Govt continued repression against protesters despite international pressure and sought International Monetary Fund (IMF) assistance as way out of deepening economic crisis. Government’s crackdown on protest movement continued as police arrested dozens of political activists, including key protest leaders, charging them with range of mostly minor offences. Notably, security forces 18 Aug dispersed peaceful march by students, whereby police used water cannons and tear gas and arrested 20, including three well-known student leaders; decision to detain student leaders under Prevention of Terrorism Act (PTA) was strongly criticised by western diplomats, UN and human rights groups and indicates importance attached to eliminating political opposition from streets prior to implementation of painful economic policies in coming months. Ambassadors from EU countries 10 Aug jointly reiterated that “protection of civil & human rights, above all freedom of expression & right to dissent, is of utmost importance”. President’s office 16 Aug announced that state of emergency would be allowed to lapse at end of Aug. On economic front, financial reports mid-month showed inflation hit 60.8% year-on-year in July and food costs had risen 90.9%. IMF visit 24-31 Aug appeared to finalise “staff level agreement” on policy reforms needed for estimated $2.9bn “extended funds facility” bailout. Earlier, IMF 19 Aug reiterated that disbursement of funds “would require adequate assurances by Sri Lanka’s creditors that debt sustainability will be restored”, as worries grew about China’s willingness to accept losses on its loans. President Wickremesinghe 30 Aug announced interim budget with tax increases and other policies designed to reduce budget deficit. Meanwhile, Chinese Navy research vessel Yuan Wang 5 with sophisticated capabilities 16 Aug made delayed call on Hambantota port, despite strong objections by U.S. and India. Chinese ambassador 26 Aug criticised “external obstruction” based on so called “security concerns”, alleged history of “aggression [against Sri Lanka] from its northern neighbor” and pledged to defend country’s “national sovereignty, independence and territorial integrity”; Indian high commissioner next day criticised Chinese counterpart’s “violation of basic diplomatic etiquette” and alleged “debt driven agendas”.

Protesters compelled President Rajapaksa’s resignation after storming official residence; newly-appointed President Wickremesinghe authorised violent clampdown in capital Colombo. In unprecedented display of “people power”, crowds gathered for massive protests 9 July stormed presidential residence in capital Colombo in bid to force President Rajapaksa to resign; Rajapaksa 13 July fled country and next day resigned. Rajapaksa 13 July appointed PM Wickremesinghe as acting president, which provoked outrage among protesters who stormed and occupied PM’s office in effort to force his resignation. In response, Wickremesinghe same day declared state of emergency and curfew, and proclaimed his intention to “eliminate the fascist threat” posed by protesters, whom he accused of 9 July arson attack that destroyed his private residence. With security situation increasingly fraught amid clashes between security forces and protesters outside parliament in following days, credible reports indicated govt had authorised military to use live ammunition to quell protests; tensions, however, somewhat eased by 15 July when Wickremesinghe was sworn in as acting president. Wickremesinghe 20 July won parliamentary vote to become president and 22 July appointed new PM and cabinet dominated by Rajapaksa loyalists, appearing to have brought country full circle. Tensions 22 July reignited following Wickremesinghe’s decision to send in heavily armed soldiers and police commandoes to forcefully clear away Colombo’s main protest encampment and oust protesters from nearby presidential secretariat, resulting in some 50 people injured and nine arrested; govt use of force was condemned by Sri Lankan Bar Association and UN High Commissioner for Human Rights, while U.S., British and Canadian ambassadors expressed deep concern. Final week of month saw police arrest key protest leaders and parliament 27 July ratify state of emergency. Meanwhile, economic crisis continued to worsen amid inflation running at more than 60% during month, and UN surveys indicating more than quarter of population, and nearly half of children, required emergency assistance; lack of fuel continued to cripple economy. Talks with International Monetary Fund had made progress last month but final deal likely hampered by political instability, while actual disbursement of funds will await successful outcome of debt restructuring negotiations with international creditors.

