Russia accused Ukraine of carrying out an air strike against a fuel depot in the Russian city of Belgorod on Friday, an incident the Kremlin said could affect peace talks, but a top Kyiv security official denied responsibility.

Russia's defence ministry said that two Ukrainian helicopters struck the facility in Belgorod, some 35 km (22 miles) from the border with Ukraine, after entering Russia at extremely low altitude at around 5 a.m. Moscow time (0200 GMT).

Ukraine's top security official rebuffed the Russian accusation - the first by Moscow of an air strike on Russian soil since Moscow launched its invasion on Feb. 24. Belgorod is one of Russia's main logistics hubs for the war.

Watch | Russian foreign minister meets Indian EAM S Jaishankar 
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"For some reason they say that we did it, but according to our information this does not correspond to reality," Security Council Secretary Oleksiy Danilov said on Ukrainian national television.

Earlier, Ukrainian defence ministry spokesman Oleksandr Motuzyanyk said he would neither confirm nor deny a Ukrainian role.

"Ukraine is currently conducting a defensive operation against Russian aggression on the territory of Ukraine, and this does not mean that Ukraine is responsible for every catastrophe on Russia's territory," he said.

Kremlin spokesman Dmitry Peskov said President Vladimir Putin had been briefed about the incident. Peskov said the strike could jeopardise Moscow's peace negotiations with Kyiv.

"Of course this cannot be perceived as creating comfortable conditions for continuing the talks," Peskov said, adding that everything was being done to prevent disruptions in fuel supplies in the city.

Ukraine's Danilov retorted: "He says it doesn't help talks, but does it help talks when they kill our children, our women - these outrages they commit on our land? These people are kind of sick."

Security camera footage of the depot, from a location verified by Reuters, showed a flash of light from what appeared to be a missile fired from low altitude in the sky, followed by an explosion on the ground.

Regional governor Vyacheslav Gladkov said the resulting blaze injured two workers and forced the evacuation of some local residents. The fire was later contained, he said.

In a post on messaging app Telegram, Gladkov said a second blast later on Friday morning damaged a power line near the village of Nikolskoye but that no one was hurt in an explosion. Pictures he posted showed a crater in a field.

Russian oil firm Rosneft, which owns the fuel depot, said in a separate statement that no one was hurt in the fire. Russia's defence ministry said the facility was exclusively for civilian use.

An ammunition depot near Belgorod caught fire on Wednesday, causing a series of blasts. At the time, Gladkov said authorities were waiting for the Russian defence ministry to establish its cause.

Moscow calls its intervention in Ukraine a "special military operation."

Russia accused Ukraine of carrying out an air strike against a fuel depot in the Russian city of Belgorod on Friday, an incident the Kremlin said could affect peace talks, but a top Kyiv security official denied responsibility.

Russia accused Ukraine of carrying out an air strike against a fuel depot in the Russian city of Belgorod on Friday, an incident the Kremlin said could affect peace talks, but a top Kyiv security official denied responsibility. Russia's defence ministry said that two Ukrainian helicopters struck the facility in Belgorod, some 35 km (22 miles) from the border with Ukraine, after entering Russia at extremely low altitude at around 5 a.m. Moscow time (0200 GMT). Ukraine's top security official rebuffed the Russian accusation - the first by Moscow of an air strike on Russian soil since Moscow launched its invasion on Feb. 24. Belgorod is one of Russia's main logistics hubs for the war. Watch | Russian foreign minister meets Indian EAM S Jaishankar × "For some reason they say that we did it, but according to our information this does not correspond to reality," Security Council Secretary Oleksiy Danilov said on Ukrainian national television. Earlier, Ukrainian defence ministry spokesman Oleksandr Motuzyanyk said he would neither confirm nor deny a Ukrainian role. "Ukraine is currently conducting a defensive operation against Russian aggression on the territory of Ukraine, and this does not mean that Ukraine is responsible for every catastrophe on Russia's territory," he said. Kremlin spokesman Dmitry Peskov said President Vladimir Putin had been briefed about the incident. Peskov said the strike could jeopardise Moscow's peace negotiations with Kyiv. "Of course this cannot be perceived as creating comfortable conditions for continuing the talks," Peskov said, adding that everything was being done to prevent disruptions in fuel supplies in the city. Ukraine's Danilov retorted: "He says it doesn't help talks, but does it help talks when they kill our children, our women - these outrages they commit on our land? These people are kind of sick." Security camera footage of the depot, from a location verified by Reuters, showed a flash of light from what appeared to be a missile fired from low altitude in the sky, followed by an explosion on the ground. Regional governor Vyacheslav Gladkov said the resulting blaze injured two workers and forced the evacuation of some local residents. The fire was later contained, he said. In a post on messaging app Telegram, Gladkov said a second blast later on Friday morning damaged a power line near the village of Nikolskoye but that no one was hurt in an explosion. Pictures he posted showed a crater in a field. Russian oil firm Rosneft, which owns the fuel depot, said in a separate statement that no one was hurt in the fire. Russia's defence ministry said the facility was exclusively for civilian use. An ammunition depot near Belgorod caught fire on Wednesday, causing a series of blasts. At the time, Gladkov said authorities were waiting for the Russian defence ministry to establish its cause. Moscow calls its intervention in Ukraine a "special military operation."

Ukraine denies attacking fuel depot inside Russia

US President Joe Biden made an announcement on Thursday that will see the country releasing 1 million barrels of oil a day for the next six months from the US Strategic Petroleum Reserve. Biden said that this step would "ease the pain" in light of rising fuel prices.

Biden warned the oil industry not "to&nbsp;sit on record profits" during the current rise in fuel prices. he said that he wanted "to lay a new foundation for true and lasting American energy independence."

Fuel prices have soared particularly after Russian invasion of Ukraine.

"After consultation with allies and partners, the president will announce the largest release of oil reserves in history, putting one million additional barrels on the market per day on average – every day – for the next six months," the White House said earlier.

In addition, the Defense Production Act will be authorized to support the production and processing of minerals and materials used for large capacity batteries - such as lithium, nickel, cobalt, graphite, and manganese, the White House said.

The scale of the release of oil from the Strategic Petroleum Reserve was described by the White House as unprecedented.

"The world has never had a release of oil reserves at this 1 million per day rate for this length of time. This record release will provide a historic amount of supply to serve as bridge until the end of the year when domestic production ramps up," it said.

The Department of Energy will use the revenue from the release to restock the SPR in future years, the White House said.

(With inputs from agencies)

US President Joe Biden made an announcement on Thursday that will see the country releasing 1 million barrels of oil a day for the next six months from the US Strategic Petroleum Reserve.

