Authorities in Sri Lanka have announced a curfew in several areas in the capital Colombo after police and security forces clashed with thousands of angry protestors who descended on the streets, demanding the resignation of President Gotabaya Rajapaksa, blaming him for the worst economic crisis in decades.

Gripped in the forex crisis for months now, the country has been struggling to import essentials like food, medicines, and fuel. Anger grew this week after authorities announced a 13 hours long power cut for Friday. Most power plants operating on diesel have run out of fuel.

On Thursday evening, protestors marched to the residence of President Gotabaya Rajapaksa, forcing the government to deploy the army to quell protests. Dozens of people, including journalists, were injured after security forces fired tear gas and water cannons. 

Central Electricity Board, the country’s power regulator, has assured the public of reducing power cuts in the coming days. Authorities are in talks with Lanka IOC, a subsidiary of Indian Oil Corporation, for the supply of fuel to power plants.

India has so far extended assistance worth $2.4 billion through a $400 million RBI currency swap, deferral of a $500 million loan, and another half a billion as a line of credit, and recently a $1 billion line of credit for the import of essentials.  

Earlier, the IMF said the country has been facing mounting economic challenges, and they will explore all options for a credible and coherent strategy to restore the country’s macro-economic stability and debt sustainability. 

This year alone, Colombo is due to repaying foreign debt totaling nearly $ 7 billion, while the estimated earnings from exports and tourism are expected to be around $ 12 billion and $ 3 billion respectively. However, the import bills are expected to surpass $22 billion, creating a huge trade deficit of around $10 billion. Remittances would cover a maximum of $3 billion.

(SAM)