Sri Lanka sinks into economic and political crisis

Riot police try to block protesters during a rally against rising fuel prices and shortages at the entrance to the Sri Lankan Prime Minister's official residence in Colombo on April 7, 2022. AFP - ISHARA S .KODIKARA

Text by: RFI Follow

1 min

On Thursday, the Sri Lankan rupee became the worst performing currency in the world due to massive inflation.

The government finds itself in an increasingly tense situation.

Advertising

Read more

With our special correspondent in Colombo,

Between melting foreign exchange reserves, massive debt repayments expected in July and the rupee's plunge as the Central Bank spins the money printing, the country is headed for a crash. 

President Rajapaksa still refuses to leave power but is trying to buy time.

On Sunday April 3,

, with the exception of the president and his older brother, Prime Minister Mahinda Rajapaksa.

A panel of economists has been set up to try to get out of the crisis.

Parliament has just passed, without a vote, a 25% tax on the highest incomes and large companies.

The Minister of Finance calls for the restructuring of part of the debt which amounts to more than 50 billion euros for a country of 22 million inhabitants.

The country must repay about 8 billion this year.

New day of protests

All this does not calm the population which has been suffering for months from shortages of all kinds, in particular of oil.

She continues to demand the departure of the president.

Several demonstrations are planned this Friday in Colombo and a security device is deployed near the political centers of the capital.

Rallies also took place in Colombo overnight from Thursday to Friday, during which protesters attempted to enter the Prime Minister's official residence.

► Also to listen: Sri Lanka in very serious economic crisis, "on the verge of default"

Newsletter

Receive all the international news directly in your mailbox

I subscribe

Follow all the international news by downloading the RFI application

google-play-badge_EN

• Sri Lanka

• Gotabaya Rajapaksa