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Sri Lanka is facing the worst economic crisis since gaining independence in 1948. The recession is attributed to foreign exchange shortages caused by the clampdown on tourism during the COVID-19 pandemic. This has left the country unable to buy enough fuel, with people facing acute scarcity of food and basic necessities, heating fuel and gas.

Sri Lanka economic crisis: Five developments

Sri Lankan Finance Minister Ali Sabry resigned Tuesday just a day after he was appointed to the post by President Gotabaya Rajapaksa, as the island nation suffers a crippling economic crisis.

"Whilst I regret the inconvenience caused, I believe I have always acted in the best interests of the country," a statement from Sabry said, adding that "fresh and proactive and unconventional steps" were needed to solve the country's problems.

At least 41 Sri Lankan lawmakers walked out of the ruling coalition on Tuesday, leaving the government of President Gotabaya Rajapaksa in a minority in parliament as it struggles with the country's worst economic crisis in decades.

Sri Lankan police have warned protesters not to take the law in their own hands and said strict action will be taken against those involved in violence during the agitations. The police arrested several protesters on Monday night and said they are relying on scientific and video footage to nab violators in the coming days.

The International Monetary Fund (IMF) said on Tuesday that it is monitoring political and economic developments in Sri Lanka "very closely" as public unrest in the island nation grows amid its worst economic crisis in decades.

Gotabaya Rajapaksa on Tuesday informed senior party members that he will not step down as Sri Lankan President but is ready to hand over the government to whichever party proves that it has a majority of 113 seats in Parliament.

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