Sri Lanka’s power and energy minister, on Tuesday said that “Sri Lanka will allow companies from oil-producing countries to import and sell fuel."(Reuters)Sri Lanka Crisis Highlights: The Sri Lankan Foreign Minister asserted Thursday that the government is still in majority, and there is no consensus over who can replace the President and the Prime Minister, Reuters reported.
Ali Sabry, who quit as Finance Minister just a day after his appointment, urged the government to seek a financial bailout, a debt moratorium, or some other means to address the ongoing crisis. Speaking in Parliament, Sabry Thursday said the government needs to look into restructuring a $1 billion international sovereign bond maturing in July, Reuters reported. Sabry called for political stability in order for the government to hold talks with the World Bank and initiate a bridge-financing plan with the Asian Development Bank (ADB).
Sri Lanka has appointed a three-member advisory group to assist government officials in engaging with the International Monetary Fund (IMF). Meanwhile, India has delivered two fuel consignments to the island nation in the last 24 hours. India supplied 36,000 tonnes of petrol and 40,000 tonnes of diesel, the Indian High Commission in Colombo said, taking the total fuel supplied to Sri Lanka by India to 270,000 tonnes.
Government Medical Officers' Association members walks with placards against the Sri Lanka's President Gotabaya Rajapaksa after his government lost its majority in the parliament, amid the country's economic crisis, during a protest near a road leading to the parliament building in Colombo, Sri Lanka, April 6, 2022. (REUTERS/Dinuka Liyanawatte)
The Sri Lankan government has appointed an advisory committee comprising eminent economic and fiscal experts to provide guidance on addressing the current debt crisis and engaging with the IMF and other lenders as the island nation struggles to combat the unprecedented shortage of foreign reserves. The Presidential Advisory Group on Multilateral Engagement and Debt Sustainability includes Indrajit Coomaraswamy, former governor of the Central Bank of Sri Lanka and former director of the Economic Affairs Division of the Commonwealth Secretariat, according to a statement issued by the President Media Division on Wednesday. --PTI
"Rajapaksa clan robbed this country. During their tenure from 2004-2014 they siphoned off USD 19 Bn as per various reports. They got a huge amount of money from international financial markets&now we're in serious problem to repay these loans," says Patali Champika Ranawaka, Sri Lanka MP and ex-minister.
Chief Minister M K Stalin on Thursday apprised the Centre that Tamil Nadu is ready to ship essential commodities like rice and life saving drugs to Sri Lanka, considering the welfare of Tamils and sought permission for its distribution there through the Indian High Commission.
Stalin spoke over phone to External Affairs Minister S Jaishankar and expressed his deep concern over the plight of Tamils in Lanka, who have been hit hard by the never seen before economic crisis in their country, an official release here said. The chief minister told Jaishankar Tamil Nadu is ready to ship rice, pulses and life saving drugs from Thoothukudi port to Sri Lanka. --PTI
Sri Lanka must look at restructuring a $1 billion sovereign debt due for payment in July, the outgoing finance minister told parliament on Thursday, urging an end to demands for a change in government amid the country's worst economic crisis in decades.
The opposition and some partners of the ruling coalition rejected calls this week for a unity government from President Gotabaya Rajapaksa after he disbanded his cabinet, hoping to quell weeks-long street protests over shortages of fuel, power, food and medicine.
With its foreign exchange reserves shrinking quickly, massive debt payments due and the rupee currency slumping, analysts say the government - controlled by Rajapaksa and his elder brother Mahinda, the prime minister - was running out of options. Reserves dropped 16% to $1.93 billion in March from a month earlier, central bank data showed on Thursday. (Reuters)
India stands ready to continue working with Sri Lanka for rapid post-COVID economic recovery, in line with our neighbourhood first policy, MEA spokesperson Arindam Bagchi said on Thursday.
The official further stressed that the relationship between India and Sri Lanka is rooted in shared civilisation values and aspirations of the people and added that the cooperation based on commonality and interest has been strengthened in recent months.
