Sri Lanka's central bank unexpectedly slashed banks' statutory reserve ratio on Friday to spur credit growth as <a href="http://www.wionews.com/south-asia/sri-lanka-secures-1-billion-chinese-loan-156873">policymakers struggle to boost the island's faltering economy</a> after a political crisis.

Economic growth cooled to a 17-year low of around 3 per cent in 2018, central bank Governor Indrajit Coomaraswamy said after the policy decision, adding that it will pick up to about 4 per cent this year.

The Central Bank of Sri Lanka (CBSL) cut the statutory reserve ratio (SRR) by 100 basis points to 5 per cent effective March 1, while leaving its two key monetary policy rates steady, saying they were "appropriate". Analysts polled by Reuters had expected all three to be left unchanged.

The SRR cut would inject 60 billion rupees (334.45 million) into the financial system, the central bank said.

"The (Monetary) Board was of the view that some policy intervention by the Central Bank to address the large and persistent liquidity deficit in the domestic money market is warranted," the central bank said in a statement.

It said liquidity has remained tight despite a 150 bps cut in the statutory reserve ratio in mid-November.

Private-sector credit grew 15.9 per cent in December from a year earlier, slowing from a 16.2 per cent pace in December 2017, central bank data showed.

"The surprise cut appears to be targeted at addressing the persistent liquidity deficit issues faced by banks over the last few quarters, rather than an active signal of monetary easing," said Trisha Peries, product head of economic research at Frontier Research.

Sri Lanka started discussions with the International Monetary Fund (IMF) last week on extending a $1.5 billion loan.

The talks were delayed after a political crisis erupted in October.

President Maithripala Sirisena's abrupt change of prime minister and decision to dissolve parliament created panic and uncertainty among investors, who dumped Sri Lankan government bonds and other assets, sending the rupee currency to record lows.

The move was later ruled unconstitutional and Ranil Wickremesinghe was reinstated as prime minister after 51 days.

Analysts who had expected no change in the central bank's stance had pointed to an easing of political and financial market pressure.. The rupee has rebounded 1.8 per cent against the dollar since hitting an all-time low of 183.00 on Jan. 3, while foreigners have resumed buying government bonds.

Wickremesinghe's government aims to focus on economic growth, which has been sluggish due to tight policies, ahead of a presidential poll later this year and general election in 2020.

Coomaraswamy also said the central bank "is doing the paperwork" on a yuan swap agreement with the People's Bank of China equivalent to $1.5 billion, along with a $400 million swap from Reserve Bank of India and another from Qatar as Sri Lanka struggles to repay a record $5.9 billion foreign loan due this year.

Sri Lanka's central bank unexpectedly slashed banks' statutory reserve ratio on Friday to spur credit growth as policymakers struggle to boost the island's faltering economy after a political crisis.

Sri Lanka's central bank unexpectedly slashed banks' statutory reserve ratio on Friday to spur credit growth as policymakers struggle to boost the island's faltering economy after a political crisis. Economic growth cooled to a 17-year low of around 3 per cent in 2018, central bank Governor Indrajit Coomaraswamy said after the policy decision, adding that it will pick up to about 4 per cent this year. The Central Bank of Sri Lanka (CBSL) cut the statutory reserve ratio (SRR) by 100 basis points to 5 per cent effective March 1, while leaving its two key monetary policy rates steady, saying they were "appropriate". Analysts polled by Reuters had expected all three to be left unchanged. The SRR cut would inject 60 billion rupees (334.45 million) into the financial system, the central bank said. "The (Monetary) Board was of the view that some policy intervention by the Central Bank to address the large and persistent liquidity deficit in the domestic money market is warranted," the central bank said in a statement. It said liquidity has remained tight despite a 150 bps cut in the statutory reserve ratio in mid-November. Private-sector credit grew 15.9 per cent in December from a year earlier, slowing from a 16.2 per cent pace in December 2017, central bank data showed. "The surprise cut appears to be targeted at addressing the persistent liquidity deficit issues faced by banks over the last few quarters, rather than an active signal of monetary easing," said Trisha Peries, product head of economic research at Frontier Research. Sri Lanka started discussions with the International Monetary Fund (IMF) last week on extending a $1.5 billion loan. The talks were delayed after a political crisis erupted in October. President Maithripala Sirisena's abrupt change of prime minister and decision to dissolve parliament created panic and uncertainty among investors, who dumped Sri Lankan government bonds and other assets, sending the rupee currency to record lows. The move was later ruled unconstitutional and Ranil Wickremesinghe was reinstated as prime minister after 51 days. Analysts who had expected no change in the central bank's stance had pointed to an easing of political and financial market pressure.. The rupee has rebounded 1.8 per cent against the dollar since hitting an all-time low of 183.00 on Jan. 3, while foreigners have resumed buying government bonds. Wickremesinghe's government aims to focus on economic growth, which has been sluggish due to tight policies, ahead of a presidential poll later this year and general election in 2020. Coomaraswamy also said the central bank "is doing the paperwork" on a yuan swap agreement with the People's Bank of China equivalent to $1.5 billion, along with a $400 million swap from Reserve Bank of India and another from Qatar as Sri Lanka struggles to repay a record $5.9 billion foreign loan due this year.

Sri Lanka central bank cuts banks' liquidity ratio to spur loan growth

We stand united with India: World leaders extend solidarity over Pulwama terror attack

Sri Lankan Prime Minister Ranil Wickremesinghe on Saturday said the new Constitution would not change the unitary nature of the country.&nbsp;

Wickremesinghe's comments came in the wake of his political opponents headed by opposition leader Mahinda Rajapaksa alleging that his government is drafting a new Constitution to appease the main Tamil political party, Tamil National Alliance (TNA).&nbsp;

Addressing a gathering at Galle town, he said, "The United National Party (UNP) would not agree to abandoning the unitary state (of Sri Lanka)."&nbsp;

On January 11, Wickremesinghe tabled in Parliament a report of experts on drafting a new Constitution.&nbsp;

Stressing that the new Constitution is still a long way ahead, the prime minister said, "We have no new constitution or even a draft".&nbsp;

What was contained in the report was ideas from all parties, he said, adding, "Without two-third support in the constitutional assembly we cannot draft a new Constitution."&nbsp;

The Rajapaksa camp has also been accusing that the new Constitution will dilute the Buddhism's foremost position over other religions in the country. However, the prime minister emphasised that the foremost place given to the majority religion Buddhism has been preserved.

Sri Lankan Prime Minister Ranil Wickremesinghe on Saturday said the new Constitution would not change the unitary nature of the country. Wickremesinghe's comments came in the wake of his political opponents headed by opposition leader Mahinda Rajapaksa alleging that his government is drafting a new Constitution to appease the main Tamil political party, Tamil National Alliance (TNA).

Sri Lankan Prime Minister Ranil Wickremesinghe on Saturday said the new Constitution would not change the unitary nature of the country. Wickremesinghe's comments came in the wake of his political opponents headed by opposition leader Mahinda Rajapaksa alleging that his government is drafting a new Constitution to appease the main Tamil political party, Tamil National Alliance (TNA). Addressing a gathering at Galle town, he said, "The United National Party (UNP) would not agree to abandoning the unitary state (of Sri Lanka)." On January 11, Wickremesinghe tabled in Parliament a report of experts on drafting a new Constitution. Stressing that the new Constitution is still a long way ahead, the prime minister said, "We have no new constitution or even a draft". What was contained in the report was ideas from all parties, he said, adding, "Without two-third support in the constitutional assembly we cannot draft a new Constitution." The Rajapaksa camp has also been accusing that the new Constitution will dilute the Buddhism's foremost position over other religions in the country. However, the prime minister emphasised that the foremost place given to the majority religion Buddhism has been preserved.

New Constitution won't change unitary nature of Sri Lanka: Wickremesinghe

Sri Lanka's central bank is expected to leave its key interest rates steady on Friday, a Reuters poll showed, despite heavy pressure on the rupee from a political crisis that triggered foreign outflows from stocks and government bonds.

<a href="http://www.wionews.com/south-asia/sri-lanka-president-sirisena-meets-party-organisers-hints-2019-may-be-election-year-186363">President Maithripala Sirisena</a> was forced to reinstate Ranil Wickremesinghe as prime minister 51 days after sacking him, as his preferred PM, pro-China former president Mahinda Rajapaksa, failed to secure a parliamentary majority.

An uneasy <a href="http://www.wionews.com/south-asia/2018-will-be-remembered-for-worst-political-crisis-in-lankas-history-186606">truce between Wickremesinghe and Sirisena </a>could undermine economic policies, analysts say.

All analysts expect the Central Bank of Sri Lanka (CBSL) to leave key rates steady as Wickremesinghe's government aims to focus on economic growth, which has been sluggish due to tight policies, ahead of a presidential poll next year and general election in 2020.

All 10 economists surveyed, expected the central bank to keep both its standing deposit facility rate (SDFR) and standing lending facility rate (SLFR) to be left at 8.00 per cent and 9.00 per cent respectively.

The central bank raised SDFR by 75 bps and SLFR by 50 bps last month, while reduced the statutory reserve ratio (SRR) by 150 bps to 6.00 per cent.

All 10 analysts saw the SRR remaining steady.

Sirisena's abrupt change of prime minister and his decision to dissolve parliament, which was later ruled unconstitutional, created panic and uncertainty among investors.

The Sri Lankan rupee hit a fresh low of 181.85 per dollar on Wednesday while the island nation's dollar bonds have also plummeted as foreign investors sell their holdings. The rupee has fallen nearly 5 per cent since the political crisis started on October 26. It has dropped 18.4 per cent so far this year.

"Political pressure would be against increasing the rates," said Danushka Samarasinghe, the CEO at Softlogic Capital Markets.

"However, if rates are increased, it will be better for safeguarding foreign investments in the bond market and also might be favourable from a fiscal point of view."

Foreign investors have sold a net 13.7 billion rupees worth of stocks since the political crisis began and about 56.7 billion rupees worth of bonds between October 25 and December 19, bourse and central bank data showed.

Sri Lanka has seen net outflows of 149 billion rupees ($821 million) from government bonds so far this year, central bank data showed.

Sri Lanka's central bank is expected to leave its key interest rates steady on Friday, a Reuters poll showed, despite heavy pressure on the rupee from a political crisis that triggered foreign outflows from stocks and government bonds.

