Dire catastrophe if Lanka unable to form Government soon: Central bank

Dire catastrophe if Lanka unable to form Government soon: Central bankNEW DELHI: The chief of the Sri Lankan Central Bank has issued dire warning of an economic catastrophe unless a government is formed in the country in three days. Amid talks to find an amicable solution for the riot- torn nation, Gotabaya Rajapaksa, Sri Lankan President has been in meetings with Ranil Wickramasinghe, the former prime minister to discuss the possibility of leading an interim all-party government.

Gotabaya addressed the nation to assure the people that he was working with the leaders of all the parties on the formation of a government. In the televised address he also spoke about the appointment of a prime minister within a week. "I am going to appoint the prime minister and the cabinet that has the trust of the people," he said.

Gotabaya was reported to have offered to abolish the executive presidency that had given him sweeping powers, once the new government was set up.

Following days of violence, Colombo is now deserted apart from the military check points that have sprung up.

Nandalal Weerasinghe, the Central Bank Governor urged all parties to quickly form a government in view of the gravity of the situation. He also said that he will be forced to resign if the political situation in the country could not be stabilized soon.

He also warned of massive power cuts for about 10-12 hours, shortages of fuel and the inability to hold talks with IMF, without the formation of a government. In the interim, the secretaries of defence, finance and public security were reappointed to try and restore some form of normalcy.