well. Security situation is seemingly deteriorating, massive concerns for what was understood to be between 152200000 people in the valley, mainly ethnic tactics. We understand according to an italian medical organization that they have been treating casualties inside the valley as well. Last minute protests are being held to disrupt the inauguration of an orthodox Church Leader in montenegro. The ceremony anointing bishop jani. Kia is the as the new head of the serbian Orthodox Church is due to be held in september, you tens of thousands. The farmers in northern indira, running against agriculture laws introduce last year, which they say are damaging their livelihoods organize the say, the protests and stains and also produce shes the show falls ahead of legislative elections next year. Venezuelas government says negotiations with the opposition to resolve the countries long standing political crisis is making progress. A 2nd round of talks is being held in mexico. The opposition once guarantees elections in november will be free and fair present. Nicholas madeira says international sanctions need to be relaxed. He zealand had been trying to support the man who stab several people in the Shopping Mouth on friday. I am a doctor humble subsidy in injured 7 people at a supermarket before being shot dead by police. These rank and national was released from prison in july this year when he could no longer be held under law before the stories on a website down to dr. Munoz and half an hour with me. But next its inside story here when i want to stay with us, we know whats happening in our week and we know how to get to places that others cannot. I wont go through the gag by the police on purpose. If i can, im going. Im going to be the way that you tell the story is what can make a difference. Long q is the food and other basic essential Sri Lanka. Economic crisis is deepening. The government announced emergency measures to tackle the shortages. How is the Opposition Rise in calling them drastic and an attack on human rights, and does the Island Nation need major reforms to overcome its problems . This is the inside story. Ah. Hello and welcome to the program. Im the star the attain. Now, everyday life for people, Entry Lanka has become a major challenge, essentially like Food Medicine and fuel a much more expensive. And thats if theyre even available. This Pandemic And Recession are being blamed and a dramatic fall and the value of the Sri Lankan repeat is making things even worse. The nation depends largely on imports for its food and we could currency means theyre now even costlier. The government has announced an economic emergency to ease the burden and millions of families. Now well discuss the crisis without guests very shortly, but Michelle Fernandez has this report for us from columbia. Sugar sugar. Its everywhere, but not a green to buy. Has been the complaint of consumers in Sri Lanka. The government says this is one of the Reasons Hoarding by trade is to create an artificial price increase. On wednesday, government officials rated warehouses in colombo. They said were not registered with the consumer Affairs Authority and see 32000 metric tons of Sugar Pump on these stocks we made available to the public. We distributed through Government Retailers at an affordable Price Range like this to acquire hidden stocks. Follow president , go to the raj Boxes Decision to impose a state of emergency and introduce regulations on a central food supplies. Under these rules, authorize officers will be able to take steps to provide essential food items at concessional rates to the public by purchasing Paddy Rice and sugar, including guaranteed prices, or based on Customer Value on imported goods. To prevent market irregularities, consumers have had to deal with increasing prices as a result of a Weakening Sheila and ruby and inflation. On thursday, many huge Government Retail shops to buy this and shows at cheaper rate. Seeing again, a local not got that its very difficult. I usually buy 3 killers of sugar and lentils, which last me one month. But now theyre only giving us one kilo at a time and I Cant stretch it. The Governments Decision to invoke the seat of emergency has had mixed reaction. Q is like this one to buy, sugar, milk, powder, lentils, and other essential are becoming a common site, actually longer struggles to balance Consumer Demand with increasingly dwindling foreign exchange reserves. The government says the state of emergency will help, but others are worried. Among them. Emmys, london, and opposition n p, who explained his reservations to geneva, the poly, you want to entirely in the hands of the president who becomes parliament himself, in the sense that he can make regulations that override ordinary laws is only subject to the constitution. Saw at a good thing, those powers to himself with the history of emergency room. This country has had for a long time, immediately alarm bells ringing. And i is important to see theyre not happy with the latest development, but declined to comment on record as a government works to