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Last year's economic crisis sparked months of civil unrest that eventually toppled then-president Gotabaya Rajapaksa after a mob of protesters stormed his compound

Sri Lanka marks lowest inflation since unrest

Last year's economic crisis sparked months of civil unrest that eventually toppled then-president Gotabaya Rajapaksa after a mob of protesters stormed his compound

Inflation in crisis-hit Sri Lanka eased to 4.0 percent in August, the lowest since before last year's unprecedented financial crisis, official figures showed Friday.
The island nation endured months of food, fuel and medicine shortages after a foreign exchange crunch that sparked widespread protests culminating in the ouster of its president.
But the crisis has since eased, with headline inflation down from 6.3 percent in July and 69.8 percent at its peak last September.
Sri Lanka's central bank has said it expects the figure to continue its downward trend in the medium-term.
The country defaulted on its $46 billion foreign debt last year but secured a four-year, $2.9 billion bailout from the International Monetary Fund in March.
An IMF team is due in Colombo this month to review Sri Lanka's progress in repairing its ruined finances and to decide on releasing another $330 million loan tranche.
The international lender of last resort has said Sri Lanka's economy showed "tentative signs of improvement" but warned Colombo still needed to pursue further painful reforms.
Last year's economic crisis sparked months of civil unrest that eventually toppled then-president Gotabaya Rajapaksa after a mob of protesters stormed his compound.
His successor Ranil Wickremesinghe has doubled taxes, removed generous subsidies on energy and sharply raised prices to shore up state revenue.
In the latest such move, the government raised petrol and diesel fuel prices by up to 11.2 percent with effect from Friday.

The Indian Ocean nation of around 22 million people ran out of cash to finance even the most essential imports, causing massive social unrest

IMF approves $3 bn bailout to debt-ridden Sri Lanka

The Indian Ocean nation of around 22 million people ran out of cash to finance even the most essential imports, causing massive social unrest

Sri Lanka's president said Monday that the International Monetary Fund has approved its request for a $2.9 billion bailout, raising hopes for an easing of the island nation's dire economic crisis.
The IMF's board also confirmed it has signed off on the loan, which clears the way for the release of funds and kicks off a four-year programme designed to shore up the country's economy.
But its managing director Kristalina Georgieva warned that Colombo must continue pursuing tax reform and greater social safety nets for the poor -- and rein in the corruption that has been partly blamed for the crisis.
"I express my gratitude to the IMF and our international partners for their support as we look to get the economy back on track for the long term through prudent fiscal management and our ambitious reform agenda," President Ranil Wickremesinghe said in a statement.
Sri Lanka defaulted on its foreign debt in April 2022 as the country plunged into its worst economic downturn since independence because of a major shortage of foreign currency reserves.
The Indian Ocean nation of around 22 million people ran out of cash to finance even the most essential imports, causing massive social unrest.

The World Bank estimates that Sri Lanka's economy shrank by 9.2% in 2022 and that it will contract by a further 4.2% this year

Sri lanka urges China and India to cut debts as soon as possible 

The World Bank estimates that Sri Lanka's economy shrank by 9.2% in 2022 and that it will contract by a further 4.2% this year

In an effort to help crisis-hit Sri Lanka to start repaying its debt obligations, the central bank of the island has urged China and India to negotiate the loan amount as soon as possible.
According to BBC reports, the crisis-hit indian ocean nation defaulted on its debt repayments and negotiated a $2.9bn (&pound;2.4bn) bailout with IMF.&nbsp; But the International Monetary Fund will not release the cash until China and India first agree to reduce Sri Lanka's billions of dollars of debt. Beijing's lending to Sri Lanka stands at around $7bn while India is owed around $1bn.
The island nation has defaulted on its $46 billion public debt after an unprecedented economic crisis last year brought widespread misery.
Sri Lanka's 22 million people have been enduring months of food and fuel shortages, chronic blackouts and runaway inflation last year, inflaming public anger.
Wickremesinghe came to power in July at the peak of the crisis after his predecessor fled the country when protesters stormed his residence.

India has emerged as the top lender to Sri Lanka in 2022, disbursing USD 377 million in loans to the island nation as it grappled with an unprecedented political crisis and economic turmoil, according to the Verite Research think-tank.
The Asian Development Bank follows India with USD 360 million in loans. They account for 76 per cent of total disbursements from January to April 2022.
Out of a total disbursement of loans amounting to USD 968 million in the first four months this year, India with a contribution of USD 377 million has emerged as Sri Lanka’s largest bilateral lender, Verite Research, a Colombo-based independent interdisciplinary think-tank providing strategic analysis and advice for governments and the private sector in Asia, said.
Between 2017 and 2021, China has been the largest bilateral lender to Sri Lanka. In 2021, China had provided USD 947 million of which USD 809 million were borrowings from the China Development Bank.
The ADB has been the largest multilateral lender during the same period.
When Sri Lanka plunged into its worst economic crisis at the beginning of this year, India’s credit lines enabled it to purchase fuel and essentials.
The Indian High Commission here announced that India’s total credit support to Sri Lanka this year, including currency swaps, amounts to nearly USD 4 billion.
The public protests since the end of March due to economic hardships and shortages of essentials saw the ouster of the former president Gotabaya Rajapaksa in mid-July.
India provided a dedicated credit line for fuel imports amounting to USD 700 million which ran out in late June, leaving large fuel queues at Indian Oil Company fuel retail stations. The state fuel entity was only supplying fuel to emergency services then.
Sri Lanka has recently secured a deal with the IMF for a USD 2.9 billion loan facility which is subject to Sri Lanka and its creditors agreeing to debt restructuring.
In mid-April, Sri Lanka declared its international debt default due to the forex crisis.
The country owes USD 51 billion in foreign debt, of which USD 28 billion must be paid by 2027.

