Cash-strapped Sri Lanka began a fresh austerity drive as the country aims to reduce its expenses and secure the IMF bailout. Now Colombo has temporarily frozen all government recruitments as new taxes and high electricity prices kicked in this week.

Sri Lanka works towards securing IMF bailout, freezes recruitment in fresh austerity drive

After months of seething resentment over the nation’s economic collapse and expulsion of Gotabaya Rajapaksa after thousands of protesters stormed Rajapaksa’s and other officials’ residences. Although, most of the protesters who had been celebrating the resignation have left the buildings. The police are currently monitoring the facilities that were ransacked. A week later, the constitutional procedure to choose new leaders is being taken care of by the former prime minister and current acting president Ranil Wickremesinghe. However, political observers claim that the removal of the Rajapaksas, who oversaw the finance ministry and is responsible for the nation’s financial and economic collapse, is far from appeasing the people, Reuters reported.

On Friday (July 15), Wickremesinghe who protesters wanted to be removed, was chosen as the ruling party’s presidential candidate. His selection led to further unrest on whether he should be elected or not. Another candidate for the presidency is Sajith Premadasa and Dullas Alahapperuma, a senior member of the ruling party.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/sri-lanka-acting-president-ranil-wickremesinghe-declares-state-of-emergency-498307">Sri Lanka: Acting President Ranil Wickremesinghe declares state of emergency</a>

However, while the emerald island nation’s foreign exchange reserves have almost completely vanished and the inflation topped 54.6 per cent last month, days-long petrol lines. The South Asian Island first received its three fuel cargoes on July 16, and the next consignment of diesel was likewise anticipated on Saturday, and more gasoline was anticipated for July 19.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/srilankadollarchallenge-sri-lankans-abroad-try-to-save-countrys-economy-via-viral-internet-trend-498161">#SriLankaDollarChallenge: Sri Lankans abroad try to save country's economy via viral internet trend</a>

The country’s central bank governor in conversation with The Wall Street Journal that the president will take office in a crisis-ridden nation that is likely to experience an economic contradiction of more than 6 per cent this year as the unrest will affect the negotiations over the financial assistance with the IMF.&nbsp;

The country will have its presidential election on July 20.&nbsp;

(With inputs from agencies)

After months of seething resentment over the nation’s economic collapse and expulsion of Gotabaya Rajapaksa after thousands of protesters stormed Rajapaksa’s and other officials’ residences.

After months of seething resentment over the nation’s economic collapse and expulsion of Gotabaya Rajapaksa after thousands of protesters stormed Rajapaksa’s and other officials’ residences. Although, most of the protesters who had been celebrating the resignation have left the buildings. The police are currently monitoring the facilities that were ransacked. A week later, the constitutional procedure to choose new leaders is being taken care of by the former prime minister and current acting president Ranil Wickremesinghe. However, political observers claim that the removal of the Rajapaksas, who oversaw the finance ministry and is responsible for the nation’s financial and economic collapse, is far from appeasing the people, Reuters reported. On Friday (July 15), Wickremesinghe who protesters wanted to be removed, was chosen as the ruling party’s presidential candidate. His selection led to further unrest on whether he should be elected or not. Another candidate for the presidency is Sajith Premadasa and Dullas Alahapperuma, a senior member of the ruling party. Also read | Sri Lanka: Acting President Ranil Wickremesinghe declares state of emergency However, while the emerald island nation’s foreign exchange reserves have almost completely vanished and the inflation topped 54.6 per cent last month, days-long petrol lines. The South Asian Island first received its three fuel cargoes on July 16, and the next consignment of diesel was likewise anticipated on Saturday, and more gasoline was anticipated for July 19. Also read | #SriLankaDollarChallenge: Sri Lankans abroad try to save country's economy via viral internet trend The country’s central bank governor in conversation with The Wall Street Journal that the president will take office in a crisis-ridden nation that is likely to experience an economic contradiction of more than 6 per cent this year as the unrest will affect the negotiations over the financial assistance with the IMF. The country will have its presidential election on July 20. (With inputs from agencies)