address bigger economic issues, including debt repayment, inflation, growth, and having its currency. Many here, just want their central goods at an affordable price, meaning fernandez, or just the ra colombo. Ah, well lets now bring in, ill guess theyre all joining us today from the Sri Lankan capital colombo, faster we have, just move on cobra. Hes the State Minister finance, capital markets, and State Enterprise reforms, and also the former governor of the central bank. We also have how should the sylvan opposition, member of parliament, and also the former State Minister of national policies and economic affairs. And we also have missions and now hes an economist and the direct verity research. Thats a Think Tank based in colombo, thank you all for joining us today. Im really looking for dr. Discussion. Now. I really want to start with just how we got here. Mistake about i know that your government is saying there isnt a food crisis, there isnt any shortages and that this is all been caused by hoarding. There are also reports at the moment of planned food rationing. Can you confirm that people will not be going hungry and tell us what went wrong . At the outset itself, i can confirm you. People born go hungry and also the fact that the government has been taking the necessary steps to deal with any hoarding is also clear evidence that we are on top of the situation. That challenges, especially at the time the, the problems of distribution, the problems are. But the thing, the problems absorbs getting it across to the people directly to their homes. So those problems are there but will still be able to deal with every one of those. And today, every single person is able to consume is food at their quantities that you requires. Yes, there are. There have been a few shortages, particularly in the case of sugar. As a result of so many people, hoodie, but your pictures alone. Sure that it has been hoarded in large quantities. There were as much as 100000 tons of sugar already in the country which had been imported using plenty to exchange. But he did not been put, but it was not been purchased a boat by people, mainly because traders had been holding it. So the government had written books and laws to ensure that that food items could come into the market. And thats what has happened. So we want to confirm that there is absolutely no Food Shortage in our country. Yes, there have been a few instances of some items of food being ordered as a result of temporary shortage being treated. But that also has been addressed. And so we can confirm to you that that so think of the past and what happened once again, and we will on top of the situation and the government is taking the necessary steps to distribute it all over. Well, these are some pretty drastic steps though, and i think we all acknowledge that there are some challenges and there is an economic crisis and there are some deep economic drivers here of this crisis. I was looking at some of the numbers, so it looks like she lank is foreign reserves, fell to 2800000000. 00 at the end of july. Now thats down from 7500000000 in november 21, 900. Back when this government took office and the repeat in that time is also lost more than 20 percent of its value against the us dollar nation. Let me throw this to you. What happened . So i think thank you for inviting me on this event with regard to the repeat, i think the depreciation of the drew p i is really a function of duct high inflation in Sri Lanka. So its not based on the mental it based on concerns really about the Future And Management of the economy, especially the reserve. So i think the fact that 3 long lost access to international financial markets in december 2009, 15 when the cabin but made a drastic reduction in taxes. I think the financial markets on the Credit Agency is downgraded 3 lock up and that really sucked out access to international financial markets to the betty b, the decline of the reserves. So as reserves decline, dollars have been a Shot Supply for basic things like a petition and that shortage like any can on the situation. Shortage, drive the prices and really the price for the dollar going up on repeat the presenting, which means the same thing is driven by this sort of artificial shortage created by the government not being able to borrow internationally to top up the reserves that it has to expend to settle loans that are becoming due. So thats a very short, i think quick. Gotta fund a mental reason that there is a crisis minister. I know you, you are shaking your head and you dont agree and i will come back to you in just a moment. But i do want to bring in mr. Da silva at this stage because i know there has also been talk of foreign help, potentially even assistance or more assistance from the I M. S. Mister the syllabus. What are your thoughts on that . How do you line can feel about foreign assistance . I know President Roger Pox that hasnt been too keen when one means to be realistic. Right now we must acknowledge that we are in a crisis. I am happy to hear the minister say that no C Lanka will go hungry. Thats. Thats good because none of us will be in government or not. Would ever want to see that situation in C Lanka. And the issue really is the ability for us to meet external death payments. Our fallen quite drastically. And as you pointed out, were left with maybe a little or 2000000000. 