Sri Lanka's central bank is expected to leave its key interest rates steady on Friday, a Reuters poll showed, despite heavy pressure on the rupee from a political crisis that triggered foreign outflows from stocks and government bonds. President Maithripala Sirisena was forced to reinstate Ranil Wickremesinghe as prime minister 51 days after sacking him, as his preferred PM, pro-China former president Mahinda Rajapaksa, failed to secure a parliamentary majority. An uneasy truce between Wickremesinghe and Sirisena could undermine economic policies, analysts say. All analysts expect the Central Bank of Sri Lanka (CBSL) to leave key rates steady as Wickremesinghe's government aims to focus on economic growth, which has been sluggish due to tight policies, ahead of a presidential poll next year and general election in 2020. All 10 economists surveyed, expected the central bank to keep both its standing deposit facility rate (SDFR) and standing lending facility rate (SLFR) to be left at 8.00 per cent and 9.00 per cent respectively. The central bank raised SDFR by 75 bps and SLFR by 50 bps last month, while reduced the statutory reserve ratio (SRR) by 150 bps to 6.00 per cent. All 10 analysts saw the SRR remaining steady. Sirisena's abrupt change of prime minister and his decision to dissolve parliament, which was later ruled unconstitutional, created panic and uncertainty among investors. The Sri Lankan rupee hit a fresh low of 181.85 per dollar on Wednesday while the island nation's dollar bonds have also plummeted as foreign investors sell their holdings. The rupee has fallen nearly 5 per cent since the political crisis started on October 26. It has dropped 18.4 per cent so far this year. "Political pressure would be against increasing the rates," said Danushka Samarasinghe, the CEO at Softlogic Capital Markets. "However, if rates are increased, it will be better for safeguarding foreign investments in the bond market and also might be favourable from a fiscal point of view." Foreign investors have sold a net 13.7 billion rupees worth of stocks since the political crisis began and about 56.7 billion rupees worth of bonds between October 25 and December 19, bourse and central bank data showed. Sri Lanka has seen net outflows of 149 billion rupees ($821 million) from government bonds so far this year, central bank data showed.

Sri Lanka central bank seen keeping rates steady despite pressure on rupee: Report

The year 2018 would be etched in <a href="http://www.wionews.com/sri-lanka">Sri Lanka</a>'s history as the most turbulent one politically as the cash-strapped country saw an unprecedented power struggle between the president and the prime minister, causing much concern in major world capitals, including in New Delhi.

<a href="http://www.wionews.com/south-asia/sri-lanka-president-sirisena-meets-party-organisers-hints-2019-may-be-election-year-186363">President Maithripala Sirisena</a>'s dramatic move to sack <a href="http://www.wionews.com/south-asia/wickremesinghe-acknowledges-differences-with-sirisena-on-ministerial-appointments-185841">Prime Minister Ranil Wickremesinghe</a> and install former strongman <a href="http://www.wionews.com/south-asia/former-pm-mahinda-rajapaksa-becomes-sri-lankas-main-opposition-leader-185083">Mahinda Rajapaksa</a> in his place following differences over policy issues left the country without a functioning government for nearly two months.

Rajapaksa's return to power drew concern in India that China would tighten its grip on the country. The veteran leader, who is credited for ending the brutal civil war with the LTTE in 2009, is under intense criticism for his decade-long authoritarian rule.

However, a Supreme court verdict forced President Sirisena to reinstate United National Party (UNP) leader Wickremesinghe on December 16, ending Rajapaksa brief regime.

During the <a href="http://www.wionews.com/south-asia/sri-lanka-political-crisis-ends-as-president-sirisena-names-new-cabinet-185567">political crisis</a>, New Delhi sought to maintain a hands-off approach not wanting to be seen as taking sides. India chose to stay non-committal when Rajapaksa succeeded Wickremesinghe, who is seen as pro-India.

Following Wickremesinghe's re-appointment, India welcomed the resolution of the political crisis and exuded confidence that relations between the two countries will continue to move on in an upward trajectory.

The US, the European Union, Australia and Norway also welcomed the peaceful resolution of the political crisis in Sri Lanka.

Sri Lanka came closer to China under Rajapaksa's decade-long tenure as the president, with Beijing pumping millions of dollars in the country's infrastructure since the end of the civil war.

However, some of the projects had been reversed under the Sirisena-Wickremesinghe government as Chinese debt hit the country's economy.

China sees Lanka as crucial in its ambitious plan to expand trade routes, while India is concerned about growing Chinese influence in the Indian Ocean.

Despite India's concerns over China's forays in Sri Lanka, including its acquisition of the strategic port of Hambantota, New Delhi and Colombo kept their relationship warm in 2018 with high-level exchanges and signing of pacts.

Prime Minister Wickremesinghe visited India in October and held talks with his Indian counterpart Narendra Modi on ways to deepen the bilateral ties.

During the talks, Modi and Wickremesinghe reviewed the progress in the implementation of various decisions taken during the high-level exchanges in the recent past, including Modi's visit to Sri Lanka in May 2017. They also discussed the progress of India-assisted development projects in the island nation.

The two countries signed an agreement for construction of 1,200 houses through 50 model villages, using Indian grant assistance of 60 crore Srilankan rupees.

The long-standing issue of fishermen, however, remained unresolved as India and Sri Lanka could not find common ground.

Both sides have agreed to set up Standard Operating Procedures (SOPs) to expedite the release and handing over of fishermen in each other's custody on completion of respective legal and procedural formalities.

During the year, the Lankan economy grew at a slower than expected. The economy suffered due to nearly two month of political turmoil that led to government dysfunction.

Sri Lanka owes over US $50 billion to foreign lenders, which is 77 per cent of its gross domestic product (GDP).

The country has to pay back more than US $4 billion of its foreign loans, which just got harder as the political turmoil has sent the rupee to its lowest ever level against the US dollar. Sri Lankan rupee weakened nearly 17 per cent this year.

Though the reinstatement of Wickremesinghe has brought some hope in Sri Lanka, the political stability in the country in the coming months would be decided by how the prime minister and the president work together despite their differences over policy issues.

This will also determine the path of India's ties with Sri Lanka.&nbsp;

The year 2018 would be etched in Sri Lanka's history as the most turbulent one politically as the cash-strapped country saw an unprecedented power struggle between the president and the prime minister, causing much concern in major world capitals, including in New Delhi.

The year 2018 would be etched in Sri Lanka's history as the most turbulent one politically as the cash-strapped country saw an unprecedented power struggle between the president and the prime minister, causing much concern in major world capitals, including in New Delhi. President Maithripala Sirisena's dramatic move to sack Prime Minister Ranil Wickremesinghe and install former strongman Mahinda Rajapaksa in his place following differences over policy issues left the country without a functioning government for nearly two months. Rajapaksa's return to power drew concern in India that China would tighten its grip on the country. The veteran leader, who is credited for ending the brutal civil war with the LTTE in 2009, is under intense criticism for his decade-long authoritarian rule. However, a Supreme court verdict forced President Sirisena to reinstate United National Party (UNP) leader Wickremesinghe on December 16, ending Rajapaksa brief regime. During the political crisis, New Delhi sought to maintain a hands-off approach not wanting to be seen as taking sides. India chose to stay non-committal when Rajapaksa succeeded Wickremesinghe, who is seen as pro-India. Following Wickremesinghe's re-appointment, India welcomed the resolution of the political crisis and exuded confidence that relations between the two countries will continue to move on in an upward trajectory. The US, the European Union, Australia and Norway also welcomed the peaceful resolution of the political crisis in Sri Lanka. Sri Lanka came closer to China under Rajapaksa's decade-long tenure as the president, with Beijing pumping millions of dollars in the country's infrastructure since the end of the civil war. However, some of the projects had been reversed under the Sirisena-Wickremesinghe government as Chinese debt hit the country's economy. China sees Lanka as crucial in its ambitious plan to expand trade routes, while India is concerned about growing Chinese influence in the Indian Ocean. Despite India's concerns over China's forays in Sri Lanka, including its acquisition of the strategic port of Hambantota, New Delhi and Colombo kept their relationship warm in 2018 with high-level exchanges and signing of pacts. Prime Minister Wickremesinghe visited India in October and held talks with his Indian counterpart Narendra Modi on ways to deepen the bilateral ties. During the talks, Modi and Wickremesinghe reviewed the progress in the implementation of various decisions taken during the high-level exchanges in the recent past, including Modi's visit to Sri Lanka in May 2017. They also discussed the progress of India-assisted development projects in the island nation. The two countries signed an agreement for construction of 1,200 houses through 50 model villages, using Indian grant assistance of 60 crore Srilankan rupees. The long-standing issue of fishermen, however, remained unresolved as India and Sri Lanka could not find common ground. Both sides have agreed to set up Standard Operating Procedures (SOPs) to expedite the release and handing over of fishermen in each other's custody on completion of respective legal and procedural formalities. During the year, the Lankan economy grew at a slower than expected. The economy suffered due to nearly two month of political turmoil that led to government dysfunction. Sri Lanka owes over US $50 billion to foreign lenders, which is 77 per cent of its gross domestic product (GDP). The country has to pay back more than US $4 billion of its foreign loans, which just got harder as the political turmoil has sent the rupee to its lowest ever level against the US dollar. Sri Lankan rupee weakened nearly 17 per cent this year. Though the reinstatement of Wickremesinghe has brought some hope in Sri Lanka, the political stability in the country in the coming months would be decided by how the prime minister and the president work together despite their differences over policy issues. This will also determine the path of India's ties with Sri Lanka.

2018 will be remembered for worst political crisis in Lanka's history

The Sri Lankan government Friday secured parliamentary approval to avert a debt default of $1.5 billion after the annual budget was blocked by a <a href="http://13.232.42.114/south-asia/sri-lankan-political-turmoil-crisis-that-caused-mighty-embarrassment-for-president-sirisena-185676">seven-week political crisis</a>.

During the last day of the legislature for 2018, MPs voted 102 to six to approve an interim budget to pay for urgent government expenditure in the first four months of 2019.

Finance Minister Mangala Samaraweera said he was finalising an appropriation bill for next year when President <a href="http://www.wionews.com/south-asia/pms-termination-done-in-good-faith-reinstated-him-to-uphold-democracy-sri-lanka-president-sirisena-184631">Maithripala Sirisena</a> sacked the government on October 26, plunging the country into a constitutional crisis.

"We don't have time to present a new budget, but we need to meet our (debt and salary) obligations," Samaraweera told parliament to introduce the vote on the interim budget.

Legislators approved four months of government spending pending a full-fledged budget around February.

Sirisena sacked <a href="http://www.wionews.com/south-asia/ranil-wickremesinghe-sri-lankas-reformist-premiere-184790">Ranil Wickremesinghe</a> as prime minister but he refused to quit and parliament and Sri Lanka's courts blocked Sirisena's candidate Mahinda Rajapakse, a fervent nationalist former president.&nbsp;

During the power struggle, three international credit rating agencies downgraded Sri Lanka making foreign borrowings more expensive.

