Sri Lanka's prime minister said late last month that the island nation's debt-laden economy had “collapsed” as it runs out of money to pay for food and fuel.
Prime Minister Ranil Wickremesinghe, who took office in May, was emphasizing the monumental task he faced in turning around an economy he said was heading for “rock bottom.” On Saturday both he and President Gotabaya Rajapaksa agreed to resign amid mounting pressure from protesters who stormed both their residences and set fire to one of them.
Political corruption is also a problem; not only did it play a role in the country squandering its wealth, but it also complicates any financial rescue for Sri Lanka. Doctors have resorted to social media to try to get critical supplies of equipment and medicine. Growing numbers of Sri Lankans are seeking passports to go overseas in search of work. Government workers have been given an extra day off for three months to allow them time to grow their own food.WHY IS THE ECONOMY IN SUCH DIRE STRAITS?Much of the public's ire has focused on President Rajapaksa and his brother, former Prime Minister Mahinda Rajapaksa.
In April 2021, Rajapaksa suddenly banned imports of chemical fertilizers. The push for organic farming caught farmers by surprise and decimated staple rice crops, driving prices higher. To save on foreign exchange, imports of other items deemed to be luxuries also were banned. Meanwhile, the Ukraine war has pushed prices of food and oil higher. Inflation was near 40% and food prices were up nearly 60% in May.
“Sri Lanka pins last hopes on IMF,” read a June headline in the Colombo Times. The government is in negotiations with the IMF on a bailout plan, and Wickremesinghe has said he expected to have a preliminary agreement later this summer.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Protesters in Sri Lanka enter presidential palace, PM's private residence | CBC NewsThe office of Sri Lanka's prime minister says anti-government protesters broke into his private residence and set it on fire after storming the president's home and office.
Read more »
Protesters in Sri Lanka storm president's residence, office | CBC NewsSri Lankan protesters demanding President Gotabaya Rajapaksa resign forced their way into his official residence and nearby office on Saturday, local television reports said, as thousands of people demonstrated in the capital against the island nation's worst economic crisis in recent memory.
Read more »
Sri Lanka president, PM to resign after tumultuous protestsSri Lanka's president and prime minister agreed to resign Saturday after the country's most chaotic day in months of political turmoil, with protesters storming both officials' homes and setting fire to one of the buildings in a rage over the nation's severe economic crisis.
Read more »
Sri Lanka president, PM to resign after tumultuous protestsThe Globe and Mail offers the most authoritative news in Canada, featuring national and international news
Read more »
Sri Lanka President to resign: parliament speakerPresident Gotabaya Rajapaksa has agreed to resign in the coming days, the speaker of Sri Lanka’s Parliament said on a tumultuous Saturday that also saw the prime minister say he would step down and the storming of both leaders' residences by protesters angry over the nation's severe economic crisis.
Read more »
Sri Lanka protesters storm president's residence, demanding Rajapaksa's resignationSri Lankan protesters demanding President Gotabaya Rajapaksa resign forced their way into his official residence and nearby office on Saturday, local television reports said, as thousands of people demonstrated in the capital against the island nation's worst economic crisis in recent memory.
Read more »