Sri Lanka was plunged into a deep crisis today (July 9) triggered by the collapse of its economy.
It was a day of chaos as President Gotabaya Rajapaksa fled his official residence in the country’s capital Colombo, hours before hundreds of thousands of protesters stormed the presidential palace.
“The president has reportedly been moved to a safer location,” the BBC reported.
Indian television news channel NDTV reported that Rajapaksa was moved to army headquarters on Friday night “after intelligence reports said the situation at Saturday’s planned rally “would get out of hand.
However, he did not resign from the presidency until the last report came out.
By nightfall, a section of protesters had set fire to Prime Minister Ranil Wickremesinghe’s private residence.
This comes just hours after Wickramasinghe said he would resign to allow an all-party government that could handle the situation more effectively.
Wickramasinghe took office less than two months ago, inheriting the ruins of the Sri Lankan economy from his predecessor Mahinda Rajapkasa.
On July 5, the Prime Minister declared the island nation “bankrupt”. That appears to have fueled the months-long protests that have swept Sri Lanka, culminating in today’s implosion.
Today, social media was flooded with images of thousands of protesters entering the president’s home, some of whom were shown taking selfies inside the beachfront facility, while many were seen splashing around in the swimming pool.
However, the protests remained largely peaceful, with musical instruments being played and songs being sung. One MP, Rejitha Senaratne, was reportedly intimidated by some angry people in Colombo.
“Something big was expected to happen today. But it has been very calm. However, the big question now is, ‘What is the next step?'” A Sri Lankan political observer, who asked not to be named, told Quartz by phone.
Sri Lanka’s economy has collapsed
Sri Lanka has witnessed massive unrest during the severe economic crisis of the past few months.
Today’s events are the culmination of an accumulation. Protesters have been seeking the removal of President Rajapaksa, as well as his brother, former Prime Minister Mahinda Rajapaksa, and former Finance Minister Basil Rajapaksa. While Mahinda Rajapaksa resigned in May, Basil Rajapaksa resigned last month.
By then, however, it was too late for the Sri Lankan economy.
First, the country defaulted on its foreign debt in May, and inflation reached 54.6 percent in June. By last week, the country’s fuel stocks could only last a day. Soon after, Wickramasinghe declared itself “bankrupt”.
“…… Inflation rose to record levels, food prices soared and government coffers dried up. While the government blamed the pandemic on weakening economic conditions, experts said it was caused by political mismanagement and the accumulation of debt to China,” CNBCTV18.com reported.
Meanwhile, the government has been negotiating with the International Monetary Fund on a deal to rescue the economy. Neighboring India has put in the necessary lifeline of supplies and money.
“So far, India has provided about $3 billion worth of assistance to Sri Lanka, including $400 million in swaps and a total of $1.5 billion in credit lines,” CNBCTV18 reported.