Cash-strapped Sri Lanka named nine new ministers yesterday to a “all-party government” tasked with guiding the country out of its economic crisis, but the critical finance job remains vacant.
Sri Lankan Prime Minister Ranil Wickremesinghe took over earlier this month after Mahinda Rajapaksa, the president’s elder brother, resigned as mounting demonstrations blamed his administration for pushing the economy to the verge of collapse. After the previous Cabinet was dissolved, Wickremesinghe promised to form a cross-party coalition.
The new ministers — for health, education and justice, among others — were sworn in before Sri Lankan President Gotabaya Rajapaksa at his tightly-guarded official residence in Colombo, the administration said in a brief statement.
Two members of the main opposition SJB party defected to join the new government. Another opposition organisation, the Sri Lanka Freedom Party, agreed to back President Rajapaksa and was awarded one portfolio yesterday.
The finance job, which will be responsible for spearheading negotiations with the IMF for a bailout, is still open. The incoming prime minister’s office, on the other hand, stated that someone would be chosen next week.
The central bank president warned on Thursday that the lack of a finance minister could jeopardise IMF negotiations.
Sri Lanka is experiencing its worst-ever foreign exchange deficit, with the government unable to finance even the most basic imports such as food, fuel, and medications.
The government closed workplaces and schools yesterday as a fuel scarcity disrupted transportation across the country.
Officials said the government has raised the US$53 million required to pay for a gasoline shipment that arrived at the Colombo port this week.
According to officials, retail pumping stations could be supplied over the weekend.
The central bank announced on Thursday that it will be unable to resume international debt repayments for at least six months unless the country’s external debt of US$51 billion is restructured.
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