The people lack of grain and medicine and gasoline, the government "bankruptcy", the President of Sri Lanka flew to the Maldives, his younger brother flew to the United States

Author:Daily Economic News Time:2022.07.13

According to CCTV News quoted BBC, Sri Lanka President Gota Baya Rajapaksa left the country in the early morning of July 13, local time.

According to the Xinhua News Agency quoted the Maldives Media on the 13th, Gotapa Rajapaksa had taken the opportunity to arrive in the Maldives in the early morning of the day. According to reports, Rajapaksa arrived at the Verana International Airport at about 3 am at about 3 am. Maldives Nagei welcomed Rajapaksa at the airport, and the airport security was strict.

Earlier, Gotapa Rajapaksa promised to resign on July 13 and signed a resignation letter.

In addition, President's younger brother and former financial minister Bahil Rajapaksa have also left to the United States.

According to Xinhua News Agency, protests broke out on the 9th. Since the beginning of this year, Sri Lanka has a serious shortage of food, oil and gas, and drugs. Food prices have risen sharply, inflation has continued to intensify, and the economy is on the verge of collapse. The Sri Lanka had previously announced the "bankruptcy", the school was also forced to close, and the people were dissatisfied with their emotions. According to the World Grain Program, more than 6.2 million people are facing food shortages in the country's population of about 22 million, and about 61%of families have to reduce food consumption.

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The Sri Lankan will be elected to generate a new president on the 20th

A protests broke out on the 9th. According to local media reports, more than 30 people were injured in protests.

In the afternoon of the same day, Prime Minister Vikra Marinha asked to hold an emergency party meeting to discuss the current situation and seek solutions. Most political party leaders ask the president and the Prime Minister to resign immediately, and form the interim government participating in each party as soon as possible.

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At 13:00 on the 9th, a large number of demonstrators rushed into the Sri Lanka President's residence

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On the 12th, the Burned Sri Lanka Prime Minister's private house had been restored to calm

Sri Lanka Speaker Abvadner said on the 11th that the Sri Lanka will elected a new president on the 20th of this month.

Abervadner said in a statement that the Sri Lang party leaders held a meeting on the same day. According to the decision reached by the meeting, the parliament will be held on the 15th of this month. On the 19th, the presidential candidate was accepted and the new president was elected on the 20th. The new president will be responsible for the establishment of the government participating in each party.

President Gota Baya Rajapaksa informed Abyvadner on the 9th that he would resign on the 13th of this month.

The Prime Minister's Office also issued a statement on the 9th saying that Prime Minister Vikramaxinha was willing to resign to facilitate the establishment of a new government participating in various parties.

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Why is Sri Lanka's situation falling into turbulence

Analysts believe that the economic situation of Sri Lanka has deteriorated in recent years, which is the result of the common role of internal and external factors.

In terms of Neyo, Sri Lanka has suffered British colonial rule. The relics of the colonial economy have led to the country's economy still seriously relying on a few crops such as tea and rubber. The single economic structure has led to its weak ability to resist risks. In 2021, the Sri Lanka promoted the disable of chemical fertilizer for the development of organic agriculture. Although the ban has been relaxed in the dissatisfaction of the public since then, according to experts, the ban reduced the annual output of Sri Lao about 43%, and the export of economic crops such as rubber, coconut, and tea decreased by 40%. Many farmers have lost their income sources. The reduction of crop production has led to soaring food prices, a large number of people's lives are in trouble, and the impact of low -income groups has more impact.

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On May 19th, the public lined up in front of a gas station in the Coronapu of Sri Lanka and waited to buy kerosene. Xinhua News Agency (Photo by Agit Perera)

In terms of external causes, Sri Lanka's economy is largely dependent on foreign exchange income, and its production materials and necessities are highly dependent on imports. Tourism is one of the main sources of Sri Lanka. After the new crown epidemic was outbreak, the number of international tourists from Laisi Tourism fell. Although the overall situation improved in 2021, it was not as good as the pre -epidemic level. Affected by the epidemic, another important pillar of Sri Lanka's foreign exchange -overseas migrant workers also decreased significantly. The overlapping of the two has led to a significant reduction in foreign exchange income. According to data from the Ministry of Finance of Sri Lanka in May this year, the country's use of foreign exchange reserves has dropped to less than 50 million US dollars.

Since February of this year, factors such as the upgrading of the Ukraine crisis have led to the continuous rise in global food and energy prices, making it more difficult for Sri Lanka, which was already tight foreign exchange, to import sufficient food and energy, which has continued to deteriorate its domestic inflation. Sri Lanka's inflation rate reached 54.6%of the record in June, and the inflation rate of food was as high as 80.1%. Vikra Masinger said in early July that the country's inflation rate will reach 60%in the next few months.

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On May 21st, workers moved goods in Beta Market in Karonbo, Sri Lankan. Beta market is one of the most important and busiest commodity centers in Sri Lanka. Due to the economic crisis, the Beta market is not as prosperous as before, but the food wholesale business that is closely related to the lives of locals is still busy. Xinhua News Agency reporter Tang Lu

Professor Jia Yada Wangogoda, Professor of Political Science, University of Colombo, said that in the face of a worsening economic crisis, the Sriors Bureau may face more uncertainty in the future, and new leaders in the future will also face severe challenges.

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The Ministry of Foreign Affairs responded to Sri Lanka's debt involved in China

Foreign Ministry spokesman Wang Wenbin hosted a regular press conference on July 12. Some reporters asked Sri Lanka's debt involved in China.

In response, Wang Wenbin said that China supports relevant financial institutions Tongzhi to consult and seek proper solutions. It is willing to have a positive role in responding to the current difficulties, alleviating debt burdens, and achieving sustainable development with the relevant countries and international financial institutions. Wang Wenbin: We have clarified many times that China has suffered the difficulties and challenges facing Sri Lanka, and has provided Sri Lanka with emergency humanitarian assistance including food and medicine. China also provides multiple batches, diversified, and benefiting the people's livelihood through the government, local, and friendly organizations. China will continue to help Sri Lankan's economic and social development within its ability to support the restoration of the economy and improve people's livelihood.

Regarding the debt involved in China, China supports the relevant financial institutions Toman to negotiate and seek proper solutions. We are willing to have a positive role in responding to the current difficulties, alleviating debt burdens, and achieving sustainable development for the relevant countries and international financial institutions.

Edit | Lu Xiangyong Du Hengfeng

School Division | Cheng Peng

Daily Economic News Integrity From CCTV News, Xinhua News Agency

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Daily Economic News

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