Sri Lanka in crisis: Some relief for protesters after the resignation, now waiting for the new president

A day after President Gotabaya Rajapaksa fled to the Maldives to avoid popular revolt against an economic crisis blamed on his government’s poor management, Sri Lankans await his resignation. Rajapaksa has frequently assured the Speaker of the House of his resignation on Wednesday, but as of early Thursday, his resignation letter had still not arrived, according to an aide to Speaker Mahinda Yapa Abeywardena. The president was anticipated to travel to Singapore next, however, it’s unclear about his final destination. The leader along with his wife and two bodyguards departed from the primary international airport in a military plane, Reuters reported.&nbsp;

The situation in Sri Lanka got worse as more protests began after Rajapaksa’s decision to name his ally Ranil Wickremesinghe, as interim president. The protesters stormed the premier’s office and demanded his resignation as well. The current acting President Ranil Wickremesinghe has declared a state of emergency and enforced it in the western province but was lifted early on Thursday (July 15). However, he also announced his desire to step down from his position amid the ongoing turmoil in the country.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/sri-lanka-crisis-us-demands-peaceful-transfer-of-power-within-the-boundaries-497173">Sri Lanka crisis: US demands peaceful transfer of power within the boundaries</a>

As per Hospital sources, nearly 45 people were taken to hospital during a standoff on Wednesday (July 13) night near the parliament building between the police and protesters who were demanding the resignation of both Rajapaksa and Wickremesinghe.&nbsp;A 26-year-old protester was hospitalized after being tear-gassed and died because of breathing problems.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/sri-lanka-state-broadcaster-stops-live-telecast-as-protests-intensify-497154">Sri Lanka state broadcaster stops live telecast as protests intensify</a>

Hundreds and thousands of people occupied the government building in Colombo last weekend as a part of the protest over the worst economic crisis since its independence in 1948. The protesters are blaming the Rajapaksas and their allies for rampant inflation, shortages, and corruption.&nbsp;

(With inputs from agencies)

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A day after President Gotabaya Rajapaksa fled to the Maldives to avoid popular revolt against an economic crisis blamed on his government’s poor management, Sri Lankans await his resignation.

A day after President Gotabaya Rajapaksa fled to the Maldives to avoid popular revolt against an economic crisis blamed on his government’s poor management, Sri Lankans await his resignation. Rajapaksa has frequently assured the Speaker of the House of his resignation on Wednesday, but as of early Thursday, his resignation letter had still not arrived, according to an aide to Speaker Mahinda Yapa Abeywardena. The president was anticipated to travel to Singapore next, however, it’s unclear about his final destination. The leader along with his wife and two bodyguards departed from the primary international airport in a military plane, Reuters reported. The situation in Sri Lanka got worse as more protests began after Rajapaksa’s decision to name his ally Ranil Wickremesinghe, as interim president. The protesters stormed the premier’s office and demanded his resignation as well. The current acting President Ranil Wickremesinghe has declared a state of emergency and enforced it in the western province but was lifted early on Thursday (July 15). However, he also announced his desire to step down from his position amid the ongoing turmoil in the country. Also read | Sri Lanka crisis: US demands peaceful transfer of power within the boundaries As per Hospital sources, nearly 45 people were taken to hospital during a standoff on Wednesday (July 13) night near the parliament building between the police and protesters who were demanding the resignation of both Rajapaksa and Wickremesinghe. A 26-year-old protester was hospitalized after being tear-gassed and died because of breathing problems. Also read | Sri Lanka state broadcaster stops live telecast as protests intensify Hundreds and thousands of people occupied the government building in Colombo last weekend as a part of the protest over the worst economic crisis since its independence in 1948. The protesters are blaming the Rajapaksas and their allies for rampant inflation, shortages, and corruption. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Sri Lanka: Protesters await Rajapaksa’s resignation after fleeing