Sri Lanka economic crisis｜who lent more money to Colombo: India or China?

The Indian High Commission here announced that India&rsquo;s total credit support to Sri Lanka this year, including currency swaps, amounts to nearly USD 4 billion.

India has emerged as the top lender to Sri Lanka in 2022, disbursing USD 377 million in loans to the island nation as it grappled with an unprecedented political crisis and economic turmoil, according to the Verite Research think-tank.
The Asian Development Bank follows India with USD 360 million in loans. They account for 76 per cent of total disbursements from January to April 2022.
Out of a total disbursement of loans amounting to USD 968 million in the first four months this year, India with a contribution of USD 377 million has emerged as Sri Lanka&rsquo;s largest bilateral lender, Verite Research, a Colombo-based independent interdisciplinary think-tank providing strategic analysis and advice for governments and the private sector in Asia, said.
Between 2017 and 2021, China has been the largest bilateral lender to Sri Lanka. In 2021, China had provided USD 947 million of which USD 809 million were borrowings from the China Development Bank.
The ADB has been the largest multilateral lender during the same period.
When Sri Lanka plunged into its worst economic crisis at the beginning of this year, India&rsquo;s credit lines enabled it to purchase fuel and essentials.
The Indian High Commission here announced that India&rsquo;s total credit support to Sri Lanka this year, including currency swaps, amounts to nearly USD 4 billion.
The public protests since the end of March due to economic hardships and shortages of essentials saw the ouster of the former president Gotabaya Rajapaksa in mid-July.
India provided a dedicated credit line for fuel imports amounting to USD 700 million which ran out in late June, leaving large fuel queues at Indian Oil Company fuel retail stations. The state fuel entity was only supplying fuel to emergency services then.
Sri Lanka has recently secured a deal with the IMF for a USD 2.9 billion loan facility which is subject to Sri Lanka and its creditors agreeing to debt restructuring.
Also watch: <a href="https://www.editorji.com/world-news/explained-is-sri-lanka-moving-away-from-china-hear-out-president-ranil-wickremesinghe-1663251879463">Explained: is Sri Lanka moving away from China? Hear out President Ranil Wickremesinghe</a>
In mid-April, Sri Lanka declared its international debt default due to the forex crisis.
The country owes USD 51 billion in foreign debt, of which USD 28 billion must be paid by 2027.

Crisis-hit Sri Lanka has reached a preliminary agreement with the International Monetary Fund or IMF for a loan of about USD 2.9 billion, the international lender said on Thursday. 

IMF announces USD 2.9 billion bailout package for debt-stricken Sri Lanka

IMF debts come with a set of conditions which are often quite restrictive for the debtor nations and usually require them to implement austerity measures such as cutting public spending.&nbsp;

Crisis-hit Sri Lanka has reached a preliminary agreement with the International Monetary Fund for a loan of about USD 2.9 billion, the international lender said on Thursday.
Sri Lanka is going through its worst economic crisis since its independence in 1948 which was triggered by a severe paucity of foreign exchange reserves.
IMF debts come with a set of conditions which are often quite restrictive for the debtor nations and usually require them to implement austerity measures such as cutting public spending.
&ldquo;IMF staff and the Sri Lankan authorities have reached a staff-level agreement to support Sri Lanka&rsquo;s economic policies with a 48-month arrangement under the Extended Fund Facility (EFF) of about 2.9 billion US dollars,&rdquo; the IMF said in a statement.
The objective is to restore macroeconomic stability and debt sustainability while safeguarding financial stability, among other factors, it added.
Sri Lanka started negotiating for the facility in late April after announcing its first ever international debt default. The government later appointed legal and debt advisors to handle the debt restructuring as prescribed by the IMF.
&ldquo;Debt relief from Sri Lanka&rsquo;s creditors and additional financing from multilateral partners will be required to help ensure debt sustainability and close financing gaps&rdquo;, it said.
&ldquo;Financing assurances to restore debt sustainability from Sri Lanka&rsquo;s official creditors and making a good faith effort to reach a collaborative agreement with private creditors are crucial before the IMF can provide financial support to Sri Lanka,&rdquo; it added.
The IMF calls for action to raise fiscal revenue by implementing tax reforms, introducing cost recovery-based pricing for fuel and electricity, raising social spending to help the poor and the vulnerable in the ongoing economic crisis, restoring flexible exchange rate, a capitalised banking system and a stronger anti-corruption legal framework.
Sri Lanka, a country of 22 million plunged into a political crisis last month, after former President Gotabaya Rajapaksa fled the country following a popular public uprising against his government for mismanaging the economy.
Rajapaksa was replaced by his ally Wickremesinghe, who is also the country's Finance Minister and is leading the talks with the IMF delegation.
The country is also expected to restructure its debt worth USD 29 billion, with Japan expected to coordinate with other creditor nations, including China on this issue.
In mid-April, Sri Lanka declared its international debt default due to the forex crisis. The country owes USD 51 billion in foreign debt, of which USD 28 billion must be paid by 2027.
Sri Lanka's inflation level hit a whopping 64.3 per cent for August, continuing to spike as fuel became expensive.
In its latest assessment, the World Bank has said that Sri Lanka has been ranked 5th with the highest food price inflation in the world.
Sri Lanka is ranked behind Zimbabwe, Venezuela, and Turkey, while Lebanon leads the list.&nbsp;
ALSO WATCH: <a href="https://www.editorji.com/world-news/us-announces-usd30-mn-humanitarian-aid-to-pak-as-it-battles-deadly-floods-1661929957666">US announces USD 30mn humanitarian aid to Pak as it battles deadly floods</a>
With PTI inputs

 Sri Lanka bans import of 300 items of consumer goods to stabilise economy

However, these items if shipped before August 23 and arrive in the country before September 14 would still be allowed, stated a special notification issued by the Sri Lankan finance ministry.

