Sri Lanka's National Unity Government Alliance Extended: World Socialist Web Site
Sri Lanka's National Unity Government Alliance Extended: World Socialist Web Site
Sri Lanka's National Unity Government Alliance Extended: World Socialist Web Site
wsws.org
in these agitations.
In the recent months, postal and health workers have
walked out on strike for several days. Non-academic
university employees held a one-day strike on July 6,
demanding the government grant long outstanding
demands for a wage rise. On July 27, they struck
indefinitely. The University Grants Commission
responded by closing down universities. University
students throughout the country are involved in class
boycotts and protest marches in defiance of police
orders and repression.
The struggles of Sri Lankan workers and youth are
part of a resurgence of the working class
internationally.
The
political
dilemma
facing
Sirisena-Wickremesinghe government is exacerbated
by its deepening balance of payments crisis and the
increasing demands of the IMF for austerity. A recent
Sri Lanka Country Risk Report, issued by Business
Monitor International, bluntly declared that the
government will face difficulty in making short-term
adjustments to its budget due to political gridlock and
high interest costs.
The IMF recently agreed to grant a $US1.5 billion
loan as a short-term cover for Sri Lankas severe
balance of payments crisis. The countrys foreign
exchange reserves have fallen by a third from their
peak in late 2014 to just $6.2 billion at the end of
March this year. Foreign debt increased from $21.5
billion, or 36.1 percent of the gross domestic product
(GDP), in 2010 to around $57 billion, or 69.4 percent
of GDP, at the end of 2014. Total foreign debt is
currently believed to be over $70 billion.
The Sirisena-Wickremesinghe government is fully
aware that the challenges it confronts cannot be
overcome democratically or peacefully. The extension
of the NUG alliance deal will be followed by even
more draconian measures against working people.
Prime Minister Wickremesinghe indicated this in an
address to the journalists on July 22 in Kandy.
Accusing the countrys print media of backing
Rajapakse with a view to his return to power,
Wickremesinghe warned: If they [Rajapakses
supporters] are trying to topple this government and
bring him back, we are ready for it.
Neither faction of the ruling elitethat led by
Wickremesinghe and Sirisena or its rivals led by