Cash-strapped Sri Lanka's central bank hiked interest rates by a record 700 basis points Friday as police fired tear gas at hundreds of students protesting over the economic crisis.
Severe shortages of food and fuel, alongside lengthy electricity blackouts, have led to weeks of widespread anti-government demonstrations -- with calls for President Gotabaya Rajapaksa to resign.
The latest protests saw students try to march Friday to the national parliament, and police used water cannons in efforts to disburse the angry crowds.
Monks, who had largely rallied the Sinhala-Buddhist majority to elect Rajapaksa at the November 2019 polls, were also seen joining demonstrations in the capital Colombo, where some defiantly stood opposite police wearing gas masks and holding riot shields.
Demonstrators nationwide carried placards saying "Gota go home", demanding Rajapaksa and his administration step down over the country's worst economic crisis since independence in 1948.
In recent days, thousands of Sri Lankans have taken to the streets to demand the resignation of President Gotabaya Rajapaksa.
The island nation is facing its worst economic crisis since gaining independence from Britain in 1948, and is facing food shortages, soaring prices and power cuts. Many say the government is to blame.
Anger over the economic crisis and the government’s handling of the situation has led to unrest. Last week the president of Sri Lanka, Gotabaya Rajapaksa, declared a national emergency after violent protests and calls for him to resign. That order was lifted on Tuesday as political turmoil intensified and the ruling party further lost its grip on power.
A critical lack of foreign currency has left Sri Lanka struggling to service its ballooning $51bn foreign debt, with the pandemic torpedoing vital revenue from tourism and remittances. There have been unprecedented shortages as a result, with no sign of an end to the economic woes.
Economists say Sri Lanka’s crisis has been exacerbated by government mismanagement, years of accumulated borrowing and ill-advised tax cuts.
The foreign exchange shortage forced the government to announce the closure of three of its diplomatic missions in Norway, Iraq and Australia. Three others, in Nigeria, Germany and Cyprus, were shut in January.
