Sri Lanka’s Cabinet Sees Resignations; Economic Crisis Worsens

Sri Lanka’s 26 cabinet ministers barring President Gotabaya Rajapaksa and his elder brother prime minister Mahinda Rajapaksa submitted their resignations late on Sunday amid strong protests. This paves the way for President Gotabaya to form a fresh Cabinet. The nation has been reeling under an economic and foreign exchange crisis with food, fuel, power, and gas shortages. Sri Lanka’s opposition parties, several student groups and citizens took to the streets in an effort to protest defying the ruling government’s curfew imposed. The government had blocked but later revoked access to major social media sites. Sri Lanka’s forex reserves have dipped to only $2.31bn in February, down over 70% since the pandemic in 2020, and is under pressure regarding payment of its debts this year, including a $1bn dollar bond due in July.

Sri Lanka’s dollar bonds were trading weaker, down almost 1.6 points to 46-48 cents on the dollar.

For the full story, click here