Colombo: Sri Lanka Schools closed and non-essential government services halted on Monday, beginning a two-week shutdown to conserve rapidly dwindling fuel stocks. International Monetary Fund Started talks with Colombo on a possible bailout.
The country of 22 million people is in the grip of its worst-ever economic crisis, even after running out of foreign exchange for the most essential imports, including food, fuel and medicines.
Schools were closed on Monday and state offices functioned with fewer staff to cut down on commuting and save on precious petrol and diesel.
Sri Lanka is facing record-high inflation and a protracted power blackout, which has contributed to months of protests – sometimes violent – calling for President Gotabaya Rajapaksa to step down.
Thousands of students marched through the streets of Colombo on Monday chanting “Gota go home” in reference to the president, whom they accuse of corruption and mismanagement.
“The time is long gone for Gotabaya to bow down with dignity,” student leader vasantha mudalige told reporters. “Now we have to follow him.”
Declaring Rajapaksa’s 73rd birthday as a “day of mourning” for the nation, police on Monday arrested 21 student activists who closed all doors of the President’s Secretariat building.
Officials said the students had stopped Sri Lanka’s finance ministry secretary from attending an important meeting with officials International Monetary Fund,
But the Prime Minister’s Office Ranil Wickremesinghe Said that talks with an IMF delegation, the first individual discussions after Sri Lanka asked for a bailout in April, proceeded as planned.
Both sides said the talks would continue till the end of the month.
According to both Sri Lankan and IMF officials, a financial rescue plan is not expected until Colombo agrees with its creditors on the restructuring of its $51 billion foreign debt, a process that could take months.
The country defaulted on its debt in April and went to the IMF, which has asked Colombo to raise taxes and restructure loss-making state enterprises.
Most offices in Sri Lanka were closed on Monday and all schools were closed but hospitals and major sea and air ports in the capital were still operating.
Thousands of motorists waited in miles-long queues for petrol and diesel across the country, despite the power ministry’s announcement that fresh stock would not arrive for at least three days.
Wickremesinghe’s office said he met Australia’s Minister of Home Affairs, Claire O’Neill, “to deepen cooperation and assist Sri Lanka as the country faces very difficult economic times”.
Canberra announces $35 million in emergency aid to meet the impoverished island’s urgent food and health needs.
“Not only do we want to help the people of Sri Lanka in their time of need, but this crisis will have deep consequences for the region as it continues,” Australian Foreign Minister Penny Wong said in a statement.
Australia is a member of the “Quad”, a diplomatic grouping along with India, Japan and the United States, which has expressed concern over China’s growing influence in the region.
China owns more than 10 percent of Sri Lanka’s foreign debt and has invested heavily in infrastructure on the strategically located island, which is located along the main east-west international shipping lanes.
United Nations Last week Sri Lanka launched an emergency response effort to feed thousands of pregnant women facing food shortages.
The United Nations has said that four out of five people in the country have started giving up food because they cannot afford the high food prices. It warned of a “serious humanitarian crisis” with millions in need of aid.
The country of 22 million people is in the grip of its worst-ever economic crisis, even after running out of foreign exchange for the most essential imports, including food, fuel and medicines.
Schools were closed on Monday and state offices functioned with fewer staff to cut down on commuting and save on precious petrol and diesel.
Sri Lanka is facing record-high inflation and a protracted power blackout, which has contributed to months of protests – sometimes violent – calling for President Gotabaya Rajapaksa to step down.
Thousands of students marched through the streets of Colombo on Monday chanting “Gota go home” in reference to the president, whom they accuse of corruption and mismanagement.
“The time is long gone for Gotabaya to bow down with dignity,” student leader vasantha mudalige told reporters. “Now we have to follow him.”
Declaring Rajapaksa’s 73rd birthday as a “day of mourning” for the nation, police on Monday arrested 21 student activists who closed all doors of the President’s Secretariat building.
Officials said the students had stopped Sri Lanka’s finance ministry secretary from attending an important meeting with officials International Monetary Fund,
But the Prime Minister’s Office Ranil Wickremesinghe Said that talks with an IMF delegation, the first individual discussions after Sri Lanka asked for a bailout in April, proceeded as planned.
Both sides said the talks would continue till the end of the month.
According to both Sri Lankan and IMF officials, a financial rescue plan is not expected until Colombo agrees with its creditors on the restructuring of its $51 billion foreign debt, a process that could take months.
The country defaulted on its debt in April and went to the IMF, which has asked Colombo to raise taxes and restructure loss-making state enterprises.
Most offices in Sri Lanka were closed on Monday and all schools were closed but hospitals and major sea and air ports in the capital were still operating.
Thousands of motorists waited in miles-long queues for petrol and diesel across the country, despite the power ministry’s announcement that fresh stock would not arrive for at least three days.
Wickremesinghe’s office said he met Australia’s Minister of Home Affairs, Claire O’Neill, “to deepen cooperation and assist Sri Lanka as the country faces very difficult economic times”.
Canberra announces $35 million in emergency aid to meet the impoverished island’s urgent food and health needs.
“Not only do we want to help the people of Sri Lanka in their time of need, but this crisis will have deep consequences for the region as it continues,” Australian Foreign Minister Penny Wong said in a statement.
Australia is a member of the “Quad”, a diplomatic grouping along with India, Japan and the United States, which has expressed concern over China’s growing influence in the region.
China owns more than 10 percent of Sri Lanka’s foreign debt and has invested heavily in infrastructure on the strategically located island, which is located along the main east-west international shipping lanes.
United Nations Last week Sri Lanka launched an emergency response effort to feed thousands of pregnant women facing food shortages.
The United Nations has said that four out of five people in the country have started giving up food because they cannot afford the high food prices. It warned of a “serious humanitarian crisis” with millions in need of aid.