The central bank of Sri Lanka has decided to raise interest rates by an unprecedented 700 basis points to combat soaring inflation amid the country’s greatest economic crisis, which has sparked nationwide protests and pushed President Gotabaya Rajapaksa to quit.
President Gotabaya Rajapaksa’s ruling coalition in Sri Lanka lost its majority in parliament on Tuesday. Even after 41 legislators defeat, President stated that he would not resign and that he is willing to hand over power to anyone who can demonstrate a 113-seat majority.
However, protests erupted around the country, calling for the President and the entire Rajapaksa family to resign from office.
The situation came following a serious medicine scarcity, the country has been classified in an emergency health crisis since Tuesday. Meanwhile, the IMF has stated that it is closely monitoring political and economic events in Sri Lanka.