Sri Lanka seeks emergency financial assistance from IMF

The International Monetary Fund (IMF) says it has received a request for emergency financial assistance from the Sri Lankan authorities to fight the COVID-19 epidemic.

This was revealed by the Director of the Communications Department of the International Monetary Fund, Gerry Rice responding to questions during a press briefing on Thursday (11).

He was asked about Sri Lanka’s planned $1.5 billion currency swap with China and the fact it’s portrayed as a way of Sri Lanka is resistant to IMF programs.

“On Sri Lanka, just a reminder, the extended Fund program with the IMF was approved in 2016. That expired last year, June 2020.”

“We did receive a request from the Sri Lankan authorities for emergency financial support to help fight the COVID pandemic,” the IMF spokesman said.

He stated that the assessment of that support has taken longer than for other countries due to “Sri Lanka’s daunting economic challenges and high public debt.”

Mr. Rice said they have sought, but not reached understanding, on how to fulfill the key requirements for what could be a rapid financing instrument which would include policies to continue ensuring debt sustainability to address the balance of payment challenges including from the COVID‑19 impact on tourism and to preserve international reserves.

“Indeed, Sri Lanka has relied on important restrictions since last year and recently introduced additional measures such as a requirement to convert 25 percent of export proceeds. We continue to closely monitor these economic policy financial developments in Sri Lanka including the recent agreement on a swap line with the People’s Bank of China,” he said.

‘The draft resolution completely fails to rise to the challenge’ – UK Liberal Democratic leader for Sri Lanka to be referred to the ICC

Writing to British Foreign Secretary, Dominic Raab, leader of the UK Liberal Democratic leader, Ed Davey, slammed the proposed resolution on Sri Lanka stating it “completely fails to rise to the challenge” and calls for Sri Lanka to be referred to the International Criminal Court.

In his statement, he highlights that the resolution is “too vague and lacks robust commitment to international accountability mechanisms”. Davey proposes that resolution is immediately rewritten to include the following recommendations:

Recommend “the Sri Lankan situation to the International Criminal Court to investigate and prosecute serious international crimes committed in Sri Lanka against the Tamils;

“Establish a proper International Independent Investigative Mechanism relating to Sri Lanka to collect evidence and prepare files for prosecution”.

“Incorporate the High Commissioner’s recommendations from her January 2021 report, particularly her view that the principles of universal and extraterritorial jurisdiction must apply to the actions of the Sri Lankan government and military”: and
“Take a strong stance on prevention, including tangible measures to support and protect civil society groups and human rights defenders who are working on the ground in Sri Lanka”.

His criticism of the current is also shared by the Shadow Minister for Asia and the Pacific, Stephen Kinnock, who has called on the government to completely rewrite the resolution and questioned why the government’s review of its Global Human Rights sanctions regime does not include “a single senior Sri Lankan government minister, official or military officer”.

Davey highlights the need for international action noting that “domestic mechanisms for reconciliation, accountability and human rights have drastically eroded in the past few years”.

“It has never been more important for the UK to lead strong collective action on accountability and reconciliation in Sri Lanka — and a comprehensive, robust Human Rights Council resolution is an important first step. I implore you to do everything in your power to make this happen” he added.

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Sri Lanka is nonchalant about the possibility of defeat at UNHRC

With the date for voting on a resolution on Sri Lanka at the UN Human Rights Council (UNHRC) nearing, the scenario is grim. Diplomatic sources say that given the reality of international politics, the vote is most likely to go against Sri Lanka.

But Sri Lanka is unfazed by this prospect as it has taken a clear and resolute stand that the resolution is unacceptably intrusive, biased, selective in its choice of data, unethically equating a democratically elected government with a ruthless terrorist group, and is driven by ulterior motives.

On other hand, the Core Group led by the UK and backed by the US, is equally convinced that Sri Lanka has brazenly violated human rights and deserved to be investigated, admonished and proceeded against under universal jurisdiction.

