Colombo: The Sri Lankan government lifted the state of emergency last week, nearly two weeks after it was imposed across the island as it faced unprecedented economic and anti-government protests. Embattled Sri Lankan President Gotabaya Rajapaksa had declared a state of emergency with effect from May 6 midnight, the second time in just over a month.
The move to lift emergency was taken with the improvement of the law and order situation in the island nation. The state of emergency had given the police and the security forces sweeping power to arbitrarily arrest and detain people. The protesters have blamed the powerful Rajapaksa clan for mishandling the nation's economy, already hit by the pandemic.
Nine people have been killed and over 200 injured in clashes between pro-and anti-government protesters.
Food shortages worsen
Lanka’s prime minister has warned of a food shortage as the island nation battles a devastating economic crisis and promises to buy enough fertiliser for the next planting season to boost harvests. In April last year president Gotabaya Rajapaksa imposed a ban all chemical fertilisers which drastically cut crop yields.
“While there may not be time to obtain fertiliser for this Yala [May-August] season, steps are being taken to ensure adequate stocks for the Maha [September-March] season,” Prime Minister Ranil Wickremesinghe said. “I sincerely urge everyone to accept the gravity of the situation,” Wickremesinghe said.
President Gotabaya, meanwhile, appointed nine new members to the cabinet, including to the critical health, trade and tourism ministries. Two legislators from the main opposition SJB party broke ranks to join the new government. Another opposition party, the Sri Lanka Freedom Party, agreed to support President and was given one portfolio.
However, the finance position – which will bring with it responsibility for leading negotiations with the International Monetary Fund (IMF) over a bailout – remains vacant. There are speculations that the portfolio is likely to be retained by Wickremesinghe.
The delay in announcing a finance minister could hinder Sri Lanka’s negotiations with the IMF, the central bank chief warned. Tourism-dependent Sri Lanka is facing a dire shortage of foreign exchange, fuel and medicines, and economic activity has slowed to a crawl.
Lanka defaults on debt
The country has defaulted on its debt for the first time in the history as the island nation struggles with its worst financial crisis triggered by global shock waves from the pandemic and the war in Ukraine, according to media reports.
Sri Lankan Central bank governor P Nandalal Weerasinghe said that the country had fallen into a “pre-emptive default” on its debts after the expiry of a 30 day grace period for missed interest payments on two of its sovereign bonds. It is the first default by an Asia-Pacific nation this century, according to Moody’s. It comes after a 30-day grace period to come up with $78 million of unpaid debt interest payments expired recently.
