Six Sri Lankans caught entering India illegally, trying to flee economic crisis

Sri Lanka economic crisis: One of the Sri Lankans claimed they were trying to enter India because rising prices was making it difficult to manage the situation back home

Six Sri Lankan nationals who allegedly tried to enter the country illegally - they stranded before being rescued by the Coast Guard on Tuesday - are being interrogated, officials have told news agency PTI. Three of the six are children, officials added. The Sri Lankans attempted to land at Dhanushkodi in Tamil Nadu but the man who brought them here illegally forced them to disembark and left them stranded on a sand dune, officials said.

Sri Lanka's Army members stand guard at a Ceylon Petroleum Corporation fuel station to help stations distribute oil during the fuel crisis, in Colombo, REUTERS/Dinuka Liyanawatte(REUTERS)

One of the Sri Lankans claimed they were trying to enter India because of the economic crisis in Sri Lanka. Increasing prices of essential goods was making it difficult to manage the situation back home, PTI quoted her as saying.

What is happening in Sri Lanka?

Sri Lanka is battling a foreign exchange crisis that has forced a currency devaluation and hit payments for essential imports like food, medicine and fuel.

The country has turned to the International Monetary Fund (IMF) for help.

Last month, as the crisis was building, the IMF said Sri Lanka had not asked for financial assistance but that it was ready to help if needed.

Fast-forward to today and the crisis has now grown large enough that the Sri Lankan government plans to hire a global law firm to help restructure its debt.

Sri Lanka will be starting official talks with the IMF in mid-April.

The crisis in numbers

Rapid drain of Sri Lanka's dollars has left it struggling to pay for critical imports as currency reserves slump 70 per cent in the last two years to $2.31 billion.

However, Sri Lanka has to repay about $4 billion in debt in the rest of this year, including a $1-billion international sovereign bond that matures in July.

The political blame-game

Opposition party Samagi Jana Balawegaya on Tuesday accused President Gotabaya Rajapaksa and his government of misusing the US$ 1 billion loan extended by India as to help the island nation deal with its economic crisis.

“This is shameful…  money is meant to provide relief to people languishing in long queues," main opposition leader Sajith Premadasa said, referring to long lines at fuel stations and scarcity of essentials faced by the people.

The credit was to import food, medicines and other essential items from India.

READ: India extends $1 billion line of credit to Sri Lanka

Army drafted in to control crowds at fuel stations

On Tuesday the Sri Lanka government posted soldiers at hundreds of state-run petrol stations to quell panic and ration fuel after a sharp spike in prices.

READ: Sri Lanka sends army to petrol stations amid worst fuel crisis in 70 years

The increase in prices has forced tens of thousands to queue for hours for key commodities, and the decision to deploy troops near petrol pumps and kerosene supply points came after three elderly people dropped dead while waiting.

READ: As economic crisis worsens, two men die in queue for fuel

Deployment of the Army was in response to complaints of stockpiling and inefficient distribution, a government said, adding, "Military has been deployed to help the public, not curtail their human rights."

School exams cancelled

Last week the government cancelled exams for millions of school students as the country ran out of printing paper. Education authorities said term tests were postponed indefinitely due to the acute paper shortage.

Term tests are part of a continuous assessment process to decide if students are promoted to the next grade at the end of the year.

Official sources said the move could effectively hold up tests for around two thirds of the country's 4.5 million students.

READ: Amid economic crisis, Sri Lanka cancels exams over paper shortage

Peoples' reaction

"The government has to provide solutions. There is too much hardship and suffering," Seetha Gunasekera, a Colombo resident, told Reuters, "Prices have increased and we are barely able to manage with what we earn daily."

With input from PTI, Reuters