Speaking on the developing economic crisis in the neighbouring country, the MEA official said India has extended assistance of about USD 2.5 billion during the past 2-3 months, including credit facilities for fuel and food. (ANI)
Hitting out at the Centre for its brand of "nationalism", Rajasthan Chief Minister Ashok Gehlot Thursday said that the Union government is taking India on the path of a Sri Lanka-like economic breakdown.
"In Sri Lanka today, people do not have food because there, too, attention was diverted in the name of nationalism and opposition towards minorities. Modi government is trying to take India in the same direction," Gehlot said in a tweet.
Sri Lankan shares closed nearly 4 per cent lower on Thursday, hurt by losses in financials and industrials stocks, as investors awaited the central bank's monetary policy meeting outcome amid the country's worst economic crisis in decades.
At the close of trade, the CSE All-Share index settled 3.86% lower at 8,249.70 points.
The Central Bank of Sri Lanka said it would hold its monetary policy review meeting on Friday, with the review decision to be announced later on the same day after the market closes. (Reuters)
Sri Lanka's reserves dropped 16.1% to $1.93 billion in March from a month earlier, the Central Bank said on its website on Thursday, as the country suffers its worst economic crisis in decades. (Reuters)
Chamma Lal Sanjeeva, President, Medical and Civil Rights Professional Association of Doctors, told ANI, "Economic crisis has affected people from the public and private sectors. The fuel crisis has impeded electricity supply and logistics facilities of crucial medical equipment and life-saving medicines."
As Sri Lanka continues to face its worst economic crisis, people on Thursday waited in lines to get kerosene and fuel amid their shortage.
Ali Sabry, who quit as Finance Minister just a day after his appointment, while speaking in Parliament Thursday said, "We must have political stability to find solutions to the financial crisis."
"We must discuss with the World Bank and we must have a bridge-financing plan with the ADB (Asian Development Bank). If we don’t have stability, who will conduct these talks?," he was quoted as saying by Reuters.
"We must look at how to structure the $1 billion international sovereign bond payment maturing in July. We must go to the IMF, there is no other solution that I can see," Sabry said.
Sri Lanka's Central Bank has rescheduled the monetary policy review for Friday.
The bank was originally due to hold its policy meeting last Monday.
An analyst said the central bank was expected to hike key interest rates by 300-400 basis points (bps) - following a 100 bps increase in early March - to tame inflation that hit 18.7% in March.
"We also expect the newly appointed governor to outline potential measures to be included in the IMF reform plan, views on potential debt restructuring, and currency management," said Lakshini Fernando of Asia Securities, adding she also expected Weerasinghe to address the need for "higher stability and transparency" at the bank. (Reuters)
Ali Sabry, who quit as Finance Minister just a day after his appointment, urged the government to seek a financial bailout, a debt moratorium, or some other means to address the ongoing crisis. Speaking in Parliament, Sabry Thursday said the government needs to look into restructuring a $1 billion international sovereign bond maturing in July, Reuters reported.
The Sri Lankan government is struggling to replace Ali Sabry who quit as the Finance Minister on Tuesday, a day after his appointment.
A source close to the administration told news agency Reuters that despite appeals to a range of officials and top private sector professionals, the President and his close aides have failed to find a replacement.
Travel Agents Association of India postponed its 66th Convention which was to be held in Colombo, Sri Lanka from April 19 to 22.
"The current economic and political situation in the island nation, whereby there is a shortage of fuel, power, gas, the daily consumer needs, along with the political unrest and treason in parts of the country, has compelled us to postpone the convention in Colombo," the Association said in its statement.
Doctors and medical students in Sri Lanka came out on the streets Wednesday, protesting against the shortages of drugs in the island nation amid its worsening economic crisis. The doctors demanded that a "health emergency" be declared in the country.
