Sri Lanka forms 2 new ministries to handle economic crisis after Basil Rajapaksa resigns

In his new effort to tackle the ongoing worst economic crisis, Sri Lankan President Gotabaya Rajapaksa on June 9 formed two new ministries, including an investment ministry to pull the island nation out of the reeling impacts of financial and economic breakdown. 'Technology and Investment Promotion' ministry will draft the policies to boost foreign direct investment and private sector investment for the debt ridden Colombo, according to Colombo Page. 

Ministries formed after resignation of former finance minister Basil Rajapaksa

The ministries were formed shortly after Sri Lanka’s former finance minister and the intellectual pillar of the Rajapaksa brothers Basil Rajapaksa resigned from his role in the Parliament on Thursday. Basil walked out of ruling Sri Lanka Podujana Peramuna (SLPP) party. Dhammika Perera, a renowned Sri Lankan businessman is expected to fill in his place as the Minister of Technology and Investment Promotion. 

Perera had headed the Board of Investment and had also served as the Secretary to the ministry of Highways between 2005-15 under the former president Mahinda Rajapaksa. Chinese built Colombo Port City, government’s investment promotion arm, the Board of Investment, are listed as responsibilities of the new technology ministry. Sri Lanka’s Registrar of Persons and Department of Immigration and Emigration, other key institutions, the telecommunications regulator, and Sri Lanka Telecom are all listed under the new technology ministry effective June 9. 

Gotabaya also established a 'Ministry of Women, Child Affairs, and Social Empowerment' with over 15 institutions, including the National Child Protection Authority and the Samurdhi Development Department. It was formed via a gazette notice. 

Sri Lankan leadership has established the new ministries with a goal of promoting the flow of US dollars into the government reserves to tackle the unprecedented economic crisis befallen on the island nation since its independence in 1948. Sri Lanka has been working on the IMF bailout programme that will be available by the last quarter of the year 2022. Colombo has been grappling to control economic crisis as prices of the fuel, particularly petrol significantly shot up in recent months, adding to the woes of the population struggling to fulfil their essential needs. The Southeast Asian nation has been suffering food shortage due to the high rate of inflation. The financial crisis is being reported as the worst since the Easter bombings of 2019 and the ongoing COVID-19 pandemic.