There were fears that Sri Lanka could default on $1.5 billion sovereign bonds maturing on January 10.

Sirisena finally gave in and reinstated Wickremesinghe as prime minister on Sunday. He named a 30-member cabinet on Thursday.

While UN Secretary General Antonio Guterres led the international welcome for the end to the power struggle, Sirisena has made it clear it will be difficult to work with Wickremesinghe.

Sirisena came to power in 2015 with the help of Wickremesinghe's United National Party (UNP), but personal and political clashes came to a head with the October sacking.

The Sri Lankan government Friday secured parliamentary approval to avert a debt default of $1.5 billion after the annual budget was blocked by a seven-week political crisis.

The Sri Lankan government Friday secured parliamentary approval to avert a debt default of $1.5 billion after the annual budget was blocked by a seven-week political crisis. During the last day of the legislature for 2018, MPs voted 102 to six to approve an interim budget to pay for urgent government expenditure in the first four months of 2019. Finance Minister Mangala Samaraweera said he was finalising an appropriation bill for next year when President Maithripala Sirisena sacked the government on October 26, plunging the country into a constitutional crisis. "We don't have time to present a new budget, but we need to meet our (debt and salary) obligations," Samaraweera told parliament to introduce the vote on the interim budget. Legislators approved four months of government spending pending a full-fledged budget around February. Sirisena sacked Ranil Wickremesinghe as prime minister but he refused to quit and parliament and Sri Lanka's courts blocked Sirisena's candidate Mahinda Rajapakse, a fervent nationalist former president. During the power struggle, three international credit rating agencies downgraded Sri Lanka making foreign borrowings more expensive. There were fears that Sri Lanka could default on $1.5 billion sovereign bonds maturing on January 10. Sirisena finally gave in and reinstated Wickremesinghe as prime minister on Sunday. He named a 30-member cabinet on Thursday. While UN Secretary General Antonio Guterres led the international welcome for the end to the power struggle, Sirisena has made it clear it will be difficult to work with Wickremesinghe. Sirisena came to power in 2015 with the help of Wickremesinghe's United National Party (UNP), but personal and political clashes came to a head with the October sacking.

Sri Lanka averts $1.5 billion foreign debt default

The US has said it is looking forward to continue to engage with the reinstated Sri Lankan <a href="http://www.wionews.com/south-asia/ranil-wickremesinghe-sri-lankas-reformist-premiere-184790">Prime Minister Ranil Wickremesinghe</a>, now that the nearly two-month-long political crisis in the South Asian country has been resolved peacefully and democratically.

Sri Lankan <a href="http://www.wionews.com/south-asia/rajapaksa-bribed-parliamentarians-to-prove-majority-president-sirisena-182684">President Maithripala Sirisena</a> had controversially sacked Wickremesinghe as prime minister on October 26 and appointed Sinhala strongman <a href="http://www.wionews.com/south-asia/former-pm-mahinda-rajapaksa-becomes-sri-lankas-main-opposition-leader-185083">Mahinda Rajapaksa</a> in his place. The shock move had plunged Sri Lanka into an unprecedented constitutional crisis.

Sirisena had to reinstate Wickremesinghe on Sunday after the Supreme Court ruled that his action violated the constitution and the legislature voted confidence in Wickremesinghe.

"We are pleased to have seen the democratic, constitutional processes play out through the courts in Sri Lanka, ultimately addressing the political crisis in keeping with democratic and constitutional norms," Deputy Assistant Secretary of State for South and Central Asia David Ranz told a group of Indian reporters on Wednesday.

"We look forward to continuing to engage with Prime Minister Wickremesinghe and his cabinet as well as President Sirisena to advance cooperation on bilateral and regional issues of common interest," said Ranz, who just returned from a trip to Sri Lanka.

The US, he said, anticipates the Sri Lankan government will focus on taking steps to bolster the economy and restore the country's international standing.

"During my visit, I conveyed that, as a friend and partner of Sri Lanka for 70 years, the United States wished to see the political crisis resolved in a manner befitting Sri Lanka's democratic traditions and in keeping with its status as South Asia's oldest democracy," he said.

The US has said it is looking forward to continue to engage with the reinstated Sri Lankan Prime Minister Ranil Wickremesinghe, now that the nearly two-month-long political crisis in the South Asian country has been resolved peacefully and democratically.

The US has said it is looking forward to continue to engage with the reinstated Sri Lankan Prime Minister Ranil Wickremesinghe, now that the nearly two-month-long political crisis in the South Asian country has been resolved peacefully and democratically. Sri Lankan President Maithripala Sirisena had controversially sacked Wickremesinghe as prime minister on October 26 and appointed Sinhala strongman Mahinda Rajapaksa in his place. The shock move had plunged Sri Lanka into an unprecedented constitutional crisis. Sirisena had to reinstate Wickremesinghe on Sunday after the Supreme Court ruled that his action violated the constitution and the legislature voted confidence in Wickremesinghe. "We are pleased to have seen the democratic, constitutional processes play out through the courts in Sri Lanka, ultimately addressing the political crisis in keeping with democratic and constitutional norms," Deputy Assistant Secretary of State for South and Central Asia David Ranz told a group of Indian reporters on Wednesday. "We look forward to continuing to engage with Prime Minister Wickremesinghe and his cabinet as well as President Sirisena to advance cooperation on bilateral and regional issues of common interest," said Ranz, who just returned from a trip to Sri Lanka. The US, he said, anticipates the Sri Lankan government will focus on taking steps to bolster the economy and restore the country's international standing. "During my visit, I conveyed that, as a friend and partner of Sri Lanka for 70 years, the United States wished to see the political crisis resolved in a manner befitting Sri Lanka's democratic traditions and in keeping with its status as South Asia's oldest democracy," he said.

Looking forward to continuing to engage with PM Wickremesinghe: US

<a href="http://www.wionews.com/south-asia/ranil-wickremesinghe-sworn-in-as-the-prime-minister-of-sri-lanka-184452">Ranil Wickremesinghe</a> Sunday staged a triumphant comeback as Sri Lankan Prime Minister to end the unprecedented political turmoil in the country, 51 days after he was sacked by his bete noire and <a href="http://www.wionews.com/south-asia/pms-termination-done-in-good-faith-reinstated-him-to-uphold-democracy-sri-lanka-president-sirisena-184631">President Maithripala Sirisena</a>, who also dissolved Parliament, controversial decisions which were nullified by the Supreme Court.

Wickremesinghe, the 69-year-old United National Party leader, was administered the oath of office by President Sirisena, who had sacked him on October 26 and installed former rival and ex-strongman Mahinda Rajapaksa in his place.

The UNP leader had refused to step down asserting that his sacking was illegal.

His re-appointment comes a day after Rajapaksa resigned Saturday, after two crucial Supreme Court decisions made his efforts to cling to&nbsp; 
premiership untenable.

"Today marks a victory not for myself or for the UNP. It is a victory for Sri Lanka's democratic institutions and the sovereignty of our citizens. I thank everyone who stood firm in defending the constitution and ensuring the triumph of democracy," Wickremesinghe said after assuming office.

A sheepish Sirisena, who had ruled out reappointing Wickremesinghe as prime minister, was smiling with Wickremesinghe as he handed him the letter of appointment.

Wickremesinghe's supporters took to streets to celebrate after he took oath at the Presidential Secretariat for the record fifth time.

UNP Assistant Leader Ravi Karunanayake said that talks were held Saturday and more discussions will take place Sunday to select the Cabinet.

The Cabinet is expected to be limited to 30 and will include a few Sri Lanka Freedom Party (SLFP) members who have offered support to Wickremesinghe.

It is expected a new Cabinet will be formed by Monday and a vote on account will be passed to provide for the required provisions until a budget for 2019 is formulated, Sri Lankan media reported.

Earlier, Wickremesinghe's party said it was ready to work with President Sirisena, who was "misled by some groups" against the unity government.

UNP deputy leader Sajith Premadasa said that he was not surprised that the President had agreed to appoint Wickremesinghe as Prime Minister again despite taking a firm position earlier that he will not appoint the UNP leader.

"This showed the true character of the President," he was quoted as saying by the Colombo Gazette.

Premadasa said that the President was "misled by some groups who were against the unity Government" and this resulted in the President removing Wickremesinghe.

"But now truth has prevailed," he said. "The party is prepared to work with Sirisena again in the government."

Premadasa said, "The lessons from the incident must be used to strengthen the foundation of democracy and promote justice and fairness."

Sirisena and Rajapaksa suffered reversal setbacks since October 26, forcing the president to reinstate Wickremesinghe.

Rajapaksa, 73, had sought to secure a majority in the 225-member Parliament but failed. Sirisena then dissolved Parliament and called snap elections on January 5.

However, the Supreme Court overturned his decision and halted the preparations for snap polls.

The Supreme Court on Thursday unanimously declared that the dissolution of Parliament by Sirisena was "illegal".

The apex court on Friday also refused to stay a court order restraining&nbsp; 
Rajapaksa from holding the office of Prime Minister until it fully heard the case next month.

Rajapaksa signed his resignation letter during a multi-religious service at his home that was attended by several lawmakers of United People's Freedom Alliance (UPFA), Buddhist and other religious leaders.

After signing the resignation letter, Rajapaksa said that following the February 10 local government election, the aim of his party is to have a general election.

However, he said that he has no intention of remaining as Prime Minister without a general election being held, and in order to not hamper the President in any way, he resigned from the position of Prime Minister and made way for the President to form a new Government.

Rajapaksa said that since a general election can no longer be held, the UPFA cannot implement any of the measures they had planned to take "to prevent the country from becoming another Greece."

Most of the countries had not recognised Rajapaksa's government. The global credit rating agencies -- the Fitch, the Standard &amp; Poor's and the Moody's -- had also downgraded Sri Lanka's rating owing to the current political crisis.&nbsp;

Ranil Wickremesinghe Sunday staged a triumphant comeback as Sri Lankan Prime Minister to end the unprecedented political turmoil in the country, 51 days after he was sacked by his bete noire and President Maithripala Sirisena, who also dissolved Parliament, controversial decisions which were nullified by the Supreme Court.

