UN Secretary General António Guterres today called for dialogue to “ensure a smooth transition of Government and solutions to the country’s deep economic crisis.

President Gotabaya Rajapaksa has yet to comment publicly on the occupation of his residence, along with that of Prime Minister Ranil Wickremesinghe, but the Prime Minister’s office reportedly said it had been informed that the President planned to step down on Wednesday.

President Rajapaksa has become the focus for widespread protests in recent months over dire food, fuel and medical shortages, alongside a financial and humanitarian crisis that has left the country unable to service its debt, record inflation, and more than six million food insecure.

“The Secretary-General continues to follow developments in Sri Lanka closely”, said a statement issued on behalf of UN chief António Guterres, by UN Deputy Spokesperson, Farhan Haq.

“He stands in solidarity with the Sri Lankan people and calls on all stakeholders to engage in dialogue to ensure a smooth transition of government and to find sustainable solutions to the economic crisis.”

The President was moved to safety before the protesters entered the residence, and the occupation continues. According to reports, his resignation can only be accepted when he resigns by letter to the Speaker of Sri Lanka’s parliament, which has yet to happen.

The Prime Minister has also reportedly indicated that he will step down, after his house was set ablaze during the weekend.

“The Secretary-General condemns all acts of violence and calls for those responsible to be held accountable, underlining the paramount importance of maintaining the peace”, the statement continued.“The United Nations stands ready to support Sri Lanka and its people.”

Sri Lanka’s multiple crises were exacerbated by the COVID-19 pandemic which saw the collapse of the crucial tourism industry, which provides foreign currency for imported fuel and medical supplies, and rocked by the supply chain crisis precipitated by the Ukraine war.

The UN Resident Coordinator and top humanitarian official in Sri Lanka, Hanaa Singer, issued a statement on Sunday saying an end to the immediate political crisis through dialogue was essential, so that the country can “cope with its worst economic crisis since independence.”

“It is important that all incidents of violence against journalists, peaceful protesters, and harm to property are investigated and that those responsible, are held accountable”, she said.

“The UN continues to monitor the situation closely and is ready to assist in dialogue, as needed.“As we do around the world, the UN calls for respect for human rights, rule of law and democratic governance in Sri Lanka.”

The trade deficit recorded a decline for the fifth consecutive month on month-on-month basis and for the third consecutive month on a year-on-year basis in May 2022, supported mainly by the policy induced moderation of imports, along with the notable growth momentum of exports, Central Bank announced .

The trade deficit narrowed to US dollars 404 million in May 2022, compared to the deficit of US dollars 716 million recorded in May 2021.

On a cumulative basis, trade deficit narrowed on a year-on-year basis for the first time in May during this year. Accordingly, the trade deficit during January-May 2022 narrowed to US dollars 3,535 million, from US dollars 3,663 million recorded over the same period in 2021.

Expenditure on merchandise imports declined to the lowest level since November 2020, recording a decline of 9.7 per cent in May 2022 to US dollars 1,451 million, compared to US dollars 1,607 million and US dollars 1,699 million recorded in May 2021 and April 2022, respectively.

Earnings from merchandise exports in May 2022 increased substantially by 17.5 per cent over the corresponding month in 2021, recording at US dollars 1,047 million.

The cumulative export earnings during January-May 2022 increased by 12.2 per cent over the same period in the last year, amounting to US dollars 5,266 million.

Expenditure on the importation of consumer goods in May 2022 declined by 30.2%, compared to May 2021, contributed mainly by a reduction of 11.4% in food and beverages and of 47.4% in non-food consumer goods.

However, expenditure on cereals and milling industry products (mainly, rice and wheat flour) and beverages in May 2022 remained high, compared to May 2021.

The decline in the imports of non-food consumer goods was driven by telecommunication devices (mainly, mobile telephones), home appliances (mainly, televisions and fans) and medical and pharmaceuticals (mainly, vitamins and vaccines), rubber products (mainly, rubber tyres) and household and furniture items.

Expenditure on the importation of intermediate goods marginally decreased by 0.9% in May 2022, compared to a year ago, mainly driven by a 79.8% decline in the expenditure on base metals (primarily, iron and steel).

Further, many types of intermediate goods, including chemical products, plastics and articles thereof, fertiliser, vehicle and machinery parts, mineral products, etc., showed a decline.