The Presidential Advisory Group on Multilateral Engagement and Debt Sustainability includes Indrajit Coomaraswamy, former governor of the Central Bank of Sri Lanka and former director of the Economic Affairs Division of the Commonwealth Secretariat, according to a statement issued by the President Media Division on Wednesday.
The other members are Shanta Devarajan, Professor of the Practice of Development, Georgetown University and former chief economist of World Bank; and Sharmini Coorey, former director of the Institute of Capacity Development of the IMF Institute, and former deputy director of the Africa Department, IMF.
"Among the responsibilities that the Presidential Advisory Group will undertake are to engage in discussions with relevant Sri Lankan institutions and officials engaging with the IMF, and to provide guidance that will address the present debt crisis and lead towards sustainable and inclusive recovery for Sri Lanka," the statement said. (PTI)
Sri Lanka's new central bank governor Nandalal Weerasinghe, set to take office on Thursday, will hold a monetary policy meeting the following day, a source with direct knowledge of the matter told Reuters.
"The monetary board meeting will be held on Friday afternoon," said the source, who declined to be identified ahead of the announcement.
The policy is likely to be unveiled the following morning, after which the new governor is expected to lay out his priorities and plans at a news conference, the source added. (Reuters)
According to sources accessed by news agency Reuters, Sri Lanka's new Central Bank Governor Nandalal Weerasinghe will be taking office on Thursday.
This came after Ajith Nivard Cabraal announced his resignation, amid the spate of Cabinet Ministers leaving their posts.
Doctors in Sri Lanka came out on the streets Wednesday, protesting against the shortages of drugs in the island nation amid its worsening economic crisis. The doctors demanded that a "health emergency" be declared in the country.
Vasan Ratnasingam, a doctor at Colombo's Lady Ridgeway Hospital for Children, the largest such free-of-charge facility in Sri Lanka with some 2,000 beds, told news agency Reuters that they had run out of at least one vital drug, Digoxin, given for heart conditions. "And other than that, 102 essential drugs are in shortage," the doctor added.
After Russia, public sector ECGC Ltd, which provides credit risk insurance and related services for exports, has put Sri Lanka, which is going through its financial crisis, in the Restricted Cover Category – I (RCC-I).
While the present country rating of Sri Lanka remains unchanged as C1 (moderately high risk), its cover category has been changed from Open Cover to Restricted Cover Category – I (RCC-I). For countries in RCC-1, revolving limits are approved specifically on a case-to-case basis, normally valid for a year. However, the premium rates for the shipments insured under the insurance covers will remain unchanged. “This review has been carried out to assess and monitor the risks covered under ECGC’s export credit insurance policies which will enable it to place appropriate risk mitigation measures in place and assist its customers in improving payment realization prospects from buyers in Sri Lanka,” ECGC said. Read more
Sri Lanka has appointed a three-member advisory group to assist government officials engaging with the International Monetary Fund (IMF), the president said on Wednesday, as the island nation looks to get through a severe economic crisis.The responsibilities of the group "of economic and fiscal experts" include providing guidance that will address the present debt crisis, President Gotabaya Rajapaksa said in a statement. (Reuters)
Sri Lankan cricketer Sanath Jayasurya Thursday expressed dismay over the ongoing economic crisis in the island nation and said that it was isunfortunate that the people are going through this situation, as reported by news agency ANI.
Jayasurya also thanked 'big brother' India for helping Sri Lanka. "You know as always as a neighbour, the big brother next to our country has been helping us... We are very grateful to the Indian government and the Prime Minister (Modi)," Jayasurya said.
Amid the ongoing unrest in Sri Lanka owing to its economic crisis, the United States on Wednesday advised its citizens against travelling to the island nation, pointing to the fuel and medicine shortages there, besides the Covid-19 and terror threats. "Reconsider travel to Sri Lanka due to Covid-19 and fuel and medicine shortages. Exercise increased caution in Sri Lanka due to terrorism," State Department said in its latest travel advisory which has now been placed on Level 3.