Sri Lanka has slapped a ban on the import of 300 consumer items like chocolates, perfumes and shampoos as part of the cash-strapped island nation&rsquo;s bid to tackle its worst economic crisis triggered by the shortage of foreign exchange.
<a href="https://www.editorji.com/editorji-specials/decoded-how-did-the-sri-lanka-economic-crisis-get-so-dire-1657897117681">Sri Lanka</a> is going through its worst economic crisis since its independence in 1948. The worsening forex crisis caused essential items shortages triggering massive public protests in the street since early this year that led to the ouster of the Gotabaya Rajapaksa government last month.
In a special notification issued by the <a href="https://www.editorji.com/world-news/chinese-research-ship-docks-at-sri-lankan-port-amid-concerns-raised-by-india-1660630376405">Sri Lankan finance ministry</a>, the ban was imposed on a total of 300 items including chocolates, perfumes, makeup and shampoo among several other products.
&ldquo;Under imports and exports control regulations dated August 22 an import ban on a wide range of consumer items from food to machinery has come into immediate effect,&rdquo; the notification said.
Also watch: <a href="https://www.editorji.com/world-news/us-airstrikes-target-militia-controlled-areas-in-east-syria-1661332359470">US airstrikes target 'militia-controlled' areas in east Syria</a>
However, these items if shipped before August 23 and arrive in the country before September 14 would still be allowed, it stated.
In mid April, Sri Lanka declared its international debt default due to the forex crisis.
The island nation is desperate for an International Monetary Fund (IMF) bailout and talks for a staff level agreement commenced here on Wednesday.
Sri Lanka&rsquo;s central bank governor Nandalal Weerasinghe has expressed hope that the <a href="https://www.editorji.com/world-news/imran-khan-slams-pakistan-army-chief-after-his-imf-bail-out-request-to-us-1659183656019">IMF </a>facility would be made available by the year&rsquo;s end.&nbsp;
Read More:- <a href="https://www.editorji.com/world-news/sri-lankan-lawmakers-elect-ranil-wickremesinghe-as-new-president-1658309184377">Sri Lankan lawmakers elect Ranil Wickremesinghe as new president</a>

Arrests were made in Colombo late Thursday after veteran politician Ranil Wickremesinghe was sworn in as Sri Lanka's new president.
Protesters were seen in police custody near the president's office.
One was filmed on the ground surrounded by paramedics and clutching his head.
Sri Lankans have taken to the streets for months to demand their top leaders step down to take responsibility for economic chaos that has left the nation's 22 million people struggling with shortages of essentials, including medicine, fuel and food.
Wickremesinghe, a six-time prime minister, has never held the top job.
But he easily won the secret ballot of lawmakers Wednesday to finish the term of former President Gotabaya Rajapaksa, who fled the country after protesters stormed his residence last week and resigned.
His appointment received mixed reactions, with some supporters lighting firecrackers while protesters continued to demand that he resign.

Sri Lanka: security forces raid main protest site, remove dissenters On camera

Sri Lanka: security forces raid main protest site, remove dissenters | On camera

They swooped in on the protesters blocking the Presidential Secretariat in the capital hours before demonstrators were due to vacate the area.

Arrests were made in Colombo late Thursday after veteran politician Ranil Wickremesinghe was sworn in as Sri Lanka's new president.
Protesters were seen in police custody near the president's office.
One was filmed on the ground surrounded by paramedics and clutching his head.
Sri Lankans have taken to the streets for months to demand their top leaders step down to take responsibility for economic chaos that has left the nation's 22 million people struggling with shortages of essentials, including medicine, fuel and food.
Wickremesinghe, a six-time prime minister, has never held the top job.
But he easily won the secret ballot of lawmakers Wednesday to finish the term of former President Gotabaya Rajapaksa, who fled the country after protesters stormed his residence last week and resigned.
His appointment received mixed reactions, with some supporters lighting firecrackers while protesters continued to demand that he resign.

Sri Lanka's Acting President Ranil Wickremesinghe issued an Extraordinary Gazette declaring a State of Emergency in the island nation with effect from Monday.

State of emergency declared in Sri Lanka ahead of July 20 presidential election

Sri Lanka's Acting President Ranil Wickremesinghe issued an Extraordinary Gazette declaring a State of Emergency in the island nation with effect from Monday. This allows the security forces to search, arrest seize, and remove weapons and explosives, and enter and search premises or body-search persons. 

