Sri Lanka's former PM predicts round 2 of economic crisis when India's fuel credit ends

Amid the economic crisis in Sri Lanka, the country's former Prime Minister Ranil Wickremesinghe has asserted that while China has a few projects in Sri Lanka the country is still very much operating under its own aegis. This comes on the day when the sitting President Gotabaya Rajapaksa appointed a new cabinet consisting of 17 ministers. While speaking to the news agency, ANI, Wickremesinghe also said that India's credit line to Sri Lanka for fuel will run out by the first week of May, leading to another crisis.

The Former Sri Lanka Prime Minister told ANI, "China has some projects in Sri Lanka but the country has not been handed over to China or to anyone else. India's credit line for fuel will run out by 1st week of May and there be another crisis. Sri Lanka govt requested India to give an extension to the credit line but there are also issues as the Sri Lanka govt has declared itself bankrupt. 

Sri Lanka Economic crisis

The island country is grappling with an economic crisis, which has been termed as the worst since the country's independence in 1948. The crisis has resulted in massive protests across the country against the ruling Rajapaksa government. Sri Lanka's economy has been under pressure since the onset of the novel COVID-19 pandemic. The country has witnessed a major fall in the tourism activities, which was followed by a crash in agriculture sector after the government's move to ban all chemical fertilizers in a bid to make the country's agricultural produce fully organic. 

On April 12, the Sri Lankan Finance Ministry also announced that the country would declare a default on its external debt of $51 billion, pending a bail-out from the International Monetary Fund (IMF). In a press release, the Ministry added that the government will consequently suspend normal debt servicing of all "Affected Debt" for an interim term, while pending an orderly and consensual restructuring liablitlies in accordance with an IMF-supported economic adjustment programme. 

As the Galle Face protest entered it seventh day on Sunday, demonstrators in the country lit up the President's Secretariat building with 'Go Home Gota' slogans. Protesters have occupied the entrance and surroundings of President Gotabaya Rajapaksa's office, holding him responsible for the nation's crippling economic crisis. They are also calling for his influential family to resign, accusing them of corruption and misrule.

President Rajapaksa appoints new Cabinet Ministers

Additionally, President Rajapaksa has appointed a new Cabinet of over 17 ministers, who sworn in before the President at the President's House. Last week, the President had also invited independent ministers of Parliament (MPs) to discuss the economic catastrophe.