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Sri Lanka's heading towards economic collapse says former finance minister

Sri Lanka's former finance minister, Mangala Samaraweera today warned the country was heading towards "a state of economic collapse". 

Condemning the President's sacking of the prime minister and appointment of Mahinda Rajapaksa as the new premier, Mangala said "as a result of these actions, Sri Lanka is on the brink of economic anarchy and chaos as never experienced before." 

"The cavalier and irresponsible actions of the president starting on October 26th based on personal animosities and precipitating a series of illegal acts, places at risk Sri Lanka's ability to meet its immediate debt obligations." 

"Sri Lanka has hitherto never defaulted its debt obligations. The actions of 26th October have irreversibly undermined Sri Lanka's credibility in global markets - risking out ability to service future debt." 

Mangala's statement follows the credit rating agency, Moody's decision to downgrade the country from B1 to B2.