Under emergency, security forces are allowed to search, arrest seize, and remove weapons and explosives, enter and search premises, and body-search persons.&nbsp;

Sri Lanka&rsquo;s acting president Ranil Wickremesinghe on Monday declared a state of emergency in the country with immediate effect, ahead of the election for the post of the president which fell vacant after Gotabaya Rajapaksa&rsquo;s resignation following the popular public uprising against him.
Under emergency, security forces are allowed to search, arrest seize, and remove weapons and explosives, enter and search premises, and body-search persons.&nbsp;
The government gazette notofication dated July 17 was issued Monday morning. The 225-member Parliament is expected to elect the new president on July 20.
The president is empowered to impose emergency regulations part 2 of the public security ordinance which says &ldquo;(a) if the president is of the opinion that the police are inadequate to deal with a situation he may gazette an order calling out the armed forces to maintain public order&rdquo;.
Also watch: <a href="https://www.editorji.com/world-news/wickremesinghe-premadasa-among-four-leaders-to-contest-presidential-election-in-sri-lanka-1657978063768" target="_blank">Wickremesinghe, Premadasa among four leaders to contest presidential election in Sri Lanka</a>

Should India be concerned about possible military intervention in Sri Lanka? Could a military power-play lead to Lanka becoming closer to China? Political and economic experts discuss with Vikram Chandra.

Sri Lanka crisis: Military intervention possible? Experts analyse

Should India be concerned about possible military intervention in Sri Lanka? Could a military power-play lead to Lanka becoming closer to China? Political and economic experts discuss with Vikram Chandra.

Sri Lanka is undergoing its worst financial crisis in decades, which has caused a breakdown of everyday life, and essential services. The country has no fuel to run buses or trains, a state of emergency has been declared, and protestors occupy the island nation's official residences for heads of state.
As President Gotabaya Rajapaksa has fled the country - and interim President, Prime Minister Ranil Wickremesinghe has also been called upon to resign by protestors - a power vacuum has been created at the top in Sri Lanka.
The military and police have requested the Speaker of Parliament to call an all-party leaders' meeting, and ensure a political resolution in the current conflict. However, former Army chief and Member of Parliament Field Marshal Sarath Fonseka has urged the country's armed forces to not follow the orders of acting President Ranil Wickremesinghe, as he says directives issued by the PM were &ldquo;against the Constitution.&rdquo;
Also Watch: <a href="https://editorji.com/story/sanath-jayasuriya-says-mismanagement-has-caused-the-disaster-in-sri-lanka-1657722442461" target="_blank">Sanath Jayasuriya says mismanagement has caused the disaster in Sri Lanka</a>
As Sri Lanka's closest neighbour, India is monitoring the situation closely. Should India be concerned about possible military intervention in Sri Lanka? Could a military power-play lead to Lanka becoming closer to China? Political and economic experts discuss with Vikram Chandra.
Watch The India Story with Vikram Chandra, Fridays at 8PM.

Sri Lanka president Gotabaya Rajapaksa fled the country early Wednesday, days after protesters stormed his home and office and the official residence of his prime minister amid a three-month economic crisis that triggered severe shortages of food and fuel.Rajapaksa who is due to offer his resignation on Wednesday, landed in the Maldivian capital of Malé, where he was received by a Maldivian government representation at the Velana airport.
Earlier on Monday night, Rajapaksa and his brother Basil were turned back at the Colombo airport as they attempted to leave the country amid mounting anger against the powerful family for mishandling the worst economic crisis.
Lawmakers agreed to elect a new president next week but struggled Tuesday to decide on the makeup of a new government to lift the bankrupt country out of economic and political collapse.

 President Gotabaya Rajapaksa flees Sri Lanka, lands in Maldives

Lawmakers agreed to elect a new president next week but struggled Tuesday to decide on the makeup of a new government to lift the bankrupt country out of economic and political collapse.

Sri Lankan president Gotabaya Rajapaksa fled the country early Wednesday, days after protesters stormed his home and office and the official residence of his prime minister amid a three-month economic crisis that triggered severe shortages of food and fuel. Rajapaksa who is due to offer his resignation on Wednesday, landed in the Maldivian capital of Mal&eacute;, where&nbsp;he was received by a Maldivian government representation at the Velana airport.
Earlier on Monday night, Rajapaksa and his brother Basil were turned back at the Colombo airport as they attempted to leave the country amid mounting anger against the powerful family for mishandling the worst economic crisis.
Lawmakers agreed to elect a new president next week but struggled Tuesday to decide on the makeup of a new government to lift the bankrupt country out of economic and political collapse.