Amid risk of “full-blown humanitarian crisis”, tensions mounted as authorities sought to address widespread hunger and shortages and Supreme Court dashed opposition’s hopes for root-and-branch political reform. Economic prospects worsened during month as lack of hard currency to purchase fuel increasingly strained productivity across country, raising risk of economic depression on top of skyrocketing inflation. UN 9 June launched global appeal to raise $47.2mn in assistance by Sept 2022; UN’s humanitarian office next day warned economic crisis is deteriorating rapidly and is at risk of tipping into a “full-blown humanitarian crisis”, while UN Resident Coordinator in capital Colombo same day said estimated 4.9mn people, or 22% of population, were currently in need of food assistance. Govt closed schools and ordered workers to stay at home for two weeks beginning 20 June, while queues for cooking gas and petrol extended miles in many places, leading to violent incidents at gas stations. Notably, army 18 June fired live ammunition over heads of Tamils waiting in line in northern town of Vishvamadu. Sri Lanka Bar Association 18 June called on police to “act with restraint and caution in dealing with the public”. Police made series of arrests of protest leaders and social media activists throughout month. PM Ranil Wickremesinghe 7 June urged citizens to be patient and not hoard fuel or essentials; said govt would request $6bn in support from International Monetary Fund (IMF), including $5bn for daily needs in next six months, along with another billion to stabilise rapidly depreciating rupee. IMF representatives 20 June visited Colombo in effort to complete staff level agreement on economic reforms and bailout. On political front, hopes for passage of opposition Samagi Jana Balawegaya (SJB)’s proposal for 21st Amendment to constitution to abolish executive presidency were dashed after speaker 21 June announced amendment would require both two-thirds parliamentary majority and approval through referendum. Cabinet 20 June approved separate amendment proposed by Justice Minister Wijeyadasa Rajapakshe, which would reportedly limit president’s power only modestly. SJB and opposition National People’s Power (NPP) 21 June announced boycott of parliament in protest at govt’s failure to address crises.

Deadly clashes erupted between pro- and anti-govt protesters, forcing PM Mahinda Rajapaksa to resign as country faced possible extended period of political stalemate and instability. Mahinda Rajapaksa 9 May resigned as PM after hundreds of his supporters violently attacked peaceful protesters stationed outside his official residence and at main “GotaGoGama” protest camp in capital Colombo; notably, pro-Mahinda supporters beat protesters and burned GotaGoGama site, injuring scores. Attack triggered large-scale counter-reprisals, first in Colombo and then across island, from groups aligned with anti-govt protest movement; anti-govt attackers 9-10 May torched over 100 houses and properties mostly owned by Rajapaksa family and ruling party members, resulting in eight killed and over 200 injured. Amid island-wide curfew next day, protests continued. In following days, police arrested scores for alleged role in violence, including activists reportedly not involved. President Rajapaksa 12 May appointed five-time prime minister and leader of United National Party Ranil Wickremasinghe as PM; protesters and political observers widely condemned move as Wickremasinghe seen as quintessential insider close to Rajapaksa family. Wickremasinghe 16 May told country “next couple of months will be the most difficult ones of our lives” and 19 May warned of risk of major food crisis in few months due to lack of fertiliser for current planting. Economic and humanitarian situation continued to deteriorate as foreign reserves remained near zero. Prices of essentials continued to rise rapidly, with official figures showing inflation at record 39 per cent and unofficial estimates indicating much higher increase; medicine grew increasingly scarce. Preliminary negotiations with International Monetary Fund (IMF) and World Bank took place, with IMF virtual mission 9-23 May leading “discussions at the technical level”. World Bank 24 May announced no new financing “until an adequate macroeconomic policy framework is in place”. Wickremasinghe 25 May named finance minister, 31 May announced series of tax hikes. Wickremesinghe 29 May proposed series of major governance reforms granting more powers to parliament, as new cabinet - dominated by Rajapaksa supporters - 23 May discussed draft 21st amendment to constitution trimming president’s powers; draft fell short of including protesters and opposition’s demands to abolish executive presidency.

