Central bank warns of catastrophe if Lanka can’t form govt within 3 days

Sri Lankan President Gotabaya Rajapaksa held talks with former prime minister Ranil Wickramasinghe to possibly lead an interim all-party government.
Soldiers stand guard at a check point in Colombo on Wednesday. (Photo | AFP)
Soldiers stand guard at a check point in Colombo on Wednesday. (Photo | AFP)

NEW DELHI: AMID dire warnings from the Sri Lankan Central Bank chief of an economic catastrophe if no government is in place in the next two to three days, hectic parleys were on to hammer out a political solution in the riot-torn nation. Sri Lankan President Gotabaya Rajapaksa held talks with former prime minister Ranil Wickramasinghe to possibly lead an interim all-party government.

Later, in a televised adress to the nation, Gotabaya said he was working with all party leaders to establish a new government and that a new prime minister would be appointed within a week. “I am going to appoint the prime minister and the cabinet that has the trust of the people,” he said.

According to local media, Gotabaya also offered to abolish the executive presidency to curtail his sweeping powers once a government is in place. After days of street violence, Colombo wore a deserted look on Wednesday except for soldiers at checkpoints. Flagging the gravity of the situation, Central Bank Governor Nandalal Weerasinghe urged all parties to quickly form a government, saying he would resign if there is no political stability in the next couple of weeks.

If the current situation continues for the next two to three days, things could get worse with power cuts about 10-12 hours, massive shortages of fuel. Without a government, Lanka won’t be able hold talks with IMF, he warned. Meanwhile, Gotabaya reappointed secretaries of defence, finance and public security while trying to restore a semblance of normalcy.

With rumour mills fanning the fires, the Indian High Commission in Colombo on Wednesday denied speculation on the country sending troops to Lanka or advising Indian nationals to leave the island nation.

Related Stories

No stories found.

X
The New Indian Express
www.newindianexpress.com