Sri Lanka: Civil war hero ‘Gotabaya Rajapaksa’ overthrown by the protesters amid crisis

The second ship-borne consignment of essential supplies worth more than Rs 650 million&nbsp;sent from Tamil Nadu to Sri Lanka, was received at the island nation on Friday noon. While the Government of India has been at the forefront of helping Sri Lanka by providing financial aid, fuel, the Tamil Nadu Government had also promised to provide support to Sri Lanka, at a time when the island nation is reeling under its worst economic crisis. While the first ship from Chennai was flagged off by the Tamil Nadu Chief Minister on 18th May, the second ship set sail from the Tuticorin port in Southern Tamil Nadu, on 22nd June.&nbsp;

The first consignment from Tamil Nadu was valued at around Rs 400 million&nbsp;and comprised of&nbsp;9,500 tons rice, 200 tons milk powder, 30 tons medicines. On Wednesday, nearly 14,712 tons rice, 250 tons milk powder and besides Rs. 119 billion&nbsp;worth of life-saving drugs were shipped.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/sri-lankas-economy-has-completely-collapsed-says-pm-ranil-wickremesinghe-490845">Sri Lanka’s economy has completely collapsed, says PM Ranil Wickremesinghe</a>

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<blockquote class="twitter-tweet">
From the people of <a href="https://twitter.com/hashtag/India?src=hash&amp;ref_src=twsrc%5Etfw">#India</a> to the people of <a href="https://twitter.com/hashtag/SriLanka?src=hash&amp;ref_src=twsrc%5Etfw">#SriLanka</a>!!! High Commissioner,Hon'ble Ministers <a href="https://twitter.com/Keheliya_R?ref_src=twsrc%5Etfw">@Keheliya_R</a>, Nalin Fernando, MPs, various dignitaries and officials welcomed a large humanitarian consignment worth more than SLR 3 billion from <a href="https://twitter.com/hashtag/Tuticorn?src=hash&amp;ref_src=twsrc%5Etfw">#Tuticorn</a> today. (1/2) <a href="https://t.co/pMOF8kJppx">pic.twitter.com/pMOF8kJppx</a>
— India in Sri Lanka (@IndiainSL) <a href="https://twitter.com/IndiainSL/status/1540221918401294336?ref_src=twsrc%5Etfw">June 24, 2022</a></blockquote>
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In April this year, nearly a month after the economic crisis began adversely impacting Sri Lanka, the Tamil Nadu state Assembly had passed a resolution urging the Indian government to permit aid from Tamil Nadu to the island nation. The Indian Government had agreed to permit the same, via the Indian High Commission in Colombo and India's Ministry of External Affairs.

Watch |&nbsp;Gravitas Global Headlines: Sri Lanka fuel crisis; Fighting intensifies in Luhansk

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As the Indian state that is nearest to Sri Lanka and also as one that shares deep cultural and linguistic ties with the Tamils in the island nation, leaders in Tamil Nadu have always voiced out for the welfare of Lankan Tamils. In recent times, nearly 90 Lankan Tamils, including women, children and elderly fled their home country and reached Indian shores. They have been doing so by taking risky and illegal overnight boat rides across the Palk Strait, a strip of ocean that connects the Northen region of Sri Lanka with Tamil Nadu, in India. As per standard protocol, the individuals are questioned by the authorities, following which they are taken to the Mandapam refugee camp in the region.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/crisis-hit-sri-lanka-plans-donor-conference-interim-budget-in-august-490696">Crisis-hit Sri Lanka plans donor conference, interim budget in August</a>

Those who have been fleeing to India are members of the Lankan Tamil community, who hail from the northern region of the island nation. As daily wage earners with families to feed, these individuals are worst-hit by the economic crisis as their wages remain stagnant and prices of essentials continue to skyrocket. Under these circumstances, they abandon or sell their modest belongings to make enough cash for an illegal boat ride across the Palk Strait. they undertake the arduous journey in the hope of living as refugees at a camp in Tamil Nadu.&nbsp;

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The second ship-borne consignment of essential supplies worth more than Rs 650 million sent from Tamil Nadu to Sri Lanka, was received at the island nation on Friday noon.

