As Sri Lanka tackles fresh chaos, IMF boss’s warning on global debt

Scenes emerging from Sri Lanka yet again raised global concerns this weekend as demonstrators stormed the palace of Gotabaya Rajapaksa while the president reportedly fled.

After having ignored calls for his resignation for several months, he finally announced that he would step down on July 13 (Wednesday). Just hours before, Sri Lanka PM Ranil Wickremesinghe had declared the decision to quit. But questions remain over the future of the island nation of 22 million, tackling its worst-ever economic crisis in the history of seven decades.

Here are ten updates on the Sri Lanka crisis:

1. Sri Lanka’s fresh chaos has triggered strong reactions from the IMF boss and a warning to G20 nations on global debt. “This is a topic we cannot have complacency on. If trust is eroded to a point that there is a downward spiral, you don’t know where it would end. G20 leaders don’t want to be in a situation in which that issue dominates the conversation just because we are not making progress,” Kristalina Georgieva, the managing director of the global lender was quoted as saying in a report by Reuters.

2. Sri Lanka reportedly has over $50 billion in debt. Of this, it needs to pay $28 billion by 2027. The country has been struggling to ensure supply of fuel and other essentials for its people.

3. The opposition on Sunday met, eyeing formation of a new government as two top leaders have announced their exit. One of the lawmakers on Sunday said they have numbers in their favour.

4. Meanwhile, scenes emerged from the palace of Gotabaya Rajapaksa where protesters could be seen using swimming pool and all the other facilities as troops stood afar and did not stop them, according to reports. Some of the locals said they were appalled at the president living in luxury while residents struggled with blackouts.

5,. Sri Lanka’s ministry of defence has denied rumours of action on Galle Face protesters. “There is no such attempt to attack or disturb ‘the Aragala Bhumiya’ as falsely circulating in social media now. The Chief of Defence Staff General Shavendra Silva categorically denies the falsely fabricated information,” Ministry of Defence Spokesman said, local media reported. Protesters have been agitating at Galle Face near president’s office ever since crisis unfolded earlier this year.

6. U.S. Secretary of State Antony Blinken has said that the United States was tracking the developments in Sri Lanka as he urged Parliament to work quickly to implement solutions and address the people’s discontent.

7. Meanwhile, India has been constantly supporting the neighbour country amid the challenges. On Sunday, foreign minister S Jaishankar said that India has so far committed $3.8 billion.

8. “India stands with the people of Sri Lanka as they seek to realise their aspirations for prosperity and progress through democratic means and values, established institutions and constitutional framework,” External Affairs Ministry Spokesperson Arindam Bagchi said, in a carefully crafted statement.

9. “India is Sri Lanka’s closest neighbour and our two countries share deep civilizational bonds. We are aware of the many challenges that Sri Lanka and its people have been facing, and we have stood with the Sri Lankan people as they have tried to overcome this difficult period,” it added.

10. Pope Francis too has urged for a speedy resolution. “I unite myself to the pain of the people of Sri Lanka, who continue to suffer the effects of the political and economic instability,’’ the pontiff said. “Together with the bishops of the country, I renew my appeal for peace, and I implore those who have authority not to ignore the cry of the poor and the needs of the people.’’