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Sri Lanka names new PM to address growing crisis

MM News Staff by MM News Staff
May 13, 2022
Ranil Wickremesinghe has been prime minister five times before. Source: Reuters.

Ranil Wickremesinghe has been prime minister five times before. Source: Reuters.

COLOMBO: Sri Lanka appointed a new prime minister as its embattled president seeks a way out of the country’s worst economic crisis that has sparked widespread protests.

Ranil Wickremesinghe, a political veteran who has been prime minister of the island nation five times before, must try to address financial chaos and heal political divisions as he sets out to form a coalition government.

“We are facing a crisis, we have to get out of it,” Wickremesinghe said as he left a temple in the main city of Colombo shortly after his swearing-in. Asked whether there was a possible solution, he replied: “Absolutely.”

The 73-year-old is an economic liberal who has experience dealing with the International Monetary Fund (IMF), which is currently in discussions to bail out Sri Lanka.

He has also built relationships with regional powers India and China, key investors and lenders who vie for influence over the island nation that lies along busy shipping routes linking Asia to Europe.

President Gotabaya Rajapaksa congratulated the new premier. “My best wishes to the newly appointed PM … who stepped up to take on the challenging task of steering our country through a very turbulent time,” he tweeted. “I look forward to working together with him to make Sri Lanka strong again.”

The current crisis could be Wickremesinghe’s greatest challenge yet. Economic mismanagement, the COVID-19 pandemic, and rising energy costs have drained state coffers, meaning Sri Lanka is running low on fuel and facing daily power blackouts.

READ MORE: Sri Lanka prime minister resigns amid violent protests

Rajapaksa, whose elder brother Wickremesinghe replaced as prime minister, has called nationwide curfews and given security forces sweeping powers to shoot at anyone involved in looting or putting people’s lives at risk.

Mahinda Rajapaksa, who resigned on Monday, has gone into hiding on a naval base. Mostly peaceful demonstrations erupted into violence after supporters of Mahinda Rajapaksa attacked an anti-government protest camp in Colombo.

Days of violent reprisals against government figures aligned to the powerful Rajapaksa clan followed. Security forces were called out to patrol the streets, and police said nine people were killed and more than 300 injured in the clashes, which have since subsided.

Protesters have sprayed graffiti over Mahinda Rajapaksa’s home in a southern town and ransacked a museum dedicated to his father. They have vowed to keep up the protests until the president also quits. On Thursday, a magistrate’s court issued orders blocking him, his son Namal and other key allies from leaving the country. 

The Colombo stock market, closed for the last two days, ended more than three percent up on Thursday on optimism over a new cabinet, traders said. It closed before Wickremesinghe was appointed.

Sri Lanka’s central bank governor said on Wednesday that failing to find a solution to the crisis in the next one to two weeks would lead to power cuts of up to 10 to 12 hours per day, as well as his own resignation.

President Rajapaksa has repeatedly called for a unity government to find a way out of the crisis, but opposition leaders say they will not serve until he resigns.

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