Sri Lankan president revokes emergency order, government in disarray as economic crisis deepens

COLOMBO, April 5 (Reuters) – Sri Lankan President Gotabaya Rajapaksa lifted a state of emergency on Tuesday night after dozens of lawmakers walked out of the ruling coalition, leaving his government a minority in parliament as it struggled to quell protests amid the worst of the country. Economic crisis in decades.

In another setback for the administration, Finance Minister Ali Sabry resigned a day after his appointment and ahead of crucial scheduled talks with the International Monetary Fund for a loan program.

Rajapaksa dissolved his cabinet on Monday and sought to form a unity government as public anger mounted over the ruling family’s handling of the indebted economy that has led to food and fuel shortages and prolonged power cuts. A body of doctors also told the government that there was an acute shortage of medicines that could overwhelm the health system.

In a gazette issued Tuesday night, Rajapaksa revoked the emergency rule ordinance that came into effect last Friday.

“I, Gotabaya Rajapaksa, President of the Socialist Republic of Sri Lanka, hereby revoke the gazette with effect from midnight on April 5, 2022,” the gazette said, referring to the earlier order.

Politically, possible next steps could include the appointment of a new prime minister to replace the president’s older brother, Mahinda Rajapaksa, or early parliamentary elections well before a vote scheduled for 2025.

There was no immediate indication of what was being planned.

Sabry said in his resignation letter to the president that he believed he had “acted in the best interest of the country.”

“At this crucial juncture, the country needs stability to weather the current financial crisis and difficulties,” he said in the letter seen by Reuters, also offering to give up his parliamentary seat if the president wanted to bring in an outsider to replace him.

Street demonstrations against food and fuel shortages, triggered by a lack of foreign exchange for imports, began last month but have intensified in recent days, leading to clashes between protesters and police in some cases.

Dozens of protesters gathered peacefully near the prime minister’s residence on Tuesday.

‘WITH THE PEOPLE’

Party leaders in parliament announced the names of the 41 lawmakers who will leave the coalition.

They have now become independent members, leaving the Rajapaksa government with fewer than the 113 members needed to maintain a majority in the 225-member chamber.

There has yet to be a vote count, although the minority Rajapaksa government may find decision-making more challenging. Independent MPs, however, could continue to support the government’s proposals in the House.

“There is an endless shortage of essentials, including fuel and cooking gas. Hospitals are about to close because there are no medicines,” Maithripala Sirisena, leader of the Sri Lanka Freedom Party, who withdrew his support for the move, told parliament. Rajapaksa coalition.

“At a time like this, our party is on the side of the people.”

In another sign of a desperate shortage of funds, Sri Lanka announced the temporary closure of its embassies in Oslo and Baghdad, and the consulate general in Sydney, from April 30.

The Foreign Ministry said it was restructuring Sri Lanka’s diplomatic representation due to the “economic situation and foreign exchange restrictions facing the country”.

The Government Medical Officials Association, which represents more than 16,000 doctors across the country, said there was a severe shortage of medicines, including life-saving drugs.

“If a continuous and adequate supply of essential medicines is not guaranteed, the entire health system will collapse,” he told the Health Ministry in a letter.

“This will create a life-threatening situation for our citizens who are already facing an unprecedented crisis situation.”

STOCKS RISE

The Colombo Stock Exchange All-Share Index (.CSE) jumped around 6% as lawmakers made their positions clear within parliament.

Sirisena, along with other lawmakers, called on the president and prime minister to come up with a clear plan to solve Sri Lanka’s financial problem.

But opposition parties, reflecting the mood of the protests sweeping the country of 22 million people, urged the two brothers to resign. A third brother, Basil Rajapaksa, resigned as finance minister on Sunday.

Opposition parties have also rejected a move to form a unity government comprising all parties represented in parliament.

“There should not be a voice that is contrary to the voice in the streets. And the voice is that there should be a change,” said Sajith Premadasa, leader of Samagi Jana Balawegaya, Sri Lanka’s main opposition alliance.

“What the people want is for this president and the entire government to resign.”

A small group of people protested near parliament as police stood guard with tear gas and water cannons.

“If the government loses its majority, you could see the opposition submit a no-confidence vote, but there is a parliamentary procedure that gets around that first and it is unlikely to happen immediately,” said lawyer Luwie Niranjan Ganeshanathan, who specializes in constitutional issues.

If a vote of no confidence is adopted, then the president can appoint a new prime minister, he said.

The opposition can also table a resolution to dissolve parliament and call early elections, Ganeshanathan added.

Reporting from Uditha Jayasinghe and Devjyot Ghoshal in Colombo; Additional reporting from Waruna Karunatilake in Colombo; Written by Devjyot Ghoshal and Krishna N. Das; Edited by Raju Gopalakrishnan, Bernadette Baum, and Jonathan Oatis

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