Sri Lankan authorities on Thursday lifted the curfew, which was imposed in the Western province after the eruption of violence in the capital here, even as President Gotabaya Rajapaksa, who has fled to the Maldives, was yet to submit his resignation letter.
Rajapaksa, the 73-year-old leader who had promised to resign on Wednesday, appointed Prime Minister Ranil Wickremesinghe as the acting President hours after he fled the country, escalating the political crisis and triggering a fresh wave of protests.
At least 84 people were hospitalised when protesters clashed with the security forces at the prime minister’s office and at the main access junction to Parliament since mid-afternoon on Wednesday after Rajapaksa fled the country.
The police fired tear gas and water cannons at the mob who were trying to break barriers and enter the restricted zone.
The police spokesman Nihal Thalduwa said protesters had grabbed a T56 firearm and 60 bullets from a Sri Lanka Army soldier. A police complaint had been lodged, the police said.
Authorities had to impose a curfew in the Western province following the eruption of violence.
Wednesday's protests were more directed at Wickremesinghe. Calls for his resignation intensified after he was appointed the acting president.
Political party leaders are asking him to step down so that Speaker Mahinda Yapa Abeywardena can take control as acting president.
Wickremesinghe in a statement asked the Speaker to find a suitable nominee to become the prime minister in an all-party interim government.
However, the protesters have demanded that the interim government must only consist of politicians acceptable to them.
Meanwhile, President Rajapaksa failed to send in his resignation on Wednesday as pledged earlier.
He was likely to send his resignation letter only after reaching his final destination on Wednesday evening, Sri Lanka's The Morning news portal reported.
The media here cited sources in the Maldives as saying that Rajapaksa had failed to board the Singapore-bound flight from Male due to security concerns on Wednesday night.
Rajapaksa reportedly had raised security concerns about taking a civilian flight and was urging the Maldives authorities for a private jet to land in Singapore.
Meanwhile, the protesters continued to occupy the key administrative buildings they had seized since Saturday. There is an endless stream of sight-seers at the buildings. Videos show the properties have suffered serious damages since they were occupied.
The protesters stressed that they would only hand over the properties to authorities after an interim government would be in place. The influential Buddhist clergy chiefs in a statement called for an end to violence. They said the country’s security was in grave danger and Parliament must be summoned immediately to work out a political solution.
Rajapaksa, who enjoys immunity from prosecution while he is president, fled the country before resigning to avoid the possibility of arrest by the new government.
On Saturday after thousands of protesters stormed his official residence, blaming him for the unprecedented economic crisis that has brought the country to its knees, Rajapaksa announced that he will step down on Wednesday.
Rajapaksa's escape to the Maldives was negotiated by the Maldivian Majlis (Parliament) Speaker and former president Mohamed Nasheed, sources in the Maldives capital Male said.
Sri Lanka, a country of 22 million people, is under the grip of an unprecedented economic turmoil, the worst in seven decades, leaving millions struggling to buy food, medicine, fuel and other essentials.
Last week, Prime Minister Wickremesinghe said Sri Lanka is now a bankrupt country.

Sri Lanka lifts curfew, no sign of Gotabaya Rajapaksa's resignation

This development came even as President Gotabaya Rajapaksa, who has fled to the Maldives, was yet to submit his resignation letter.

Sri Lankan authorities on Thursday lifted the curfew, which was imposed in the Western province after the eruption of violence in the capital here, even as President Gotabaya Rajapaksa, who has fled to the Maldives, was yet to submit his resignation letter.
Rajapaksa, the 73-year-old leader who had promised to resign on Wednesday, appointed Prime Minister Ranil Wickremesinghe as the acting President hours after he fled the country, escalating the political crisis and triggering a fresh wave of protests.
At least 84 people were hospitalised when protesters clashed with the security forces at the prime minister&rsquo;s office and at the main access junction to Parliament since mid-afternoon on Wednesday after Rajapaksa fled the country.
The police fired tear gas and water cannons at the mob who were trying to break barriers and enter the restricted zone.
The police spokesman Nihal Thalduwa said protesters had grabbed a T56 firearm and 60 bullets from a Sri Lanka Army soldier. A police complaint had been lodged, the police said.
Authorities had to impose a curfew in the Western province following the eruption of violence.
Wednesday's protests were more directed at Wickremesinghe. Calls for his resignation intensified after he was appointed the acting president.
Political party leaders are asking him to step down so that Speaker Mahinda Yapa Abeywardena can take control as acting president.
Wickremesinghe in a statement asked the Speaker to find a suitable nominee to become the prime minister in an all-party interim government.
However, the protesters have demanded that the interim government must only consist of politicians acceptable to them.
Meanwhile, President Rajapaksa failed to send in his resignation on Wednesday as pledged earlier.
He was likely to send his resignation letter only after reaching his final destination on Wednesday evening, Sri Lanka's The Morning news portal reported.
The media here cited sources in the Maldives as saying that Rajapaksa had failed to board the Singapore-bound flight from Male due to security concerns on Wednesday night.
<a href="https://www.editorji.com/liveblog/world-news/sri-lanka-crisis-live-emergency-declared-pm-gets-interim-presidential-powers-227" target="_blank">Sri Lanka Economic Crisis LIVE Updates</a>
Rajapaksa reportedly had raised security concerns about taking a civilian flight and was urging the Maldives authorities for a private jet to land in Singapore.
Meanwhile, the protesters continued to occupy the key administrative buildings they had seized since Saturday. There is an endless stream of sight-seers at the buildings. Videos show the properties have suffered serious damages since they were occupied.
The protesters stressed that they would only hand over the properties to authorities after an interim government would be in place. The influential Buddhist clergy chiefs in a statement called for an end to violence. They said the country&rsquo;s security was in grave danger and Parliament must be summoned immediately to work out a political solution.
Rajapaksa, who enjoys immunity from prosecution while he is president, fled the country before resigning to avoid the possibility of arrest by the new government.
On Saturday after thousands of protesters stormed his official residence, blaming him for the unprecedented economic crisis that has brought the country to its knees, Rajapaksa announced that he will step down on Wednesday.
Rajapaksa's escape to the Maldives was negotiated by the Maldivian Majlis (Parliament) Speaker and former president Mohamed Nasheed, sources in the Maldives capital Male said.
Also watch: <a href="https://www.editorji.com/editorji-specials/the-india-story/sri-lanka-crisis-military-intervention-possible-experts-analyse-1657805214247">Sri Lanka crisis: Military intervention possible? Experts analyse</a>
Sri Lanka, a country of 22 million people, is under the grip of an unprecedented economic turmoil, the worst in seven decades, leaving millions struggling to buy food, medicine, fuel and other essentials.
Last week, Prime Minister Wickremesinghe said Sri Lanka is now a bankrupt country.

