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

Additional tranche of four-year IMF loan released amid improved economic climate; President Wickremesinghe’s challenge to Supreme Court provoked criticism.

IMF authorised disbursement of new tranche of $3bn four-year loan. Executive Board of International Monetary Fund (IMF) 12 June approved second review of Extended Funds Facility and authorised disbursement of additional $336mn as part of four-year loan. Colombo 26 June said it had sealed agreements with bilateral creditors committee led by Japan, France and India to restructure debt of $5.9bn. Official statistics released 14 June showed country’s economy grew by 5.3% in first quarter of 2024, considerably faster than 2% growth predicted by IMF for 2024. Govt’s plans to institute IMF-backed rental income tax by April 2025, designed to replace promised property, inheritance and gift taxes, sparked considerable uncertainty and criticism over impracticality and additional burdening of middle class, rather than wealthy groups govt and IMF said they intended to target.

President Wickremesinghe’s criticism of Supreme Court sparks controversy. In parliamentary session Wickremesinghe 18 June attacked Supreme Court’s 17 June determination that key elements of govt’s draft Gender Equality bill were inconsistent with constitution and needed to be removed or amended. President’s statement widely condemned with Bar Association of Sri Lanka 19 June criticising speech as “threat to Supreme Court and entire judicial system” and rejecting president’s proposed parliamentary select committee to review Supreme Court ruling as “dangerous precedent”. Senior Tamil National Alliance member M.A. Sumanthiran 18 June alleged president’s statement was part of larger plan to intimidate Supreme Court into approving constitutional amendment to extend president’s term from five to six years.

Sinhala-dominated parties appealed for support of Tamil voters in north and east. During visit to northern towns, Samagi Jana Balawegaya leader and likely presidential candidate Sajith Premadasa 9 June promised he would implement thirteenth amendment, designed to grant enough powers to provinces to satisfy demands for self-rule by Tamils in north and east. National People’s Power (NPP) and Janatha Vimukthi Peramuna (JVP) leader Anura Kumara Dissanayake 11 June also visited north, said JVP party also supported “properly implementing” provincial council system, falling short of clear promise to fully implement thirteenth amendment.

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In The News

13 ก.ย. 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 ก.ย. 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 ม.ค. 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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