Total earnings from the exports of agricultural goods in May 2022 declined by 4.2%, compared to May 2021. This decline was mainly attributed to exports of tea, spices, unmanufactured tobacco and vegetables.

Earnings from mineral exports in May 2022 declined by 58.4%, compared to May 2021, mainly due to a decline in export earnings from titanium ores categorised under ores, slag and ash.

Sri Lanka is suffering the worst economic crisis in its history, with fuel shortages bringing the country to a standstill. Many are now convinced leaving is their only option.

Fuel crisis is expected to become more critical following the postponement of the cabinet meeting scheduled on Monday 11 as result of the peoples struggle forcing the President , Prime Minister and the cabinet to resign.

Cabinet paper seeking the approval to obtain US $ 128 million from the Capital market to pay for fuel shipments scheduled to arrive at the Colombo Port within the next few days is still to be approved as there was no cabinet meetings, Finance Ministry sources claimed.

Large numbers of people are applying for new passports or to renew their old ones to leave the country for greener pastures as there was no ending to the socio economic crisis .

sport issuance in the first half of the year has increased sharply by 289% to 437,382 from 109,789 in the same period last year, as a result of the ongoing economic crisis.

The race to migrate has seen a significant uptick of 221% to 122,491 passports being issued in the month of June — the highest outcome in any month during the first half of the year

As per Immigration and Emigration Department statistics, over 72,000 passports were issued monthly during the first six months of the year.

Sri lanka’s economic crisis is worsening and the daily lives of people living in the small island nation have been severely disrupted. Due to rising prices of essential items, as well as fuel and medicine shortages , many Sri Lankans were trying to leave the country.

With no signs of the crisis letting up, and no bailout from the IMF in sight, many Sri Lankan refugees are traveling illegally by boats to nearby countries like India and Australia in a desperate bid to escape the unfolding disaster.

Sri Lanka is running out of fuel and currently has very limited supplies.. Public transport has also been limited and bus ticket prices have risen exponentially.

The lack of transport options makes commuting and emergency situations increasingly difficult. There are few trishaw and cab drivers still on the roads, and the fares of those who remain have risen substantially.

Walking and cycling have become the preferred choice for many Sri Lankans. But bicycles have also become expensive, with their prices rising from around 10,000 rupees to up to as high as 80,000 rupees.

As the fuel crisis worsens, there is a possibility that the current restrictions will be extended as the peoples struggle for system change will continue creating political impasse, several economists said.

President Gotabaya Rajapaksa is set to resign paving the way for Prime Minister Ranil Wickremesinghe taking over as the acting President.

Speaker Mahinda Yapa Abeywardena is expected to announce the President’s resignation today after he receives the letter of resignation from the President following which the PM will be sworn in,.

The President can resign from office after addressing his letter of resignation to the Speaker of Parliament.

This will be the first time a sitting President will be resigning from office. Rajapaksa announced his decision to resign on Sunday after protesters overran and occupied the President’s House and the President Secretariat hours after he was whisked away to safety at a secret location by security personnel.

Speculation was rife that Rajapaksa had refused to resign unless a safe exit is assured and facilitated after attempts to leave the country had failed or deferred.

Wickremesinghe who will take over as acting President will occupy the post till 20 July when Parliament is expected to elect a new President.

The Attorney General (AG) in response to an opinion sought by the Secretary to the Prime Minister this week had said that once an acting President takes over, he will be required to appoint a member from the Cabinet as Prime Minister.

He has also detailed the process which has to be followed thereafter for the election of a new President who will serve out the remainder of the term of his predecessor.

Meanwhile a group of SLPP MPs who met yesterday had said they would back Wickremesinghe at the vote which will be a secret ballot even though SLPP MP Dulles Alahapperuma too has expressed interest in contesting.

Alahapperuma met with SJB leader Sajith Premadasa yesterday to agree to a compromise which could see only one of them vying for the post, but the talks had ended inconclusively. Alahapperuma who had been offered the post of PM by Premadasa in return for his support to win the presidency had turned down the offer.

Hence a three-pronged battle is likely with Wickremesinghe, Premadasa and Alahapperuma vying for the post.

Despite this, several smaller parties in Parliament yesterday said yesterday all parties should work toward having a single candidate so that vote can be avoided, and an All-Party Government can be set up to deal with the critical economic issues at hand.