Ranil Wickremesinghe Sunday staged a triumphant comeback as Sri Lankan Prime Minister to end the unprecedented political turmoil in the country, 51 days after he was sacked by his bete noire and President Maithripala Sirisena, who also dissolved Parliament, controversial decisions which were nullified by the Supreme Court. Wickremesinghe, the 69-year-old United National Party leader, was administered the oath of office by President Sirisena, who had sacked him on October 26 and installed former rival and ex-strongman Mahinda Rajapaksa in his place. The UNP leader had refused to step down asserting that his sacking was illegal. His re-appointment comes a day after Rajapaksa resigned Saturday, after two crucial Supreme Court decisions made his efforts to cling to premiership untenable. "Today marks a victory not for myself or for the UNP. It is a victory for Sri Lanka's democratic institutions and the sovereignty of our citizens. I thank everyone who stood firm in defending the constitution and ensuring the triumph of democracy," Wickremesinghe said after assuming office. A sheepish Sirisena, who had ruled out reappointing Wickremesinghe as prime minister, was smiling with Wickremesinghe as he handed him the letter of appointment. Wickremesinghe's supporters took to streets to celebrate after he took oath at the Presidential Secretariat for the record fifth time. UNP Assistant Leader Ravi Karunanayake said that talks were held Saturday and more discussions will take place Sunday to select the Cabinet. The Cabinet is expected to be limited to 30 and will include a few Sri Lanka Freedom Party (SLFP) members who have offered support to Wickremesinghe. It is expected a new Cabinet will be formed by Monday and a vote on account will be passed to provide for the required provisions until a budget for 2019 is formulated, Sri Lankan media reported. Earlier, Wickremesinghe's party said it was ready to work with President Sirisena, who was "misled by some groups" against the unity government. UNP deputy leader Sajith Premadasa said that he was not surprised that the President had agreed to appoint Wickremesinghe as Prime Minister again despite taking a firm position earlier that he will not appoint the UNP leader. "This showed the true character of the President," he was quoted as saying by the Colombo Gazette. Premadasa said that the President was "misled by some groups who were against the unity Government" and this resulted in the President removing Wickremesinghe. "But now truth has prevailed," he said. "The party is prepared to work with Sirisena again in the government." Premadasa said, "The lessons from the incident must be used to strengthen the foundation of democracy and promote justice and fairness." Sirisena and Rajapaksa suffered reversal setbacks since October 26, forcing the president to reinstate Wickremesinghe. Rajapaksa, 73, had sought to secure a majority in the 225-member Parliament but failed. Sirisena then dissolved Parliament and called snap elections on January 5. However, the Supreme Court overturned his decision and halted the preparations for snap polls. The Supreme Court on Thursday unanimously declared that the dissolution of Parliament by Sirisena was "illegal". The apex court on Friday also refused to stay a court order restraining Rajapaksa from holding the office of Prime Minister until it fully heard the case next month. Rajapaksa signed his resignation letter during a multi-religious service at his home that was attended by several lawmakers of United People's Freedom Alliance (UPFA), Buddhist and other religious leaders. After signing the resignation letter, Rajapaksa said that following the February 10 local government election, the aim of his party is to have a general election. However, he said that he has no intention of remaining as Prime Minister without a general election being held, and in order to not hamper the President in any way, he resigned from the position of Prime Minister and made way for the President to form a new Government. Rajapaksa said that since a general election can no longer be held, the UPFA cannot implement any of the measures they had planned to take "to prevent the country from becoming another Greece." Most of the countries had not recognised Rajapaksa's government. The global credit rating agencies -- the Fitch, the Standard & Poor's and the Moody's -- had also downgraded Sri Lanka's rating owing to the current political crisis.

Victory for democracy, says reinstated Sri Lankan PM Wickremesinghe

Sri Lanka's ousted Prime Minister <a href="http://www.wionews.com/south-asia/ranil-wickremesinghe-sworn-in-as-the-prime-minister-of-sri-lanka-184452">Ranil Wickremesinghe</a>'s United National Party (UNP) has said it is ready to work with President Maithripala Sirisena, who was "misled by some groups" against the unity government.

Sirisena sacked Wickremesinghe on October 26 and appointed Mahinda Rajapaksa in his place, in a controversial move which plunged the island nation into a constitutional crisis.

<a href="http://www.wionews.com/south-asia/mahinda-rajapaksa-resigns-as-sri-lankas-pm-ranil-wickremesinghe-likely-to-take-oath-on-sunday-184207">Rajapaksa resigned on Saturday </a>after two crucial Supreme Court decisions made his efforts to cling to premiership untenable, paving the way for the return of 69-year-old Wickremesinghe who had refused to step down asserting that his sacking was illegal.

UNP deputy leader Sajith Premadasa said that he was not surprised that the President had agreed to appoint Wickremesinghe as Prime Minister again despite taking a firm position earlier that he will not appoint Wickremesinghe.

"This showed the true character of the President," he was quoted as saying by the Colombo Gazette.

Premadasa said that the President was "misled by some groups who were against the unity Government" and this resulted in the President removing Wickremesinghe. But now truth has prevailed,"&nbsp;he said.

"The party is prepared to work with Sirisena again in the government," he said.

Premadasa said, "The lessons from the incident must be used to strengthen the foundation of democracy and promote justice and fairness."&nbsp;

UNP General Secretary MP Akila Viraj Kariyawasam said the new Cabinet will be appointed within two days.

Sri Lanka's ousted Prime Minister Ranil Wickremesinghe's United National Party (UNP) has said it is ready to work with President Maithripala Sirisena, who was "misled by some groups" against the unity government.

Sri Lanka's ousted Prime Minister Ranil Wickremesinghe's United National Party (UNP) has said it is ready to work with President Maithripala Sirisena, who was "misled by some groups" against the unity government. Sirisena sacked Wickremesinghe on October 26 and appointed Mahinda Rajapaksa in his place, in a controversial move which plunged the island nation into a constitutional crisis. Rajapaksa resigned on Saturday after two crucial Supreme Court decisions made his efforts to cling to premiership untenable, paving the way for the return of 69-year-old Wickremesinghe who had refused to step down asserting that his sacking was illegal. UNP deputy leader Sajith Premadasa said that he was not surprised that the President had agreed to appoint Wickremesinghe as Prime Minister again despite taking a firm position earlier that he will not appoint Wickremesinghe. "This showed the true character of the President," he was quoted as saying by the Colombo Gazette. Premadasa said that the President was "misled by some groups who were against the unity Government" and this resulted in the President removing Wickremesinghe. But now truth has prevailed," he said. "The party is prepared to work with Sirisena again in the government," he said. Premadasa said, "The lessons from the incident must be used to strengthen the foundation of democracy and promote justice and fairness." UNP General Secretary MP Akila Viraj Kariyawasam said the new Cabinet will be appointed within two days.

Ready to work with Sirisena again: Wickremesinghe's United National Party

A day after Mahinda Rajapaksa officially resigned amid the fear of government shutdown, Prime Minister Ranil Wickremesinghe will return to his post today; news agency Reuters reported.

"He (Wickremesinghe) will take oath at an auspicious time today morning," Reuters quoted Rajitha Senaratne, a cabinet spokesman under Wickremesinghe's former government as saying.

The report also cited an official at the president's office confirming Wickremesinghe's oath-taking. 
&nbsp; 
The South Asian island country plunged into instability in October after President Maithripala Sirisena replaced Wickremesinghe with Rajapaksa, who was then twice sacked by parliament.&nbsp;

But as a government shutdown loomed, Rajapaksa put in his papers and said in a statement on Saturday that a change of government that "the people expected" has now been put off.

"I have no intention of remaining as Prime Minister without a general election being held, and in order to not hamper the President in any way, I will resign from the position of Prime Minister and make way for the President to form a new government," Rajapaksa said in the statement.

Wickremesinghe's office on Friday said that Sirisena had called the former prime minister by telephone to invite him to be sworn back into office on Sunday.

Sirisena had previously said he would not appoint Wickremesinghe "even if he has the backing of all 225 lawmakers in parliament".

The country's parliament had voted to cut the budget for Rajapaksa and his ministers after Sirisena had refused to accept no-confidence votes against Rajapaksa saying that due procedure was not followed.

The country's Supreme Court on Friday rejected Rajapaksa's bid for an injunction on a lower court's order that barred him and his cabinet from carrying out their roles in government.

Many foreign countries have refused to recognise Rajapaksa's government. Credit rating agencies Fitch and Standard &amp; Poor's have downgraded Sri Lanka, citing refinancing risks and an uncertain policy outlook.

Earlier this week, the island nation's parliament passed a vote of confidence in favour of Wickremesinghe, as it sought his reinstatement as prime minister by the president to defuse the political crisis.

(With inputs from news agencies)

A day after Mahinda Rajapaksa officially resigned amid the fear of government shutdown, Prime Minister Ranil Wickremesinghe will return to his post today; news agency Reuters reported.

A day after Mahinda Rajapaksa officially resigned amid the fear of government shutdown, Prime Minister Ranil Wickremesinghe will return to his post today; news agency Reuters reported. "He (Wickremesinghe) will take oath at an auspicious time today morning," Reuters quoted Rajitha Senaratne, a cabinet spokesman under Wickremesinghe's former government as saying. The report also cited an official at the president's office confirming Wickremesinghe's oath-taking. The South Asian island country plunged into instability in October after President Maithripala Sirisena replaced Wickremesinghe with Rajapaksa, who was then twice sacked by parliament. But as a government shutdown loomed, Rajapaksa put in his papers and said in a statement on Saturday that a change of government that "the people expected" has now been put off. "I have no intention of remaining as Prime Minister without a general election being held, and in order to not hamper the President in any way, I will resign from the position of Prime Minister and make way for the President to form a new government," Rajapaksa said in the statement. Wickremesinghe's office on Friday said that Sirisena had called the former prime minister by telephone to invite him to be sworn back into office on Sunday. Sirisena had previously said he would not appoint Wickremesinghe "even if he has the backing of all 225 lawmakers in parliament". The country's parliament had voted to cut the budget for Rajapaksa and his ministers after Sirisena had refused to accept no-confidence votes against Rajapaksa saying that due procedure was not followed. The country's Supreme Court on Friday rejected Rajapaksa's bid for an injunction on a lower court's order that barred him and his cabinet from carrying out their roles in government. Many foreign countries have refused to recognise Rajapaksa's government. Credit rating agencies Fitch and Standard & Poor's have downgraded Sri Lanka, citing refinancing risks and an uncertain policy outlook. Earlier this week, the island nation's parliament passed a vote of confidence in favour of Wickremesinghe, as it sought his reinstatement as prime minister by the president to defuse the political crisis. (With inputs from news agencies)

Sri Lanka's former PM Wickremesinghe to return to post today

Former Maldivian President Mohamed Nasheed on Sunday took to Twitter and congratulated Sri Lanka's Ranil Wickremesinghe for assuming office as the Prime Minister.&nbsp;

Nasheed said that it was known that Sri Lanka "would uphold her democratic credentials."