US President Joe Biden made an announcement on Thursday that will see the country releasing 1 million barrels of oil a day for the next six months from the US Strategic Petroleum Reserve. Biden said that this step would "ease the pain" in light of rising fuel prices. Biden warned the oil industry not "to sit on record profits" during the current rise in fuel prices. he said that he wanted "to lay a new foundation for true and lasting American energy independence." Fuel prices have soared particularly after Russian invasion of Ukraine. "After consultation with allies and partners, the president will announce the largest release of oil reserves in history, putting one million additional barrels on the market per day on average – every day – for the next six months," the White House said earlier. In addition, the Defense Production Act will be authorized to support the production and processing of minerals and materials used for large capacity batteries - such as lithium, nickel, cobalt, graphite, and manganese, the White House said. The scale of the release of oil from the Strategic Petroleum Reserve was described by the White House as unprecedented. "The world has never had a release of oil reserves at this 1 million per day rate for this length of time. This record release will provide a historic amount of supply to serve as bridge until the end of the year when domestic production ramps up," it said. The Department of Energy will use the revenue from the release to restock the SPR in future years, the White House said. (With inputs from agencies)

To control fuel prices, US to release oil from its strategic reserve

Gold was headed for biggest quarterly gain since pandemic-led surge in mid-2020. Gold's safe-haven appeal is also understood to have been bolstered by Ukraine crisis.

Spot gold XAU= was up 0.4% at $1,940.95 per ounce by 12:22 p.m. EDT (1622 GMT). For the month, bullion was up about 1.7%.

US gold futures GCv1 rose 0.4% to $1,946.90.

"The geopolitical situation has been dragging for a month now and inflation data continues to rise. So the overall sentiment in this market right now is people looking for safety," RJO Futures senior market strategist Bob Haberkorn said.

Gold is considered a safe investment during times of political and financial uncertainty.

Data showed U.S. consumer spending slowed significantly in February, while price pressures continued to mount, with the largest annual spike in inflation since the early 1980s. (Full Story)

Russia's invasion, which began on Feb. 24, has fuelled a rally in oil prices and industrial metals.

"We could see a pullback in gold if there is some positive news that comes out of the Russia-Ukraine conflict, but I think traders will look at that as a buying opportunity because of inflation fears," Haberkorn said.

The Federal Reserve has hinted toward aggressive rate hikes this year to fight against soaring inflation, which investors fear could send the U.S. economy into a recession.

A pullback in benchmark U.S. 10-year Treasury yields on Thursday also supported gold. US/

Silver XAG= inched 0.1% higher to $24.86 per ounce. Platinum XPT= fell 0.7% to $983.50. Both metals were set for quarterly gains.

Palladium XPD= rose 0.2% to $2,269.97 and was headed for its biggest quarterly jump since March 2020.&nbsp; 
&nbsp;

Gold was headed for biggest quarterly gain since pandemic-led surge in mid-2020. Gold's safe-haven appeal is also understood to have been bolstered by Ukraine crisis.

Gold was headed for biggest quarterly gain since pandemic-led surge in mid-2020. Gold's safe-haven appeal is also understood to have been bolstered by Ukraine crisis. Spot gold XAU= was up 0.4% at $1,940.95 per ounce by 12:22 p.m. EDT (1622 GMT). For the month, bullion was up about 1.7%. US gold futures GCv1 rose 0.4% to $1,946.90. "The geopolitical situation has been dragging for a month now and inflation data continues to rise. So the overall sentiment in this market right now is people looking for safety," RJO Futures senior market strategist Bob Haberkorn said. Gold is considered a safe investment during times of political and financial uncertainty. Data showed U.S. consumer spending slowed significantly in February, while price pressures continued to mount, with the largest annual spike in inflation since the early 1980s. (Full Story) Russia's invasion, which began on Feb. 24, has fuelled a rally in oil prices and industrial metals. "We could see a pullback in gold if there is some positive news that comes out of the Russia-Ukraine conflict, but I think traders will look at that as a buying opportunity because of inflation fears," Haberkorn said. The Federal Reserve has hinted toward aggressive rate hikes this year to fight against soaring inflation, which investors fear could send the U.S. economy into a recession. A pullback in benchmark U.S. 10-year Treasury yields on Thursday also supported gold. US/ Silver XAG= inched 0.1% higher to $24.86 per ounce. Platinum XPT= fell 0.7% to $983.50. Both metals were set for quarterly gains. Palladium XPD= rose 0.2% to $2,269.97 and was headed for its biggest quarterly jump since March 2020.

Gold poised for biggest quarterly gain in almost 2 years

US House of Representatives on Friday (April 1) cleared a bill to decriminalise marijuana. If the bill is okayed by the Senate and signed by President Biden, it will eliminate punishments for providing or possessing the drug.

The Democrats' Marijuana Opportunity Reinvestment and Expungement (MORE) Act would remove its categorization alongside heroin and cocaine as a dangerous controlled narcotic under federal laws mandating tough sentences.

The bill was cleared by 220 votes to 204. Three Republicans crossed the aisle.

However, the bill is likely to have a tough time in Senate where Democrats would need 10 opposition lawmakers to support them.

The US government is out of line with three-quarters of states that have legalized marijuana for medical use and a third of states, like Colorado and Washington, that have freed it for recreational use, too.

"If states are the laboratories of democracy, it is long past time for the federal government to recognize that this experiment in legalization has been a resounding success," House Judiciary Committee Chairman Jerry Nadler, one of the bill's sponsors, said.

Cannabis is one of the fastest-growing industries in the United States, with sales hitting $25 billion in 2021, according to influential cannabis website Leafly, and projected to reach $40.5 billion by 2025.

A report released in February by the Seattle-based company said the legalized cannabis industry provides work for more than 400,000 Americans and created some 280 new jobs a day last year.

California, the first state to legalize medical marijuana in 1996, made $1 billion in tax revenue in the first two years after expanding to full recreational use in 2018.

But it remains illegal under federal law, posing significant hurdles for businesses that find themselves barred from accessing financial services and unable to secure loans or open bank accounts.

(With inputs from&nbsp;agencies)

US House of Representatives on Friday (April 1) cleared a bill to decriminalise marijuana. If the bill is okayed by the Senate and signed by President Biden, it will eliminate punishments for providing or possessing the drug.