The Centre for Disease Control and Prevention (CDC) has issued a Level 3 Travel Health Notice for Sri Lanka due to Covid-19, indicating a high level of Covid-19 in the country. "Your risk of contracting Covid-19 and developing severe symptoms may be lower if you are fully vaccinated with an FDA-authorised vaccine. Before planning any international travel, please review the CDC's specific recommendations for vaccinated and unvaccinated travellers," it said. (PTI)
For the past week, Sri Lanka has been roiling under violent protests as anger over the government’s handling of the island’s economic crisis boiled over to the streets. Since then, much has happened. President Gotabaya Rajapaksa issued a 36-hour curfew which many protestors defied. He then imposed a national emergency, which was criticised by the public and the Opposition lawmakers, before the President revoked it earlier Wednesday.
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. Foreign exchange reserves have fallen by 70% in the past two years and were down to a paltry $2.31 billion as of February, leaving Sri Lanka struggling to import essentials, including food and fuel.
Here is a look at what is happening in India’s south-eastern neighbour.
The United Nations on Wednesday welcomed the lifting of the State of Emergency in Sri Lanka, which was imposed for the “maintenance of public order,” news agency ANI reported.
India has delivered two fuel consignments to Sri Lanka in the last 24 hours, India's high commission on the crisis-hit island nation said on Wednesday. India supplied 36,000 tonnes of petrol and 40,000 tonnes of diesel, the high commission said, taking total Indian fuel supplies to Sri Lanka to 270,000 tonnes.
The country of 20 million people is suffering its worst economic crisis in decades, short supply of fuel resulting in hours-long power cuts every day.
Sri Lankan shares closed lower on Wednesday after news that despite widespread protests, the president of the debt-heavy island nation, currently facing an economic crisis, would not resign.
At the close of trade, the CSE All-Share index settled 1.8% lower at 8,580.93 points. Sri Lanka's sovereign dollar bonds dropped more than 3 cents against the dollar on Wednesday.
The equity market turnover was 1.94 billion Sri Lankan rupees ($6.47 million), compared with 1.14 billion rupees in the previous session. Trading volume rose to 69.9 million shares from 61.8 million shares in the previous session. Foreign investors were net buyers in the equity market, purchasing shares worth 240.8 million rupees, while domestic investors were net sellers, offloading 1.85 billion rupees worth of shares, exchange data showed. On the CSE All-Share index, conglomerate Expolanka Holdings and LOLC Finance were the top drags, declining 5.1% and 16.8%, respectively. (Reuters)
Moody's has said that resignations of key officials in the Sri Lankan government will raise policy uncertainty, compounding external liquidity and fiscal difficulties. The American business and financial services company said that the difficult political environment in Sri Lanka could weigh on policymaking and economy's recovery from pandemic.
It further stated that the intensifying social unrest and sporadic curfews are likely to further strain the tourism industry. (Reuters)
For the past week, Sri Lanka has been roiling under violent protests as anger over the government’s handling of the island’s economic crisis boiled over to the streets. Since then, much has happened. President Gotabaya Rajapaksa issued a 36-hour curfew which many protestors defied. He then imposed a national emergency, which was criticised by the public and the Opposition lawmakers, before the President revoked it earlier today.
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. Foreign exchange reserves have fallen by 70% in the past two years and were down to a paltry $2.31 billion as of February, leaving Sri Lanka struggling to import essentials, including food and fuel. Here's what's going on in India’s south-eastern neighbour
Claiming that the Opposition Janatha Vimukthi Peramunawas (JVP) party was behind the violence in the country, Chief Government Whip Minister Johnston Fernando said that this "thug politics" should not be allowed and called on the people to end the violence.
He said that the government will continue to work to address the issues faced by the public at present, the Colombo Page portal reported.
