Why crisis-hit Pakistan won’t go the Lanka way

There are a few factors that might prevent an all-out collapse like we saw in Sri Lanka. First, Pakistan has been here before. Many times, in fact.  Pakistan has sought financial aid from the UAE, China, and the IMF in 2013, 2016 and 2018.  Second, the international community is wary about a Sri Lanka styled economic and political collapse in a nuclear armed country. The threat of rogue players gaining access to nukes often makes lenders a lot more lenient in issuance of fresh loans and repayment terms. Third, Pakistan has more generous friends. Pakistan received a loan from Saudi Arabia and recently, the UAE government has offered to acquire 10 to 12 per cent equity shares in Pakistan government-owned companies through its sovereign wealth funds.

If India Wants Political Stability in Colombo, It Must Act in Interest of Sri Lankan People

On May 9, the largely peaceful anti-Rajapaksa protests in Sri Lanka took a violent turn. In the resulting violence, nine people died, including two policemen, with the agitating crowd burning down the home of Prime Minister Mahinda Rajapaksa. Subsequently, while the Prime Minister resigned, his younger brother Gotabaya Rajapaksa remained the President. Facing nationwide civil unrest, the government imposed a curfew on May 9 and issued shoot at sight orders on those engaging in violence. Though the appointment of Ranil Wickremesinghe as Prime Minister has provided a semblance of political stability in the country, the protesters have refused to budge from their demand for the resignation of President Gotabaya.

Why India should pull Sri Lanka out of China’s ‘debt trap’ and take it closer to the US

On 12 April, Sri Lanka declared the default on all payments on its $51-billion external debt to buy oil and agricultural commodities. The alarming level of food scarcity in the country has mobilised the population to demand the ouster of President Gotabaya Rajapaksa with the slogans ‘Go Gota Go’ and ‘Go Home Gota’ echoing on the streets. His decision to impose a public emergency on 1 April intensified protests further, leading to its quick revocation four days later. On the same day, former President Maithripala Sirisena-led Sri Lanka Freedom Party decided to withdraw its support from the ruling coalition led by Mahinda Rajapaksa. Till now, 42 members of the Sri Lankan parliament have withdrawn their support from the ruling coalition, including 12 from the Rajapaksas’ Sri Lanka Podujana Peramuna, leading to the government’s loss of majority.