While China has so far maintained a conspicuous silence on the dramatic fall of Sri Lanka's pro-Beijing Rajapaksa brothers, experts have warned that the current chaos in Colombo will have a “big impact” on the country's close ties and its large-scale infrastructure investments in the strategically located island nation in the Indian Ocean.
President Gotabaya Rajapaksa fled the country on a military jet, days after demonstrators overran his residence He had pledged to stand down on Wednesday amid mass protests over the island's worst economic crisis. For months people have been struggling with daily power cuts and shortages of basics like fuel, food and medicines.
“In the short run, there will be a big impact on China’s relations with Sri Lanka because the influence of the Rajapaksa family in Sri Lanka’s political circles will be undermined and a political comeback will be unlikely in the near future,” Lin Minwang, a South Asia expert at Fudan University in Shanghai said as quoted by Hong Kong-based South China Morning Post on Tuesday.
While President Gotabaya fled the country on Wednesday amid violent protests, including the seizure of his official residence by protestors, his elder brother and former Prime Minister Mahinda Rajapaksa had to take shelter initially at a naval base amid public fury.
Mahinda Rajapaksa is a much-liked Sri Lankan leader in China for promoting large scale Chinese investments in the island nation, disregarding India’s security concerns and the US criticism and warnings over Beijing’s "debt-trap diplomacy" in the strategically important country in the Indian Ocean.
China has so far maintained a conspicuous silence on the fall of the powerful Rajapaksa clan, considered to be the main backers of Chinese investment in the country, which is now facing its worst economic crisis since independence in 1948.
Replying to a question on the Sri Lankan crisis on Tuesday, Chinese Foreign Ministry spokesman Wang Wenbin told a media briefing here that China is paying close attention to the situation unfolding in Sri Lanka and appealed to all parties to work unitedly to resolve the crisis.
As a friendly neighbour and cooperative partner, China sincerely hopes that all parties in Sri Lanka will act in the fundamental interests of the country and its people, work together to overcome difficulties and realise social stability, economic recovery and improvement of livelihood at an early date, he said.
During the current crisis, China has provided over USD 73 million of aid and recently sent a large shipment of rice but for inexplicable reasons did not provide the large-scale monetary assistance sought by the Rajapaksas and their pleas to defer repayment of Chinese loans.
"As for Sri Lanka’s China-related debts, China supports relevant financial institutions in discussing with Sri Lanka and properly resolving them. We also stand ready to work with relevant countries and international financial institutions to continue to play an active role in Sri Lanka’s overcoming current difficulties, easing debt burden and realising sustainable development," Wang said.
China was also peeved over Gotabaya Rajapaksa’s remarks last month that Beijing is shifting focus to South-East Asia from South Asia.
"My analysis is that China has shifted their strategic focus into South-east Asia," Gotabaya had said.
"They see more strategic interest in the Philippines, Vietnam and Cambodia, that region, and Africa. They have less interest in this region.
"I don't know whether I am right or wrong, even the focus on Pakistan has gone down. That shows that their interest here is not like earlier. Their interest has shifted to two other areas," he said.
When Gotabaya's older brother Mahinda was in power from 2005 to 2015, he opened up Sri Lanka, which values for its strategic location in the Indian Ocean to massive Chinese projects including the Hambantota port, which China obtained for 99-year deal as part of a controversial debt-for-equity swap besides the unfinished Colombo port project being built on reclaimed land from the sea.
Lin also warned that the Chinese investors may suffer losses due to the crisis in Sri Lanka.
The crisis, driven by soaring inflation, high debt and economic mismanagement, was also a reminder for Chinese investors looking to developing nations that are vulnerable to increasing fuel costs, food shortages and rising US interest rates.
“I won't call it a lesson but it is a reminder that local governance competence should be taken into consideration when investing overseas especially when the overall international environment is not good and given that the debt ratio of countries in South Asia is generally very high,” Lin said.
Chinese investments (in Sri Lanka) will suffer some losses, he added.
However, Lin said, There is no need to be too pessimistic about China-Sri Lanka relations, because Sri Lanka's relationship with India has its inherent structural contradictions, and Sri Lanka actually needs a country like China as a counterbalance with India.
But Liu Zongyi, a senior fellow with the Shanghai Institutes for International Studies, said Beijing had maintained friendly relationships not just with the Rajapaksa family but every political party in Sri Lanka.
China is not leaning towards one faction or the other, Liu said.
That's why the previous Sri Lankan governments have all wanted to maintain friendly and cooperative ties with China.
There are concerns that Pakistan which is facing a severe shortage of foreign exchange reserves could go down the Sri Lanka way. China recently stepped in to provide USD 2.3 billion to its all-weather ally to shore up its forex reserves.
Following the economic crisis, Sri Lanka also defaulted on USD 51 billion in foreign debt which included Chinese loans.
The state-run Global Times in its editorial on the Sri Lankan crisis on Tuesday said the US and West should not have twisted excitement toward the Sri Lanka crisis asserting that the turmoil was not caused by Colombo's debt to Beijing.
Sri Lanka is already scarred and cannot bear the pressure and cost of becoming a geopolitical arena. Many research reports have repeatedly demonstrated that Sri Lanka's current debt crisis is not directly related to Chinese-funded infrastructure investment. Bilateral foreign debt to China only accounts for 10 per cent of Sri Lanka's total outstanding foreign debt, it said.
Western countries' commercial creditors and multilateral financial institutions are responsible for Sri Lanka's foreign debt, it said.
The "national bankruptcy" crisis facing Sri Lanka is essentially triggered by global development and governance deficits.
The regional security crisis exacerbated by the US and the West has deepened the global development crisis , it said, hoping that the US and western countries can restrain their geopolitical impulses to indulge in great power competition.