US House of Representatives on Friday (April 1) cleared a bill to decriminalise marijuana. If the bill is okayed by the Senate and signed by President Biden, it will eliminate punishments for providing or possessing the drug. The Democrats' Marijuana Opportunity Reinvestment and Expungement (MORE) Act would remove its categorization alongside heroin and cocaine as a dangerous controlled narcotic under federal laws mandating tough sentences. The bill was cleared by 220 votes to 204. Three Republicans crossed the aisle. However, the bill is likely to have a tough time in Senate where Democrats would need 10 opposition lawmakers to support them. The US government is out of line with three-quarters of states that have legalized marijuana for medical use and a third of states, like Colorado and Washington, that have freed it for recreational use, too. "If states are the laboratories of democracy, it is long past time for the federal government to recognize that this experiment in legalization has been a resounding success," House Judiciary Committee Chairman Jerry Nadler, one of the bill's sponsors, said. Cannabis is one of the fastest-growing industries in the United States, with sales hitting $25 billion in 2021, according to influential cannabis website Leafly, and projected to reach $40.5 billion by 2025. A report released in February by the Seattle-based company said the legalized cannabis industry provides work for more than 400,000 Americans and created some 280 new jobs a day last year. California, the first state to legalize medical marijuana in 1996, made $1 billion in tax revenue in the first two years after expanding to full recreational use in 2018. But it remains illegal under federal law, posing significant hurdles for businesses that find themselves barred from accessing financial services and unable to secure loans or open bank accounts. (With inputs from agencies)

US House of Representatives passes bill to decriminalise cannabis

Russian gas was flowing to Europe on Friday (April 1) in spite of the deadline set by Russian President Vladimir Putin for foreign buyers to pay for Russian gas in roubles. This is Moscow's strongest threat in reaction to Western sanctions imposed in the aftermath of Ukraine invasion.

Putin signed an order setting a Friday deadline for buyers from “unfriendly” countries to pay for gas using roubles or be cut off, a demand Western customers have rejected as an attempt to rewrite contracts that call for payment in euros. Germany, the biggest buyer, called it “blackmail,” and had warned this week of a potential emergency if supplies were curtailed.

But there was no sign on Friday of an immediate interruption. Flows remained steady through two of the three main pipelines bringing Russian gas into Europe – Nord Stream 1 across the Baltic Sea, and into Slovakia over Ukraine.

Also Read | US warns against rising oil imports, New Delhi continues to buy Russian oil

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&nbsp;

Flows through the other main route, the Yamal-Europe pipeline over Belarus, had reversed direction, now bringing gas from Germany to Poland, but this occurs occasionally and did not necessarily indicate a new policy.

Gazprom, Russia’s state-owned gas giant, said it was continuing to supply Europe via Ukraine in line with requests from consumers that were down only fractionally from Thursday.

A source had told Reuters that some contracts involved gas being delivered before payments were due, suggesting the taps might not be turned off immediately.

After failing to capture a single major Ukrainian city in five weeks of war, Russia says it has shifted its focus to the southeast, where it has backed separatists since 2014.

The area includes the port of Mariupol, scene of the war’s worst humanitarian emergency, where the United Nations believes thousands of people have died after more than a month under Russian siege and relentless bombardment.

(With inputs from agencies)

Russian gas was flowing to Europe on Friday (April 1) in spite of the deadline set by Russian President Vladimir Putin for foreign buyers to pay for Russian gas in roubles.

Russian gas was flowing to Europe on Friday (April 1) in spite of the deadline set by Russian President Vladimir Putin for foreign buyers to pay for Russian gas in roubles. This is Moscow's strongest threat in reaction to Western sanctions imposed in the aftermath of Ukraine invasion. Putin signed an order setting a Friday deadline for buyers from “unfriendly” countries to pay for gas using roubles or be cut off, a demand Western customers have rejected as an attempt to rewrite contracts that call for payment in euros. Germany, the biggest buyer, called it “blackmail,” and had warned this week of a potential emergency if supplies were curtailed. But there was no sign on Friday of an immediate interruption. Flows remained steady through two of the three main pipelines bringing Russian gas into Europe – Nord Stream 1 across the Baltic Sea, and into Slovakia over Ukraine. Also Read | US warns against rising oil imports, New Delhi continues to buy Russian oil × Flows through the other main route, the Yamal-Europe pipeline over Belarus, had reversed direction, now bringing gas from Germany to Poland, but this occurs occasionally and did not necessarily indicate a new policy. Gazprom, Russia’s state-owned gas giant, said it was continuing to supply Europe via Ukraine in line with requests from consumers that were down only fractionally from Thursday. A source had told Reuters that some contracts involved gas being delivered before payments were due, suggesting the taps might not be turned off immediately. After failing to capture a single major Ukrainian city in five weeks of war, Russia says it has shifted its focus to the southeast, where it has backed separatists since 2014. The area includes the port of Mariupol, scene of the war’s worst humanitarian emergency, where the United Nations believes thousands of people have died after more than a month under Russian siege and relentless bombardment. (With inputs from agencies)

Russian gas flows to Europe despite Putin's deadline of payment in roubles

The warring sides in Yemen's seven-year conflict have for the first time in years agreed a nationwide truce, which would also allow fuel imports into Houthi-held areas and some flights operating from Sanaa airport, the United Nations envoy said on Friday.

The UN-brokered deal between a Saudi-led coalition and the Houthi group aligned with Iran is the most significant step yet towards ending a conflict that has killed tens of thousands and pushed millions into hunger. The last coordinated cessation of hostilities nationwide was during peace talks in 2016.

UN&nbsp;special envoy Hans Grundberg said the two-month truce would come into effect on Saturday and could be renewed with consent of the parties.

"The parties accepted to halt all offensive military air, ground and maritime operations inside Yemen and across its borders; they also agreed for fuel ships to enter into Hodeidah ports and commercial flights to operate in and out of Sanaa airport to predetermined destinations in the region," he said in a statement.

The UN and US&nbsp;envoys had been trying since last year to engineer a permanent ceasefire needed to revive political negotiations stalled since late 2018 to end the conflict.

It is widely seen as a proxy war between Sunni Muslim Saudi Arabia and Shi'ite Iran and Riyadh has struggled to exit the conflict.

The Saudi-backed Yemeni government, which the Houthis ousted from the capital, Sanaa, in late 2014, said earlier it would facilitate arrangements for release of prisoners, opening Sanaa airport and allowing fuel vessels into Houthi-held Hodeidah port.

"We immediately announce the release of the first two fuel ships through Hodeidah port," Foreign Minister Ahmed Bin Mubarak said on Twitter.

Houthi chief negotiator Mohammed Abdulsalam welcomed the truce. Another senior Houthi official, Mohammed Ali al-Houthi, said on Twitter its "credibility would be in implementation".

The Saudi-led coalition, which intervened in March 2015 against the Houthis, controls Yemen's seas and air space.

The warring parties are also discussing a prisoner swap under which hundreds from both sides would be freed, including 16 Saudis, three Sudanese and a brother of Yemeni President Abd-Rabbu Mansour Hadi.

The last major prisoner swap, involving around 1,000 detainees, took place in 2020 as part of confidence-building steps agreed at the last peace talks held in December 2018. 
&nbsp;

The warring sides in Yemen's seven-year conflict have for the first time in years agreed a nationwide truce, which would also allow fuel imports into Houthi-held areas and some flights operating from Sanaa airport, the United Nations envoy said on Friday.

