Sri Lanka’s interim president Ranil Wickremesinghe said on Monday that the previous administration, with which he was an ally, was “hiding facts” about the economic crisis that has plagued the country for two years. Last week, amid furious protests that included the occupation of official residences, President Gotabaya Rajapaksa resigned after fleeing to Singapore.
In his first interview since taking over as an interim, Wickremesinghe told the American network CNN that Rajapaksa did not tell the truth about the current financial situation of the country, which is, in his words, bankrupt.
“I would like to tell the people that I know their suffering,” he said. “We have gone backwards. We have to leverage ourselves, but we don’t need five or ten years. By the end of next year, we will start to stabilize, and certainly in 2024 we will have a functioning economy that will start to grow.”
Wickremesinghe gave the interview at the Parliament of Sri Lanka’s administrative capital, Jayawardenepura Kotte. He took office on the 15th. On Monday, the interim president even renewed the state of emergency imposed days ago, citing “the interest of public security.”
The measure, which must be ratified by lawmakers, allows troops to arrest suspects and gives the president special powers in economic and security measures. The country has indirect elections for president, in order to fulfill the remainder of Rajapaksa’s term, until November 2024, scheduled for this Wednesday (20).
Wickremesinghe, who was prime minister six times, including under his predecessor, has the ruling party’s support for the election. The leader of the main opposition party, Sajith Premadasa, is also expected to be a candidate, as is Dullas Alahapperuma, a lawmaker also aligned with Rajapaksa.
This Monday, the interim president issued a statement also talking about the country’s negotiations with the IMF (International Monetary Fund), which had been dragging on and were completely interrupted in the protests of last week.
According to the note, talks have resumed “and are close to a conclusion”, with financial help from other countries also on the way. On Thursday, a spokesperson for the fund had said the body would wait for the political crisis to be resolved before resuming negotiations.
This Monday, with the extension of the state of emergency, the police and the army reinforced security, also in preparation for the election. The streets of the commercial capital Colombo remained relatively quiet, with traffic and economic activities going on uneventfully because of the protests.
The crisis and the president
The crisis plaguing Sri Lanka has roots in 2020, when the country’s economy recorded a 3.6% retraction compared to the previous year. According to the IMF, annual inflation was 12% and 17% in 2021 and 2022, respectively.
In April, the government declared a moratorium on foreign debt, valued at US$51 billion. The non-payment, together with the lack of international reserves, made it difficult to import essential goods, such as fuel, which led to a blackout. The government declared a lack of oil and ordered the closure of non-essential offices and schools to reduce pressure on the transport system.
Manifestations of a growing wave of protests were brutally suppressed, leaving nine dead in May. The population called for Rajapaksa’s resignation, blaming him for the economic crisis and the loss of purchasing power.
Wickremesinghe, prime minister for two months before taking over as interim president, is seen as a politician capable of negotiating solutions to the economic crisis with the IMF and stabilizing the country. Right-wing, he is the only legislator elected by the PNU (Unified National Party) in Parliament.