The Government also defended the President's decision to enforce a state of emergency, that had given him sweeping authority to act in the interests of public security and preserving public order, including suspending any laws, authorising detentions and seizing property, saying it was declared after attempts were made to attack the President's Office and other public property. (PTI)
The Bank of Ceylon employees' union on Wednesday protested against the government, calling for democratic reforms amid the ongoing crisis. The union demanded that the state banks be restructured.
"We need democratic reform. (We) demand to instantly dissolve Parliament and hold an election," Senior Vice President of the Bank's employees' union, Anupa Nandula, was quoted as saying by ANI.
Sri Lanka's sovereign dollar bonds dropped more than 3 cents on Wednesday to trade at deeply distressed levels of less than 40 cents in the dollar. The stock market fell around 2 per cent, Reuters reported.
Expressing solidarity with protesters across the country, hundreds of Catholic nuns and priests demonstrated against the Sri Lankan government amid the ongoing economic crisis.
Medicines under a $1 billion credit line that India signed with Sri Lanka last month still haven't arrived, according to a source aware of discussions between India and Sri Lanka, Reuters reported.
"But there is definitely a sense of urgency on both sides,” the source told the news agency, declining to be named since the discussions were not public.
The news agency further said that Sri Lankan and Indian officials did not immediately respond to requests for comment.
Doctors have been protesting across the country on Wednesday, asking the government to declare a health emergency amid shortages of drugs.
Dozens of doctors, some in their blue scrubs, Wednesday stood in protest opposite the national hospital in the commercial capital, Colombo. Some held a banner saying: "Strengthen people's right to live. Declare a health emergency."
Malaka Samararathna, who works at the state-run Apeksha Hospital which treats tens of thousands of cancer patients from across the country every year, said not only drugs but even chemicals used in testing are running short.
Vasan Ratnasingam, a spokesperson of the Government Medical Officers' Association that represents over 16,000 doctors nationwide, said at least one vital drug was not available at all in his Lady Ridgeway Hospital for Children.
"And other than that, 102 essential drugs are in shortage. Some of those drugs are frequently used, such as for respiratory tract infections, for urinary tract infections," he said, warning doctors would have to stop routine treatments and surgeries if immediate action was not taken. (Reuters)
Despite public anger against the Rajapaksa family, President Gotabaya will not resign, Chief Government Whip and Highways Minister Johnston Fernando asserted Wednesday. “May I remind you that 6.9 million people voted for the President. As a government, we are clearly saying the president will not resign under any circumstances. We will face this,” he was quoted as saying by Reuters.
Sri Lanka's tourism sector, one of the largest contributors to the country's economy, which had just begun to revive post the coronavirus pandemic, has been hit hard by the economic crisis.
Kevin, a General Manager of Colombo Court Hotel told news agency ANI: "One main big reason is the current ongoing power cuts, hike in fuel prices and lack of essential items has been a big hit for us hoteliers as we cannot survive without electricity. We have set up our own power banks because it is the main thing that tourists look for."
On Tuesday, members of the hotel association and staff protested in huge numbers. "We're here to represent the many stakeholders in the tourism industry who've been affected. We need to save tourism industry in the country," said Gerard Medina, Chairman, Chefs Guild of Sri Lanka.
Sri Lankan doctors said they will hold a street protest in the commercial capital Colombo on Wednesday as hospitals run out of essential drugs because of the country's worst economic crisis in decades.
The Government Medical Officers' Association, which represents over 16,000 doctors nationwide, said medics from across Colombo would gather at the National Hospital of Sri Lanka and protest "against the serious shortage of drugs".
Malaka Samararathna, who works at the state-run Apeksha Hospital which treats tens of thousands of cancer patients from across the country every year, said not only drugs but even chemicals used in testing are running short.
"The patients who are on chemotherapy, we have to monitor them carefully. Daily we have to monitor these investigations," Samararathna said. "So, if we can't do it, we can't decide the way forward. We can't decide on the proper management. Sometimes our chemotherapy drugs are causing severe side effects, so the only way we have to find it is by doing these investigations."