The second ship-borne consignment of essential supplies worth more than Rs 650 million sent from Tamil Nadu to Sri Lanka, was received at the island nation on Friday noon. While the Government of India has been at the forefront of helping Sri Lanka by providing financial aid, fuel, the Tamil Nadu Government had also promised to provide support to Sri Lanka, at a time when the island nation is reeling under its worst economic crisis. While the first ship from Chennai was flagged off by the Tamil Nadu Chief Minister on 18th May, the second ship set sail from the Tuticorin port in Southern Tamil Nadu, on 22nd June. The first consignment from Tamil Nadu was valued at around Rs 400 million and comprised of 9,500 tons rice, 200 tons milk powder, 30 tons medicines. On Wednesday, nearly 14,712 tons rice, 250 tons milk powder and besides Rs. 119 billion worth of life-saving drugs were shipped. Also read | Sri Lanka’s economy has completely collapsed, says PM Ranil Wickremesinghe From the people of #India to the people of #SriLanka!!! High Commissioner,Hon'ble Ministers @Keheliya_R, Nalin Fernando, MPs, various dignitaries and officials welcomed a large humanitarian consignment worth more than SLR 3 billion from #Tuticorn today. (1/2) pic.twitter.com/pMOF8kJppx — India in Sri Lanka (@IndiainSL) June 24, 2022 × In April this year, nearly a month after the economic crisis began adversely impacting Sri Lanka, the Tamil Nadu state Assembly had passed a resolution urging the Indian government to permit aid from Tamil Nadu to the island nation. The Indian Government had agreed to permit the same, via the Indian High Commission in Colombo and India's Ministry of External Affairs. Watch | Gravitas Global Headlines: Sri Lanka fuel crisis; Fighting intensifies in Luhansk As the Indian state that is nearest to Sri Lanka and also as one that shares deep cultural and linguistic ties with the Tamils in the island nation, leaders in Tamil Nadu have always voiced out for the welfare of Lankan Tamils. In recent times, nearly 90 Lankan Tamils, including women, children and elderly fled their home country and reached Indian shores. They have been doing so by taking risky and illegal overnight boat rides across the Palk Strait, a strip of ocean that connects the Northen region of Sri Lanka with Tamil Nadu, in India. As per standard protocol, the individuals are questioned by the authorities, following which they are taken to the Mandapam refugee camp in the region. Also read | Crisis-hit Sri Lanka plans donor conference, interim budget in August Those who have been fleeing to India are members of the Lankan Tamil community, who hail from the northern region of the island nation. As daily wage earners with families to feed, these individuals are worst-hit by the economic crisis as their wages remain stagnant and prices of essentials continue to skyrocket. Under these circumstances, they abandon or sell their modest belongings to make enough cash for an illegal boat ride across the Palk Strait. they undertake the arduous journey in the hope of living as refugees at a camp in Tamil Nadu. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

India: Second consignment of essential supplies from Tamil Nadu reaches crisis-hit Sri Lanka

The inevitable has happened, and the Sri Lankan government has declared bankruptcy. It makes one wonder if other nations might have undergone bankruptcy in the past?

Did you know this country was once bankrupt?

Cash-strapped&nbsp;Sri&nbsp;Lanka's central bank hiked interest rates by a record 700 basis points on Friday as police fired tear gas at hundreds of students protesting about the economic crisis.

Severe shortages of food, fuel and electricity have led to widespread anti-government demonstrations with calls for President Gotabaya Rajapaksa to resign.

The latest protests saw students try to march to the national parliament on Friday.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/exclusive-former-minister-calls-sri-lankas-current-situation-chaos-says-govt-trying-to-hold-on-to-power-469337">Exclusive | Sri Lanka crisis: Govt trying to hold on to power, cricket icon Arjuna Ranatunga tells WION</a>

Elsewhere demonstrators nationwide carried placards demanding Rajapaksa step down over the country's worst economic crisis since independence in 1948.