00. We did get some assistance from the i m s, which is the everyone else also about that will be you stop in the next few months. So the issue really is not one, not only would it be the issue is one fall luncheon. So when the government is using tools like temporary borrowings and swaps that is not going to fix the problem. So when they do that i am a for anyone else. I mean, im no fan necessarily. I am at all. What we need to bring in is this a limb and the confidence back in us so that we can get things upgraded. So we can have access back again to international markets. So if that happens, then we have breathing space. And after that we can really address the fundamental problems that we need to a in order to have sustainable growth going forward. Minister cabal, i saw the statement that you gave yesterday with the foreign minister. I believe you say the country is record is impeccable. But as to other guests have alluded to, Sri Lanka was down downgraded by Credit Rating agencies. And as a result, has this very limited access to international capital. So do you stand by that statement that the record of Sri Lanka is still impeccable . Yes, very much so very bad sore. And i must also tell you that although the reserves had gone down to 2800000000. 00 at the end of last month, it has reached up to a 3800000000. 00. And we also have another access that is possible from a chinese source, which is another 1500000000. 00. So be essentially have a high pied see 1000000000. 00. But the main point is, i just told you that the main point is that we have sufficient money is to pay off all the external debt. And we also ensuring that street cars rely on one extended that is going to be reduced as time goes on. You see by end of 2014, we had only about 5000000. 00 exposed to the international market. When we had a g d. P of 80000000000, but by 2019, that number had gone up to 15000000 dollars. And on a g, d, p of just 84000000000. So we had to know shing that a little bit. And thats why this government has taken a conscious decision that we would like to have new influence coming in, which are non bit creating. Thats why we opened out the Port City be opened out new investment opportunities in the pharmaceutical sector. Be out having g 2, G Kind of borrowings being now pursued in order to ensure that the reliance on markets is reduced. So that of a little bit, it is also less. So yes, we do recognize that has been a slight reduction in the overall of the levers. And that is also not merely because of the reasons that valued by the other 2 gentlemen. It was mainly because tourism, which had reported a half 1000000000. 00 inflow coming into the country that was disturbed as a result of coffee. And actually that had to be addressed with other areas of reductions in the foreign exchange outflows. Which meant that the reserve build up was a little weaker than otherwise. But even so i, what did pain has be impeccable as i mention, even in 2900 people said we wont be able to pay the bits in 2020. It 2020, they said we wont be able to pay the 21. 00 we did in 21. 00. Theyre saying again, vulnerability, but not in 2022 but to be 2023. So these kinds of stories we have heard before. I must admit, but every time we have seen that management of these numbers and the reserves have been sufficiently done in such a way that we will be on top of the situation so much that just sit, it will be the same. I. So i do want to talk about clearing Sri Lanka, well, especially within the context of the pandemic, right . Weve seen the whole wild struggle, but countries as you say, who are very reliant on Tourism Habit had really particularly tough. Now Tourism And Travel have long been major contributors to the Sri Lankan government finances and been the 3rd largest foreign exchange on accounting for nearly 10 percent of G D P. Back in 20. 19. That was according to the wild traveling tourism council. But as we been saying, the sect has been hit hard by this pandemic. The number of tourists arriving the 1st 7 months of this year since borders will reopened, has fallen by 96 percent. Not staggering. The countries received less than 20000. 00 visitors. This is much less than the 37000. 00 who visited last year until march. Before these lock downs were imposed, the Sri Lankan government had aim to draw in nearly 4000000. 00 tourists in 2020, along with 5000000000. 