The warring sides in Yemen's seven-year conflict have for the first time in years agreed a nationwide truce, which would also allow fuel imports into Houthi-held areas and some flights operating from Sanaa airport, the United Nations envoy said on Friday. The UN-brokered deal between a Saudi-led coalition and the Houthi group aligned with Iran is the most significant step yet towards ending a conflict that has killed tens of thousands and pushed millions into hunger. The last coordinated cessation of hostilities nationwide was during peace talks in 2016. UN special envoy Hans Grundberg said the two-month truce would come into effect on Saturday and could be renewed with consent of the parties. "The parties accepted to halt all offensive military air, ground and maritime operations inside Yemen and across its borders; they also agreed for fuel ships to enter into Hodeidah ports and commercial flights to operate in and out of Sanaa airport to predetermined destinations in the region," he said in a statement. The UN and US envoys had been trying since last year to engineer a permanent ceasefire needed to revive political negotiations stalled since late 2018 to end the conflict. It is widely seen as a proxy war between Sunni Muslim Saudi Arabia and Shi'ite Iran and Riyadh has struggled to exit the conflict. The Saudi-backed Yemeni government, which the Houthis ousted from the capital, Sanaa, in late 2014, said earlier it would facilitate arrangements for release of prisoners, opening Sanaa airport and allowing fuel vessels into Houthi-held Hodeidah port. "We immediately announce the release of the first two fuel ships through Hodeidah port," Foreign Minister Ahmed Bin Mubarak said on Twitter. Houthi chief negotiator Mohammed Abdulsalam welcomed the truce. Another senior Houthi official, Mohammed Ali al-Houthi, said on Twitter its "credibility would be in implementation". The Saudi-led coalition, which intervened in March 2015 against the Houthis, controls Yemen's seas and air space. The warring parties are also discussing a prisoner swap under which hundreds from both sides would be freed, including 16 Saudis, three Sudanese and a brother of Yemeni President Abd-Rabbu Mansour Hadi. The last major prisoner swap, involving around 1,000 detainees, took place in 2020 as part of confidence-building steps agreed at the last peace talks held in December 2018.

Yemen's warring parties agree two-month truce in major breakthrough

There are increasing signs that North Korea could soon test a nuclear weapon for the first time since 2017 in a bid to improve its arsenal and increase political pressure, U.S. and South Korean officials and analysts said.

Two US&nbsp;officials told Reuters that there were indications, including activity near the Punggye-ri nuclear site, that Pyongyang may be preparing for some sort of test, though an exact timing was unclear.

A South Korean military official confirmed that they were tracking activity to restore one of the tunnels used for nuclear tests.

Watch | South Korea questions North Korea's ICMB launch, says fakery to divert attention

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Pentagon spokesman John Kirby declined this week to comment, but said Washington is concerned about the possibility of new tests because they would be an opportunity for North Korea to enhance its arsenal.

"Every time you test you learn.... We know that this is a programme that they want to improve," he told a briefing on Tuesday. "And so of course, we're concerned about efforts to do that."

Analysts say that more testing could help North Korea reach its stated goals of making smaller nuclear warheads and improving their reliability.

Also Read | <a href="https://www.wionews.com/world/us-issues-fresh-north-korea-sanctions-after-recent-missile-launches-467515">US issues fresh North Korea sanctions after recent missile launch</a>

A resumption of nuclear tests could send political shockwaves through the region. China and Russia had joined the United States and other United Nations Security Council members in sanctioning Pyongyang over its previous tests, but in the wake of last week's intercontinental ballistic missile (ICBM) flight, both Beijing and Moscow signalled opposition to any new measures and said sanctions should be eased.

Liu Xiaoming, China's envoy for Korean affairs, has called on all sides to show restraint, but said the root cause of tensions is Washington's failure to address North Korea's legitimate security concerns and to reciprocate steps Pyongyang had taken since 2018.

On Thursday State Department spokesman Ned Price said Washington remains open to talks, but that continued provocations by North Korea would incur additional responses from the international community.

A NUCLEAR SITE REBORN

North Korea has conducted all six of its nuclear tests in deep tunnels dug under the mountains at Punngye-ri. In 2018 it used explosives to close old entrances in front of invited foreign media but not international experts, raising questions about the extent of the demolition.

That year Pyongyang declared a voluntary moratorium on testing nuclear weapons and its ICBMs. Since then, it has said it is not bound to that because of a lack of reciprocal moves by the United States and its allies. Last month, it test-fired ICBMs for the first time since 2017.

Commercial satellite imagery from Thursday shows probable new excavation at the site's South Portal, just east of a former tunnel entrance that was destroyed as part of site dismantlement efforts in 2018, 38 North, a U.S.-based programme that monitors North Korea, said in a report.

Although some South Korean media reports suggested that workers were building "shortcuts" to connect with the test tunnels as quickly as possible, it seems more likely they were trying to excavate into a stable point rather than digging through the fractured rock around the former entrance, 38 North said.

The organisation noted that some technical buildings such as the site's command and control centre were not destroyed in 2018.

Since December, satellite imagery has showed activity at the main administrative area, the Vienna-based Open Nuclear Network (ONN) said in a report this week.

Notably, the South Portal tunnel that North Korea appears be reactivating was not previously used for testing, the ONN report said. Piles of what might be logs, often used to shore up such tunnels, have also been spotted, it added.

A separate 38 North report said satellite imagery shows increased activity around North Korea’s Sohae Satellite Launching Station, after leader Kim Jong Un ordered its expansion as part of a programme to launch spy satellites to monitor military moves by the United States and its allies.

There are increasing signs that North Korea could soon test a nuclear weapon for the first time since 2017 in a bid to improve its arsenal and increase political pressure, U.

