Bankrupt Sri Lanka’s economic crisis to deepen further as IMF talks are delayed

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<strong>The International Monetary Fund (IMF) which has been in talks with bankrupt Sri Lanka for a rescue package said it is closely monitoring the situation in the island nation amid a political crisis as both President Gotabaya Rajapaksa and Prime Minister Ranil Wickremesinghe offered to resign. </strong></p>
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Talks will now have to be stalled until a new government takes over. This could only further intensify the economic crisis.</p>
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The delay in IMF assistance would only aggravate the economic crisis in the country. </p>
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Angry protestors have stormed into the residences of Rajapaksa Wickremesinghe.</p>
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<strong>Also read: <a href="https://www.indianarrative.com/world-news/sri-lanka-crisis-gotabaya-finally-agrees-to-go-pm-wickremesinghe-too-will-quit-as-protesters-burn-his-house-183072.html">Sri Lanka crisis: Gotabaya finally agrees to go, PM Wickremesinghe too will quit as protesters burn his house</a></strong></p>
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“To ensure the continuation of the Government including  the safety of all citizens I accept the best recommendation of the Party Leaders today, to make way for an All-Party Government. To facilitate this I will resign as Prime Minister,” Wickremesinghe tweeted.</p>
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However, Sri Lanka's economic situation is unlikely to improve in the short to medium term even if a new team takes over as a full blown humanitarian crisis has now erupted. </p>
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Earlier, Wickremesinghe, who took charge in May this year, warned that it will take more than a year for things to start improving. He said that the economy has “completely collapsed.” He said the situation would improve only in 2024.</p>
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Hit by shortage of food and fuel, Sri Lanka’s economy contracted 1.6 per cent in the March quarter.</p>
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Schools and public offices have been shut down as the country has now run out of fuel.</p>