Sri Lanka Political Crisis: How Economic Ruin Led Thousands To Storm President’s House (In Photos)

Breaking Business Sri Lanka Political Crisis: How Economic Ruin Led Thousands To Storm President’s House (In Photos) Nicholas Reimann Forbes Staff I cover national politics, with a focus on Donald Trump. New! Follow this author to improve your content experience. Got it! Jul 9, 2022, 10:56am EDT | Updated Jul 9, 2022, 11:24am EDT Share to Facebook Share to Twitter Share to Linkedin Topline Anti-government demonstrations in Sri Lanka reached a fever pitch Saturday as protesters broke into President Gotabaya Rajapaksa’s residence and demanded his resignation over an ongoing economic collapse—here’s how the situation reached this point.

Protestors demanding the resignation of Sri Lanka’s President Gotabaya Rajapaksa swim in a pool . . .

[+] inside the compound of Sri Lanka’s Presidential Palace in Colombo on Saturday. Sri Lanka’s beleaguered president reportedly fled his official residence before protesters gathered to demand his resignation stormed the compound. AFP via Getty Images Key Facts Sri Lanka long had a stable economy with a growing middle class but conditions quickly deteriorated this year—and Sri Lankans are pointing the finger at what they say are corrupt leaders who wasted the country’s wealth.

The country’s economy is a disaster by any definition: the Sri Lankan rupee has lost more than 80% of its value, food costs have skyrocketed by over 50% and tourism—one of the country’s main revenue sources—has significantly diminished due to the Covid-19 pandemic. Sri Lanka shut off fuel sales to most residents last week over concerns it would run out of petroleum, becoming the first country to broadly restrict fuel sales since the oil crisis of the 1970s. Sri Lanka also owes more than $50 billion in debts and has been unable to pay interest accrued on its loans.

The country is reportedly in negotiations with the International Monetary Fund for a $3 billion bailout package, but the deal is expected to come with many strings attached to ensure the money is not mishandled by politicians. Prime Minister Ranil Wickremesinghe signaled Saturday he is willing to resign after serving less than two months in office, but President Gotabaya Rajapaksa has resisted calls to relinquish power. Key Background Saturday’s storming of the palace capped months of regular demonstrations throughout the country calling for Rajapaksa’s resignation.

Rajapaksa has declared national states of emergency on multiple occasions in response, while calling up the country’s army and imposing curfews in an attempt to contain the protests. Demonstrators claimed a major victory in May, when Mahinda Rajapaksa—the president’s older brother—agreed to step down as prime minister following mass resignations from Sri Lanka’s cabinet. News Peg More than 100,000 people reportedly gathered outside the Presidential Palace Saturday, at times clashing with police who were unable to contain many in the crowd from entering the palace itself.

Rajapaksa was not present at the Presidential Palace compound, having fled ahead of the demonstrations. At least 55 people were said to be injured in the Palace protesting. Protesters clash with police in a street near the Presidential Palace in Colombo on Saturday.

AFP via Getty Images Protesters gather inside the Presidential Palace compound on Saturday in Colombo. AFP via Getty Images Demonstrators congregate near the Presidential Palace in Colombo on Saturday. AFP via Getty Images Sri Lankan Army personnel sit near demonstrators (unseen) inside the Presidential Palace compound in .

. . [+] Colombo on Saturday.

AFP via Getty Images Protesters pack into the Presidential Palace compound on Saturday in Colombo. AFP via Getty Images Protesters express anger inside the Presidential Palace in Colombo on Saturday. NurPhoto via Getty Images Protesters march inside the Presidential Palace in Colombo on Saturday.

NurPhoto via Getty Images A Sri Lankan flag waves Saturday above protesters who stormed the Presidential Palace in Colombo. NurPhoto via Getty Images Follow me on Twitter . Send me a secure tip .

Nicholas Reimann Editorial Standards Print Reprints & Permissions.