Crisis-hit Sri Lanka to seek another bailout from India

New Delhi, April 18

Sri Lanka’s new Finance Minister Ali Sabry will meet his Indian counterpart Nirmala Sitharaman in Washington in the coming days to seek bridge loans, even as President Gotabaya Rajapaksa announced 17 new ministerial appointments which left out members of his own family except elder brother Mahinda Rajapaksa who is the Prime Minister.

Colombo plans to seek about $2 billion from India as a temporary measure till the International Monetary Fund (IMF) approves its request for a $ 4 billion bailout. The Cabinet reshuffle which divests many from the Rajapaksa family is aimed at sending a signal about professionalisation of governance in the island nation.

Gotabaya’s brother Basil was earlier shown the door as Finance Minster and replaced by Sabry. Another brother Chamal has also been dropped from the Cabinet as is Mahinda’s son Namal.

Credit rating agency Moody’s has downgraded Sri Lanka’s debt rating in junk territory.

In a contrite speech to the new Cabinet, Gotabaya said, “Today, people are under an immense pressure due to this economic crisis. I deeply regret this situation. The pain, discomfort and anger displayed by the people for having to spend time in queues to get essential items at a high price are justified.”

He also admitted said that the decision to ban all chemical fertilisers which devastated agricultural production was a mistake. However, he did not comment on the deep tax cuts that enabled the Rajapaksas to sweep the elections but gutted the economy. Last week, Sri Lanka said it was suspending external debt payments.