Sri Lanka crisis:  China conspicuous silence on ouster of Rajapaksa explained

Mahinda Rajapaksa is a much-liked Sri Lankan leader in China for promoting large scale Chinese investments in the island nation, disregarding India&rsquo;s security concerns

While China has so far maintained a conspicuous silence on the dramatic fall of Sri Lanka's pro-Beijing Rajapaksa brothers, experts have warned that the current chaos in Colombo will have a &ldquo;big impact&rdquo; on the country's close ties and its large-scale infrastructure investments in the strategically located island nation in the Indian Ocean.
President Gotabaya Rajapaksa fled the country on a military jet, days after demonstrators overran his residence He had pledged to stand down on Wednesday amid mass protests over the island's worst economic crisis. For months people have been struggling with daily power cuts and shortages of basics like fuel, food and medicines.
&ldquo;In the short run, there will be a big impact on China&rsquo;s relations with Sri Lanka because the influence of the Rajapaksa family in Sri Lanka&rsquo;s political circles will be undermined and a political comeback will be unlikely in the near future,&rdquo; Lin Minwang, a South Asia expert at Fudan University in Shanghai said as quoted by Hong Kong-based South China Morning Post on Tuesday.
While President Gotabaya fled the country on Wednesday amid violent protests, including the seizure of his official residence by protestors, his elder brother and former Prime Minister Mahinda Rajapaksa had to take shelter initially at a naval base amid public fury.
Also watch: <a href="https://www.editorji.com/world-news/sri-lanka-protests-what-next-constitution-s-rules-acting-president-named-all-party-govt-announced-1657427584494">What next in Sri Lanka? Constitution's rules explained; acting President named; all-party govt announced</a>
Mahinda Rajapaksa is a much-liked Sri Lankan leader in China for promoting large scale Chinese investments in the island nation, disregarding India&rsquo;s security concerns and the US criticism and warnings over Beijing&rsquo;s "debt-trap diplomacy" in the strategically important country in the Indian Ocean.
China has so far maintained a conspicuous silence on the fall of the powerful Rajapaksa clan, considered to be the main backers of Chinese investment in the country, which is now facing its worst economic crisis since independence in 1948.
Replying to a question on the Sri Lankan crisis on Tuesday, Chinese Foreign Ministry spokesman Wang Wenbin told a media briefing here that China is paying close attention to the situation unfolding in Sri Lanka and appealed to all parties to work unitedly to resolve the crisis.
As a friendly neighbour and cooperative partner, China sincerely hopes that all parties in Sri Lanka will act in the fundamental interests of the country and its people, work together to overcome difficulties and realise social stability, economic recovery and improvement of livelihood at an early date, he said.
Also watch:&nbsp;
During the current crisis, China has provided over USD 73 million of aid and recently sent a large shipment of rice but for inexplicable reasons did not provide the large-scale monetary assistance sought by the Rajapaksas and their pleas to defer repayment of Chinese loans.
"As for Sri Lanka&rsquo;s China-related debts, China supports relevant financial institutions in discussing with Sri Lanka and properly resolving them. We also stand ready to work with relevant countries and international financial institutions to continue to play an active role in Sri Lanka&rsquo;s overcoming current difficulties, easing debt burden and realising sustainable development," Wang said.
China was also peeved over Gotabaya Rajapaksa&rsquo;s remarks last month that Beijing is shifting focus to South-East Asia from South Asia.
"My analysis is that China has shifted their strategic focus into South-east Asia," Gotabaya had said.
"They see more strategic interest in the Philippines, Vietnam and Cambodia, that region, and Africa. They have less interest in this region.
Also watch: Shocking video: China crushes protest by citizens demanding their savings
"I don't know whether I am right or wrong, even the focus on Pakistan has gone down. That shows that their interest here is not like earlier. Their interest has shifted to two other areas," he said.
When Gotabaya's older brother Mahinda was in power from 2005 to 2015, he opened up Sri Lanka, which values for its strategic location in the Indian Ocean to massive Chinese projects including the Hambantota port, which China obtained for 99-year deal as part of a controversial debt-for-equity swap besides the unfinished Colombo port project being built on reclaimed land from the sea.
Lin also warned that the Chinese investors may suffer losses due to the crisis in Sri Lanka.
The crisis, driven by soaring inflation, high debt and economic mismanagement, was also a reminder for Chinese investors looking to developing nations that are vulnerable to increasing fuel costs, food shortages and rising US interest rates.
&ldquo;I won't call it a lesson but it is a reminder that local governance competence should be taken into consideration when investing overseas especially when the overall international environment is not good and given that the debt ratio of countries in South Asia is generally very high,&rdquo; Lin said.
Chinese investments (in Sri Lanka) will suffer some losses, he added.
However, Lin said, There is no need to be too pessimistic about China-Sri Lanka relations, because Sri Lanka's relationship with India has its inherent structural contradictions, and Sri Lanka actually needs a country like China as a counterbalance with India.
But Liu Zongyi, a senior fellow with the Shanghai Institutes for International Studies, said Beijing had maintained friendly relationships not just with the Rajapaksa family but every political party in Sri Lanka.
China is not leaning towards one faction or the other, Liu said.
That's why the previous Sri Lankan governments have all wanted to maintain friendly and cooperative ties with China.
There are concerns that Pakistan which is facing a severe shortage of foreign exchange reserves could go down the Sri Lanka way. China recently stepped in to provide USD 2.3 billion to its all-weather ally to shore up its forex reserves.
Following the economic crisis, Sri Lanka also defaulted on USD 51 billion in foreign debt which included Chinese loans.
The state-run Global Times in its editorial on the Sri Lankan crisis on Tuesday said the US and West should not have twisted excitement toward the Sri Lanka crisis asserting that the turmoil was not caused by Colombo's debt to Beijing.
Sri Lanka is already scarred and cannot bear the pressure and cost of becoming a geopolitical arena. Many research reports have repeatedly demonstrated that Sri Lanka's current debt crisis is not directly related to Chinese-funded infrastructure investment. Bilateral foreign debt to China only accounts for 10 per cent of Sri Lanka's total outstanding foreign debt, it said.
Also watch: <a href="https://www.editorji.com/business-news/shocking-video-china-crushes-protest-by-citizens-demanding-their-savings-1657593065568">Shocking video: China crushes protest by citizens demanding their savings</a>
Western countries' commercial creditors and multilateral financial institutions are responsible for Sri Lanka's foreign debt, it said.
The "national bankruptcy" crisis facing Sri Lanka is essentially triggered by global development and governance deficits.
The regional security crisis exacerbated by the US and the West has deepened the global development crisis , it said, hoping that the US and western countries can restrain their geopolitical impulses to indulge in great power competition.