There are increasing signs that North Korea could soon test a nuclear weapon for the first time since 2017 in a bid to improve its arsenal and increase political pressure, U.S. and South Korean officials and analysts said. Two US officials told Reuters that there were indications, including activity near the Punggye-ri nuclear site, that Pyongyang may be preparing for some sort of test, though an exact timing was unclear. A South Korean military official confirmed that they were tracking activity to restore one of the tunnels used for nuclear tests. Watch | South Korea questions North Korea's ICMB launch, says fakery to divert attention × Pentagon spokesman John Kirby declined this week to comment, but said Washington is concerned about the possibility of new tests because they would be an opportunity for North Korea to enhance its arsenal. "Every time you test you learn.... We know that this is a programme that they want to improve," he told a briefing on Tuesday. "And so of course, we're concerned about efforts to do that." Analysts say that more testing could help North Korea reach its stated goals of making smaller nuclear warheads and improving their reliability. Also Read | US issues fresh North Korea sanctions after recent missile launch A resumption of nuclear tests could send political shockwaves through the region. China and Russia had joined the United States and other United Nations Security Council members in sanctioning Pyongyang over its previous tests, but in the wake of last week's intercontinental ballistic missile (ICBM) flight, both Beijing and Moscow signalled opposition to any new measures and said sanctions should be eased. Liu Xiaoming, China's envoy for Korean affairs, has called on all sides to show restraint, but said the root cause of tensions is Washington's failure to address North Korea's legitimate security concerns and to reciprocate steps Pyongyang had taken since 2018. On Thursday State Department spokesman Ned Price said Washington remains open to talks, but that continued provocations by North Korea would incur additional responses from the international community. A NUCLEAR SITE REBORN North Korea has conducted all six of its nuclear tests in deep tunnels dug under the mountains at Punngye-ri. In 2018 it used explosives to close old entrances in front of invited foreign media but not international experts, raising questions about the extent of the demolition. That year Pyongyang declared a voluntary moratorium on testing nuclear weapons and its ICBMs. Since then, it has said it is not bound to that because of a lack of reciprocal moves by the United States and its allies. Last month, it test-fired ICBMs for the first time since 2017. Commercial satellite imagery from Thursday shows probable new excavation at the site's South Portal, just east of a former tunnel entrance that was destroyed as part of site dismantlement efforts in 2018, 38 North, a U.S.-based programme that monitors North Korea, said in a report. Although some South Korean media reports suggested that workers were building "shortcuts" to connect with the test tunnels as quickly as possible, it seems more likely they were trying to excavate into a stable point rather than digging through the fractured rock around the former entrance, 38 North said. The organisation noted that some technical buildings such as the site's command and control centre were not destroyed in 2018. Since December, satellite imagery has showed activity at the main administrative area, the Vienna-based Open Nuclear Network (ONN) said in a report this week. Notably, the South Portal tunnel that North Korea appears be reactivating was not previously used for testing, the ONN report said. Piles of what might be logs, often used to shore up such tunnels, have also been spotted, it added. A separate 38 North report said satellite imagery shows increased activity around North Korea’s Sohae Satellite Launching Station, after leader Kim Jong Un ordered its expansion as part of a programme to launch spy satellites to monitor military moves by the United States and its allies.

North Korea may be preparing new nuclear tests to improve arsenal: US and allies

Reham Khan, senior journalist and ex-wife of Pakistan Prime Minister Imran Khan, said on Wednesday that Pakistan premier's political survival from the present crisis was 'impossible'. Reham Khan was speaking exclusively with WION. Saying 'everyone has had enough of him', she claimed that Imran Khan was trying to be like former Pakistan PM Zulfikar Ali Bhutto by claiming that foreign powers were hatching a 'conspiracy' to topple his government.

"I think he is trying to project himself as Zulfikar Ali Bhutto," she said. She repeated her assertion one more time during the interview.

Imran Khan's coalition government is facing a no-confidence motion in Pakistan's National Assembly. The vote on the motion is due to take place on April 3. But as the day draws nearer, the cricketer-turned-politician is increasingly finding himself on a slippery wicket. 
 
Watch |

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"Nobody believes in foreign conspiracy hocus-pocus," said Reham Khan as she spoke with WION. Imran Khan has claimed that he has documentary proof of foreign conspiracy but has not yet made it public.

In a public rally on March 27, Imran Khan waved in his hand a letter that he claimed was proof of foreign conspiracy against his government.

Reham Khan described Imran's attempt to have been focussed on salvaging his 'failing political career'. She added that making such allegations was a 'dangerous thing to cook up'.

The coalition led by Imran Khan's Pakistan Tehreek-e-Insaf (PTI) had a jolt on Wednesday when allied party Muttahida Qaumi Movement-Pakistan (MQM-P) deserted the coalition and demanded the PM's resignation.

Reham Khan opined that it would be better for Imran Khan to step down gracefully before he faces defeat in Pakistan's parliament.&nbsp;

However, "Grace is not something I equate with Imran," she said.

She said that she viewed Imran Khan as a very 'selfish' person who would put his own motives above national interest.

"Imran's political survival is impossible," said Reham Khan also stressing during the interview that she saw through him quite early.

The lower house of Pakistan's parliament, the National Assembly elects the prime minister. In order to have a majority, the government needs support from 172 out of 342 members.

After 2018 elections in Pakistan, Imran Khan's PTI won 155 seats and Khan crossed the 172-vote threshold to be elected prime minister in 2018 with the help of coalition partners.&nbsp;

Reham Khan, senior journalist and ex-wife of Pakistan Prime Minister Imran Khan, said on Wednesday that Pakistan premier's political survival from the present crisis was 'impossible'.

Reham Khan, senior journalist and ex-wife of Pakistan Prime Minister Imran Khan, said on Wednesday that Pakistan premier's political survival from the present crisis was 'impossible'. Reham Khan was speaking exclusively with WION. Saying 'everyone has had enough of him', she claimed that Imran Khan was trying to be like former Pakistan PM Zulfikar Ali Bhutto by claiming that foreign powers were hatching a 'conspiracy' to topple his government. "I think he is trying to project himself as Zulfikar Ali Bhutto," she said. She repeated her assertion one more time during the interview. Imran Khan's coalition government is facing a no-confidence motion in Pakistan's National Assembly. The vote on the motion is due to take place on April 3. But as the day draws nearer, the cricketer-turned-politician is increasingly finding himself on a slippery wicket. Watch | "Nobody believes in foreign conspiracy hocus-pocus," said Reham Khan as she spoke with WION. Imran Khan has claimed that he has documentary proof of foreign conspiracy but has not yet made it public. In a public rally on March 27, Imran Khan waved in his hand a letter that he claimed was proof of foreign conspiracy against his government. Reham Khan described Imran's attempt to have been focussed on salvaging his 'failing political career'. She added that making such allegations was a 'dangerous thing to cook up'. The coalition led by Imran Khan's Pakistan Tehreek-e-Insaf (PTI) had a jolt on Wednesday when allied party Muttahida Qaumi Movement-Pakistan (MQM-P) deserted the coalition and demanded the PM's resignation. Reham Khan opined that it would be better for Imran Khan to step down gracefully before he faces defeat in Pakistan's parliament. However, "Grace is not something I equate with Imran," she said. She said that she viewed Imran Khan as a very 'selfish' person who would put his own motives above national interest. "Imran's political survival is impossible," said Reham Khan also stressing during the interview that she saw through him quite early. The lower house of Pakistan's parliament, the National Assembly elects the prime minister. In order to have a majority, the government needs support from 172 out of 342 members. After 2018 elections in Pakistan, Imran Khan's PTI won 155 seats and Khan crossed the 172-vote threshold to be elected prime minister in 2018 with the help of coalition partners.

