Is Sri Lanka set for regime change after Mahinda Rajapaksa flees to Trincomalee?

Sri Lanka is facing the worst economic crisis since its independence in 1948. The South Asian Island nation is in the grips of acute shortages of food, fuel and medicines. The 13-hour power-cuts have become the norm and the country was forced to cancel school exams as it could not pay for the imports of paper. And now, Prime Minister Mahinda Rajapaksa has resigned, and fled to a naval base in Trincomalee.

Sri Lanka’s foreign exchange reserves have declined to an alarming $ 1.6 billion in March 2022. However, it has upwards of $ 7 billion debt obligations slated for this year. Amidst the deepening economic crisis, Sri Lanka has defaulted on the $ 51-billion foreign debts. The decision to default was expected and yet it will make it difficult for Sri Lanka to borrow. 

To manage the crisis, the government has sought assistance from India, China, and the International Monetary Fund (IMF). However, the regime led by President Gotabaya Rajapaksa is on a sticky wicket. He has brought in a new finance minister to restore confidence and have changed the cabinet ministers as well. However, these measures have been seen as too little, too late.

The government has tried to placate the opposition parties by the offers of forming a unity government. However, the protests continue unabated and the protestors are demanding the resignation of President Rajapaksa.

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