COLOMBO: Sri Lanka’s economy will “collapse beyond redemption” unless a new government is appointed within two days to restore political stability, the central bank chief said Wednesday.
He said the latest wave of mob violence derailed the bank’s recovery plans, and the resignation of the prime minister on Monday and the lack of a replacement were complicating matters.
He said political stability was vital to implementing economic reforms aimed at addressing the country’s debt crisis and the acute shortage of foreign exchange to import essentials.
“If there is no government in the next two days, the economy will completely collapse and no one will be able to save it,” Central Bank of Sri Lanka Governor Nandalal Weerasinghe said.
“The country was fast going down a slope when I took over just over a month ago. I thought we were able to apply the brakes, but with events of Monday the brakes no longer work.
“Within a week or two the economy will completely collapse. No one will be able to save Sri Lanka at that stage. My being here as governor will not help,” he said.
“I will resign if there is no immediate action to form a government.”
Shortly after taking over last month as the bank’s chief, Weerasinghe announced defaulting on Sri Lanka’s $51 billion external debt saying the country had no money to pay its creditors.
He almost doubled interest rates and allowed the rupee to depreciate rapidly to ensure better foreign exchange liquidity in the commercial banks.
Sri Lanka is facing its worst economic crisis since independence from Britain in 1948 after it ran out of dollars to import even the most essentials.
There had been long queues for fuel and food causing severe hardships for the nation’s 22 million people, prompting them to protest against the government.
“If we don’t have political stability, very soon we will run out of what little petrol and diesel left. At that point people will get on the streets to protest peacefully or violently,” Weerasinghe added.
This week, the crisis took an ugly turn with nine people killed in violence and more than 200 injured.
Sri Lanka economy will ‘collapse’ if no new govt in 2 days: central bank
https://arab.news/2d38q
Sri Lanka economy will ‘collapse’ if no new govt in 2 days: central bank
- “If there is no government in the next two days, the economy will completely collapse and no one will be able to save it,” Central Bank of Sri Lanka Governor said
- Sri Lanka is facing its worst economic crisis since independence from Britain in 1948 after it ran out of dollars to import even the most essentials
Trump says US will deal with Greenland ‘easy way’ or ‘hard way’
- Trump says controlling the mineral-rich island is crucial for US national security given the rising military activity of Russia and China in the Arctic
WASHINGTON, United States: US President Donald Trump on Friday again suggested the use of force to seize Greenland as he brushed aside Denmark’s sovereignty over the autonomous Arctic island.
“We are going to do something on Greenland, whether they like it or not,” Trump said at a White House meeting with oil executives looking to benefit in Venezuela, where the United States last week overthrew the president.
“I would like to make a deal, you know, the easy way. But if we don’t do it the easy way, we’re going to do it the hard way,” Trump said when asked of Greenland.
Trump says controlling the mineral-rich island is crucial for US national security given the rising military activity of Russia and China in the Arctic.
“We’re not going to have Russia or China occupy Greenland. That’s what they’re going to do if we don’t. So we’re going to be doing something with Greenland, either the nice way or the more difficult way.”
Both countries have increased military activity in the Arctic region in recent years, but neither has laid any claim to the vast icy island.
Denmark and other European allies have voiced shock at Trump’s threats to take control of Greenland, where the United States already has a military base.
Danish Prime Minister Mette Frederiksen has warned that an invasion of Greenland would end “everything,” meaning NATO and the post-World War II security structure.
Trump made light of the concerns of Denmark, a steadfast US ally that joined the United States in the controversial 2003 invasion of Iraq.
“I’m a fan of Denmark, too, I have to tell you. And you know, they’ve been very nice to me,” Trump said.
“But you know, the fact that they had a boat land there 500 years ago doesn’t mean that they own the land.”
Secretary of State Marco Rubio is due to meet next week with Denmark’s foreign minister and representatives from Greenland.