Imran Khan is no Zulfikar Ali Bhutto: Ex-wife Reham Khan slams beleaguered Pak PM

Pakistan Prime Minister Imran Khan on Friday said that Pakistan government had handed official protest to US embassy over what he called USA's interference in the country's internal affairs.

"We now have given a demarche to (the) American embassy," Khan told local television channel ARY in an interview, referring to a diplomatic note over what he described as a foreign conspiracy to oust him from power.

The cricketer-turned-politician is in a tough political situation as his government is due to face a tough no-confidence vote on Sunday (March 3). Khan recently got a major jolt as his coalition partner MQM declared that it would vote with the opposition on the no-confidence motion.

Imran Khan has been alleging that there was a foreign conspiracy against Pakistan and his government. He has claimed that he has documentary evidence that foreign countries are trying to interfere in Pakistan's affairs.

Watch | The final countdown: Pakistan Prime Minister Imran Khan lauds India for second time 
&nbsp;

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&nbsp;

In a televised address to the nation on Thursday (March 31), Imran Khan explicitly named USA but backtracked during the same speech.

But on Friday evening Khan named the United States, in his interview with ARY News TV.

Reuters reported that US embassy did not immediately respond to Imran Khan's assertion on Thursday that an official protest had been handed to US embassy.

Ruling party members in Pakistan led a protest against the United States in the northwestern city of Peshawar on Friday.

In an unusual move, dozens of Pakistan Tehreek-e-Insaf (PTI) ruling party figures, led by a provincial minister, rallied in the centre of Peshawar, chanting "Down with America!"

"We have come out to support Imran Khan who has challenged the capitalist forces," the minister, Taimur Jhagra, told the rally. "We will prefer hunger over a surrender to the U.S.," said another provincial lawmaker in the rally, Fazal Elahi.

A handful of activists from an anti-America Shi'ite group also reacted to Khan's claims, holding a rally in Islamabad where they burned American flags.

(With inputs from agencies)

Pakistan Prime Minister Imran Khan on Friday said that Pakistan government had handed official protest to US embassy over what he called USA's interference in the country's internal affairs.

Pakistan Prime Minister Imran Khan on Friday said that Pakistan government had handed official protest to US embassy over what he called USA's interference in the country's internal affairs. "We now have given a demarche to (the) American embassy," Khan told local television channel ARY in an interview, referring to a diplomatic note over what he described as a foreign conspiracy to oust him from power. The cricketer-turned-politician is in a tough political situation as his government is due to face a tough no-confidence vote on Sunday (March 3). Khan recently got a major jolt as his coalition partner MQM declared that it would vote with the opposition on the no-confidence motion. Imran Khan has been alleging that there was a foreign conspiracy against Pakistan and his government. He has claimed that he has documentary evidence that foreign countries are trying to interfere in Pakistan's affairs. Watch | The final countdown: Pakistan Prime Minister Imran Khan lauds India for second time × In a televised address to the nation on Thursday (March 31), Imran Khan explicitly named USA but backtracked during the same speech. But on Friday evening Khan named the United States, in his interview with ARY News TV. Reuters reported that US embassy did not immediately respond to Imran Khan's assertion on Thursday that an official protest had been handed to US embassy. Ruling party members in Pakistan led a protest against the United States in the northwestern city of Peshawar on Friday. In an unusual move, dozens of Pakistan Tehreek-e-Insaf (PTI) ruling party figures, led by a provincial minister, rallied in the centre of Peshawar, chanting "Down with America!" "We have come out to support Imran Khan who has challenged the capitalist forces," the minister, Taimur Jhagra, told the rally. "We will prefer hunger over a surrender to the U.S.," said another provincial lawmaker in the rally, Fazal Elahi. A handful of activists from an anti-America Shi'ite group also reacted to Khan's claims, holding a rally in Islamabad where they burned American flags. (With inputs from agencies)

Official protest lodged with US embassy, Pakistan PM Imran Khan tells Pakistani media

A collision between two South Korean air force planes on Friday (April 1) resulted in death of four pilots, said authorities. The collision took place during a training exercise.&nbsp;

The air force said that the crash took place at 0437 GMT about 6 kilometers south of KT-1 &nbsp;airplane base in the southeastern city of Sacheon

"Despite their attempts at an emergency escape ... all of the two student pilots and two flight instructors aboard the two planes died," it said in a statement.

A total of 130 troops, 95 police officers and 60 firefighters as well as three helicopters have begun a search at the crash site, Yonhap news agency said, citing local government officials.

The air force said there were no civilian casualties but had formed a team to determine the cause of the accident and damage, including on the resident community.

The crash is one of several incidents involving South Korean air force jets this year.

In January, a pilot was killed in an F-5 fighter jet crash.

That accident took place shortly after the country grounded its entire fleet of advanced F-35 fighter jets following a major systems malfunction on one plane that forced a dramatic emergency landing.

The Korean peninsula remains in a technical state of war, as the armistice that ended the conflict in 1953 has yet to be replaced with a peace treaty.

(With inputs from agencies)

A collision between two South Korean air force planes on Friday (April 1) resulted in death of four pilots, said authorities. The collision took place during a training exercise.

A collision between two South Korean air force planes on Friday (April 1) resulted in death of four pilots, said authorities. The collision took place during a training exercise. The air force said that the crash took place at 0437 GMT about 6 kilometers south of KT-1 airplane base in the southeastern city of Sacheon "Despite their attempts at an emergency escape ... all of the two student pilots and two flight instructors aboard the two planes died," it said in a statement. A total of 130 troops, 95 police officers and 60 firefighters as well as three helicopters have begun a search at the crash site, Yonhap news agency said, citing local government officials. The air force said there were no civilian casualties but had formed a team to determine the cause of the accident and damage, including on the resident community. The crash is one of several incidents involving South Korean air force jets this year. In January, a pilot was killed in an F-5 fighter jet crash. That accident took place shortly after the country grounded its entire fleet of advanced F-35 fighter jets following a major systems malfunction on one plane that forced a dramatic emergency landing. The Korean peninsula remains in a technical state of war, as the armistice that ended the conflict in 1953 has yet to be replaced with a peace treaty. (With inputs from agencies)

South Korea: Two air force planes collide mid-air killing four pilots

April Fool's Day never gets old. The day dedicated to light-hearted pranking of our family and friends and a good laugh is all we need to forget all things bad and keep going ahead right?

There are pranks aplenty. A simple online search and you can get a lot of ideas. Companies aren't bad in this game either. Things can get funny when pranks are pulled on customers, unsuspecting or otherwise.

A Zomato customer posted his experience on Twitter. He apparently got a message from his delivery man saying 'Lol! Sorry not coming! Your order was never placed!'. It was apparently a prank.

