COLOMBO, May 11, 2022 (BSS/AFP) - Sri Lanka's economy will "collapse beyond 
redemption" unless a new government is appointed within two days to restore 
political stability, the central bank chief said Wednesday.

He said the latest wave of mob violence derailed the bank's recovery plans, 
and the resignation of the prime minister on Monday and the lack of a 
replacement were complicating matters.

He said political stability was vital to implementing economic reforms aimed 
at addressing the country's debt crisis and the acute shortage of foreign 
exchange to import essentials.

"If there is no government in the next two days, the economy will completely 
collapse and no one will be able to save it," Central Bank of Sri Lanka 
Governor Nandalal Weerasinghe said.

"The country was fast going down a slope when I took over just over a month 
ago. I thought we were able to apply the brakes, but with events of Monday 
the brakes no longer work.

"Within a week or two the economy will completely collapse. No one will be 
able to save Sri Lanka at that stage. My being here as governor will not 
help," he said.

"I will resign if there is no immediate action to form a government."

Shortly after taking over last month as the bank's chief, Weerasinghe 
announced defaulting on Sri Lanka's $51 billion external debt saying the 
country had no money to pay its creditors.

He almost doubled interest rates and allowed the rupee to depreciate rapidly 
to ensure better foreign exchange liquidity in the commercial banks.

Sri Lanka is facing its worst economic crisis since independence from Britain 
in 1948 after it ran out of dollars to import even the most essentials.

There had been long queues for fuel and food causing severe hardships for the 
nation's 22 million people, prompting them to protest against the government.

"If we don't have political stability, very soon we will run out of what 
little petrol and diesel left. At that point people will get on the streets 
to protest peacefully or violently," Weerasinghe added.

This week, the crisis took an ugly turn with nine people killed in violence 
and more than 200 injured.