Sri Lanka: Cabinet to quit once deal on unity government reached says PM's office

Sri Lanka's entire cabinet will resign once an agreement is reached to form an all-party government, the prime minister's office said on Monday, as authorities try to overcome a political crisis triggered by a deep economic one.

"All the ministers who participated in the discussion were of the opinion that as soon as there is an agreement to form an all-party government, they are ready to hand over their responsibilities to that government," said the office of Prime Minister Ranil Wickremesinghe, who has already offered to quit. 

Watch as protesters celebrated after seizing President Gotabaya Rajapaksa's office in Colombo, #SriLanka yesterday. Sri Lanka has spun from a death spiral into chaos.pic.twitter.com/ZC2hKax3av

— Steve Hanke (@steve_hanke) July 10, 2022

Sri Lanka has been plunged into a political vacuum after an economic crisis sparked widespread protests against the government. 

Protesters remained in President Gotabaya Rajapaksa’s residence, his seaside office and the prime minister’s official home, which they took possession of on Saturday. It was the biggest and most eventful day of protests over the past three months surrounding the administrative district in the capital, Colombo.

Protestors in Sri Lanka are making full use of the Presidential Palace’s amenities! Take a look as they take a dip in President Rajapaksa’s pool:pic.twitter.com/fTCHlVPuIh

— Steve Hanke (@steve_hanke) July 9, 2022

Sri Lanka is relying on aid from India and other nations as leaders try to negotiate a bailout with the IMF. Senior officials said recently that negotiations with the IMF were complex because Sri Lanka was now a bankrupt state.

Sri Lanka announced in April that it was suspending repayment of foreign loans due to a foreign currency shortage. Its total foreign debt amounts to $51 billion, of which it must repay $28 billion by the end of 2027.

Months of demonstrations have all but dismantled the Rajapaksa political dynasty, which has ruled Sri Lanka for most of the past two decades but is accused by protesters of mismanagement and corruption.