Amid Sri Lanka crisis, IMF chief warns of global debt
What's the story
With Sri Lanka reeling under its worst economic crisis in seven decades, International Monetary Fund chief Kristalina Georgieva warned G20 nations over global debt. "We cannot have complacency... If trust is eroded...you don't know where it would end. G20 leaders don't want to be in a situation...[where] the issue dominates the conversation just because we are not making progress," Reuters quoted her as saying.
Context
Why does this story matter?
Sri Lanka is facing severe shortages of food, fuel, and other essentials, as well as record inflation and crippling power cuts. It is struggling to service its $51 billion foreign debt due to a lack of foreign exchange with the COVID-19 pandemic jeopardizing its lucrative tourism revenue. Saturday witnessed a massive anti-government protest even as peaceful demonstrations were going on for several months now.
Interim government
Sri Lankan parties agree to form all-party interim government
Meanwhile, the opposition leaders agreed to form an all-party interim government after President Gotabaya Rajapaksa and Prime Minister Ranil Wickremesinghe agreed to resign following Saturday's unprecedented public protest in which demonstrators stormed their houses. "We agreed...to form a government of unity with all parties' participation for an interim period," stated Wimal Weerawansa of the ruling Sri Lanka Podujana Peramuna (SLPP) party's breakaway faction.
Parliamentary election
Opposition leaders held extensive discussions
Moreover, Vasudeva Nanayakkara, another leader of the SLPP's breakaway faction, has said they need not wait for Rajapaksa's resignation for forming the interim government. The main Opposition party—Samagi Jana Balawegaya—said it held extensive internal discussions and aim for an interim government of all parties for a limited period. Later, they will go for a parliamentary election, said Ranjith Madduma Bandara, the party general secretary.
Parliament
Leaders of parties to meet today to discuss transition
After Rajapaksa conveyed through Parliament Speaker Mahinda Yapa Abeywardena that he would resign, leaders of parties represented in Parliament are to meet on Monday to discuss the convening of the house for the transition of power for a new government. Under the Constitution, the incumbent PM would automatically get appointed as the acting president until Parliament votes and appoint a successor to the president.
Package
IMF hopes for resolution of crisis to allow bailout talks
The International Monetary Fund (IMF) earlier said it was hoping for a resolution to the crisis that will allow a resumption of talks for a bailout package. "We hope for a resolution of the current situation that will allow for resumption of our dialogue on an IMF-supported program (sic)," the IMF stated. Sri Lanka has also been seeking help from India and China.
Information
Who will be appointed as acting president?
However, Wickremesinghe has also offered to step down as the prime minister amid violent protests. So, the resignation of both the president and PM might result in Speaker Abeywardena becoming the acting president.