India on Wednesday categorically denied "baseless and speculative" media reports that it facilitated the travel of Sri Lankan President Gotabaya Rajapaksa who fled to the Maldives on a military jet in the face of a public revolt against his government for mishandling the country's economy.
The 73-year-old Sri Lankan President fled the country along with his wife and two security officers on a military jet on Wednesday.
"The High Commission categorically denies baseless and speculative media reports that India facilitated the recent reported travel of @gotabayar @Realbrajapaksa out of Sri Lanka," the High Commission of India in Sri Lanka tweeted.
"It is reiterated that India will continue to support the people of Sri Lanka as they seek to realize their aspirations for prosperity and progress through democratic means and values, established democratic institutions and constitutional framework,” it added.
In a brief statement, the Sri Lankan Air Force said that under the Constitution granted to an Executive President, Rajapaksa was flown to the Maldives onboard an Air Force plane Wednesday morning.

No role in Gotabaya Rajapaksa leaving Sri Lanka: India

The 73-year-old Sri Lankan President fled the country along with his wife and two security officers on a military jet on Wednesday.

India on Wednesday categorically denied "baseless and speculative" media reports that it facilitated the travel of Sri Lankan President Gotabaya Rajapaksa who fled to the Maldives on a military jet in the face of a public revolt against his government for mishandling the country's economy.
The 73-year-old Sri Lankan President fled the country along with his wife and two security officers on a military jet on Wednesday.
WATCH <a href="President%20Gotabaya%20Rajapaksa%20flees%20Sri%20Lanka,%20lands%20in%20Maldives" target="_blank">President Gotabaya Rajapaksa flees Sri Lanka, lands in Maldives</a>
"The High Commission categorically denies baseless and speculative media reports that India facilitated the recent reported travel of @gotabayar @Realbrajapaksa out of Sri Lanka," the High Commission of India in Sri Lanka tweeted.
"It is reiterated that India will continue to support the people of Sri Lanka as they seek to realize their aspirations for prosperity and progress through democratic means and values, established democratic institutions and constitutional framework,&rdquo; it added.
In a brief statement, the Sri Lankan Air Force said that under the Constitution granted to an Executive President, Rajapaksa was flown to the Maldives onboard an Air Force plane Wednesday morning.

In a video that has gone viral, anti-government protesters can be seen mock-wrestling on PM Ranil Wickremesinghe's bed at his official residence. They can be seen pinning each other down as they imitate the wrestlers inside a WWE ring.

Watch: Sri Lankan anti-govt protesters 'wrestle' on PM's bed 

In a video that has gone viral, anti-government protesters can be seen mock-wrestling on PM Ranil Wickremesinghe's bed at his official residence.&nbsp;

After setting Sri Lankan Prime Minister Ranil Wickremesinghe's private house on fire, anti-government protesters, who occupied the PM's official residence on Sunday, found innovative and amusing ways to claim the space.
In a video that has gone viral, protesters can be seen mock-wrestling on the PM's bed with WWE wrestling commentary edited to background.
They can be seen pinning each other down as they imitate the wrestlers inside a WWE ring.
The video, which was originally posted by Twitter user "Sri Lanka Tweet", has received thousands of views so far.
Also watch: <a href="https://www.editorji.com/world-news/hoping-for-a-better-future-sri-lankans-enjoy-a-day-out-at-the-presidential-palace-1657462887480">Hoping for a better future, Sri Lankans 'enjoy a day out' at the presidential palace</a>
On Sunday, thousands of irate protesters on Saturday stormed into embattled President Gotabaya Rajapaksa&rsquo;s official residence in central Colombo's high-security Fort area after breaking the barricades, as they demanded his resignation over the island nation's worst economic crisis in decades.
&nbsp;

sri lanka economic crisis

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