The economic crisis in Sri Lanka: to handle the situation, now Sri Lanka will ask for a loan from IMF; Former minister's allegation - Rajapaksa embezzled money received from abroad

Sri Lanka, which is facing a severe economic crisis, will now ask for a loan from the International Monetary Fund (IMF). Along with this, Sri Lanka has also prepared to take a loan from Asian Development Bank (ADB) and World Bank. A 3-member advisory committee of financial experts has been formed to talk to the IMF about this.

Former Governor of the Central Bank of Sri Lanka Indrajit Kumaraswamy has been included in this committee. The committee has also been asked to suggest measures to address the debt crisis. Meanwhile, the Asian Development Bank has projected a marginal recovery in Sri Lanka's economic growth to 2.5% in 2022.

Former minister's allegation- Rajapaksa family looted the country

Amidst protests across the country against the Rajapaksa government, former minister and MP Champika Ranawaka said on Thursday that the Rajapaksa family has looted the country a lot. During his tenure from 2004 to 2014, he embezzled US$19 billion. The government had taken a huge amount of money from the international financial markets and did not repay it on time. Now the whole country is bearing the brunt of this. Such a crisis has come for the first time in Sri Lanka.

Demonstration demanding the resignation of Rajapaksa

Public protests against the Rajapaksa government have intensified in the country. Protesters demonstrated outside the office of Gotabaya government minister Johnson Fernando on Thursday. Women, children, and specially educated youth joined this protest. Thousands of protesters are protesting and demanding the immediate resignation of President Gotabaya Rajapaksa. They say that we do not have money to meet our needs. Foreign debt is increasing continuously in the country.

After the opposition's allegations, Minister Johnson Fernando has said that the President will not resign under any circumstances. The Gotabaya government is in majority and is trying to handle the situation in the country.

The former finance minister said - only debt can improve the situation

Ali Sabri, who stepped down as finance minister just a day after his appointment, in Parliament on Thursday advised the government to address the current crisis at any cost. He said that the government should negotiate with the World Bank and the Asian Development Bank (ADB) to take loans to remove the debt so that the situation in the country comes under control. He has expressed hope that in this way the situation can become normal by July.

India is sending petrol-diesel, rice, and medicines

After deteriorating the situation in Sri Lanka, India is continuously helping its neighboring country. On Thursday, Tamil Nadu Chief Minister MK Stalin sought permission from the Center to send essential items like rice and essential medicines to Sri Lanka. Rice, pulses, and essential goods have been sent to Sri Lanka from Thoothukudi port in Tamil Nadu. India has so far sent 2.70 lakh metric tonnes of fuel and essential medicines to Sri Lanka.

Timeline of the economic crisis in Sri Lanka

There has been an economic crisis in Sri Lanka for the last month. The rupee is depreciating rapidly in Sri Lanka and the country is mired in debt of $51 billion. Let us know what happened in Sri Lanka in the last week.

The Gotabaya government imposed an emergency in the country on 1 April. Since then, there has been a lot of opposition to it.

Rajapaksa's entire cabinet resigned on the night of 3 April amid the Emergency.

On 5 April, Sri Lanka temporarily closed its embassies in Norway, Iraq, and Australia.

President Gotabaya Rajapaksa ended the Emergency at midnight on 5 April.

Angry people started demonstrations against China across the country, which are continuing.

India delivered 36,000 metric tonnes of petrol and 40 thousand metric tonnes of diesel to Sri Lanka on 5 and 6 April. India has so far sent 2.70 lakh metric tonnes of fuel and essential medicines to Sri Lanka.

Also Read: Sri Lanka Crisis How Sri Lanka's economy got derailed while walking on the path of speed, which created a ruckus, know - China's role in this