Sri Lanka hopes hinge on talks for unity govt

Attention shifts to prospect of all-party coalition after president confirms exit

COLOMBO－Sri Lankan President Gotabaya Rajapaksa has confirmed a weekend announcement that he will resign as attention shifts to the prospect of a unity government with the pressing task of stabilizing the country's political and economic crisis.

Rajapaksa officially informed Prime Minister Ranil Wickremesinghe that his resignation will take effect on Wednesday, as previously announced, the Prime Minister's Office said on Monday.

Rajapaksa had informed the speaker of the parliament on Saturday that he would step down from the presidency amid escalating protests by ordinary Sri Lankans hurt by the country's economic slide.

A senior government official told Xinhua News Agency that Wickremesinghe was planning to call for an urgent meeting with his cabinet ministers on Monday and would later meet the leaders of all political parties to discuss the way forward.

Wickremesinghe had also agreed to resign after party leaders urged both him and the president to resign, in developments that came as protesters stormed the president's residence and office on Saturday.

The prime minister's office said on Monday that the entire cabinet will resign once an agreement is reached to form a unity government drawing on all parties.

"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," Wickremesinghe's office said.

Protesters on Monday remained in the president's residence and office, as well as the prime minister's official home that they also stormed on Saturday when they demanded that the two leaders step down.

Chinese Foreign Ministry spokesman Wang Wenbin said on Monday that China is paying great attention to the situation in Sri Lanka, with the hope that people from all sectors in the country will work in solidarity to achieve social stability, economic recovery and an improvement in people's lives as soon as possible.

Economic woes

Discussions among senior political figures for the formation of an all-party government are taking place against the backdrop of negotiations with the International Monetary Fund for a bailout package. The central bank governor voiced his concerns on Monday that prolonged political instability may delay progress on the bailout talks.

If the opposition parties fail to form a government by the time Rajapaksa resigns, Wickremesinghe as prime minister will become acting president under the Constitution.

Wickremesinghe has been part of the crucial talks with the IMF on a bailout program and with the World Food Programme in an effort to avert a predicted food crisis.

The government must submit a plan on debt sustainability to the IMF in August before reaching an agreement.

Officials have been calling for a stable political environment to emerge as soon as possible, as the country's economic woes deepen.

Central bank governor P. Nandalal Weerasinghe, in his concerns expressed on Monday, told Reuters: "I would like to have a stable political administration sooner than later. I hope that there will be an administration in which people can place more confidence."

Sri Lanka has been relying on aid from India and other nations. Wickremesinghe said recently that negotiations with the IMF were complex because Sri Lanka was now a bankrupt state.

Wang Qingyun in Beijing contributed to this story.

Agencies - Xinhua - China Daily