Sri Lanka Crisis Highlights: Pressure mounts on Sri Lanka leader to quit as crisis grows

Sri Lanka crisis: Protestors hold banners and placards saying 'Go home GOTA' during a demonstration.

Thousands of Sri Lankans rallied in the countrys main business district and Christian clergy marched in the capital to observe a day of protest on Saturday calling on the debt-ridden countrys president to resign, as anxiety and anger over shortages simmered.

Protesters carrying national flags and placards, some bemoaning the hardships through songs, blamed President Gotabaya Rajapaksa and his administration for mismanaging the crisis. He has remained steadfast in refusing to step down even after most of his Cabinet quit and loyal lawmakers rebelled, narrowing a path for him to seek a way out as his team prepares to negotiate with international lending institutions.

Go home Rajapaksas" and "We need responsible leadership, read the placards.

The protest also included a large number of youngsters who had organized themselves through social media and refuse to accept any political leadership. Many carried signs, saying You messed with the wrong generation!

The protesters stayed around the presidents office and vowed not to leave until their mission is accomplished.

Amid Sri Lanka's economic crisis, a high-level delegation including Sri Lanka’s Central Bank Governor and other senior officials will soon attend the International Monetary Fund (IMF) meeting in Washington DC.

Sri Lanka will need about $3 billion in external assistance within the next six months to help restore supplies of essential items, including fuel and medicines, to manage a severe economic crisis, its finance minister said on Saturday.

The island nation of 22 million people has been hit by prolonged power cuts, with drugs, fuel and other items running short, bringing angry protesters out on the streets and putting President Gotabaya Rajapaksa under mounting pressure.

"It's a Herculean task," Finance Minister Ali Sabry told Reuters in his first interview since taking office this week, referring to finding $3 billion in bridge financing as the country readied for negotiations with the International Monetary Fund (IMF) this month.

Sri Lanka will look to restructure international sovereign bonds and seek a moratorium on payments, and is confident of negotiating with bondholders for an upcoming $1 billion payment in July.

"The entire effort is not to go for a hard default," Sabry said. "We understand the consequences of a hard default."

JP Morgan analysts estimated this week that Sri Lanka's gross debt servicing would amount to $7 billion this year, with the current account deficit coming in around $3 billion.

Sri Lanka will seek another $500 million credit line from India for fuel, which would suffice for about five weeks of requirements, Sabry said.

The government would also seek support from the Asian Development Bank, the World Bank and bilateral partners including China, the United States, Britain and countries in the Middle East. (Reuters)