Sri Lankan President Gotabaya Rajapaksa called on Monday for a unity government to deal with the country's economic crisis after cabinet ministers and the central bank governor offered to resign.
The developments come after Rajapaksa, whose elder brother is the prime minister and younger brother the finance minister, declared a state of emergency on Friday, following protests over the economic hardship faced by the people of the country.
Traffic was back on the streets of the capital Colombo on Monday, but there were reports of sporadic and peaceful protests from across the country. The island nation of 22 million, off India's southern tip, is also grappling with soaring inflation after the government steeply devalued its currency last month ahead of talks with the International Monetary Fund for a loan programme.
The country's expenditure has exceeded its income under successive governments while its production of tradable goods and services has been inadequate. The twin deficits were badly exposed by the COVID-19 pandemic that crippled its economic mainstay, the tourism industry. "If this interim government is put in place and it is with people who have some credibility, then we can instil some confidence both in the people and in the markets," said Paikiasothy Saravanamuttu, executive director of the Centre for Policy Alternatives think-tank."The demands on the street were that Gotabaya Rajapaksa should go. He was the target," Saravanamuttu said.Reporting by Uditha Jayasinghe and Devjyot Ghoshal; Writing by Krishna N.
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