Unprecedented multi-class, multi-ethnic protest movement demanded Rajapaksa govt’s resignation, as fears rose over prolonged political standoff and Central Bank announced first ever default. Following unrest late March when crowds attempted to storm President Rajapaksa’s private residence, govt 1 April declared state of emergency followed by two-day island-wide curfew and shutdown of social media networks; moves triggered fierce resistance to orders, forcing govt to reverse course. Tens of thousands 4 April took to streets in multiple locations. Thousands since 9 April peacefully camped outside president’s offices in central Colombo, with daily protests across island. In coordinated tactical retreat designed to restore govt credibility, all govt ministers 3 April resigned. President Rajapaksa next day appointed new four-member cabinet, headed by brother Mahinda as PM; move failed to quell unrest, as parliamentary opposition 4 April rejected president’s offer to form unity govt. Over 40 allied lawmakers 5 April withdrew support from govt, putting ruling party’s parliamentary majority in doubt. Main opposition party Samagi Jana Balawegaya (SJB) 21 April tabled bill with constitutional reforms, including to end system of executive presidency and return to full parliamentary system; parallel efforts to gain majority for no-confidence vote against govt were unsuccessful. President Rajapaksa 18 April appointed new cabinet, which failed to placate protesters. In 29 April meeting with 11-party group of former govt allies, president reportedly agreed to form interim govt with new PM. Police 19 April fired on crowds protesting fuel price increases, killing one and wounding two dozen. President Rajapaksa, under domestic and international pressure, 20 April promised impartial inquiry; incident renewed fears president and his allies in security forces may turn to widespread repression as means to retain power. Govt efforts to secure international financial relief continued. Central Bank 12 April announced suspending repayments of foreign debt, effectively declaring country’s bankruptcy and first-ever default. Govt 18-19 April held first substantive talks with International Monetary Fund and World Bank, and 20 April indicated talks were at early stage. India 20 April announced willingness to supply additional $500mn credit line for fuel purchases.

Economic crisis worsened and triggered unprecedented outburst of public anger in capital Colombo, placing govt under increasingly severe pressure. On economic front, month witnessed thousands in long queues to purchase dwindling supplies of petrol, food, medicine and other essential imported products; govt 23 March deployed soldiers to oversee distribution at fuel stations. School postponed exams and newspapers suspended print editions for lack of paper. Daily power cuts grew more frequent and as long as 10 hours due to inability to purchase oil needed for electricity plants. Govt 9 March removed dollar-peg of rupee that had depleted hard currency reserves, leading rupee to fall from 200 to nearly 300 against one U.S. dollar, adding to already rampant inflation. Govt same day limited imports in bid to save hard currency. In long-awaited U-turn, cabinet 14 March formally approved “discussions” with International Monetary Fund (IMF) to address currency and debt crises; IMF delegation 14-15 March met President Rajapaksa and senior officials and agreed meeting next month; financial support unlikely to materialise before further economic and political damage. Finance Minister Basil Rajapaksa 17 March secured $1bn credit line from India, reportedly in exchange for agreeing to Indian-led energy projects in north and east and maritime security arrangements that have drawn criticism from opposition parties. Economic strains led to protests. Main opposition Sama Jana Balawegaya party 15 March held large protest outside president’s office in capital Colombo. Daily street protests against political class in middle class and upscale sections of capital Colombo grew larger. In unprecedented show of defiance, hundreds of protesters 31 March gathered outside president’s residence demanding his resignation; rally was largely peaceful until police used teargas and water cannons to clear protests; over 50 arrested, some reportedly beaten and tortured. Meanwhile, at 49th session of Human Rights Council, UN High Commissioner Michelle Bachelet 4 March bluntly criticised govt, noting “surveillance, harassment and intimidation of civil society”, “deepening” “militarisation of civilian government functions”, and “unwillingness to pursue accountability”; India beseeched govt to “fulfil its commitments … to protecting the interest of Tamils”, while Catholic Archbishop of Colombo 7 March called 2019 Easter Bombings “part of a grand political plot”.

