Crisis-hit Sri Lanka expands Cabinet, but no finance minister

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COLOMBO: Cash-strapped Sri Lanka appointed nine more ministers on Friday (May 20) to an 'all-party government' tasked with trying to steer the country out of its economic crisis, but the crucial finance portfolio remains vacant.

The finance position - which will bring with it responsibility for leading negotiations with the International Monetary Fund over a bail-out - remains vacant.The delay in getting a finance minister could hinder the IMF negotiations, the central bank chief warned on Thursday.

Sri Lanka is facing its worst-ever shortage of foreign exchange with the government unable to finance even the most essential imports such as food, fuel and medicines.Consumers have been unable to access petrol, diesel and cooking gas while staple food has been rationed. The country is also facing record inflation and lengthy daily electricity blackouts.

The government shut offices and schools on Friday as the petrol shortage crippled transport across the country. But officials said the government had managed to raise the US$53 million necessary to pay for a petrol shipment which arrived at the Colombo port this week.The Central Bank of Sri Lanka announced on Thursday that it will not be able to resume foreign debt repayments for at least another six months until the country's external debt of US$51 billion is restructured.

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