Author: Branita

Rajagiriya, a swanky suburb of Colombo is generally not associated with street protests amongst its fair share of ‘well-to-do’ residents. But the town known more for its high-risers that overlook lakes and marsh and for being a few minutes away from Sri Lanka’s parliament, has seen sustained street protests over the past few days.

The activists in Rajagiriya, like several others in Colombo’s suburbs, are protesting against what they call is a government that has failed the people. Many carried placards and banners calling for resignations and demanding change.

Sri Lanka is currently in the midst of its worst-ever financial crisis, with the Cost-of-Living sky-rocketing and the prices of essential items rising exponentially. A deteriorating currency, acute shortages in fuel, pharmaceuticals, cooking gas, and hours of power cuts have exacerbated an already worsening situation bringing the generally protest-shy urban-dwellers out to the streets.

“Three more years is a long time to wait for another election. I don’t think this country can last another three weeks (at this rate)”, noted an irate protestor in Rajagiriya.

Some held placards, others, candles in a peaceful show of dissent.

“It is so sad. One of the most powerful Presidents in the world, a government with 2/3rds in the parliament (bolstered by) the 20th amendment, and they have failed the nation”, is how a senior citizen taking part in the protest summarized his views.

Similar protests are seen in other parts of Colombo, including Kohuwala and Mount-Lavinia.

Rural Sri Lanka has been on the streets for months for a plethora of reasons. Farmers took to the streets after the government arbitrarily banned the import and distribution of chemical fertilizer on the eve of the planting season. Farmers across the nation demanded fertilizer and protests raged everywhere until finally the gazette issued by the government was reversed. The repercussions of the fertilizer ban are being felt with massive crop loss being reported in many areas.

Minister of Water Supply Vasudeva Nanayakkara has reportedly handed over his official vehicles and official residence to the Secretary to the Ministry today (14).

When inquired regarding this, the Democratic Left Front (DLF) leader stated that hereafter he will be using a personal vehicle belonging to a family relative.

Mr. Nanayakkara further stated that this decision was taken as it is unethical to obtain vehicles and other facilities from the ministry due to his boycott of Cabinet meetings and his withdrawal from ministry duties.

Sri Lanka’s finance minister held talks with a top International Monetary Fund (IMF) official on Monday, two sources said, as the island nation seeks help to deal with its plunging reserves, a sliding currency and surging inflation.

IMF Asia and Pacific Department Director Changyong Rhee met Finance Minister Basil Rajapaksa and Treasury Secretary S.R. Atygalle, two finance ministry officials told Reuters.

Sri Lanka is expected to start formal negotiations with the IMF in April on a possible programme that could boost reserves and put growth on a sustainable path.

In Monday’s talks, officials discussed details of the IMF’s latest review of the economy and the assessments outlined by IMF executive directors at an IMF board meeting in late February.

Rhee meets Sri Lankan President Gotabaya Rajapaksa on Tuesday.

“The talks were wide ranging and covered key challenges the economy is facing,” said one of the ministry officials, asking not to be named given the sensitivity of the talks.

“Right now, the focus is on how Sri Lanka can get IMF support. Talks on specific proposals will come later,” the official added, adding that Rajapaksa would brief the cabinet about the talks at a weekly meeting on Monday evening.

Sri Lanka has been hit by a dollar drought with reserves dropping to $2.31 billion in February. The country is struggling to pay for critical imports including fuel, food and medicines.

Chronic shortages have hit Sri Lankans hard with rolling power cuts, long lines at pumps and record levels of inflation.

Last week the Sri Lankan rupee fell 30% after the government allowed the currency to free-float, driving prices even higher.

A senior International Monetary Fund (IMF) official will be visiting Sri Lanka today (14) and tomorrow (15) to brief President Gotabaya Rajapaksa on the fund’s assessment of the crisis-hit economy, Reuters reported yesterday (13), quoting IMF’s Sri Lanka Mission Chief Masahiro Nozaki.

“While the IMF has not received a request for financial support from Sri Lanka, the staff stands ready to discuss options if requested,” Nozaki told Reuters.

The visit comes ahead of plans by Sri Lanka to hold formal talks with the IMF next month on how to help the country.

The Morning reported last week that Minister of Finance Basil Rajapaksa will visit the US in the first half of April to hold meetings with the IMF and World Bank, armed with an economic recovery and fiscal consolidation plan formulated in Sri Lanka.

Well-placed sources told The Morning that the Finance Minister would most likely depart Sri Lanka on 9 April and the meeting with the IMF is likely to be held on 11 April. Meetings with both organisations will be to obtain their assistance and guidance to overcome the unprecedented economic crisis Sri Lanka is currently experiencing.

A concern voiced by the Government when considering the IMF option has been the conditions that the IMF would impose, particularly with regard to any possible condition about slashing public sector jobs. However, economists have countered by saying that the IMF imposes such harsh conditions only if the Government approaches the IMF without a solid economic regeneration plan of its own. It is to address this concern that the Government has formulated a plan which it hopes to convince the IMF to endorse and support.

The Finance Minister will be accompanied by Finance Ministry and Treasury Secretary S.R. Attygalle. However, Central Bank of Sri Lanka (CBSL) Governor Ajith Nivard Cabraal, who has been vocally opposed to the option of entering an IMF programme, will not be a part of the visit.

Sri Lanka is facing its worst financial crisis in years with the country struggling to pay for critical imports including fuel, food, and medicines.

In a periodic review released earlier this month, the IMF called on the Government to implement a “credible and coherent” strategy to repay debt and restore macroeconomic stability.