Andy Buchanan | Swimming pool Getty Images “You must leave, Gotabaya,” shouted thousands of people taking to the streets of Sri Lanka to demand the overthrow of President Gotabaya Rajapaksa, defying a state of emergency in what analysts called the Sri Lankan Arab version. The president later called off the state of emergency, which had not stopped the protests. “It’s the Arab Spring in Sri Lanka. It fits in perfectly with the Arab Spring model: a popular uprising to end authoritarian rule, financial mismanagement and family rule and to establish democracy,” said Asanga Abeyagoonasekera Project in Washington, he told CNBC. The Sri Lankan High Commission in Singapore did not respond to a request from CNBC for comment. The Arab Spring refers to a series of demonstrations that began with the self-immolation of a salesman in Tunisia in 2010 and spread to many countries in the Arab world such as Egypt, Libya and Syria against authoritarianism, corruption and poverty. Four extremists, including Egypt’s Hosni Mubarak, were ousted during the Arab Spring. The powerful Rajapaksa tribe has ruled Sri Lanka for decades and returned, after a brief ouster, in 2019, when Gotabaya was elected president. Although troubled by allegations of corruption, the current outcry stems from financial mismanagement. Gotabaya was once popular for ending a decades-long civil war in 2009 with a bloody bombing campaign against Tamil separatists. At least 41 Sri Lankan lawmakers have left the ruling coalition, leaving the Rajapaksa government’s minority in parliament. The same day, the government received another blow when Finance Minister Ali Sambri resigned just one day after his appointment. “I believe I have always acted in the interest of the country,” Sambri said in a statement. He said “fresh, precautionary and unconventional steps” were needed to resolve the country’s problems. This country will no longer tolerate any Rajapaksa in government. Harsa de Silva Member of Parliament, Sri Lanka Like the crisis in Sri Lanka, the Arab Spring has also been triggered by economic stagnation and corruption in Tunisia, said Chulanee Attanayake, a researcher at the Institute for South Asian Studies at the National University of Singapore. “Sri Lanka is also witnessing anti-government protests in response to the economic downturn, rising inflation and lack of basic goods. Slogans similar to those used during the Arab Spring are also being used,” he said. A union of health professionals in Sri Lanka has declared a state of health emergency due to a lack of medicines and equipment, local media reported. But Fung Siu, chief economist for Asia with the Financial Intelligence Unit, a think tank, disagreed with the Arab Spring parallel. “The impulses for the Arab Spring have been going on for years, and resentment in Sri Lanka can be traced back to the onset of the pandemic and poor political choices,” he said.
The cabinet is shrinking as public anger mounts
The cabinet and governor of Sri Lanka’s central bank resigned on Monday amid growing public outrage and mass protests over rising food and fuel prices. Sri Lanka has sought rescue from the IMF 16 times in the last 56 years, second only to Pakistan’s debt. Fung said a new loan from the IMF could help, but a period of fiscal austerity would follow. “While such efforts will help address imbalances, higher taxes are likely to further fuel anti-government sentiment,” he said. Loyalty to the government has also sunk, Attanayake said, adding that frustration has grown since the country’s independence. “The events that are taking place at the moment show the public’s lack of confidence in the political leadership and their impatience, frustration and disappointment. They will no longer tolerate mistakes, mishandling and mistakes,” he said. Among the 26 cabinet ministers who resigned is Prime Minister Mahinda Rajapaksa’s son Namal, who wrote on Twitter that he hoped to help “the president and prime minister’s decision to create stability for the people and the government.” Sri Lankan lawmaker and opposition leader Harsha de Silva said on Tuesday that only a new election could provide a solution. “The reshuffle is only temporary. Only four members of the cabinet have been appointed … I do not think they have any credibility left to stay. “The only way to do that is to have a new mandate for a new set of people,” de Silva told CNBC’s “Squawk Box Asia.” However, the MP said it was too early to say whether the president would be forced to resign. “This pressure started to increase just 48 hours ago,” he said. “Things are moving fast today, and Parliament will meet in two weeks. And then we can see if the government still retains a majority.” Asked if he was open to joining a government of national unity, de Silva signaled his consent. He continued: “The problem, however, is that this country will no longer tolerate any Rajapaksa in government. Therefore, it will not be possible to work in a government with the Rajapaksa.”