00. Mister da silva, let me ask you from your perspective, have these efforts been working . Are you optimistic about where this might go to or some running is critically important to us. I agree with you about the reality is far. What is some to get back to where i was . Unfortunately, its going to take some time. People want to go on vacation. Their children need to be of accident or her. And the whole lot of really you dont needs to be wrapped in it. So i am not very optimistic that the numbers are going to go up, you know, as quickly as the government is expecting it. So therefore we need to figure out why theres options where were going to get a revenue. When mr. Trump said that that were doing for, for indirect investment knocked every for indirect investment dollars is going to stay in that is that one to be taken back out for various purchases . Suffolk with raw material. So therefore, we really in increasing initial off, like i said, one off song one. So now here mr said look, we will match the cash flow. This is not the issue. The issue is not one of the could it be that you can resolve it swaps and shot borrowings. Is it we need to get our stand again . I did it the ease of how fast i want to me. Its going to grow, and unfortunately weve had so many shops in the last so many years. Investment they have not been good enough indeed. And weve growth has been very, very sluggish and stories. I do want to bring in nation here because i want to turn the conversation also to how people are actually experiencing this on the ground everyday. Sri lankan. Now, if youre sitting in columbia and i imagine youre keeping an eye on the cost of basic goods for yourself and your family, im curious. How much has that changed in the last 2 years . Say a bag of rice, how much did it cost then . How much does it cost now, and do you have access to your confidence that you have access to essentially like food and Medicine And Fuel . So i think, you know, the central bank reports on the Inflation Rate and inflation be somewhat higher than it has been in past years. But its still in the single digit that is that the inflation is being reported. So people experiencing increasing, but more than that, i think people are anticipating costs going up even more as the dollars sort of appreciates the group depreciates rather not so 20 Percent Depreciation of that repeat simply means that important inputs including medication exit, traveling whopping price. So people are having a hard time with the economic slowdown as undoubtedly, and i think, you know, thats not unusual. Every country has been through difficult times of call within the Band Problem for the government. Let me just save it corporate and is to come out of it quickly, not be on read globally. So the way to recover from tourism is that they cover the 2 of them is that toward the need to stop creating, coming, just re like up, up getting up and for the extra cut needs to find a path out of the red list as off as possible but the 2 countries i and Ridley Spencer locates one of them. And so i also, i think, you know, to be. Busy fear the govern, but instability of policy policies with regard to current time, etc, have changed so rapidly and such short notice that people are waiting. You know it out. I think right now because theyre not sure the after they make that Travel Plan Policy can change the policy. Instability is also an important issue. Of course, i want to come back to, to said about prices and sugar, 40 it in a competitive market. If the market is not a monopoly market, quoting does not make sense. So really, i think from a position of government, you have to solve the Holding Problem to with either you say Theres Something wrong with that bucket structure. Theres not enough competition because you know, people can or dont if youve given a few people, one police and that should stop. The 2nd reason that can be holding is if the currency depreciating, so fos, people are not confident they can buy stock needed for the future. So they hold back the stock they have at present to make sure theyll be able to sell in the future as well. So, you know, both the problems that the government but can solve not by trying to and down the people who are holding. But by trying to solve the problems that make them either because they have monopoly power, theres no competition or because theyre great on the, about the Future And Ability to buy at the bad the rupees going and back to buy into your prices. Now im really curious about some of the other policies during this time that have also been into place. And i want to get your perspective on this because i see theres also been a big move towards organic farming and Sri Lanka. And also now with these new restrictions, Fertilizer And Pesticide imports have also been halted. Now follow the saying that that means the cop killed a potentially going to be hogged, literally slashed by hoff. That also has implications for Food And Security as well as i believe, your biggest export t, which accounts for what 1250000000. 