Endgame: What’s Next For Crisis-Ridden Sri Lanka?

By Afra Laffar

On Friday, the 15th of July 2022, at approximately 9:25 am, the Speaker of the Sri Lankan Parliament announced the resignation of President Gotabaya Rajapakse. The former president who was voted in by a whopping 6.9 million votes in 2019 as the 7th executive president of the Democratic Socialist Republic of Sri Lanka, was the country’s first president to be forced to resign from this position before the end of his five-year term. His period of rule which was overshadowed by the COVID-19 pandemic followed by an unprecedented economic crisis as a result of poor decision-making and mismanagement by the government, caused much anger and frustration among citizens who were severely affected by daily power outages, shortages in fuel and other essentials and soaring inflation. Anti-government protests that had been continuing since early April 2022, had forced out the former Prime Minister Mahinda Rajapakse and his cabinet of ministers and there were calls for an all-party interim government in parliament. However, opposition parties refused to work under a failed president who had lost the trust and confidence of the people. Although changes were made to senior government positions, the country’s foreign reserves dwindled over the months; the island nation that was hanging by a thread, surviving on financial assistance granted by foreign nations, came to a grinding halt as the government was unable to secure payment for fuel. 

People were stranded as vehicles queued up for fuel for days and public transportation services including buses and the rail were unable to continue functioning at maximum capacity. Government offices reduced the number of working days per week as staff were unable to report to work. The anti-government protests were starting to gain momentum once again and a massive protest was scheduled to take place on the 9th of July with the support of major political parties, unions and other groups of professionals. This was the endgame; only the resignation of President Gotabaya Rajapakse could resolve this prolonged political crisis. Various attempts made by the police and other government officials to stall the people’s protest were not successful and on the 9th of July 2022, a record number of protesters from all parts of the island representing different segments of society, flocked to the President’s official residence in Colombo, demanding his resignation. 

Despite tear gas and water cannon attacks by security forces, the protesters broke down barricades and stormed into the official residence and the presidential secretariat in their numbers. President Gotabaya’s whereabouts were unknown, as protesters partied in the presidential mansion, lounging on furniture, wrestling on his bed and even enjoying a dip in his pool as the police and armed forces looked on. By the eve of July 9, the president had agreed to step down on the 13th of July and ensure a peaceful transition of power. However, the much-awaited letter of resignation was not tendered on the 13th, as promised. The embattled president who had fled to the Maldives on an air force jet, had no intention of resigning from his position until he was able to secure safe passage to Singapore. In order to quell unrest and dissatisfaction among the citizens, Prime Minister Ranil Wickremasinghe who was appointed as the acting president in the absence of President Rajapakse, declared a nationwide state of emergency. The political instability was threatening to further delay the country’s economic recovery. Nevertheless, after much delay, President Gotabaya Rajapakse officially submitted his letter of resignation via email, informing the Speaker of Parliament that he was resigning with immediate effect. 

What Next?

On the 20th of July 2022, Ranil Wickremasinghe was elected president by the Sri Lankan Parliament with 134 out of the 219 valid votes cast in his favor. In his first address to Parliament, the 8th Executive President of Sri Lanka called upon all political parties including members of the opposition to support him with the monumental task of steering Sri Lanka through its worst economic crisis since independence from British colonial rule. An ideal scenario would be the formation of an all-party interim government to work towards economic recovery. The success of an all-party government consisting of members with contradicting views and policies remains to be seen. Nevertheless, as the country is in urgent and dire need of immediate political stability and competent leadership to avoid an impending catastrophe, the option of holding fresh elections to vote in a new parliament may not be the wisest move at present. 

Economic experts have warned that corrective measures and serious decisions must be taken urgently in order to ensure that Sri Lanka’s economy falls back on track by the year 2024, the earliest. The next couple of months will be crucial, as Sri Lanka aims to secure a bailout from the International Monetary Fund (IMF). Talks with the IMF began in April this year and the country is expected to reach a preliminary agreement with the IMF by late July. Financial assistance by the IMF and the World Bank will be accompanied with strict conditions. The implementation of austerity measures is expected to severely affect low-income earners and the middle-class. Moreover, since years of corruption contributed to the country’s downward spiral, Sri Lanka will have to introduce sound fiscal policies and effective anti-corruption measures to win back the trust of foreign nations and entities. There can be no easy way to revive a broken economy; Sri Lanka may have achieved accountability in ensuring the resignation of those responsible for the country’s dramatic collapse, however, the road to economic recovery will be a long and arduous one.

Afra Laffar is a practicing Attorney-at-Law and an avid reader. A lawyer by day and a writer and by night, she primarily focuses on current affairs, features and the occasional review.