Anger over the financial crisis and the government’s handling of the situation has led to unrest. Last week, Sri Lankan President Gotabaya Rajapaksa declared a state of emergency following violent protests and called for him to resign. The mandate was lifted on Tuesday as political unrest escalated and the ruling party further lost power.

Where are the protests?

Protests have spread across the country of 22 million people, despite emergency laws. Since the weekend, crowds have tried to storm the homes of several top government officials, and public frustration is high. “If we do not act now, there will be a river of bloodshed in the country,” said Wijeyadasa Rajapakshe, a recently independent lawmaker who broke with the president’s party and called for the leader to resign. Many of the demonstrations were peaceful, with Catholic clergy and nuns leading a procession to the capital. “This is a valuable country with smart people. “But our intelligence, the intelligence of the people, has been corrupted by corruption,” said Cardinal Malcolm Ranjith. “That’s why we’re shouting now; please listen to the people’s cry now and give up.”

What is the political situation?

Unrest and dissatisfaction with the government have led the entire Sri Lankan cabinet except the president and the prime minister’s brother to step down this week. Rajapaksa sought to form a unity government as public unrest escalated over the management of the economy by the ruling family. His once-powerful coalition is in turmoil following a series of strikes, limited by the resignation of the new finance minister just one day after taking office. Rajapaksa lifted the state of emergency late Tuesday after dozens of lawmakers walked out of the ruling coalition, leaving his government a minority in parliament. The move was aimed at avoiding a vote on emergency laws in parliament, where the government lags behind five of the 113 seats required for a simple majority.

What will happen next?

Politically, possible next steps could include the appointment of a new prime minister to replace the president’s older brother, Mahinda Rajapaksa, or early parliamentary elections long before a scheduled 2025 vote. Although the government is now in the minority, there has been no clear signal that opposition lawmakers will attempt a motion of censure to overthrow it immediately. However, opposition parties have already rejected Rajapaksa’s call to join a unity government led by him and his brother. Nimal Lanza, a former minister who has also left Rajapaksa’s administration, has admitted that the ruling party no longer has a mandate to rule. “Please and I urge you to take the side of the protesters,” he told parliament, addressing the prime minister, who attended the meeting but remained silent.

How bad is the financial crisis?

A critical foreign exchange shortage has left Sri Lanka struggling to service its $ 51 billion foreign debt, with the pandemic torpedoing vital revenues from tourism and remittances. As a result, there have been unprecedented shortages, with no signs of ending financial woes. Economists say the Sri Lankan crisis has been exacerbated by government mismanagement, years of accumulated borrowing and inappropriate tax cuts. The lack of foreign exchange forced the government to announce the closure of three of its diplomatic missions in Norway, Iraq and Australia. Three others, in Nigeria, Germany and Cyprus, closed in January. A body of doctors also told the government that there was a severe shortage of medicines that could collapse the health system. “Failure to ensure the continuous and adequate supply of essential medicines will lead to the collapse of the entire health system,” the health ministry said in a letter. “This will create a life-threatening situation for our citizens who are already facing an unprecedented crisis,” said the government Doctors’ Union.

Has the international community responded?

During the protests in the capital, more than 60 people were arrested in connection with the riots and many said they were tortured by police detention. The UN Human Rights Council said it was closely monitoring the deteriorating situation in Sri Lanka, which is already facing international reproach for its human rights record. “The shift to militarization and the weakening of institutional controls and balances in Sri Lanka have affected the state’s ability to deal effectively with the economic crisis,” the UNHRC said. Reuters and Agence France-Presse contributed to this report