COLOMBO: An International Monetary Fund team began bailout talks in Sri Lanka on Monday, as the country’s cabinet cleared a constitutional amendment to dilute presidential powers that could assuage protesters amid rising tensions. Economic mismanagement and the pandemic have left Sri Lanka battling its worst financial crisis, and a lack of foreign exchange has stalled imports of essentials including fuel, food and medicines.
Sri Lanka’s cabinet on Monday approved an amendment to the constitution that could reduce presidential powers, in a move to appease protesters calling for President Gotabaya Rajapaksa to quit. “The 21 amendment was tabled and passed in cabinet today,” tourism minister Harin Fernando said in a tweet, adding that the proposal will now be sent to the country’s parliament. Many protesters accuse Rajapaksa and his influential family of mishandling the economy.
Sri Lanka suspended payment on $12 billion of foreign debt in April and is seeking up to $3 billion from the IMF to put its public finances on track and access bridge financing. A nine-member IMF team, which arrived in Colombo on Monday, held talks with PM Ranil Wickremesinghe on how to structure what will be Sri Lanka’s 17th loan plan with the global lender. “The PM commenced discussions with IMF team,” Wickremesinghe’s office said. Protesters blocked an entrance to the finance ministry and police had to help out an official due to attend the IMF talks.
Police said they had arrested 21 people for blocking the gates of ministry, which adjoins the president’s office.
Sri Lanka’s cabinet on Monday approved an amendment to the constitution that could reduce presidential powers, in a move to appease protesters calling for President Gotabaya Rajapaksa to quit. “The 21 amendment was tabled and passed in cabinet today,” tourism minister Harin Fernando said in a tweet, adding that the proposal will now be sent to the country’s parliament. Many protesters accuse Rajapaksa and his influential family of mishandling the economy.
Sri Lanka suspended payment on $12 billion of foreign debt in April and is seeking up to $3 billion from the IMF to put its public finances on track and access bridge financing. A nine-member IMF team, which arrived in Colombo on Monday, held talks with PM Ranil Wickremesinghe on how to structure what will be Sri Lanka’s 17th loan plan with the global lender. “The PM commenced discussions with IMF team,” Wickremesinghe’s office said. Protesters blocked an entrance to the finance ministry and police had to help out an official due to attend the IMF talks.
Police said they had arrested 21 people for blocking the gates of ministry, which adjoins the president’s office.
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