Sri Lanka's 'Worst Economic Crisis'... Prime Minister Resigns

President Gotabaya Rajapaksa, the younger brother, retains his position

On the 8th (local time), residents waiting to refill gas formed a long line in downtown Colombo, the capital of Sri Lanka, blocking traffic at nearby intersections.
[Image source=Yonhap News]

Mahinda Rajapaksa, the Prime Minister of Sri Lanka, who is experiencing the worst economic crisis due to the collapse of the tourism industry, resigned on the 9th (local time).

According to Sri Lankan media such as Newswire, Prime Minister Mahinda submitted his resignation letter to President Gotabaya Rajapaksa on the same day.

Mahinda was appointed Prime Minister by his younger brother Gotabaya, who won the presidential election in November 2019. He served as president from 2005 to 2015.

Prime Minister Mahinda and President Gotabaya are regarded as the main culprits behind the economic crisis. Sri Lanka is experiencing its worst economic hardship since its independence in 1948, as its key industry, tourism, has collapsed and fiscal policy failures have compounded the situation.

Until early last month, when it received bailout funds from the International Monetary Fund (IMF), Sri Lanka declared a temporary default on its external debt repayment, which amounts to $51 billion (approximately 65 trillion won), by suspending repayments.

Although the country has borrowed emergency funds from India, China, the Asian Development Bank (ADB), and the World Bank (WB) to repay its debts, shortages of fuel, medicine, and food have devastated livelihoods, and public dissatisfaction has grown amid ongoing protests and strikes.

Although Prime Minister Mahinda is resigning, President Gotabaya will retain his position, so significant changes to Sri Lanka's political system are not expected. Sri Lanka operates a system that combines a presidential system with a parliamentary cabinet system where the prime minister holds strong powers.

As the turmoil intensified, Sri Lanka declared a state of emergency on the 7th, and the main opposition party, the Samagi Jana Balawegaya (SJB), recently submitted a no-confidence motion against President Gotabaya Rajapaksa and the current government.

This content was produced with the assistance of AI translation services.