The Central Bank of Sri Lanka's data reveals that for the seventh consecutive month up to February 2022, credit to the Government of Sri Lanka and public corporations surpassed credit to the private sector, a trend last observed in 1989. This shift in credit distribution is linked to historical political events, including the election of President Ranasinghe Premadasa and conflicts involving the IPKF, LTTE, and JVP. The article highlights the ongoing dominance of government and public corporation credit over private sector credit since August 2021.

Sri Lankan President Gotabaya Rajapaksa aims to consolidate power in an upcoming election, potentially elevating his brother Mahinda Rajapaksa to prime minister. The Rajapaksa brothers, known for their Sinhalese Buddhist nationalist stance, seek to amend the constitution to restore presidential powers diluted by previous reforms. The election, postponed due to COVID-19, will see voters adhering to safety protocols. Analysts suggest Mahinda is favored to win, given the brothers' support among the Sinhalese majority. The outcome could enable significant constitutional changes, impacting the balance of power in Sri Lanka.

Ranil Wickremesinghe has been appointed as Sri Lanka's prime minister for the sixth time amid political and economic crises. His extensive political career includes multiple terms as prime minister, leadership of the United National Party, and involvement in significant economic reforms. Wickremesinghe faces the challenge of reversing years of economic mismanagement and corruption, exacerbated by the COVID-19 pandemic and controversial policy decisions. His appointment follows the resignation of Mahinda Rajapaksa amid riots and a request from President Gotabaya Rajapaksa.