Economic strains worsened, pressure rose to repeal controversial Prevention of Terrorism Act (PTA), and new allegations surfaced of intelligence agencies’ involvement in 2019 Easter bombings. On economic front, hard currency shortages limited importers’ ability to buy goods and contributed to inflation; foreign reserves fell to $2.3bn during month, with $1.8bn due to be repaid between Feb and April and $1bn in July. Power cuts grew longer and more frequent amid growing fuel shortages. President Rajapaksa 12 Feb invoked emergency powers to ban strikes in health and electricity sectors, ending nearly week-long strike by health workers. FM GL Peiris 6-8 Feb visited Indian capital New Delhi to secure additional emergency financial support; visit followed 2 Feb signing of $500mn line of credit for gasoline purchases from Indian Oil Corporation, latest in series of Indian loans totalling $1.4bn designed to keep economy afloat; further $1bn under negotiation. Ahead of March session of UN Human Rights Council, Court of Appeal 7 Feb agreed to release on bail Muslim lawyer Hejaaz Hisbullah, held under PTA for almost two years. After cabinet late Jan approved draft bill to amend PTA, EU 8 Feb welcomed amendments but “noted that important elements had not been included in the Amendment Bill”. Human Rights Commission of Sri Lanka 15 Feb announced support for complete abolition of PTA, while Archbishop of Colombo, Cardinal Malcolm Ranjith, 17 Feb signed petition for act’s repeal. Meanwhile, former most senior police investigator Shani Abeysekara 17 Feb filed petition in Supreme Court that appeared to confirm claims made by opposition parliamentarians in 2021 that intelligence services loyal to Rajapaksas had actively obstructed and misdirected pre- and post-attack police investigations into jihadist network responsible for 2019 Easter bombings. Three-judge High Court panel 18 Feb unanimously dismissed all 855 charges against Hemasiri Fernando, then secretary to ministry of defence, and Inspector General of Police Pujith Jayasundara, on trial for allegedly failing to act on early warnings of the bombings from Indian intelligence agency.

Financial and economic crises grew increasingly acute, parliament reconvened after prorogation, and tensions came to fore between govt and Catholic leaders. Prices of food and other essentials continued to rise amid widening shortages and increasingly frequent power cuts, as govt currency reserves dwindled and risk of default rose. Bar Association of Sri Lanka 14 Jan issued unprecedented statement expressing grave concern over economic crisis’s “possible impact on the Rule of Law and Democracy and on the living conditions of the people”. Central bank 18 Jan repaid $500mn due on international sovereign bonds, despite prominent economists and business leaders urging govt to postpone repayment and use its scarce currency to purchase food and medicine. After late Dec currency swap with China, and China’s promises of further support to Sri Lanka during 8-9 Jan visit to capital Colombo by Chinese FM Wang Yi, India offered more than $1.5bn in stop-gap loans to support Sri Lankan govt, including 18 Jan announcement of $500mn credit line to allow fuel importation from India. After suspending parliament in Dec, President Rajapaksa 18 Jan opened new parliamentary session with speech that confirmed govt is “preparing to make relevant amendments to the Prevention of Terrorism Act”; govt 27 Jan released text of proposed amendments. Delegation of Tamil parliamentarians, led by Tamil National Alliance (TNA) leader R. Sampanthan, 18 Jan met Indian high commissioner in Colombo, and handed over letter addressed to Indian PM Modi; letter appeals for renewed Indian efforts to press Colombo to negotiate lasting political solution to “Tamil national question” based on federal model. Discovery 11 Jan of live grenade in Catholic Church in Colombo deepened bitter conflict between govt and Catholic leaders as Church officials challenged police arrest of long-time church employee and initial disregard for Church CCTV footage. Catholic Cardinal Malcolm Ranjith 13 Jan publicly criticised police investigations into incident and noted possible political motives behind it, next day alleged authorities are suppressing truth over 2019 Easter attacks, claiming existence of conspiracy to allow attacks to take place for political reasons ahead of presidential election.