"Congratulations PM Ranil Wickremesinghe. We always knew Sri Lanka would uphold her democratic credentials, and show emerging democracies how the rule of law prevails. The country’s military, by remaining in the baracks, has shown intergrity," the tweet read.&nbsp;

Ranil <a href="http://www.wionews.com/south-asia/ready-to-work-with-sirisena-again-wickremesinghes-united-national-party-184455">Wickremesinghe was sworn in as Sri Lanka's prime minister</a> on Sunday, making a remarkable comeback weeks after being ousted by President Maithripala Sirisena under controversial circumstances.

Wickremesinghe's reinstatement is expected to end a political crisis that began in late October when he was surprisingly sacked.

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<blockquote class="twitter-tweet" data-lang="en">
Congratulations PM Ranil Wickremesinghe. We always knew Sri Lanka would uphold her democratic credentials, and show emerging democracies how the rule of law prevails. The country’s military, by remaining in the baracks, has shown intergrity. <a href="https://twitter.com/RW_UNP?ref_src=twsrc%5Etfw">@RW_UNP</a>
— Mohamed Nasheed (@MohamedNasheed) <a href="https://twitter.com/MohamedNasheed/status/1074205601125695489?ref_src=twsrc%5Etfw">December 16, 2018</a></blockquote>
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Sirisena had replaced Wickremesinghe with former president Mahinda Rajapaksa following differences over policy matters and other issues. However, Rajapaksa failed to win a parliamentary majority and resigned on December 15 as a government shutdown loomed.

Wickremesinghe told his supporters at his official residence that he would ensure a "better economic situation, better standard of living" for Sri Lankans after first working to "normalize the country," news agency Reuters reported.&nbsp;

Wickremesinghe was appointed for the post for the fifth time. He has never completed a full term as prime minister.

(With inputs from Reuters)&nbsp;

Former Maldivian President Mohamed Nasheed on Sunday took to Twitter and congratulated Sri Lanka's Ranil Wickremesinghe for assuming office as the Prime Minister.

Former Maldivian President Mohamed Nasheed on Sunday took to Twitter and congratulated Sri Lanka's Ranil Wickremesinghe for assuming office as the Prime Minister. Nasheed said that it was known that Sri Lanka "would uphold her democratic credentials." "Congratulations PM Ranil Wickremesinghe. We always knew Sri Lanka would uphold her democratic credentials, and show emerging democracies how the rule of law prevails. The country’s military, by remaining in the baracks, has shown intergrity," the tweet read. Ranil Wickremesinghe was sworn in as Sri Lanka's prime minister on Sunday, making a remarkable comeback weeks after being ousted by President Maithripala Sirisena under controversial circumstances. Wickremesinghe's reinstatement is expected to end a political crisis that began in late October when he was surprisingly sacked. Congratulations PM Ranil Wickremesinghe. We always knew Sri Lanka would uphold her democratic credentials, and show emerging democracies how the rule of law prevails. The country’s military, by remaining in the baracks, has shown intergrity. @RW_UNP — Mohamed Nasheed (@MohamedNasheed) December 16, 2018 × Sirisena had replaced Wickremesinghe with former president Mahinda Rajapaksa following differences over policy matters and other issues. However, Rajapaksa failed to win a parliamentary majority and resigned on December 15 as a government shutdown loomed. Wickremesinghe told his supporters at his official residence that he would ensure a "better economic situation, better standard of living" for Sri Lankans after first working to "normalize the country," news agency Reuters reported. Wickremesinghe was appointed for the post for the fifth time. He has never completed a full term as prime minister. (With inputs from Reuters)

Knew Sri Lanka would uphold democratic credentials: Maldives' Nasheed welcomes Wickremesinghe's return

Ranil Wickremesinghe is expected to take oath as Sri Lanka's Prime Minister on Sunday after disputed Premier <a href="http://www.wionews.com/india-news/mahinda-rajapaksa-to-resign-as-sri-lanka-prime-minister-tomorrow-says-son-namal-184099">Mahinda Rajapaksa will resign </a>on Saturday, signalling an end to the nearly two-month power tussle in the island nation.

President Maithripala Sirisena has reportedly agreed to reinstate ousted Prime Minister Wickremesinghe in the post after a discussion with him over the phone on Friday, Colombo Page reported.

Wickremesinghe's United National Party (UNP) said that it was decided during the discussion that he will take oath as the Prime Minister at 10 am on Sunday.

The President removed Wickremesinghe from the post of Prime Minister on October 26 and appointed former president Rajapaksa as the Premier, plunging the country into an unprecedented crisis.

Wickremesinghe refused to accept the sacking and challenged it in a court and in the Parliament.

The daily reported that a new Cabinet will be sworn in on Monday. The Cabinet will consist of 30 members and include six Sri Lanka Freedom Party (SLFP) parliamentarians, it said.

Rajapaksa's son on Friday announced that the former strongman will resign on Saturday, after two crucial Supreme Court decisions made the embattled leader's efforts to cling to premiership untenable.

The apex court on Friday refused to stay a court order restraining Rajapaksa, 73, from holding the office of Prime Minister until it fully heard the case next month.

"To ensure stability of the nation, Former President @PresRajapaksa has decided to resign from the Premiership tomorrow after an address to the nation," Rajapaksa's son Namal tweeted.

The Sri Lanka Podujana Peramuna (SLPP) with former president, SLFP and others will "now work to form a broader political coalition with President Sirisena", Namal, a lawmaker, added.

The apex court's Friday ruling came a day after it unanimously declared that the dissolution of Parliament by President Sirisena was "illegal".&nbsp;

Ranil Wickremesinghe is expected to take oath as Sri Lanka's Prime Minister on Sunday after disputed Premier Mahinda Rajapaksa will resign on Saturday, signalling an end to the nearly two-month power tussle in the island nation.

Ranil Wickremesinghe is expected to take oath as Sri Lanka's Prime Minister on Sunday after disputed Premier Mahinda Rajapaksa will resign on Saturday, signalling an end to the nearly two-month power tussle in the island nation. President Maithripala Sirisena has reportedly agreed to reinstate ousted Prime Minister Wickremesinghe in the post after a discussion with him over the phone on Friday, Colombo Page reported. Wickremesinghe's United National Party (UNP) said that it was decided during the discussion that he will take oath as the Prime Minister at 10 am on Sunday. The President removed Wickremesinghe from the post of Prime Minister on October 26 and appointed former president Rajapaksa as the Premier, plunging the country into an unprecedented crisis. Wickremesinghe refused to accept the sacking and challenged it in a court and in the Parliament. The daily reported that a new Cabinet will be sworn in on Monday. The Cabinet will consist of 30 members and include six Sri Lanka Freedom Party (SLFP) parliamentarians, it said. Rajapaksa's son on Friday announced that the former strongman will resign on Saturday, after two crucial Supreme Court decisions made the embattled leader's efforts to cling to premiership untenable. The apex court on Friday refused to stay a court order restraining Rajapaksa, 73, from holding the office of Prime Minister until it fully heard the case next month. "To ensure stability of the nation, Former President @PresRajapaksa has decided to resign from the Premiership tomorrow after an address to the nation," Rajapaksa's son Namal tweeted. The Sri Lanka Podujana Peramuna (SLPP) with former president, SLFP and others will "now work to form a broader political coalition with President Sirisena", Namal, a lawmaker, added. The apex court's Friday ruling came a day after it unanimously declared that the dissolution of Parliament by President Sirisena was "illegal".

Wickremesinghe likely to take oath as Sri Lanka's PM on Sunday

Rajapaksa resigns as Lakan PM

Breaking News: Sri Lanka legislature votes in favour of Ranil Wickremesinghe

Sri Lanka's parliament on Wednesday passed a vote of confidence in its ousted prime minister, as it sought his reinstatement by the president to defuse a political crisis and avoid a government shutdown.

The South Asian island nation has been locked in political gridlock for more than a month since&nbsp;<a href="http://www.wionews.com/south-asia/sri-lanka-president-sirisena-fails-to-meet-deadline-to-end-political-crisis-183274">President Maithripala Sirisena</a> replaced former Prime Minister <a href="http://www.wionews.com/south-asia/sri-lankas-ousted-pm-sets-deadline-to-end-crisis-183007">Ranil Wickremesinghe</a> with pro-China strongman Mahinda Rajapaksa.

Parliament has twice in the past few weeks voted to sack Rajapaksa but he has refused to resign.

Sirisena has repeatedly said he will not appoint Wickremesinghe "even if he has the backing of all 225 lawmakers in parliament".

It was not immediately clear whether the confidence vote, passed by 117 votes to none, would help to see Wickremesinghe reinstated.

Lawmakers backing Sirisena and Rajapaksa chose not to participate in the parliament vote.

Sirisena dissolved parliament last month after Rajapaksa could not get majority support there.

The Supreme Court is considering whether to rule that the dissolution is unconstitutional. If it does, parliament will then need to pass a budget for 2019, or risk triggering a government shutdown.

"If there is no budget, no government officials could draw money and there could be a government shutdown. The government can't even repay loans," former finance minister Mangala Samaraweera told parliament.

A Supreme Court ruling is expected this week.

Many foreign countries have yet to recognise the new government.

Sri Lanka's parliament on Wednesday passed a vote of confidence in its ousted prime minister, as it sought his reinstatement by the president to defuse a political crisis and avoid a government shutdown.

Sri Lanka's parliament on Wednesday passed a vote of confidence in its ousted prime minister, as it sought his reinstatement by the president to defuse a political crisis and avoid a government shutdown. The South Asian island nation has been locked in political gridlock for more than a month since President Maithripala Sirisena replaced former Prime Minister Ranil Wickremesinghe with pro-China strongman Mahinda Rajapaksa. Parliament has twice in the past few weeks voted to sack Rajapaksa but he has refused to resign. Sirisena has repeatedly said he will not appoint Wickremesinghe "even if he has the backing of all 225 lawmakers in parliament". It was not immediately clear whether the confidence vote, passed by 117 votes to none, would help to see Wickremesinghe reinstated. Lawmakers backing Sirisena and Rajapaksa chose not to participate in the parliament vote. Sirisena dissolved parliament last month after Rajapaksa could not get majority support there. The Supreme Court is considering whether to rule that the dissolution is unconstitutional. If it does, parliament will then need to pass a budget for 2019, or risk triggering a government shutdown. "If there is no budget, no government officials could draw money and there could be a government shutdown. The government can't even repay loans," former finance minister Mangala Samaraweera told parliament. A Supreme Court ruling is expected this week. Many foreign countries have yet to recognise the new government.