He said cancer drugs like Filgrastim and Cytarabine, as well as some antibiotics, were in short supply.
Rajapaksa's various moves - including securing financial support from India and China - have failed to end the shortages or the spontaneous street protests across the country. (Reuters)
With the Indian Parliament in session, Lok Sabha MP Ritesh Pandey Wednesday submitted an adjournment notice in the Lower House, demanding discussion over the Sri Lanka crisis.
"The economic crisis roiling Sri Lanka has left our neighbour with shortages of food, fuel, electricity, and even paper to conduct examinations. This crisis has triggered hunger and desperation across the island nation, forcing many to flee to South Indian shores. Although the Indian government has extended a $2.5bn line of credit as well as $500 million in fuel shipments, more needs to be done to tackle the mammoth task of stabilising the Sri Lankan economy in the short- and long-run as well as tackling short- and long-run economic migration. We must also keep in mind that climate change will only trigger disasters both natural and economic of unprecedented proportions – and this latest crisis is only the beginning," Pandey said in his notice.
The Rajapaksa family, whose members include Sri Lanka’s Prime Minister and President, hails from Hambantota district in the south. President Gotabaya Rajapaksa and his brothers Chamal, PM Mahinda, and Basil are third-generation politicians, while the fourth generation is represented by Mahinda and Chamal’s sons Namal, Yositha and Shashindra.
In South Asia, no other political dynasty has been as confidently nepotistic. During Mahinda Rajapaksa’s second term as President from 2010-15, there were said to be more than 40 Rajapaksa family members in government posts, apart from the cabinet. Many of them faced enquiries for financial fraud after Mahinda’s government was voted out. Basil, who is also a US citizen, was arrested, and his wife and eldest daughter were questioned. Read our Explainer here
With the government losing its majority in Parliament, protesters across Sri Lanka demanded the Rajapaksa family step down as the country faces its worst economic crisis.
The economic ruin appears to have brought to an abrupt end the ruling Rajapaksa family’s total domination of Sri Lanka, but the country finds itself in the middle of a peculiar political crisis today: the Opposition seems almost diffident about testing what is left of President Gotabaya Rajapaksa and Prime Minister Mahinda Rajapaksa’s support in Parliament.
With the government in minority in Parliament, there are no moves yet to get the government to prove its majority on the floor of the House, and the Prime Minister and the President have given no indication that they might step down even as calls for them to go grow louder on the streets.
While the combined opposition may not have the required numbers to form a government, the only possible challenger indicated in Parliament on Tuesday that he would play a long game. Leader of Opposition Sajith Premadasa, son of former President Ranasinghe Premadasa and head of Samagi Jana Balawegaya (SJB) or United People’s Power, demanded that the executive presidency be scrapped immediately. Read more
"I, Gotabaya Rajapaksa, President of the Socialist Republic of Sri Lanka, hereby revoke the gazette with effect from midnight on 05 April 2022," a gazette issued late Tuesday night said, referring to the previous order.
With at least 41 lawmakers walking out of the ruling coalition, the government is in minority in Parliament. The next possible step, politically, could include the appointment of a new Prime Minister replacing the President's elder brother, Mahinda Rajapaksa, or snap parliamentary elections way ahead of a scheduled vote in 2025.
Sri Lankan President Gotabaya Rajapaksa late Tuesday night revoked the state of emergency he had declared on April 1 with immediate effect in his island nation.
In a gazette notification no 2274/10 issued on Tuesday night, the president said he has withdrawn the emergency rule ordinance which gave security forces sweeping powers to curb any disturbance in the country.