Buddhists monks, who had largely led Rajapaksa's election bid in November 2019, were also seen joining demonstrations in the capital Colombo.

The Central Bank of&nbsp;Sri&nbsp;Lanka&nbsp;said its benchmark lending rate had been raised to 14.5 per cent to "stabilise the exchange rate" after the rupee tumbled over 35 per cent in a month.

The rate for deposits was also increased by seven percentage points to 13.5 per cent as reports said&nbsp;Sri&nbsp;Lanka's rupee was the worst performing currency in the world, edging out the Russian ruble.

The bank said the shock-treatment rate hike was due to its belief that the embattled island's inflation, which is already at record levels, could get worse.

The Colombo Consumer Price Index rose 18.7 per cent in March while food inflation stood at more than 25 per cent, but private analysts placed inflation at over 50 per cent in the month.

Watch |&nbsp;Gravitas: A Chinese bailout for Sri Lanka?

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<div class="videoWrapper trancodeVideo">
International rating agencies have downgraded&nbsp;Sri&nbsp;Lanka&nbsp;as fears grow that it could default on its $51 billion external debt after foreign reserves fell below $2 billion at the end of March.

This week Rajapaksa appointed a panel of experts to organise a restructuring of foreign debt.

His government is preparing for bailout negotiations with the International Monetary Fund, and finance ministry officials told AFP the panel will prepare a programme for sovereign bond holders and other creditors to take a haircut.

"What&nbsp;Sri&nbsp;Lanka&nbsp;is keen to do is avoid a hard default," a source from the ministry who requested anonymity told AFP.&nbsp;

"It will be a negotiated restructuring of the debt with the help of the IMF."

Meetings with the IMF are set to begin by next week but finance minister Basil Rajapaksa -- the president's brother -- resigned on Sunday night along with nearly the entire cabinet.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/sri-lankan-parliament-passes-bill-to-impose-tax-on-rich-to-garner-quick-revenue-469305">Sri Lankan parliament passes bill to impose tax on rich to garner quick revenue</a>

The country is still without a replacement, with his successor quitting after just one day in office.

Public anger is at fever pitch, and thousands of people were expected to take part on Saturday in what likely will be the biggest protest since the crisis began.

Recent days have seen civil servants and schoolchildren join in demonstrations largely organised through social media.

In an apparent bid to head off more protests, the government on Thursday declared extra public holidays for next week to coincide with the traditional Sinhalese and Tamil New Year.

Opposition parties have rejected an overture from the president to form a unity administration and instead joined calls for him to step down.

The shortages of essentials have been caused by a wide-ranging import ban as&nbsp;Sri&nbsp;Lanka&nbsp;seeks to conserve its meagre foreign currency reserves to pay its debts.

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/sri-lankas-heathcare-sector-witnesses-major-downfall-amid-shortage-of-essential-medicines-469146">Sri Lanka's healthcare sector witnesses downfall amid shortage of essential medicines</a>

In recent years the vital tourism sector has also been hit hard by Islamist bomb attacks in 2019 and the coronavirus pandemic, which dried up remittances from&nbsp;Sri&nbsp;Lankans abroad.

Economists say the crisis has been exacerbated&nbsp;by government mismanagement, years of accumulated borrowing and ill-advised tax cuts.
</div>

Cash-strapped Sri Lanka's central bank hiked interest rates by a record 700 basis points on Friday as police fired tear gas at hundreds of students protesting about the economic crisis.

