The economic crisis also led to a political crisis in Sri Lanka and calls for the resignation of the powerful Rajapaksa.
Here are the major developments:
‘No money to buy petrol, so’Sri Lanka will default on debt,
Two of Sri Lanka’s sovereign bonds are expected to be placed in default by rating agencies on Wednesday after non-payment of coupons, while the energy minister said the country had run out of money to pay for fuel. The minister revealed that the country does not have foreign exchange to pay for a ship of petrol that has been submerged in water for nearly two months as it appealed to citizens to “not wait in line” for fuel.
However, the country has got enough stock of diesel, the government said.
Since March 28, a ship with petrol has been anchored in Sri Lankan waters, Power and Energy Minister Kanchana Wijesekera told Parliament, confirming that the country is facing the issue of availability of petrol. “We don’t have US dollars to pay for the ship with petrol,” he said, adding that a further USD 53 million is due for the same vessel for the last shipment in January 2022. The minister said the shipping company concerned has refused to release the vessel until both the payments are settled.
Sri Lanka receives $160 million in bridge financing world Bank
Meanwhile, the country has received $160 million in bridge financing from the World Bank to pay for essential imports, the prime minister said. Ranil Wickremesinghe said on Wednesday.
“We are working to see if these funds can be used for fuel imports,” Wickremesinghe told the country’s parliament.
Displeasure over China distributing dry ration to Foreign Service officers
In the midst of a shortage of essential commodities in Sri Lanka due to the severe economic crisis, the country’s Foreign Service Officers’ Association has been furious due to the distribution of rations by China.
China’s effort to distribute rations such as pulses, rice and other items to influence foreign officials in troubled Sri Lanka has faced stiff opposition.
According to a report, all the rations were distributed by the Chinese government, but the CCP trademark was hidden in the bags provided to the villagers. The report said that the worst bribe was the distribution of dry rations to the employees of the Ministry of External Affairs.
India looks like Sri Lanka: Rahul Gandhi
Congress leader Rahul Gandhi on Wednesday hit out at the government over rising inflation and unemployment and said India “looks like Sri Lanka” and the Center should not divert people’s attention.
The Congress has been accusing the government of diverting people’s attention from other issues to hide its failures and issues of inflation and unemployment.
“Diverting people’s attention won’t change the facts. India looks a lot like Sri Lanka,” Gandhi said on Twitter.
Diverting people’s attention won’t change the facts. India closely resembles Sri Lanka. https://t.co/q1dptUyZvM
— Rahul Gandhi (@RahulGandhi) 1652869985000
He shared graphs of unemployment, petrol price and communal violence showing similar images of India and Sri Lanka, citing various sources including the Armed Conflict Location and Incident Data Project, Lok Sabha Unstarred Question, CMIE, Petroleum Planning and Analysis Cell and Central Bank of Sri Lanka.
Mahinda appeared in Parliament for the first time after resigning from the post of PM
former srilanka strongman Mahinda Rajapakse Made his first appearance in parliament on Wednesday as he was forced to resign as prime minister and take refuge in a naval camp amid high security, largely amid violent protests against the economic crisis. was convicted.
Mahinda resigned as prime minister last week after his supporters attacked anti-government protesters, prompting officials to impose a nationwide curfew and deploy army personnel in the capital.
More pain in Sri Lanka before any solution to the crisis
The measures needed to pull the Sri Lankan economy out of a unique crisis are likely to hurt even more. Economists said this week’s dire assessment of the island nation’s economic plight by new prime minister Wickremesinghe was a necessary first step. His proposed solutions to bring back some stability include selling off the loss-making national airline, printing more money and possibly raising energy and utility prices along with taxes.
Wickremesinghe said the “unpleasant and terrifying” facts facing the country included a fiscal deficit that stood at 13% of the gross domestic product (GDP), virtually no foreign reserves, and the use of petrol, gas, furnace oil and cancer and anti-rabies drugs. was lacking.
(with inouts from agencies)