Sri Lanka economic crisis: Embassies shut, Rajapaksa govt loses majority | Top points

Fuelled by anger over the shortage of food and fuel and power cuts, people have continued to protest against Gotabaya Rajapaksa-led government and demanded his entire family resign over their handling of the debt-heavy economy.

The economic crisis in Sri Lanka has escalated into political turmoil, days after the public protested outside President Gotabaya Rajapaksa's house in the capital Colombo. Dozens of Sri Lankan lawmakers walked out of the ruling coalition on Tuesday, leaving Rajapaksa's government with fewer than the 113 members needed to maintain a majority in the 225-member house. Fuelled by anger over the shortage of food and fuel and power cuts, people have continued to protest against Gotabaya Rajapaksa-led government and demanded his entire family resign over their handling of the debt-heavy economy.

Sri Lankan police officers stand guard near the parliament during a protest in Colombo, Sri Lanka, Tuesday, April 5, 2022. (AP)

Here are top updates from the Sri Lanka crisis:

>In a setback for the Sri Lankan government, finance minister Ali Sabry resigned within 24 hours after his appointment and ahead of crucial talks scheduled with the International Monetary Fund (IMF) for a loan programme to help the country out of its worst economic crisis.

>Massive protests were witnessed outside Sri Lankan Parliament on Tuesday as demonstrators continued to demand the resignation of Rajapaksa over the country’s worst economic crisis in decades.

>The United States, meanwhile, expressed concerns about the economic situation in Sri Lanka and urged authorities in the island nation to exercise restraint and avoid social media blackouts. "We are deeply concerned about the economic situation in Sri Lanka. All have the right to peacefully protest and voice their views. We urge authorities to exercise restraint and to avoid social media blackouts and arrests under the Prevention of Terrorism Act in response," US state department spokesperson Ned Price tweeted.

>Cash-strapped Sri Lanka has decided to temporarily shut its embassies in Norway and Iraq, as well as the country's Consulate General in Sydney amid the ongoing crisis in the country. The decision will take effect from April 30, a statement by its foreign ministry read.

>A group of Sri Lankan governing party lawmakers has called for the appointment of an interim government, warning that a failure to do so would lead to violence and anarchy.

> The 36-hour long curfew -- that was imposed in Sri Lanka following public unrest outside the President's home -- was lifted on Monday. The country, however, continues to operate under a state of emergency.

>India recently announced to extend a USD 1 billion line of credit to Sri Lanka as part of its financial assistance to the country to deal with the economic crisis following a previous USD 500 billion line of credit in February to help it purchase petroleum products.

(With inputs from agencies)