Sri Lanka’s national carrier to be privatised

DEBT-ridden Sri Lanka will privatise its state-run national carrier, Sri Lankan Airlines, Prime Minister Ranil Wickremesinghe said in a televised address on Monday (May 16). The island nation’s revenues have dropped sharply, and its banks are out of dollars, leaving the country short of funds for essential goods, he added.

However, the country is working to try and ease the shortages of food, fuel and other essential items, the premier said, calling for patience as he tries to address the country’s dire economic crisis.

Sri Lanka is sliding into a default as the grace period on 2 unpaid foreign bonds ends on Wednesday, the latest blow to a country rattled by economic pain and social unrest. Wickremesinghe, was appointed last week following violent clashes between government supporters and protesters, who are demanding the resignation of President Gotabaya Rajapaksa.

The nation has only one day’s stock of petrol, and the government is working to obtain dollars in the open market to pay for 3 ships with crude oil and furnace oil that have been anchored in Sri Lankan waters, Wickremesinghe said.

He said he was forced to permit the printing of more money to pay salaries, accepting that it would add pressure on the rupee. The government will present a new “relief’ budget for this year to replace the current spending bill, he said, adding that he expects a 13 per cent budget deficit for 2022.

The prime minister is yet to appoint a finance minister to lead bailout talks with the International Monetary Fund.

Opposition leader declines to join government

Harsha de Silva, a senior lawmaker from the main opposition Samagi Jana Balawegaya, says he’s willing to head parliament’s Public Finance Committee rather than be a part of a government “that lacks legitimacy.”

Trade unions to hold protest

SEE ALSO

Sri Lanka's new PM struggles to form unity government

Workers groups across the country will on Wednesday begin a 3-day nationwide strike against the arrest of protesters involved in last week’s clashes, an umbrella organisation of the country’s trade unions said in a statement. The demonstrators were instigated by the actions of the pro-government groups, they said.

“It has been decided that the trade unions will hold nationwide protests from May 18, demanding an immediate halt to the arrest and interrogation of the public who have responded to the thugs’ actions in defence of the thugs,” the statement added.

Curfew to be reimposed

Sri Lanka will reimpose an islandwide curfew from 11 pm Monday until 5 am Tuesday, the president’s media unit said in a statement. The curfew, first imposed after violence erupted May 9, had been lifted since early Sunday to allow people to celebrate Vesak, a Buddhist religious holiday.

BLOOMBERG