Ousted Sri Lanka PM Wickremesinghe wins confidence vote

Sri Lanka's highest court Friday banned President Maithripala Sirisena from sacking the legislature until it decides on the legality of his move last month to call snap elections.

The Supreme Court concluded hearing 10 petitions against Sirisena's move as part of a bitter power struggle with his erstwhile prime minister Ranil Wickremesinghe, but reserved judgement for an unspecified date.

The courts reopen on Monday.

Sirisena plunged the country into crisis on October 26 when he fired Wickremesinghe and appointed the contentious Mahinda Rajapakse in his place.

He then dissolved parliament on November 9 and called elections nearly two years ahead of schedule on January 5.

Four days after he sacked parliament through a special decree, the Supreme Court issued an interim ruling suspending Sirisena's action and restoring parliament, which almost immediately passed a no-confidence motion against Rajapakse.

"The court issued a fresh order extending the ban on the president until the case is concluded," a court official told reporters after the unusually long hearing on Friday marking four days of legal arguments.

Security was stepped up outside the Supreme Court amid expectations of a final ruling on Friday evening.

The court's seven-judge bench is expected to deliver a ruling on the constitutionality of Sirisena's move as early as Monday.

Sacked premier Wickremesinghe's party and their allies, who command a majority in the 225-member assembly, have suggested they could begin impeachment proceedings against Sirisena depending on the ruling.

Wickremesinghe's party loyalists believe the court decision will go in their favour, a view held by many independent lawyers.

Problems for Sirisena were compounded on Monday when the Court of Appeal suspended the entire cabinet and asked Rajapakse to explain on what authority he was holding office.

With parliamentary proceedings degenerating into brawls, the United States, the European Union and other powers have raised concerns over the crisis in the strategically important island nation of 21 million people.

Only China has recognised the appointment of Rajapakse, who during his decade as president until 2015 relied heavily on Beijing for diplomatic and financial support.

As president from 2005 until 2015, he ended Sri Lanka's four-decade civil war in 2009 by crushing the rebel Tamil Tigers.

But 40,000 ethnic Tamils were allegedly massacred in the process.

Rajapakse and his family are also alleged to have profited from his time in power through corrupt deals.

During an earlier stint as prime minister from 2001 until 2004, Wickremesinghe is credited with pulling Sri Lanka out of its first ever recession, in part with reforms that have endeared him to the West.

Sri Lanka's highest court Friday banned President Maithripala Sirisena from sacking the legislature until it decides on the legality of his move last month to call snap elections.

Sri Lanka's highest court Friday banned President Maithripala Sirisena from sacking the legislature until it decides on the legality of his move last month to call snap elections. The Supreme Court concluded hearing 10 petitions against Sirisena's move as part of a bitter power struggle with his erstwhile prime minister Ranil Wickremesinghe, but reserved judgement for an unspecified date. The courts reopen on Monday. Sirisena plunged the country into crisis on October 26 when he fired Wickremesinghe and appointed the contentious Mahinda Rajapakse in his place. He then dissolved parliament on November 9 and called elections nearly two years ahead of schedule on January 5. Four days after he sacked parliament through a special decree, the Supreme Court issued an interim ruling suspending Sirisena's action and restoring parliament, which almost immediately passed a no-confidence motion against Rajapakse. "The court issued a fresh order extending the ban on the president until the case is concluded," a court official told reporters after the unusually long hearing on Friday marking four days of legal arguments. Security was stepped up outside the Supreme Court amid expectations of a final ruling on Friday evening. The court's seven-judge bench is expected to deliver a ruling on the constitutionality of Sirisena's move as early as Monday. Sacked premier Wickremesinghe's party and their allies, who command a majority in the 225-member assembly, have suggested they could begin impeachment proceedings against Sirisena depending on the ruling. Wickremesinghe's party loyalists believe the court decision will go in their favour, a view held by many independent lawyers. Problems for Sirisena were compounded on Monday when the Court of Appeal suspended the entire cabinet and asked Rajapakse to explain on what authority he was holding office. With parliamentary proceedings degenerating into brawls, the United States, the European Union and other powers have raised concerns over the crisis in the strategically important island nation of 21 million people. Only China has recognised the appointment of Rajapakse, who during his decade as president until 2015 relied heavily on Beijing for diplomatic and financial support. As president from 2005 until 2015, he ended Sri Lanka's four-decade civil war in 2009 by crushing the rebel Tamil Tigers. But 40,000 ethnic Tamils were allegedly massacred in the process. Rajapakse and his family are also alleged to have profited from his time in power through corrupt deals. During an earlier stint as prime minister from 2001 until 2004, Wickremesinghe is credited with pulling Sri Lanka out of its first ever recession, in part with reforms that have endeared him to the West.

Sri Lanka court extends ban on president sacking parliament

Security was stepped up outside Sri Lanka's top court on Friday ahead of an expected ruling on whether the president broke the law by sacking parliament last month, a decision that could potentially lead to impeachment proceedings.

President Maithripala Sirisena plunged the country into crisis on October 26 when he fired the prime minister and appointed the contentious Mahinda Rajapakse in his place. He then dissolved parliament on November 9.

Four days later, the Supreme Court issued an interim ruling suspending Sirisena's decree and restoring parliament, which almost immediately passed a no-confidence motion against Rajapakse.

The court's seven-judge bench was likely to deliver a final ruling on the constitutionality of Sirisena's move on Friday.

"If the morning session is brief, we can expect a decision later today," a court official said.

Sacked premier Ranil Wickremesinghe's party and their allies, who command a majority in the 225-member assembly, have suggested that they could begin impeachment proceedings again Sirisena depending on the ruling.

Wickremesinghe's party loyalists believe that the court decision will go in their favour, a view held by many independent lawyers.

Problems for Sirisena were compounded on Monday when the Court of Appeal suspended the entire cabinet and asked Rajapakse to explain on what authority he was holding office.

With parliamentary proceedings degenerating into brawls, the United States, the European Union and other powers have raised concerns over the crisis in the strategically important island nation of 21 million people.

Only China has recognised the appointment of Rajapakse, who during his decade as president until 2015 relied heavily on Beijing for diplomatic and financial support.

As president from 2005 until 2015, he ended Sri Lanka's four-decade civil war in 2009 by crushing the rebel Tamil Tigers.

But 40,000 ethnic Tamils were allegedly massacred in the process. Rajapakse and his family are also alleged to have profited from his time in power through corrupt deals.

During an earlier stint as prime minister from 2001 until 2004, Wickremesinghe is credited with pulling Sri Lanka out of its first ever recession, in part with reforms that have endeared him to the West.

Security was stepped up outside Sri Lanka's top court on Friday ahead of an expected ruling on whether the president broke the law by sacking parliament last month, a decision that could potentially lead to impeachment proceedings.

Security was stepped up outside Sri Lanka's top court on Friday ahead of an expected ruling on whether the president broke the law by sacking parliament last month, a decision that could potentially lead to impeachment proceedings. President Maithripala Sirisena plunged the country into crisis on October 26 when he fired the prime minister and appointed the contentious Mahinda Rajapakse in his place. He then dissolved parliament on November 9. Four days later, the Supreme Court issued an interim ruling suspending Sirisena's decree and restoring parliament, which almost immediately passed a no-confidence motion against Rajapakse. The court's seven-judge bench was likely to deliver a final ruling on the constitutionality of Sirisena's move on Friday. "If the morning session is brief, we can expect a decision later today," a court official said. Sacked premier Ranil Wickremesinghe's party and their allies, who command a majority in the 225-member assembly, have suggested that they could begin impeachment proceedings again Sirisena depending on the ruling. Wickremesinghe's party loyalists believe that the court decision will go in their favour, a view held by many independent lawyers. Problems for Sirisena were compounded on Monday when the Court of Appeal suspended the entire cabinet and asked Rajapakse to explain on what authority he was holding office. With parliamentary proceedings degenerating into brawls, the United States, the European Union and other powers have raised concerns over the crisis in the strategically important island nation of 21 million people. Only China has recognised the appointment of Rajapakse, who during his decade as president until 2015 relied heavily on Beijing for diplomatic and financial support. As president from 2005 until 2015, he ended Sri Lanka's four-decade civil war in 2009 by crushing the rebel Tamil Tigers. But 40,000 ethnic Tamils were allegedly massacred in the process. Rajapakse and his family are also alleged to have profited from his time in power through corrupt deals. During an earlier stint as prime minister from 2001 until 2004, Wickremesinghe is credited with pulling Sri Lanka out of its first ever recession, in part with reforms that have endeared him to the West.

Sri Lanka court set to rule on sacking of parliament

Sri Lankan President Maithripala Sirisena is considering dropping an attempt to dissolve parliament, sources close to the president said, possibly easing weeks of political deadlock.

The country has been in a crisis since Sirisena replaced Prime Minister Ranil Wickremesinghe with Mahinda Rajapaksa last month, and then issued an order dissolving parliament and called for a general election.

The sources said the president may now rescind the order, effectively pre-empting a court ruling that they expect to overturn his decision anyway.

Sri Lanka's top court stayed the dissolution order pending a hearing on its constitutionality that starts on Tuesday, allowing parliament to resume meeting.

Rajapaksa, a former president, has lost two confidence votes in parliament but has refused to resign.

"There is a possibility of withdrawing the gazette," said a source in regular discussion with Sirisena, referring to the official announcement by which the president dissolved parliament. "I have no doubt that the Supreme Court would say that dissolution was wrong."

A spokesman for Sirisena, Dharmasri Ekanayake, said he was unaware of any such plans.

"DIGNIFIED EXIT"

A second source in Sirisena's party said the president was looking for a "dignified exit" by withdrawing the dissolution order as the court was unlikely to rule in his favour.

The Supreme Court is expected to announce its decision as early as December 7.

Foreign countries have yet to recognise the new government. The impasse has also pushed the island's currency to record lows, caused turmoil on its stock and bond markets, and raised fears it may not be able to service debts to finance reconstruction following a 26-year civil war that ended in 2009.

Rajapaksa is seen as a hero by many among Sri Lanka’s Buddhist majority for ending a bloody war with Tamil rebels in 2009, but has been accused by diplomats and international rights groups of human rights abuses, which he denies.

Sirisena came to power in 2015 on a pledge to uphold democracy and stamp out corruption, but his popularity has been hit by a crisis many say he triggered because of personal differences with former Prime Minister Wickremesinghe.