The revocation of the gazette assumes significance as the ruling coalition appeared to have lost its majority in the 225 member Parliament with over 40 MPs declaring independence from the ruling coalition. The emergency approval needs to be ratified in the assembly after 2 weeks of it coming into effect. (PTI)
Sri Lanka’s President Gotabaya Rajapaksa declared an Emergency on April 1 as thousands of people came out on the streets to protest the crippling power cuts and shortages of essential commodities caused by the country’s economic meltdown. This is the second time within a year that Rajapaksa has resorted to this measure — he declared an Emergency on August 30 last year to deal with hoarding of essential commodities when the economic crisis had begun to manifest itself in all its severity, but lifted it within a few weeks.
Before Rajapaksa, President Maithripala Sirisena had declared an Emergency in March 2018 to contain anti-Muslim violence in some parts of the country that led to the deaths of two people, acts of arson, and damage to property. And before that, Sri Lanka was under a near continuous state of Emergency for 27 years — from the anti-Tamil riots of July 1983 to August 2011 — with brief respites in 1989 and 2001.
Emergency was first imposed in 1958 after Sri Lanka embraced the Sinhala Only language policy, and off and on from 1971 onward, when the left-wing Janatha Vimukthi Peramuna mounted its first insurrection. Explained by Nirupama Subramanian
Sri Lanka has decided to temporarily close its embassies in Oslo (Norway) and Baghdad (Iraq) and its Consulate General in Sydney, Australia with effect from April 30. According to a government statement, the decision was taken following 'careful deliberation.' The government stated that it is 'part of a general restructuring of Sri Lanka's diplomatic representationa overseas, undertaken by the Foreign Ministry in the context of the current economic situation and foreign currency constraints faced by the country.'
Sri Lankan shares broke their six-day losing streak on Tuesday, as President Gotabaya Rajapaksa's ruling coalition lost its majority in parliament amid growing unrest over the country's worst economic crisis in decades. At the close of trade, the CSE All-Share index settled 5.99% higher at 8,738.08 points.
The Rajapaksa government was left in a minority in parliament on Tuesday, after at least 41 Sri Lankan lawmakers walked out of the ruling coalition.
The debt-laden country currently faces shortages of food, fuel and medicines and prolonged power cuts as it struggles to pay for imports of fuel and other goods due to a scarcity of foreign exchange. The equity market turnover was 1.14 billion rupees ($3.86 million) on Tuesday, compared with 1.97 billion rupees in the previous session. (Reuters)
The ruling coalition, which had won 150 seats in the 2020 general elections and went on to increase its numbers through defections from the Opposition, on Tuesday appeared to lose the support of at least 41 MPs. These included members of former president Sirisena's Sri Lanka Freedom Party (SLFP) and others from the 11 coalition partners.
It now appears to have 109 seats, five less than the 113 seats required for a simple majority in the 225-member Parliament.
The government, however, claimed that it commands the simple majority. (PTI)
Names of the 41 lawmakers to leave the coalition were announced Tuesday by party leaders in Parliament. They have now become independent members, leaving Rajapaksa's government with fewer than the 113 members needed to maintain a majority in the 225-member house.
There has been no vote count yet, although Rajapaksa's minority government could find decision-making more challenging. Independent parliamentarians, however, could continue to support government proposals in the house.
"There are endless shortages of essentials including fuel and cooking gas. Hospitals are on the verge of closing because there are no medicines," Maithripala Sirisena, leader of the Sri Lanka Freedom Party that withdrew its support for Rajapaksa's coalition, told Parliament. "At such a time our party is on the side of the people."
Sirisena, together with other lawmakers, called on President Rajapaksa and his elder brother, Prime Minister Mahinda Rajapaksa, to present a clear plan to find a resolution for Sri Lanka's financial mess.
But Opposition parties - reflecting the mood of a wave of protests sweeping the country of 22 million people - urged the president and prime minister to step down. (Reuters)
Protests continued across the country Monday night, including at the Independence Square in Colombo and outside the office of President Rajapaksa amid the ongoing crisis in Sri Lanka.
The newly-appointed Finance Minister Ali Sabry, who had replaced the President's brother, Basil Rajapaksa, tendered his resignation stating that after much deliberation, “I am now of the view, for your Excellency to make suitable interim arrangement to navigate this unprecedented crisis, fresh and proactive and unconventional steps need to be taken, including the appointment of a new Finance Minister."
