There are indications that the government delegation that went to meet with the IMF in Washington did not obtain the immediate relief in the form of a quick transfer of dollars into the government’s coffers that they hoped for, and indeed, the country at large hopes for. Instead, the IMF appears to be saying that the government should first present a concrete plan as to how it is going to pay back the huge loan aggregate before the IMF provides any assistance. This would require the government to present a proposal of how it is going to save money by cutting down on expenditure to repay the outstanding loans. Further, it would require the government to go to its creditors and seek to get some write-offs and also extend the period of repayment. This may be possible with foreign governments whose loans we need to repay if there is sufficient goodwill and a desire to help.
Faced with the challenge of showing a stable government, President Gotabaya Rajapaksa has appointed a new cabinet together with a large ministerial contingent. Leaders of government in other democratic countries would have resigned for less. Sri Lanka has effectively declared itself to be bankrupt under this government by reneging on the repayment of international debt. This has happened at a time when mass protests against the government are gathering strength. The continuation of mass protests at Galle Face during the traditional New Year which is always reserved for family reunions is a sign that the protests will not gradually go away. Instead of traveling back to their homes in the villages, entire families, young and old alike, left their homes to come to Galle Face. It seems they come on pilgrimage to the site of democracy and many do not go back but pitch tent.