Skip to content
Search

Latest Stories

Sri Lanka's economy on brink of collapse as troops quell unrest

Sri Lanka's economy on brink of collapse as troops quell unrest

Sri Lanka's economy will "collapse" unless a new government is urgently appointed, the central bank chief warned Wednesday, as security forces fanned out on the streets to restore order after spasms of mob violence.

Police say nine people have died since Monday, when frustration at a dire economic crisis erupted into clashes between backers and opponents of President Gotabaya Rajapaksa, injuring more than 200.


Armoured personnel carriers have carried troops into the capital Colombo and a heavy security presence commanded to shoot looters on sight has largely restored order without sparking further violence.

But Central Bank Governor Nandalal Weerasinghe said it was critical that a new administration take charge by Friday or the country would suffer a catastrophe.

"The economy will completely collapse and no one will be able to save it," he told reporters.

"The country was fast going down a slope when I took over just over a month ago. I thought we were able to apply the brakes, but with events of Monday the brakes no longer work."

Shortly after taking over as the bank's chief in April, Weerasinghe announced a default on Sri Lanka's $51 billion external debt, saying the country had no money to pay its creditors.

He said political stability was vital to implement the reforms needed to address Sri Lanka's snowballing debt crisis and the acute shortage of foreign exchange to import essentials.

A nationwide curfew is still in effect and the streets of the capital Colombo were almost deserted on Wednesday aside from soldiers manning checkpoints.

Several roads were still partially blocked by the charred remains of buses that had been set alight by anti-government crowds.

- Public unease -

The heavy security presence has brought widespread public unease, prompting Sri Lanka's top military official to publicly deny speculation of a looming coup.

"Don't ever think that we are trying to capture power," said Kamal Gunaratne, the secretary of the defence ministry.

"The military has no such intentions."

A small crowd continued to defy the curfew near President Rajapaksa's seafront office, where a protest camp has for the past month maintained a vigil calling on him to step down.

"We want the whole Rajapaksa clan out because they are so, so corrupt. They have been eating into Sri Lanka like a caterpillar eating into some fruit," activist Kaushalya Fernando told AFP.

In a televised address to the nation, Rajapaksa said he was willing to curtail his own powers in the interests of forming a unity government to navigate Sri Lanka out of the crisis.

"I appeal to all to support me to ensure that the country does not collapse and we are able to prove the essentials to all," he said.

But the main opposition SJB party reiterated it will not be a part of any government with Rajapaksa still president, even after his brother Mahinda's resignation as prime minister on Monday.

- Turning point -

Sri Lankans have been suffering shortages of essential goods, fuel and medicines for months in the island's worst economic downturn since independence in 1948.

The crisis moved into a darker phase on Monday when government supporters with sticks and clubs attacked demonstrators who had been protesting peacefully for weeks demanding the president's resignation.

Mobs then retaliated across the country, torching dozens of homes of ruling-party politicians.

Mahinda Rajapaksa had to be rescued in a pre-dawn military operation on Tuesday and taken to a naval dockyard for safety after protesters tried to storm his official residence.

Echoing the UN rights chief and the European Union, the United States on Tuesday said it was concerned both with the violence and the deployment of the military.

"We stress that peaceful protesters should never be subjected to violence or intimidation," State Department spokesman Ned Price told reporters.

India meanwhile was forced to deny social media rumours -- some using old images of Mahinda boarding a helicopter -- that it was helping Rajapaksa family members to flee.

The Indian "High Commission would like to categorically deny speculative reports in sections of media and social media about India sending her troops to Sri Lanka," it said a statement.

With vital tourism revenues torpedoed by the pandemic, Sri Lanka last month defaulted on its foreign debt, some of it stemming from Rajapaksa vanity projects built with Chinese loans.

The International Monetary Fund this week began a "virtual mission" of staff-level talks on a possible bailout.

IMF mission chief Masahiro Nozaki said the lender aimed to be "fully prepared for policy discussions once a new government has been formed".

More For You

Bhim Kohli Murder Trial: Teenager's Admission of Guilt Revealed to Jury
The attack took place on 1 September last year in Franklin Park, Braunstone Town, Leicestershire. (Photo credit: Facebook)

Bhim Kohli murder: Teenager on trial said ‘I did it’, jury told

A 15-YEAR-OLD boy accused of killing an 80-year-old man in a Leicester park told police, “I had my reasons, but I did it,” a court heard.

The boy is charged with murdering Bhim Kohli at Franklin Park, Braunstone Town, in September last year. A 13-year-old girl, also on trial, is accused of manslaughter. Both were 14 and 12 at the time and cannot be named due to their ages.

Keep ReadingShow less
Mark-Carney-Reuters

Carney said he would stand up for Canada’s way of life and push back against American actions affecting trade. (Photo: Reuters)

Mark Carney vows to fight US trade war as Canada's next prime minister

MARK CARNEY, Canada's incoming prime minister, has pledged to take on the United States in an escalating trade dispute, vowing to defend the country’s interests against US president Donald Trump’s policies.

Speaking to supporters in Ottawa after being elected leader of the Liberal Party, Carney said he would stand up for Canada’s way of life and push back against American actions affecting trade.

Keep ReadingShow less
uk fog

Temperatures are set to drop across the country. (Representational image: Getty)

Met Office issues yellow warning for fog in north England

THE MET OFFICE has issued a yellow weather warning for fog across parts of the North East and Yorkshire, including Durham, Newcastle, and York.

The warning is in effect for over 10 hours, from 10:40 pm on Sunday until 9:00 pm on Monday.

Keep ReadingShow less
International Yoga Festival 2025 kicks off with Ganga Aarti at Parmarth Niketan

The Honourable Uttarakhand Chief Minister Pushkar Singh Dhami graced the inaugural event

Parmarth Niketan

International Yoga Festival 2025 kicks off with Ganga Aarti at Parmarth Niketan

The International Yoga Festival 2025 commenced on Sunday (9) at Parmarth Niketan with a sacred Ganga Aarti ceremony on the banks of the holy Ganges. Uttarakhand chief minister Pushkar Singh Dhami inaugurated the event, which also featured soulful kirtan performances and inspiring talks by spiritual leaders.

Inaugration Ceremony of International Yoga Day 2025Parmarth Niketan

Keep ReadingShow less
India under pressure as Trump claims victory in tariff dispute
Modi shakes hands with Trump before a meeting at Hyderabad House in New Delhi on February 25, 2020. (Photo: Getty Images)

India under pressure as Trump claims victory in tariff dispute

INDIA's government faces mounting questions after US president Donald Trump claimed the country has agreed to "cut tariffs way down" ahead of his 2 April deadline for imposing reciprocal tariffs on trading partners.

The controversy erupted after Trump's remarks from the Oval Office, where he accused India of charging "massive tariffs" that make it "almost restrictive" to sell American goods in the country.

Keep ReadingShow less