COLOMBO: Sri Lanka's main opposition party on Friday asked the government to take effective action to resolve an economic crisis or face a no-confidence motion, as business leaders from garments, tea and other industries warned exports could fall 20 to 30 per cent this year.
At least 41 lawmakers have walked out of the ruling coalition to become independents, though the government says it still has a majority in parliament. Parliament proceedings were suspended twice in the morning after parliamentarians heckled each other, with two members temporarily removed from the chamber on the orders of the speaker.
"Our estimate is that both merchandise and service exports could drop 20 to 30 per cent this year due to a dollar shortage, higher freight costs and power cuts."Rajapaksa is struggling to find a new finance minister to hold talks this month with the IMF for emergency loans, after Ali Sabry submitted his resignation on Tuesday with just a day in office. It was not clear if the president had accepted Sabry's resignation.
Inflation, meanwhile, has rocketed to its highest level in more than a decade, and on Friday evening, the Central Bank of Sri Lanka is expected to raise key interest rates by as much as 400 basis points following a 100 bps rise in early March.