President suspended parliament for one month amid growing tensions within ruling coalition, as debt crisis, inflation and looming food shortages led to rising popular discontent. President Rajapaksa 12 Dec prorogued parliament until 18 Jan 2022 without giving clear reasons, triggering claims from opposition suspension was designed to prevent publication of reports by parliamentary corruption oversight committees; move comes after parliament 10 Dec approved govt’s budget with two-thirds majority, despite signs of increasing tensions within ruling coalition. Economic hardship deepened. Fitch Ratings 17 Dec became latest credit ratings agency to downgrade country, citing “increased probability of default’’; agency downgraded govt’s long-term foreign-currency issuer default rating to ‘CC’ from ‘CCC’, lowest tier before default. Inflation hit record level of 11%; vegetable prices continued to rise sharply during month, as key food items, especially imports, proved increasingly hard to find and beyond large numbers of citizens’ income, raising concerns about rising malnutrition. Concerns also persisted over size of upcoming rice harvest and future yields on tea, following six-month ban on import of chemical fertiliser. President Rajapaksa 22 Dec replaced chief civil servant in agriculture ministry, one day after he warned publicly of impending food crisis. Sinhalese prisoners in Badulla 17 Dec attacked four Muslim detainees held on suspicion of links to network behind 2019 Easter bombings. In effort to placate concerns among European states about continued use of Prevention of Terrorism Act (PTA), govt took series of actions. Following green light from attorney general, Puttalam High Court 15 Dec granted bail to Muslim poet Ahnaf Jazeem, detained under PTA for seven months on spurious reading of one of his poems. Colombo High Court 2 Dec acquitted prominent Muslim politician Azath Salley, who had been detained under the PTA, based on edited copy of speech he gave. Court during month gave bail to ten Tamil youth, arrested in May 2021 for publicly commemorating deaths of Tamils during war in violation of court order. Govt expressed outrage following 3 Dec mob lynching of Sinhalese manager of factory in Pakistani town of Sialkot (see Pakistan), but voiced appreciation for PM Imran Kahn’s promised of swift justice.

Economic woes deepened amid food security concerns, while trial of 2019 Easter bombings suspects began. On economic front, country faced soaring food prices as supplies shrunk, raising concern of major food shortages in coming weeks and months; govt’s ban in April on import of chemical fertilisers and pesticides (lifted in late Oct) had triggered warnings of potentially much reduced crop yields this year. After rating agency Moody late Oct downgraded govt’s credit rating, fears persisted over falling currency reserves and govt’s ability to pay billions of dollars of debt due next year; Finance Minister Basil Rajapaksa 13 Nov said govt can pay debts on schedule, and one day after unveiled budget proposing major tax hikes and spending cuts in attempt to reduce budget deficit. Opposition party Samagi Jana Balawegaya 16 Nov held its first major COVID-era public rally in capital Colombo in protest at govt economic mismanagement despite police-requested court orders to prevent demonstration on public health grounds. Trial of 25 suspects allegedly involved in 2019 Easter bombings began 23 Nov, but subsequently adjourned until January. Separate murder trial of former Defence Secretary Hemasiri Fernando and former police chief Pujith Jayasundara for alleged failure to act on early warnings of Easter attack began 23 Nov. Amid outspoken criticism from Catholic leaders in recent months regarding lack of accountability for attacks, police 15-16 Nov questioned Catholic leader Fr Cyril Gamini Fernando following complaint in Oct by State Intelligence Service head Suresh Sallay, who claimed Fernando had falsely accused him of links to those behind attacks. Govt faced more criticism for unrepresentative composition of task force appointed in late Oct, headed by radical Buddhist monk Gnanasara, to implement principle of “One Country, One Law”, with clear focus on regulating Islamic practices and institutions; in response, President’s Office 10 Nov appointed three Tamils, including one woman, and revised task force’s mandate from amending draft laws to “presenting proposals”. Tamils across north and east held public and private “Great Heroes Day” events on 27 Nov to commemorate fighters and civilians killed during civil war, despite aggressive attempts by police and military to prevent gatherings.