Following Prime Minister Wickremesinghe's willingness to resign, President Rajapaksa also informed Speaker Abeywardena that he would resign on the 13th of this month. Analysts believe that the situation in Sri Lanka is chaotic and it is still unknown whether the formation of a ne

Source: China News Network

China News Service, July 11th comprehensive report, Sri Lanka the capital Colombo large-scale demonstrations broke out a few days ago. Following Prime Minister Wickremesinghe's willingness to resign, President Rajapaksa also informed Speaker Abeywardena that he would resign on the 13th of this month. Analysts believe that the situation in Sri Lanka is chaotic and it is still unknown whether the formation of a new government can be achieved.

On July 9, local time, protests broke out in Colombo, the capital of Sri Lanka, on the 9th. A large number of protesters broke into the presidential palace.

The demonstrations eased slightly and the Speaker called for calm.

Speaker Abeywardena said that President Rajapaksa’s decision to resign was to ensure a peaceful transition of power and it was crucial for the country to maintain peace. Abeywardena also asked all civil servants and citizens to respect the law, remain calm and ensure the smooth conduct of daily activities.

According to the Constitution of Sri Lanka, after the resignation of the President and Prime Minister, the Speaker will temporarily assume the duties of the President, and the transition period will not exceed 30 days. The local opposition political parties held a meeting on the 10th to discuss the formation of a new government.

At present, the situation in Colombo has eased slightly. Many people still stayed at the presidential palace, and members of the security forces stood guard outside the door with rifles, but they did not prevent people from entering. According to previous reports by local media, dozens of people were injured during the protests.

"The country is bankrupt" The economic crisis continues to intensify

Sri Lanka's economic crisis has lasted for nearly a year. The local inflation rate surged to 54.6% in June, food prices surged by 80%, and the inflation rate is expected to climb to 70% in the coming months.

For several months, Sri Lanka has faced high prices, tight power supply, and shortages of necessities such as food and medicine. On the 17th of last month, the authorities issued an order that except for employees in important positions such as medical care, all other people must work from home. The local government also suspended the sale of fuel to the public at the end of last month, only providing fuel for public transportation and basic medical services, and school closures were also extended to deal with the fuel shortage crisis.

Speaking to parliament last week, Sri Lankan Prime Minister Wickremesinghe said that "the country is bankrupt" and said that the unprecedented economic crisis "will last until at least the end of 2023."

Increased political uncertainty affects IMF negotiations

Currently, Sri Lanka is negotiating with the International Monetary Fund (IMF), hoping to seek US$3 billion in bailout funds, and is also negotiating with foreign creditors on debt restructuring.

However, Prime Minister Wickremesinghe admitted that as a "bankrupt country" rather than a developing country, negotiating with the IMF is already difficult. Analysts pointed out that the resignation of Sri Lanka's president and prime minister has exacerbated political uncertainty and may further affect Sri Lanka's negotiations with the IMF.

analysis also believes that the situation in Sri Lanka is chaotic and whether the formation of a new government can be achieved is highly doubtful. Political analyst Pereira said that the details of power transfer in Sri Lanka are still uncertain, and the resignation of the president and prime minister is likely to trigger a "dangerous power vacuum." Although the Speaker can appoint a new government, it remains to be seen whether it can be accepted by the people.