00 a year. 10 percent of Sri Lanka export income. Im going to stick a browser. You stand by that decision. Yes. Very much saw is he whatever speculation there has been, we have seen that there has been no shortage at all. In fact, the production has been up. So i think there is speculation that this will happen or that will happen. But at the end of the day, we have seen in every single instance that every month, the productions are not, the prices have been good ideas been generated, the revenues that burden. So i think, yes, but that policy changes as well as certain decisions taken by governments that can be some adjustment that is needed. But at the same time, we got to understand that even though there may be resistance such changes that if the right policies are taken and then the necessary assistance is also provided. And the government is prepared to take the distance to the steps to change that situation. In case that the problems where you would need some new imports to be done with regard to bailey organic, or fertilize that we already did to do that as well. So we are confident that those numbers will be delivered and, and the necessary revenues will be hit. So actually we are to also understand that these measures have not been taken. Suddenly these have been discussed for more than 10 years. And then once a decision is taken, then naturally that adjustment for some problems have the initial stages. But we are confident that that youd also be said very quickly. Just one more point. If we got to the Sugar Debate that we had see overall, we got to understand that there may be certain technical issues that need to be sorted out if that makes sense. But if Days Door shall go in the market, then with the government has to deal with it. And thats why certain dives the government has been invoking the rules and regulations of all the d. You noticed that you had books in order to deal with the situation and now that particular difficulty has now been sorted out and then we are now clear of that Hoarding Issue as far as to gaze. Now mister da silva, i want to bring you in here. I see that you disagree and i know that you yourself a State Minister at one point in dealing with economic says we dont have a lot of time left. But i do want to ask you to briefly tell me what if you are in government right now, what you would be doing differently and you about before i say that, i mean, it looks to me as a universe. Yeah. I mean, things are not rosy as just expressed by my dear friend mister brown. People are having issues with crops. I mean, if i just drive around and speak to be but say, look, our crops in need of for like a need pesticides. So therefore, this decision is not something that had been discussed for 10 years. In fact, in the manifesto off the president , he said this decision will be implemented or 10 years. Instead it was implemented over night so that we see in policy making. So thats the issue and the are for this country is facing multiple problems. You know . Yes. The food issue, i hope it will be the sod, but you dont need a Jack Hammer to do. I can do with the screwdriver. Ive been a legislator for the last 11 years and enough gnaws instead of books that you can use instead of bringing emergency laws to manage the full drivers. When you do that, a very, you know, im here with a message both out of this country. The rest of the world and we saw a lot of international Breast Reporter and some not storage. Well, i dont, weve been saying is indeed about perception about the way that the wild seas tree lanka. And we do hope that things improved. I know there are lots of challenges ahead. We are out of time, im afraid. So i like to say thank you to all of our guests. I just need to cover the statement of steps of finance, capital markets, and State Enterprise reforms. How should the Silver And Opposition member of parliament initially the mouth and economist, all joining us from colombo, thank you to for watching. You can see this program again anytime by visiting our website. Thats Al Jazeera dot com. And for further discussion, do go to our facebook page, Thats Facebook Dot com, forward slash a inside story. Remember, you can also join the conversation on twitter. Handle is at a inside story for me to start on the whole team by for the hello miss city in vietnam once. So i gone the old capital of san vietnam at its heart is lamb sewing, square journalist, diplomat, military staff, and spies, rub shoulders in its famous hotels during the vietnam war. I was assigned to yet by the associated press and i arrived june 1962. The Caravel Hotel Burst under the headline, november 1963. When there was a military coup date, which led to the assassination of the president and his brother, over 24 hour period, the center of saigon was zone. The press retreated, in effect that the caravel hotel. And many of the story is mentioned we were seeing was from the care of me. My name is sand bell. Im the foster. Im in the county junior refund shoes, book for the Lead Mechanic War shop. You will see that you said youre gonna be mine. I do that, is it possible for you specially miss dungeon . Nothing. My night julia, women are strong with my my dear and ill do there. Ah, ah. Renewed fighting in the punchy valley, where teller, binary pulse is a surrounding the last bastion of resistance to the rule of a song. Ah, how robin watching. I was just, they were like my headquarters here in doha. Also coming up. I think tensions fly in Montenegro Protest is trying to stop the serbian alt