The people defied the curfew to protest against long queues for fuel and gas and long hours without electricity. Governor of the Central Bank Ajith Nivard Cabraal has also announced his resignation.
In the context of all Cabinet ministers resigning, I have today submitted my resignation as Governor, he said.
Cabraal was blamed for his rigid stance on Sri Lanka seeking an economic bailout through an IMF structural adjustment facility. Despite his opposition, the government in the last fortnight approached the international lender for support. During his governorship, the Central Bank was accused of printing large volumes of money, triggering inflation.
He was blamed for his rigid stance on Sri Lanka seeking an economic bailout through a structural adjustment facility from the IMF. The country is grappling with what is said to be its worst economic crisis since independence from the UK in 1948. It is caused in part by a lack of foreign currency, which is used to pay for fuel imports. People are languishing in long queues for fuel, cooking gas and endure power cuts lasting multiple hours.
Sri Lanka is currently experiencing its worst economic crisis in history. With long lines for fuel, cooking gas, essentials in short supply and long hours of power cuts, the public has been suffering for weeks.
India recently announced to extend a USD 1 billion line of credit to Sri Lanka as part of its financial assistance to the country to deal with the economic crisis following a previous USD 500 billion line of credit in February to help it purchase petroleum products.
During his recently-concluded visit to Colombo, External Affairs Minister S Jaishankar had assured India’s continued support in Sri Lanka’s economic recovery process. Rajapaksa has defended his government’s actions, saying the foreign exchange crisis was not his making and the economic downturn was largely pandemic driven with the island nation’s tourism revenue and inward remittances waning.
