Sri Lanka

In the wake of mass protests that forced President Gotabaya Rajapaksa to resign in July 2022, Sri Lanka’s interlocking economic and governance crises remain acute. Austerity measures, introduced in part to win financial support from the International Monetary Fund and foreign creditors, have brought additional economic hardship for many Sri Lankans already struggling with collapsing living standards. Forthcoming economic reforms could provoke renewed protests. President Ranil Wickremesinghe’s reliance on Rajapaksa allies for his parliamentary majority will likely constrain fulfilment of promises to increase financial accountability, strengthen rule of law institutions, reduce impunity and corruption, ensure the rights of Tamils and Muslims, and address the legacy of the 1983-2009 civil war. Building on Crisis Group’s work during and after the war, we advocate for international humanitarian assistance, as well as inclusive governance reforms to strengthen democratic institutions and support a lasting, equitable peace.

CrisisWatch Sri Lanka

Unchanged Situation

Date of presidential election announced but fears of possible electoral delay continued; meanwhile, government reached agreement in principle with international bond holders to restructure $12.5bn in debt.  

Presidential election date announced amid continued postponement suspicions. Election Commission 26 July announced presidential election would be held on 21 Sept. President Ranil Wickremesinghe same day formally registered his independent candidacy. Sri Lanka Podujana Pera-muna (SLPP), controlled by former ruling Rajapaksa family, 29 July announced they would not back Wickremesinghe, who nonetheless retains support of some half of SLPP’s parliamentary. Former Army commander Sarath Fonseka and Wijeyadasa Rajapakshe, who resigned as justice minister 29 July, also announced their candidacies. Worries of possible poll postponement remained widespread, even after Supreme Court dismissed separate petitions which 8 and 15 July requested election delay; President’s challengers Sajith Premadasa of Samagi Jana Balawegaya (SJB) party and Anura Kumara Dissanayake of National People’s Power (NPP) party 3 and 11 July accused Wickremesinghe of attempting to delay elections, but asserted attempts at postponement will be defeated. PM Dinesh Gunawardena’s 26 July said govt rejected as illegal 24 July Supreme Court decision temporarily barring Deshabandu Tennakoon from serving as Inspector General of Police, fuelling fears of potential constitutional crisis; Bar Association next day “strongly condemn[ed]” govt’s decision as effort to “subvert the course of justice”. 

Govt achieved long-sought bond restructuring, but public discontent remained. Govt negotiators 4 July announced they reached framework with commercial creditors to restructure $12.6bn of International Sovereign Bond, proposing 28% cut on face value and 11% reduction on past interest; International Monetary Fund 11 July confirmed they were still evaluating agreement. Public discontent with economic hardship resulted in public sector strikes for higher pay with 1mn public sector employees 8-9 July holding two-day national strike. New electricity tariffs 16 July came into effect, reducing rates overall by 22.5% and offering relief to consumers using less than 90 units of electricity.

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In The News

13 Sep 2023
Commissions of inquiry and ad hoc committees have been used for decades as a way of obscuring the truth and avoiding accountability [in Sri Lanka]. Nikkei Asia

Alan Keenan

Senior Consultant, Sri Lanka
10 Sep 2023
For more than ten years, the [UN Human Rights] Council has pushed Colombo to hold accountable perpetrators of atrocities during the [Sri Lankan] civil war. Colombo Gazette

Alan Keenan

Senior Consultant, Sri Lanka
10 Jan 2023
[Sanctions for Sri Lankan officials] are a timely reminder that continued impunity will bring increasing costs to the government’s international reputation. Al Jazeera

Alan Keenan

Senior Consultant, Sri Lanka

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Alan Keenan

Senior Consultant, Sri Lanka
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