Lankan economy 'to collapse unless new govt soon'

COLOMBO, May 11 (Agencies): Sri Lanka's economy will "collapse" unless a new government is urgently appointed, the central bank chief warned Wednesday, as security forces fanned out on the streets to restore order after spasms of mob violence.

Police say nine people have died since Monday, when frustration at a dire economic crisis erupted into clashes between backers and opponents of President Gotabaya Rajapaksa, injuring more than 200.

Soldiers stood behind wrought-iron barricades and next to burnt-out buses in the heart of Sri Lanka's capital Colombo Wednesday, guarding almost deserted streets after a convulsion of deadly clashes.

The occasional car ambled past long rows of shuttered shops before being halted by troops, who cast wary eyes over its occupants as they enforce a nationwide curfew imposed to stop mob violence.

Opposition parties have refused Rajapaksa's overtures for a unity government to resolve a political deadlock and instead demanded his resignation.

Central Bank Governor Nandalal Weerasinghe said it was critical that a new administration take charge by Friday or the country would suffer a catastrophe.

"The economy will completely collapse and no one will be able to save it," he told reporters.