COLOMBO: Sri Lanka on Saturday announced a five-day share trading halt after the crisis-hit country hiked interest rates and declared a default on its external debt during the traditional New Year holiday, as trade unions and top cricket stars joined protests demanding the president’s resignation.

The move came ahead of Colombo’s planned talks with the International Monetary Fund in Washington on Monday to negotiate a bailout as the country has run out of foreign exchange to finance even the most essential imports.

The island nation is grappling with its worst economic downturn since independence in 1948, with regular blackouts and acute shortages of food and fuel in addition to record inflation. The crisis has caused widespread misery for Sri Lanka’s 22 million people and led to weeks of anti-government protests.

Several trade unions joined demonstrators laying siege to President Gotabaya Rajapaksa’s seafront office for an eighth straight day Saturday demanding that he and his government quit, with thousands of health sector trade workers marching to the Galle Face promenade to join the protest.

Colombo Stock Exchange officials said they were under pressure from brokers and investors not to reopen on Monday to prevent an anticipated collapse of the market.

The CSE said regulators had expressed concern over the “ability to conduct an orderly and fair market” and it would remain closed until Friday due to the “present situation in the country”.

Published in Dawn, April 17th, 2022