The crisis deepened on Friday when parliament voted to halt payment of ministers' salaries - a move to pressure the disputed government of Rajapaksa. Rajapaksa loyalists boycotted the vote saying it was illegal.

Separately on Friday, the country's Appeal Court began a hearing on a petition signed by 122 legislators that challenged Rajapaksa's authority to hold office after he lost the no-confidence votes earlier this month.

Sri Lankan President Maithripala Sirisena is considering dropping an attempt to dissolve parliament, sources close to the president said, possibly easing weeks of political deadlock.

Sri Lankan President Maithripala Sirisena is considering dropping an attempt to dissolve parliament, sources close to the president said, possibly easing weeks of political deadlock. The country has been in a crisis since Sirisena replaced Prime Minister Ranil Wickremesinghe with Mahinda Rajapaksa last month, and then issued an order dissolving parliament and called for a general election. The sources said the president may now rescind the order, effectively pre-empting a court ruling that they expect to overturn his decision anyway. Sri Lanka's top court stayed the dissolution order pending a hearing on its constitutionality that starts on Tuesday, allowing parliament to resume meeting. Rajapaksa, a former president, has lost two confidence votes in parliament but has refused to resign. "There is a possibility of withdrawing the gazette," said a source in regular discussion with Sirisena, referring to the official announcement by which the president dissolved parliament. "I have no doubt that the Supreme Court would say that dissolution was wrong." A spokesman for Sirisena, Dharmasri Ekanayake, said he was unaware of any such plans. "DIGNIFIED EXIT" A second source in Sirisena's party said the president was looking for a "dignified exit" by withdrawing the dissolution order as the court was unlikely to rule in his favour. The Supreme Court is expected to announce its decision as early as December 7. Foreign countries have yet to recognise the new government. The impasse has also pushed the island's currency to record lows, caused turmoil on its stock and bond markets, and raised fears it may not be able to service debts to finance reconstruction following a 26-year civil war that ended in 2009. Rajapaksa is seen as a hero by many among Sri Lanka’s Buddhist majority for ending a bloody war with Tamil rebels in 2009, but has been accused by diplomats and international rights groups of human rights abuses, which he denies. Sirisena came to power in 2015 on a pledge to uphold democracy and stamp out corruption, but his popularity has been hit by a crisis many say he triggered because of personal differences with former Prime Minister Wickremesinghe. The crisis deepened on Friday when parliament voted to halt payment of ministers' salaries - a move to pressure the disputed government of Rajapaksa. Rajapaksa loyalists boycotted the vote saying it was illegal. Separately on Friday, the country's Appeal Court began a hearing on a petition signed by 122 legislators that challenged Rajapaksa's authority to hold office after he lost the no-confidence votes earlier this month.

Sri Lanka president weighs backing down in crisis over parliament: Sources

Sri Lanka's parliament on Friday voted to halt payment of ministers' salaries and travel expenses, but it remained unclear how the move would impact the disputed government of Prime Minister Mahinda Rajapaksa whose ministers boycotted the vote.

The South Asian island has been locked in <a href="http://www.wionews.com/south-asia/sri-lanka-signs-port-deals-with-china-amid-political-upheaval-180367">political gridlock</a> for over a month since President Maithripala Sirisena replaced former Prime Minister Ranil Wickremesinghe with Rajapaksa, who was then twice sacked by parliament but has refused to resign.

Foreign countries have yet to recognise the new government.

Friday's motion, which passed 122 to none in the 225-member parliament, follows a similar vote on Thursday to cut the budget to the Prime Minister's office. Rajapaksa loyalists also skipped that vote, arguing the motion was invalid.

"The motion to cut down the expenditures of ministers, deputy ministers, and state ministers is passed," parliament's speaker Karu Jayasuriya said. He earlier said he would officially inform ministry secretaries of the decision.

The motion specifically was to prohibit top civil servants from paying out salaries and travel expenses.

However, one senior civil servant from a government ministry, speaking to Reuters on condition of anonymity, said it was unclear how such a vote would be applied in practice because there were questions over whether due process had been followed.

In a repeat of Thursday's actions, Rajapaksa loyalists declared the vote illegal and called into question the impartiality of the speaker.

"The motion today presented is illegal and we have mentioned it to the speaker too. We will not attend such illegal motions," Anura Priyadharshana Yapa, a minister in Rajapaksa's disputed government, told reporters before the proceedings started.

Rajapaksa's party argues that as the president never accepted no confidence votes against its government, it remains in power. The motions presented on Thursday and Friday are based on the assumption they have been sacked.

Rajapaksa presided over a government victory over Tamil rebels in 2009, ending a bloody 26-year civil war.

Sri Lanka's parliament on Friday voted to halt payment of ministers' salaries and travel expenses, but it remained unclear how the move would impact the disputed government of Prime Minister Mahinda Rajapaksa whose ministers boycotted the vote.

Sri Lanka's parliament on Friday voted to halt payment of ministers' salaries and travel expenses, but it remained unclear how the move would impact the disputed government of Prime Minister Mahinda Rajapaksa whose ministers boycotted the vote. The South Asian island has been locked in political gridlock for over a month since President Maithripala Sirisena replaced former Prime Minister Ranil Wickremesinghe with Rajapaksa, who was then twice sacked by parliament but has refused to resign. Foreign countries have yet to recognise the new government. Friday's motion, which passed 122 to none in the 225-member parliament, follows a similar vote on Thursday to cut the budget to the Prime Minister's office. Rajapaksa loyalists also skipped that vote, arguing the motion was invalid. "The motion to cut down the expenditures of ministers, deputy ministers, and state ministers is passed," parliament's speaker Karu Jayasuriya said. He earlier said he would officially inform ministry secretaries of the decision. The motion specifically was to prohibit top civil servants from paying out salaries and travel expenses. However, one senior civil servant from a government ministry, speaking to Reuters on condition of anonymity, said it was unclear how such a vote would be applied in practice because there were questions over whether due process had been followed. In a repeat of Thursday's actions, Rajapaksa loyalists declared the vote illegal and called into question the impartiality of the speaker. "The motion today presented is illegal and we have mentioned it to the speaker too. We will not attend such illegal motions," Anura Priyadharshana Yapa, a minister in Rajapaksa's disputed government, told reporters before the proceedings started. Rajapaksa's party argues that as the president never accepted no confidence votes against its government, it remains in power. The motions presented on Thursday and Friday are based on the assumption they have been sacked. Rajapaksa presided over a government victory over Tamil rebels in 2009, ending a bloody 26-year civil war.

Sri Lanka parliament halts ministers' salaries, travel expenses

Sri Lanka penned two multi-million dollar contracts with Chinese firms for a port upgrade project on Thursday in the middle of a <a href="http://www.wionews.com/sri-lanka/president-sirisenas-decision-led-to-the-political-crisis-in-sri-lanka-ranil-wickremesinghe-to-wion-176269">political hiatus </a>that has raised doubts over the legitimacy of the government and the legality of the deals.

The debt-saddled island has long been a target of Beijing's ambitious Belt and Road infrastructure scheme to connect China with countries cross Asia and beyond, while regional power India has also been vying for deals to counter China's influence.

But a political crisis triggered by President Maithripala <a href="http://www.wionews.com/opinions/political-chaos-in-sri-lanka-has-a-long-backstory-175043">Sirisena's replacement of Prime Minister Ranil Wickremesinghe with Mahinda Rajapaksa</a>, who was in turn sacked by parliament, has raised doubts over who can legitimately make decisions in the country.

Foreign countries have yet to recognise the new government and Wickremesinghe's party has said any decisions by Rajapaksa's cabinet are illegal.

An official at the state-run Sri Lanka Ports Authority told Reuters it signed two contracts with Chinese firms worth more than $50 million combined on Thursday after the deals were approved by Rajapaksa's disputed cabinet last week.

One of Rajapaksa's cabinet ministers, speaking on condition of anonymity, also confirmed the deals had been approved by the cabinet, while documents seen by Reuters showed the deals were set to be rubber-stamped at the meeting.

The deals are a $32 million contract to enhance the deep berth capacity of state-run Jaya Container Terminal (JCT) in Colombo with China Harbour Engineering Company, and another one worth $25.7 million for the purchase of three cranes from Shanghai Zhenhua Heavy Industries for the same project, according to the ports authority official.

Asked about the deals, the former cabinet spokesperson under Wickremesinghe's government, Rajitha Senaratne, told Reuters:

"We will have to re-examine definitely. They don't have the legal power to decide."

The ports authority official said the tenders for the deals had been advertised in state-owned newspapers, as is the norm in Sri Lanka, and that they were sent to a cabinet-appointed procurement panel months ago.

India, which accounts for around 80 per cent of Colombo's trans-shipment business, has raised concerns over increasing Chinese projects in Colombo.

New Delhi had been pushing Sri Lanka for the award of an estimated $1 billion contract for a second foreign-operated container terminal in Colombo.

But that deal was the subject of an argument between Sirisena and Wickremesinghe just before his ouster, in which Sirisena reportedly said the country couldn't give any more of its assets to foreigners.

The political instability and economic malaise have raised questions over Sri Lanka's ability to service large external debt taken to finance reconstruction following the end the civil war in 2009. It owes around $8 billion to China, official data shows.

Sri Lanka penned two multi-million dollar contracts with Chinese firms for a port upgrade project on Thursday in the middle of a political hiatus that has raised doubts over the legitimacy of the government and the legality of the deals.

Sri Lanka penned two multi-million dollar contracts with Chinese firms for a port upgrade project on Thursday in the middle of a political hiatus that has raised doubts over the legitimacy of the government and the legality of the deals. The debt-saddled island has long been a target of Beijing's ambitious Belt and Road infrastructure scheme to connect China with countries cross Asia and beyond, while regional power India has also been vying for deals to counter China's influence. But a political crisis triggered by President Maithripala Sirisena's replacement of Prime Minister Ranil Wickremesinghe with Mahinda Rajapaksa, who was in turn sacked by parliament, has raised doubts over who can legitimately make decisions in the country. Foreign countries have yet to recognise the new government and Wickremesinghe's party has said any decisions by Rajapaksa's cabinet are illegal. An official at the state-run Sri Lanka Ports Authority told Reuters it signed two contracts with Chinese firms worth more than $50 million combined on Thursday after the deals were approved by Rajapaksa's disputed cabinet last week. One of Rajapaksa's cabinet ministers, speaking on condition of anonymity, also confirmed the deals had been approved by the cabinet, while documents seen by Reuters showed the deals were set to be rubber-stamped at the meeting. The deals are a $32 million contract to enhance the deep berth capacity of state-run Jaya Container Terminal (JCT) in Colombo with China Harbour Engineering Company, and another one worth $25.7 million for the purchase of three cranes from Shanghai Zhenhua Heavy Industries for the same project, according to the ports authority official. Asked about the deals, the former cabinet spokesperson under Wickremesinghe's government, Rajitha Senaratne, told Reuters: "We will have to re-examine definitely. They don't have the legal power to decide." The ports authority official said the tenders for the deals had been advertised in state-owned newspapers, as is the norm in Sri Lanka, and that they were sent to a cabinet-appointed procurement panel months ago. India, which accounts for around 80 per cent of Colombo's trans-shipment business, has raised concerns over increasing Chinese projects in Colombo. New Delhi had been pushing Sri Lanka for the award of an estimated $1 billion contract for a second foreign-operated container terminal in Colombo. But that deal was the subject of an argument between Sirisena and Wickremesinghe just before his ouster, in which Sirisena reportedly said the country couldn't give any more of its assets to foreigners. The political instability and economic malaise have raised questions over Sri Lanka's ability to service large external debt taken to finance reconstruction following the end the civil war in 2009. It owes around $8 billion to China, official data shows.