<div class="ui-state-default" contenteditable="false">
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<blockquote class="twitter-tweet">
<a href="https://twitter.com/hashtag/AprilFoolDay?src=hash&amp;ref_src=twsrc%5Etfw">#AprilFoolDay</a><a href="https://twitter.com/zomato?ref_src=twsrc%5Etfw">@zomato</a> 
Did something for today 
.. 
 
Hey! I’ve just placed an order for you on Zomato. You can track the order status here <a href="https://t.co/Rri45EJmkh">pic.twitter.com/Rri45EJmkh</a>
— Rohit Arora (@rohitarora_25) <a href="https://twitter.com/rohitarora_25/status/1509734325943934976?ref_src=twsrc%5Etfw">April 1, 2022</a></blockquote>
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&nbsp;

Oppo launched its latest product 'Opp Gotcha'. The dazzling features include a '1422 Hz disply', 'a very clicky button' and more. Check out the video below

<div class="ui-state-default" contenteditable="false">
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<blockquote class="twitter-tweet">
The wait is over. Say hello to <a href="https://twitter.com/hashtag/OPPOGotcha?src=hash&amp;ref_src=twsrc%5Etfw">#OPPOGotcha</a>. Don’t be fooled by its tiny size. Incredible potential awaits 👉 <a href="https://t.co/Ez126AQNev">https://t.co/Ez126AQNev</a> <a href="https://t.co/Qec23ZPafu">pic.twitter.com/Qec23ZPafu</a>
— OPPO India (@OPPOIndia) <a href="https://twitter.com/OPPOIndia/status/1509761388566446082?ref_src=twsrc%5Etfw">April 1, 2022</a></blockquote>
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&nbsp;

OnePlus Co-Founder Carl Pei's Nothing launched Another (1) phone.

"Say hello to just Another (1). You’ve seen a phone just like this before. Experience edge-to-edge monotony. It’s inspiringly uninspired. Utterly unoriginal. And exactly the same as everything else. Coming to bore you soon." reads the tweet

Xiaomi India decided to give everyone a boost making 'ConfiBoost' which the company said would help everyone achieve anything

<div class="ui-state-default" contenteditable="false">
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We're excited to announce the launch of the all-new <a href="https://twitter.com/hashtag/ConfiBOOST?src=hash&amp;ref_src=twsrc%5Etfw">#ConfiBOOST</a> - Mint Tablets made for Mi Fans. ⚡ 
ConfiBOOST Tablets help you achieve anything, only if you believe in it! (lol jk😁)<a href="https://twitter.com/hashtag/AlwaysBelieve?src=hash&amp;ref_src=twsrc%5Etfw">#AlwaysBelieve</a> 
 
Let's TAB: <a href="https://t.co/k5b4pnhZGw">https://t.co/k5b4pnhZGw</a> <a href="https://t.co/G109JjNSnQ">pic.twitter.com/G109JjNSnQ</a>
— Xiaomi India (@XiaomiIndia) <a href="https://twitter.com/XiaomiIndia/status/1509794438767575040?ref_src=twsrc%5Etfw">April 1, 2022</a></blockquote>
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Australian police felt like cracking one too. On April 1, the State Police of Victoria said that they were launching a camel division

“Victoria Police will soon take ownership of Camels as a part of an expansion to mounted operations. The new one and two hump camels will be a welcome addition to the current herd, helping the organisation address both climate change and fuel price hikes,” read the Facebook post.

This did not stop here. Victorian police went ahead and listed advantages of Mounted Camel Division. They flaunted the “fuel-efficient, all-terrain vehicle” that will, as they said, cut down expenses of water cannons.

'Tis a season to laugh our hearts out.

April Fool's Day never gets old. The day dedicated to light-hearted pranking of our family and friends and a good laugh is all we need to forget all things bad and keep going ahead right?

April Fool's Day never gets old. The day dedicated to light-hearted pranking of our family and friends and a good laugh is all we need to forget all things bad and keep going ahead right? There are pranks aplenty. A simple online search and you can get a lot of ideas. Companies aren't bad in this game either. Things can get funny when pranks are pulled on customers, unsuspecting or otherwise. A Zomato customer posted his experience on Twitter. He apparently got a message from his delivery man saying 'Lol! Sorry not coming! Your order was never placed!'. It was apparently a prank. #AprilFoolDay@zomato Did something for today .. Hey! I’ve just placed an order for you on Zomato. You can track the order status here pic.twitter.com/Rri45EJmkh — Rohit Arora (@rohitarora_25) April 1, 2022 × Oppo launched its latest product 'Opp Gotcha'. The dazzling features include a '1422 Hz disply', 'a very clicky button' and more. Check out the video below The wait is over. Say hello to #OPPOGotcha. Don’t be fooled by its tiny size. Incredible potential awaits 👉 https://t.co/Ez126AQNev pic.twitter.com/Qec23ZPafu — OPPO India (@OPPOIndia) April 1, 2022 × OnePlus Co-Founder Carl Pei's Nothing launched Another (1) phone. "Say hello to just Another (1). You’ve seen a phone just like this before. Experience edge-to-edge monotony. It’s inspiringly uninspired. Utterly unoriginal. And exactly the same as everything else. Coming to bore you soon." reads the tweet Xiaomi India decided to give everyone a boost making 'ConfiBoost' which the company said would help everyone achieve anything We're excited to announce the launch of the all-new #ConfiBOOST - Mint Tablets made for Mi Fans. ⚡ ConfiBOOST Tablets help you achieve anything, only if you believe in it! (lol jk😁)#AlwaysBelieve Let's TAB: https://t.co/k5b4pnhZGw pic.twitter.com/G109JjNSnQ — Xiaomi India (@XiaomiIndia) April 1, 2022 × Australian police felt like cracking one too. On April 1, the State Police of Victoria said that they were launching a camel division “Victoria Police will soon take ownership of Camels as a part of an expansion to mounted operations. The new one and two hump camels will be a welcome addition to the current herd, helping the organisation address both climate change and fuel price hikes,” read the Facebook post. This did not stop here. Victorian police went ahead and listed advantages of Mounted Camel Division. They flaunted the “fuel-efficient, all-terrain vehicle” that will, as they said, cut down expenses of water cannons. 'Tis a season to laugh our hearts out.

April Fool's Day: How Zomato, Oppo and even Australian police fooled people

Anger against Sri Lankan President Gotabaya Rajapaksa's handling of a deepening economic crisis in the island nation of 22 million people spiralled into violence late on Thursday, as hundreds of protesters clashed with police for several hours.

A severe shortage of foreign currency has left Rajapaksa's government unable to pay for essential imports, including fuel, leading to debilitating power cuts lasting up to 13 hours.

Ordinary Sri Lankans are also dealing with shortages and soaring inflation, after the country steeply devalued its currency last month ahead of talks with the International Monetary Fund (IMF) for a loan programme.

