SL struggles to overcome economic, political crisis
Central bank chief warns economy could ‘collapse’; Gotabaya vows new cabinet, prime minister soon
Agencies
COLOMBO, SRI LANKA: Sri Lanka’s President Gotabaya Rajapaksa on Wednesday promised that a new prime minister and cabinet will be named this week, hours after the central bank chief warned that the economy will “collapse” unless a new government is urgently appointed.
The president, in an address to the nation, said he make the new appointments to restore political stability and also promised constitutional changes to give more power to the parliament, a long-held demand of protesters.
A Rajapaksa ruling party coalition partner is open to backing opposition leader Sajith Premadasa as prime minister if he’s willing to accept the post, a news report had said earlier on Wednesday. Premadasa has, in the past, rejected the likelihood of working under Rajapaksa.
Central Bank Governor Nandalal Weerasinghe said it was critical that a new administration take charge by Friday or the country would suffer a catastrophe. “The economy will completely collapse and no one will be able to save it,” he said.
“The country was fast going down a slope when I took over just over a month ago. I thought we were able to apply the brakes, but with events of Monday the brakes no longer work.”
Shortly after taking over as the bank’s chief in April, Weerasinghe announced a default on Sri Lanka’s $51 billion external debt, saying the country had no money to pay its creditors.
He said political stability was vital to implement the reforms needed to address Sri Lanka’s snowballing debt crisis and the acute shortage of foreign exchange to import essentials.
The International Monetary Fund is closely following developments in Sri Lanka and “concerned about rising social tensions and violence,” Masahiro Nozaki, the fund’s mission chief for the country, said in a statement.
“Technical level” discussions between IMF officials and Sri Lanka authorities have started, will continue in order to be ready for policy discussions once
will name a prime minister who will command a majority in parliament and the confidence of the people. GOTABAYA RAJAPAKSA, President of Sri Lanka
a new Sri Lanka government is formed, Nozaki said.
Security forces have largely curbed public disorder after they were deployed to enforce a nationwide curfew with orders to “shoot on sight” anyone engaged in looting or violence.
Police say nine people have died since Monday, when frustration at a dire economic crisis erupted into clashes between backers and opponents of Rajapaksa, injuring more than 200. The capital Colombo was almost deserted on Wednesday aside from soldiers manning checkpoints, near the charred remains of buses that had been set alight by anti-government crowds. With armoured personnel carriers and a heavy security presence, Sri Lanka’s military chief addressed a press conference to deny speculation of a looming coup.
“Don’t ever think that we are trying to capture power,” said Kamal Gunaratne, the secretary of the defence ministry. “The military has no such intentions.”
In a tweet earlier on Wednesday, Gotabaya on Wednesday called for “all Sri Lankans to join hands as one, to overcome the economic, social & political challenges”.
Defence ministry secretary Kamal Gunaratne, an ally of Gotabaya, said he hopes to lift the curfew on Thursday while denying that the state of emergency declared last week was a step toward military rule.
“We know people have difficulties. But we also have to protect people,” Gunaratne said in press briefing in Colombo. “We are called to calm the situation. We are under civilian government. When the situation is calm we will stay back.”
Gunaratne also confirmed that Mahinda, the president’s brother, was evacuated to Trincomalee naval base in the northeast after protesters stormed his residence in Colombo.