Sri Lanka signs port deals with China amid political upheaval

Sri Lankan Parliament Thursday overwhelmingly passed a motion to suspend the expenditure of the Prime Minister's Office, dealing a major blow to strongman <a href="http://www.wionews.com/south-asia/sri-lanka-parliament-passes-motion-to-cut-prime-ministers-budget-180182">Mahinda Rajapaksa</a> who was appointed premier by President Maithripala Sirisena in a controversial move that plunged the country into a constitutional crisis.

The motion was passed with 123 lawmakers voting in favour of the motion and none opposing it in the 225-member House as Rajapaksa's supporters boycotted the session.&nbsp;

"Such a motion cannot be presented by the Opposition. It must be presented only by a government minister," SB Dissanayake, a member of Sirisena's United People's Freedom Alliance (UPFA) party, said.

Observers opine that the passing of the motion, stripping prime minister's secretary from spending money from the state account, was yet another indication that Rajapaksa lacked simple majority of 113 in the House to continue as the premier.&nbsp;

The motion, which was approved, read, "Parliament resolves that from November 15, Secretary to the Prime Minister has no authority to approve any expenditure drawn from the funds of the Republic and any person taking any action in violation of this resolution will be dealt with according to the law."&nbsp;

Lanka is witnessing a political crisis since October 26 when President Sirisena sacked Prime Minister Ranil Wickremesinghe and replaced him with Rajapaksa.&nbsp;

Sirisena later dissolved Parliament, almost 20 months before its term was to end, and ordered a snap election. The Supreme Court overturned Sirisena's decision to dissolve Parliament and halted the preparations for snap polls.

Both Wickremesinghe and Rajapaksa claim to be the prime ministers. Wickremesinghe says his dismissal is invalid because he still holds a majority in the 225-member Parliament.

Speaker Karu Jayasuriya has officially conveyed that the House does not recognise Rajapaksa as the legal prime minister until he proved his majority in the House.

The United National Front led by Wickremesinghe has moved three motions of no trust against Rajapaksa. However, he refused to step down.&nbsp;

The parliamentarians comprising members of the UNF, JVP and TNA ? filed a petition in the Supreme Court against the former president, challenging him to prove on what authority he is holding office as the prime minister after the Parliament voted twice to defeat him on November 14 and November 16.&nbsp;

The November 16 session witnessed unprecedented violence as lawmakers threw furniture and chilli powder at each other.&nbsp;

Jayasuriya had called the police into the House as lawmakers were seen breaking furniture to attack the police, while there were video images of some MPs carrying sharp objects and an MP was seen throwing chilli powder mixed with water at the policemen. The violence had left some lawmakers injured.

The Speaker Thursday announced he has appointed a committee to probe the violence in the Parliament.

Sri Lankan Parliament Thursday overwhelmingly passed a motion to suspend the expenditure of the Prime Minister's Office, dealing a major blow to strongman Mahinda Rajapaksa who was appointed premier by President Maithripala Sirisena in a controversial move that plunged the country into a constitutional crisis.

Sri Lankan Parliament Thursday overwhelmingly passed a motion to suspend the expenditure of the Prime Minister's Office, dealing a major blow to strongman Mahinda Rajapaksa who was appointed premier by President Maithripala Sirisena in a controversial move that plunged the country into a constitutional crisis. The motion was passed with 123 lawmakers voting in favour of the motion and none opposing it in the 225-member House as Rajapaksa's supporters boycotted the session. "Such a motion cannot be presented by the Opposition. It must be presented only by a government minister," SB Dissanayake, a member of Sirisena's United People's Freedom Alliance (UPFA) party, said. Observers opine that the passing of the motion, stripping prime minister's secretary from spending money from the state account, was yet another indication that Rajapaksa lacked simple majority of 113 in the House to continue as the premier. The motion, which was approved, read, "Parliament resolves that from November 15, Secretary to the Prime Minister has no authority to approve any expenditure drawn from the funds of the Republic and any person taking any action in violation of this resolution will be dealt with according to the law." Lanka is witnessing a political crisis since October 26 when President Sirisena sacked Prime Minister Ranil Wickremesinghe and replaced him with Rajapaksa. Sirisena later dissolved Parliament, almost 20 months before its term was to end, and ordered a snap election. The Supreme Court overturned Sirisena's decision to dissolve Parliament and halted the preparations for snap polls. Both Wickremesinghe and Rajapaksa claim to be the prime ministers. Wickremesinghe says his dismissal is invalid because he still holds a majority in the 225-member Parliament. Speaker Karu Jayasuriya has officially conveyed that the House does not recognise Rajapaksa as the legal prime minister until he proved his majority in the House. The United National Front led by Wickremesinghe has moved three motions of no trust against Rajapaksa. However, he refused to step down. The parliamentarians comprising members of the UNF, JVP and TNA ? filed a petition in the Supreme Court against the former president, challenging him to prove on what authority he is holding office as the prime minister after the Parliament voted twice to defeat him on November 14 and November 16. The November 16 session witnessed unprecedented violence as lawmakers threw furniture and chilli powder at each other. Jayasuriya had called the police into the House as lawmakers were seen breaking furniture to attack the police, while there were video images of some MPs carrying sharp objects and an MP was seen throwing chilli powder mixed with water at the policemen. The violence had left some lawmakers injured. The Speaker Thursday announced he has appointed a committee to probe the violence in the Parliament.

Sri Lanka Parliament bars Rajapaksa from using state funds after cutting budget

Sri Lankan President Maithripala Sirisena, who last month abruptly sacked prime minister Ranil Wickremesinghe and replaced him with former strongman Mahinda Rajapaksa, will write a book on his "unsuccessful political marriage" with the ousted premier.

Sirisena's controversial action on October 26 led to a political crisis in the country with both Wickremesinghe and Rajapaksa claiming to be the legitimate prime minister.

Wickremesinghe termed his dismissal as invalid and said he still holds a majority in the 225-member Parliament.

Sirisena, addressing a public gathering on Friday, said the book will be titled 'My unsuccessful political marriage with Ranil'.

"I know that people are criticising me right now. I will tell them to wait until I release my book," the President said.

Sirisena claimed that despite his action, he had not been isolated.

"I know that right thinking people are with me on this battle against the corrupt and the traitors," he added.

Sirisena's announcement came hours after Wickremesinghe's alliance won control of a powerful panel in Parliament, dealing a major blow to him and his prime ministerial appointee Rajapaksa.

Former president Rajapaksa, who ruled Sri Lanka for almost a decade, was unexpectedly defeated by his deputy, Sirisena, in the presidential election in January, 2015 with the support from Wickremesinghe's United National Party.

However, the power-sharing arrangement between Sirisena and Wickremesinghe became increasingly tenuous on several policy matters, mainly on economy and security.

The country is witnessing a political stalemate since Sirisena sacked Wickremesinghe on October 26.

Sirisena later dissolved Parliament, almost 20 months before its term was to end, and ordered a snap election. The Supreme Court overturned Sirisena's decision to dissolve Parliament and halted the preparations for snap polls.

Speaker Karu Jayasuriya then ordered a floor test in the 225-member assembly to end the ongoing political crisis, a move which invited the wrath of the government of Rajapaksa.

The United National Front led by Wickremesinghe has already moved three motions of no trust against Rajapaksa. Rajapaksa, however, has refused to step down.&nbsp;

Sri Lankan President Maithripala Sirisena, who last month abruptly sacked prime minister Ranil Wickremesinghe and replaced him with former strongman Mahinda Rajapaksa, will write a book on his "unsuccessful political marriage" with the ousted premier.

Sri Lankan President Maithripala Sirisena, who last month abruptly sacked prime minister Ranil Wickremesinghe and replaced him with former strongman Mahinda Rajapaksa, will write a book on his "unsuccessful political marriage" with the ousted premier. Sirisena's controversial action on October 26 led to a political crisis in the country with both Wickremesinghe and Rajapaksa claiming to be the legitimate prime minister. Wickremesinghe termed his dismissal as invalid and said he still holds a majority in the 225-member Parliament. Sirisena, addressing a public gathering on Friday, said the book will be titled 'My unsuccessful political marriage with Ranil'. "I know that people are criticising me right now. I will tell them to wait until I release my book," the President said. Sirisena claimed that despite his action, he had not been isolated. "I know that right thinking people are with me on this battle against the corrupt and the traitors," he added. Sirisena's announcement came hours after Wickremesinghe's alliance won control of a powerful panel in Parliament, dealing a major blow to him and his prime ministerial appointee Rajapaksa. Former president Rajapaksa, who ruled Sri Lanka for almost a decade, was unexpectedly defeated by his deputy, Sirisena, in the presidential election in January, 2015 with the support from Wickremesinghe's United National Party. However, the power-sharing arrangement between Sirisena and Wickremesinghe became increasingly tenuous on several policy matters, mainly on economy and security. The country is witnessing a political stalemate since Sirisena sacked Wickremesinghe on October 26. Sirisena later dissolved Parliament, almost 20 months before its term was to end, and ordered a snap election. The Supreme Court overturned Sirisena's decision to dissolve Parliament and halted the preparations for snap polls. Speaker Karu Jayasuriya then ordered a floor test in the 225-member assembly to end the ongoing political crisis, a move which invited the wrath of the government of Rajapaksa. The United National Front led by Wickremesinghe has already moved three motions of no trust against Rajapaksa. Rajapaksa, however, has refused to step down.

Lankan President Sirisena to pen book on current political crisis