Sri Lanka Parliament to sit in late morning amid crisis

ECONOMYNEXT – Sri Lanka’s Parliament is due to sit at 10.30 am Friday to set up a select committee to probe a riot triggered by legislators loyal to Mahinda Rajapaksa who were obstructing a vote of no-confidence against him.

For the 12 positions in the committee, 16 nominations have been sent, reports said.

Sri Lanka is in a political crisis, with parliament already passing no-confidence motions against Rajapaksa who was appointed Prime Minister by President Maithripala Sirisena on October 26.

The Rajapaksa faction has claimed it should be given the chance to appoint the majority of members.

Other parties are opposing the move, saying they have the majority.

The political crisis is turning into an economic crisis, with capital flight from bond markets intensifying  and tens of billions of rupees being printed by the central bank to keep interest rates down after intervening in forex markets.

The first downgrade has come from Moody’s who cut Sri Lanka speculative B1 rating to B2, with a stable outlook at the lower level. (Colombo/Nov21/2018)

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