HOW DID SRI LANKA GET HERE?

Critics say the roots of the crisis, the worst in several decades, lie in economic mismanagement by successive governments that created and sustained a twin deficit - a budget shortfall alongside a current account deficit.

"Sri Lanka is a classic twin deficits economy," said a 2019 Asian Development Bank working paper. "Twin deficits signal that a country's national expenditure exceeds its national income, and that its production of tradable goods and services is inadequate."

But the current crisis was accelerated by deep tax cuts promised by Rajapaksa during a 2019 election campaign that were enacted months before the COVID-19 pandemic, which wiped out parts of Sri Lanka's economy.

With the country's lucrative tourism industry and foreign workers' remittances sapped by the pandemic, credit ratings agencies moved to downgrade Sri Lanka and effectively locked it out of international capital markets.

In turn, Sri Lanka's debt management programme, which depended on accessing those markets, derailed and foreign exchange reserves plummeted by almost 70% in two years.

The Rajapaksa government's decision to ban all chemical fertilisers in 2021, a move that was later reversed, also hit the country's farm sector and triggered a drop in the critical rice crop.

WHAT HAPPENS WITH SRI LANKA'S FOREIGN DEBT?

As of February, the country was left with only $2.31 billion in its reserves but faces debt repayments of around $4 billion in 2022, including a $1 billion international sovereign bond (ISB) maturing in July.

ISBs make up the largest share of Sri Lanka's foreign debt at $12.55 billion, with the Asian Development Bank, Japan and China among the other major lenders.

In a review of the country's economy released last month, the IMF said that public debt had risen to "unsustainable levels" and foreign exchange reserves were insufficient for near-term debt payments.

In a note late last month, Citi Research said that the IMF report's conclusion and the government's recent measures were insufficient to restore debt sustainability, strongly indicating "the need for debt restructuring".

WHO IS HELPING SRI LANKA?

For months, Rajapaksa's administration and the Central Bank of Sri Lanka (CBSL) resisted calls by experts and opposition leaders to seek help from the IMF despite rising risks.

But after oil prices soared in the wake of Russia's invasion of Ukraine in late February, the government eventually drew up a plan to approach the IMF in April.

The IMF will initiate discussions with Sri Lankan authorities on a possible loan program in "coming days", an IMF spokesman said on Thursday.

Before heading to the IMF, Sri Lanka steeply devalued its currency, further stoking inflation and adding to the pain of the public, many of whom are enduring hardship and long queues.

In the interim, Rajapaksa has also sought help from China and India, particularly assistance on fuel from the latter. A diesel shipment under a $500 million credit line signed with India in February is expected to arrive on Saturday.

Sri Lanka and India have signed a $1 billion credit line for importing essentials, including food and medicine, and the Rajapaksa government has sought at least another $1 billion from New Delhi.

After providing the CBSL with a $1.5 billion swap and a $1.3 billion syndicated loan to the government, China is considering offering the island nation a $1.5 billion credit facility and a separate loan of up to $1 billion.

Anger against Sri Lankan President Gotabaya Rajapaksa's handling of a deepening economic crisis in the island nation of 22 million people spiralled into violence late on Thursday, as hundreds of protesters clashed with police for several hours.

Anger against Sri Lankan President Gotabaya Rajapaksa's handling of a deepening economic crisis in the island nation of 22 million people spiralled into violence late on Thursday, as hundreds of protesters clashed with police for several hours. A severe shortage of foreign currency has left Rajapaksa's government unable to pay for essential imports, including fuel, leading to debilitating power cuts lasting up to 13 hours. Ordinary Sri Lankans are also dealing with shortages and soaring inflation, after the country steeply devalued its currency last month ahead of talks with the International Monetary Fund (IMF) for a loan programme. HOW DID SRI LANKA GET HERE? Critics say the roots of the crisis, the worst in several decades, lie in economic mismanagement by successive governments that created and sustained a twin deficit - a budget shortfall alongside a current account deficit. "Sri Lanka is a classic twin deficits economy," said a 2019 Asian Development Bank working paper. "Twin deficits signal that a country's national expenditure exceeds its national income, and that its production of tradable goods and services is inadequate." But the current crisis was accelerated by deep tax cuts promised by Rajapaksa during a 2019 election campaign that were enacted months before the COVID-19 pandemic, which wiped out parts of Sri Lanka's economy. With the country's lucrative tourism industry and foreign workers' remittances sapped by the pandemic, credit ratings agencies moved to downgrade Sri Lanka and effectively locked it out of international capital markets. In turn, Sri Lanka's debt management programme, which depended on accessing those markets, derailed and foreign exchange reserves plummeted by almost 70% in two years. The Rajapaksa government's decision to ban all chemical fertilisers in 2021, a move that was later reversed, also hit the country's farm sector and triggered a drop in the critical rice crop. WHAT HAPPENS WITH SRI LANKA'S FOREIGN DEBT? As of February, the country was left with only $2.31 billion in its reserves but faces debt repayments of around $4 billion in 2022, including a $1 billion international sovereign bond (ISB) maturing in July. ISBs make up the largest share of Sri Lanka's foreign debt at $12.55 billion, with the Asian Development Bank, Japan and China among the other major lenders. In a review of the country's economy released last month, the IMF said that public debt had risen to "unsustainable levels" and foreign exchange reserves were insufficient for near-term debt payments. In a note late last month, Citi Research said that the IMF report's conclusion and the government's recent measures were insufficient to restore debt sustainability, strongly indicating "the need for debt restructuring". WHO IS HELPING SRI LANKA? For months, Rajapaksa's administration and the Central Bank of Sri Lanka (CBSL) resisted calls by experts and opposition leaders to seek help from the IMF despite rising risks. But after oil prices soared in the wake of Russia's invasion of Ukraine in late February, the government eventually drew up a plan to approach the IMF in April. The IMF will initiate discussions with Sri Lankan authorities on a possible loan program in "coming days", an IMF spokesman said on Thursday. Before heading to the IMF, Sri Lanka steeply devalued its currency, further stoking inflation and adding to the pain of the public, many of whom are enduring hardship and long queues. In the interim, Rajapaksa has also sought help from China and India, particularly assistance on fuel from the latter. A diesel shipment under a $500 million credit line signed with India in February is expected to arrive on Saturday. Sri Lanka and India have signed a $1 billion credit line for importing essentials, including food and medicine, and the Rajapaksa government has sought at least another $1 billion from New Delhi. After providing the CBSL with a $1.5 billion swap and a $1.3 billion syndicated loan to the government, China is considering offering the island nation a $1.5 billion credit facility and a separate loan of up to $1 billion.

How Sri Lanka's economy spiralled into crisis

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Zee News Rajasthan

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Manas Joshi

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