Sri Lanka's prime minister tackles thorny finances, economy

COLOMBO, Sri Lanka (AP) — Sri Lanka’s new Prime Minister Ranil Wickremesinghe has been sworn in as finance minister as this Indian ocean island nation confronts its worst economic crisis in memory.

President Gotabaya Rajapaksa named Wickremesinghe minister of Finance, Economic Stability and National Policies in an apparent bid to regain Sri Lanka’s credibility as the government negotiates a bailout package with the International Monetary Fund.

Sri Lankans have been enduring shortages of food and fuel, power outages and other privations. The country lacks the financial wherewithal to buy imported necessities and pay its debts, and the economic crisis has fueled political turmoil, with protesters demanding Rajapaksa’s resignation.

Wickremesinghe's appointment followed a government announcement that Sri Lanka was hiring two international firms to restructure its $51 billion external debt. Lazard of France will provide financial advice and Clifford Chance LLP will assist with legal help in restructuring Sri Lanka's debts to international creditors.

A five-time former prime minister, Wickremesinghe was appointed to the post two weeks ago after his predecessor Mahinda Rajapaksa — who is the president’s elder brother — resigned following violent attacks by his supporters on peaceful anti-government protesters.

Sri Lankans for months have been forced to stand in long lines to buy scarce essentials, with many returning home empty-handed. There is a severe shortage of many goods, from food, cooking gas, medicine and fuel to toilet paper and matchsticks.

The economy has suffered under the pandemic, which has kept tourists away, and surging costs for most imports.

Nearly bankrupt, the country and has suspended repayments of $7 billion in foreign loans due this year. The IMF has...