He added that when he resigned as Minister of Justice on April 3, it was not his intention to take up another post.
Sri Lankan President Gotabaya Rajapaksa's ruling coalition lost its majority in parliament on Tuesday after at least 41 lawmakers walked out of the alliance amid growing unrest over an economic crisis, according to parliamentary proceedings.
"Our party is on the side of the people," said Maithripala Sirisena, leader of the Sri Lanka Freedom Party which withdrew its support for Rajapaksa's coalition.
The shift left Rajapaksa with a minority government, which could make decision making more challenging, although independent lawmakers can still continue to support government proposals. (Reuters)
President Gotabaya Rajapaksa on Tuesday asserted that he won’t resign from his position while speaking to senior party members. He, however, said that he's ready to hand over the government to whoever proves the majority of 113 seats in Parliament, news agency ANI reported.
"Sri Lanka's condition is very worrisome. India is on that path. We have to handle it otherwise our condition will be worse than Sri Lanka. Mamata Banerjee has also said to call for an all-party meeting under PM Modi's leadership," Shiv Sena MP Sanjay Raut was quoted as saying by ANI.
The 225-member Parliament will convene on Tuesday in its first session since a state of emergency was declared by President Rajapaksa last week.
The dissidents, led by former president Sirisena's Sri Lanka Freedom Party (SLFP), would leave the ruling Sri Lanka Podujana Peramuna (SLPP) coalition with its 14 Members of Parliament, party sources said after their meeting with the President on Monday.
The coalition, which commanded 157 votes out of 225 at the last vote held on the government budget, is bound to lose between 50-60 members, Udaya Gammanpila, a dissident lawmaker told reporters on Monday.
As a result, the government would not only be denied its two-thirds but even the simple majority of 113 members, he said.
The dissidents said that in addition to 14 members of Sirisena, 16 more from the other 11 members of the coalition would defect to be an independent group. They expect at least 20 from the SLPP to join their ranks.
However, Rohitha Abeygunawardena, a SLPP lawmaker, said that the government was rock solid with 138 members backing it. (PTI)
The Sri Lankan Parliament is expected to meet Tuesday after the Opposition rejected the President’s proposal to form a unity government.
"You could see the composition of parliament changing today," lawyer Luwie Niranjan Ganeshanathan, who specialises in constitutional issues, told news agency Reuters.
Sri Lanka's ruling coalition won 145 out of 225 seats in the last parliamentary election. However, some of its 11 coalition partners that collectively hold 30 seats have indicated they will sit independently in Parliament.
If the ruling coalition loses its majority, the Opposition can table a resolution to dissolve the Parliament and call for elections, Reuters reported. If a no-confidence motion is brought in, the President can appoint a new Prime Minister.
Around 2,000 protesters reached the residence of Prime Minister Mahinda Rajapaksa in Tangalle, demanding his resignation. The protesters reportedly broke through police barricades, prompting the security forces to use tear gas and water cannons to disperse the crowd.
The International Monetary Fund (IMF) said on Tuesday that it is monitoring political and economic developments in Sri Lanka "very closely" as public unrest in the island nation grows amid its worst economic crisis in decades.
"IMF staff is looking forward to program discussions with the authorities, including during the visit of the newly appointed Finance Minister to Washington later this month," IMF Sri Lanka mission chief Masahiro Nozaki told Reuters in an emailed statement.
Following President Gotabaya Rajapaksa's proposal for all parties to come together and take up ministerial portfolios to find solutions to the economic crisis in Sri Lanka, the largest Opposition party, Samagi Jana Balawegaya has rejected the move.
"The people of this country want Gotabaya and the entire Rajapaksa family to go and we can’t go against the people’s will and we can’t work alongside the corrupt," top party official Ranjth Madduma Banadara told news agency AP.