Cash-strapped Sri Lanka's central bank hiked interest rates by a record 700 basis points on Friday as police fired tear gas at hundreds of students protesting about the economic crisis. Severe shortages of food, fuel and electricity have led to widespread anti-government demonstrations with calls for President Gotabaya Rajapaksa to resign. The latest protests saw students try to march to the national parliament on Friday. Also read | Exclusive | Sri Lanka crisis: Govt trying to hold on to power, cricket icon Arjuna Ranatunga tells WION Elsewhere demonstrators nationwide carried placards demanding Rajapaksa step down over the country's worst economic crisis since independence in 1948. Buddhists monks, who had largely led Rajapaksa's election bid in November 2019, were also seen joining demonstrations in the capital Colombo. The Central Bank of Sri Lanka said its benchmark lending rate had been raised to 14.5 per cent to "stabilise the exchange rate" after the rupee tumbled over 35 per cent in a month. The rate for deposits was also increased by seven percentage points to 13.5 per cent as reports said Sri Lanka's rupee was the worst performing currency in the world, edging out the Russian ruble. The bank said the shock-treatment rate hike was due to its belief that the embattled island's inflation, which is already at record levels, could get worse. The Colombo Consumer Price Index rose 18.7 per cent in March while food inflation stood at more than 25 per cent, but private analysts placed inflation at over 50 per cent in the month. Watch | Gravitas: A Chinese bailout for Sri Lanka? International rating agencies have downgraded Sri Lanka as fears grow that it could default on its $51 billion external debt after foreign reserves fell below $2 billion at the end of March. This week Rajapaksa appointed a panel of experts to organise a restructuring of foreign debt. His government is preparing for bailout negotiations with the International Monetary Fund, and finance ministry officials told AFP the panel will prepare a programme for sovereign bond holders and other creditors to take a haircut. "What Sri Lanka is keen to do is avoid a hard default," a source from the ministry who requested anonymity told AFP. "It will be a negotiated restructuring of the debt with the help of the IMF." Meetings with the IMF are set to begin by next week but finance minister Basil Rajapaksa -- the president's brother -- resigned on Sunday night along with nearly the entire cabinet. Also read | Sri Lankan parliament passes bill to impose tax on rich to garner quick revenue The country is still without a replacement, with his successor quitting after just one day in office. Public anger is at fever pitch, and thousands of people were expected to take part on Saturday in what likely will be the biggest protest since the crisis began. Recent days have seen civil servants and schoolchildren join in demonstrations largely organised through social media. In an apparent bid to head off more protests, the government on Thursday declared extra public holidays for next week to coincide with the traditional Sinhalese and Tamil New Year. Opposition parties have rejected an overture from the president to form a unity administration and instead joined calls for him to step down. The shortages of essentials have been caused by a wide-ranging import ban as Sri Lanka seeks to conserve its meagre foreign currency reserves to pay its debts. Also read | Sri Lanka's healthcare sector witnesses downfall amid shortage of essential medicines In recent years the vital tourism sector has also been hit hard by Islamist bomb attacks in 2019 and the coronavirus pandemic, which dried up remittances from Sri Lankans abroad. Economists say the crisis has been exacerbated by government mismanagement, years of accumulated borrowing and ill-advised tax cuts.

Crisis-hit: Sri Lanka hikes rates by record as protests spiral

Sri Lanka may be on a brink of bankruptcy as the island country faces an acute financial crisis topped by a blow to a food supply. As 2022 begins, Sri Lanka is looking to face record-high inflation, financial crisis, exorbitant food prices, humanitarian crisis, and pandemic-induced disruptions. The Sri Lankan government had decided to temporarily ban the use of chemical fertilizers in May 2021. The ban led to protest by farmers ultimately leading to a drastic drop in cultivation in Sri Lanka. Moreover, long queues were seen outside shops for bare necessities lie milk, sugar, and rice. Also, several shops in the markets were shut. Opposition MP Harsha de Silva told Sri Lankan parliament that the country would go bankrupt.

Sri Lanka may go bankrupt in 2022? From financial to food crisis Sri Lanka’s woes amid Covid

Sri Lanka to opt for an international monetary fund bailout or not, that is a big question in Sri Lanka right now. Sri Lanka's cabinet of ministers is now trying to meet further to explore the IMF option as a country reels under a massive financial crisis.

Sri Lanka's inflation hit a record 11.1% in November