{"id":91692,"date":"2022-05-10T10:38:17","date_gmt":"2022-05-10T10:38:17","guid":{"rendered":"https:\/\/websitedesigns.com.au\/elankanew\/?p=91692"},"modified":"2022-05-10T10:38:17","modified_gmt":"2022-05-10T10:38:17","slug":"whats-happening-in-sri-lanka-country-facing-worst-economic-crisis-and-on-the-brink-of-bankruptcy-by-megan-baynes","status":"publish","type":"post","link":"https:\/\/websitedesigns.com.au\/elankanew\/whats-happening-in-sri-lanka-country-facing-worst-economic-crisis-and-on-the-brink-of-bankruptcy-by-megan-baynes\/","title":{"rendered":"What’s happening in Sri Lanka? Country facing worst economic crisis and on the brink of bankruptcy – by Megan Baynes"},"content":{"rendered":"

What’s happening in Sri Lanka? Country facing worst economic crisis and on the brink of bankruptcy – by Megan Baynes<\/strong><\/span><\/h1>\n

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Source:<\/strong>news.sky.com<\/a><\/span><\/span><\/p>\n

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In a country where limes cost 240% more than they did last year, and with a looming economic and food crisis, protests continue to play out between those demanding the government resign and those in support of it.<\/span><\/p>\n<\/div>\n<\/div>\n

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Sri Lanka is on the brink of bankruptcy and now facing its worst economic crisis since independence, with acute shortages of food, fuel and other essentials.<\/span><\/p>\n

Protests have been taking place on the island nation of 22 million people since the end of March between pro-government supporters and those calling for an immediate change in authority.<\/span><\/p>\n

The background<\/strong><\/span><\/p>\n

Sri Lanka, which gained independence from the UK in 1948, emerged from a devastating civil war in 2009.<\/span><\/p>\n

In 2019, the country was rocked by Easter Sunday bombings –\u00a0250 people were killed as suicide bombers targeted churches and hotels<\/strong><\/a>\u00a0across the country.<\/span><\/p>\n

The COVID-19 pandemic then torpedoed its pivotal tourism industry, which makes up its fifth-largest source of foreign revenue.<\/span><\/p>\n

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This economic downturn meant Sri Lanka was already in a precarious state when the most recent unrest erupted.<\/span><\/p>\n

The country also has significant debt and was due to pay \u00a35.7bn this year, with its total foreign debt standing at \u00a341.5bn.<\/span><\/p>\n

Rising oil prices and tax cuts have meant Sri Lanka now has as little as $50m (\u00a340m) of useable foreign reserves.<\/span><\/p>\n

Sri Lanka needs at least 40,000 tonnes of gas each month, and the monthly import bill would be $40m (\u00a332m) at current prices.<\/span><\/p>\n

When did the latest conflict begin?<\/strong><\/span><\/p>\n

\"What's
Supporter of Sri Lanka’s ruling party tugs a member of anti-government demonstrator by his shirt during a clash between the two groups<\/span><\/figcaption><\/figure>\n

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On 31 March,\u00a0hundreds of protestors tried to storm the home of President Gotabaya Rajapaksa<\/strong><\/a>, demanding his resignation.<\/span><\/p>\n

The capital was placed under curfew and a state of emergency was declared the following day.<\/span><\/p>\n

On 2 April, troops were deployed, and a 36-hour nationwide curfew was imposed. The following day, almost all of Sri Lanka’s cabinet resigned.<\/span><\/p>\n

An interim government was appointed<\/strong><\/a>, overseen by the president and the president’s brother, Mahinda Rajapaksa, the prime minister.<\/span><\/p>\n

Trading was then halted on Sri Lanka’s stock exchange and the governor of the central bank – having resisted calls to seek a bailout from the International Monetary Fund – also resigned.<\/span><\/p>\n

On 5 April President Rajapaksa lost his parliamentary majority after his finance minister resigned, and he lifted the state of emergency.<\/span><\/p>\n

Protests soon broke out across the country, fuelled by a further\u00a0shortage of life-saving medicines<\/strong><\/a>. Protesters called on the president to resign, as they blamed him for not managing the crisis – he was accused of borrowing too much money to finance projects which had not returned enough profit for Sri Lanka.<\/span><\/p>\n

What happened next?<\/strong><\/span><\/p>\n

\"What's
Supporters of Sri Lanka’s ruling party run as riot police fire tear gas<\/span><\/figcaption><\/figure>\n

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President Rajapaksa imposed the second state of emergency from 6 May, and gave security forces the power to crack down on growing unrest, a move that human rights groups have expressed concern over.<\/span><\/p>\n

The government has since approached the International Monetary Fund for a bailout and has been holding a virtual summit with officials from the multilateral lender aimed at securing emergency assistance. But it was told its progress would depend on negotiations on debt restructuring with creditors.<\/span><\/p>\n

Pro-government supporters, some armed with iron bars, attacked anti-government demonstrators at the “Gota Go Gama” tent village that sprang up last month and became the focal point of the nationwide protests.<\/span><\/p>\n

Tear gas and water cannon have also been used<\/strong><\/a>\u00a0as thousands broke the curfew.<\/span><\/p>\n

The country has $25bn (\u00a319.2bn) of foreign debt, which is due over the next five years – however, it has unilaterally suspended all payments.<\/span><\/p>\n

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Effective immediately I have tendered my resignation as Prime Minister to the President. <\/span><\/p>\n

\u0d85\u0d9c\u0db8\u0dd0\u0dad\u0dd2 \u0db0\u0dd6\u0dbb\u0dba\u0dd9\u0db1\u0dca \u0d89\u0dbd\u0dca\u0dbd\u0dcf \u0d85\u0dc3\u0dca\u0dc0\u0dd3\u0db8\u0dda \u0dbd\u0dd2\u0db4\u0dd2\u0dba \u0da2\u0db1\u0dcf\u0db0\u0dd2\u0db4\u0dad\u0dd2\u0dad\u0dd4\u0db8\u0dcf \u0dc0\u0dd9\u0dad \u0dba\u0ddc\u0db8\u0dd4 \u0d9a\u0dc5\u0dd9\u0db8\u0dd2.<\/span><\/p>\n

\u2014 Mahinda Rajapaksa (@PresRajapaksa) May 9, 2022<\/a><\/span><\/p><\/blockquote>\n