Diplomatic sources believe that given the most likely line up at the time of voting, defeat stares in Sri Lanka’s face. India and Japan have not taken a decision and are watching the proceedings carefully to gauge the mood of the Council it appears. As on date, the dice is loaded against Sri Lanka, and the most likely decision by New Delhi and Tokyo would be abstain.

India has certain issues with Sri Lanka which had arisen in the recent past such as the one relating to the East Container Terminal. Sri Lanka had reneged from a bilateral agreement on it, without so much as a prior warning, leave alone prior consultation. However India did not raise any bilateral issue at the Council but spoke about the importance of implementing the 13 th.Amendment (13A) of the Sri Lankan constitution which is meant to devolve power to the provinces, especially to the Tamil speaking provinces in the North and East. This issue is about the larger question of democracy and ethnic reconciliation and not a narrow one relating to a bilateral project. Since there is no firm commitment yet from Colombo about implementing the 13 A and there is still talk of a dilution of devolution, India does not have the required incentive to vote for Sri Lanka.

However, since India has a great and enduring stake in Sri Lanka being its only neighbor, New Delhi will not oppose Sri Lanka outright but play it safe by remaining neutral. Japan has asked the Council to be more understanding and accommodative towards Sri Lanka, but Japan too has issues as in the case of the ECT in which it was to be a stakeholder. Thus, Tokyo could follow India and be neutral at voting time.

The Core Group’s revised draft (it is still being revised with inputs from the members of the Council) has made significant concessions to Sri Lanka. For example it does not directly demand the setting up of an international judicial mechanism to try war crimes allegations and other allegations of Human Rights during and after the war. But it prepares the ground for such a mechanism when it says that it: “ Recognizes the importance of preserving and analyzing evidence relating to violations and abuses of human rights in Sri Lanka with a view to advancing accountability and decides to strengthen the capacity of the Office of the High Commissioner for Human Rights to consolidate, analyze and preserve information and evidence and develop possible strategies for future accountability processes for gross violations of human rights or serious violations of international humanitarian law, to advocate for victims and survivors, and to support relevant judicial proceedings in Member States with competent jurisdiction.”

More broadly it says: it has “serious concern over emerging trends over the past year, which represent clear early warning signs of a deteriorating human rights situation in Sri Lanka, including the accelerating militarization of civilian government functions, erosion of the independence of the judiciary and key institutions responsible for the promotion and protection of human rights, ongoing impunity and political obstruction of accountability for crimes and human rights violations in “emblematic cases”, policies that adversely affect the right to freedom of religion or belief, surveillance and intimidation of civil society and shrinking democratic space, arbitrary detentions, allegations of torture and other cruel, inhuman degrading treatment or punishment and sexual and gender based violence, and that these trends threaten to reverse the limited but important gains made in recent years and risk the recurrence of policies and practices that gave rise to the grave violations of the past.”

The Core Group called upon the Government of Sri Lanka “to ensure the prompt, thorough and impartial investigation and, if warranted, prosecution of all allegations of gross human rights violations and serious violations of international humanitarian law including for longstanding emblematic cases.”

It called upon the Government of Sri Lanka “to ensure the effective and independent functioning of the National Human Rights Commission, the Office on Missing Persons and the Office for Reparations; to protect civil society actors, to investigate any attacks and ensure a safe and enabling environment in which civil society can operate free from hindrance, insecurity and reprisals.”

It requests the Government of Sri Lanka to “review the Prevention of Terrorism Act, and ensure that any legislation to combat terrorism complies with its international human rights and humanitarian law obligations.”

Finally, it requests “the Office of the High Commissioner to enhance its monitoring and reporting on the human rights situation in Sri Lanka, including progress on reconciliation and accountability, and to present a written update to the Human Rights Council at its forty-ninth session, and a comprehensive report including further options for advancing accountability at its fifty-first session, both to be discussed in interactive dialogues.”

Sword of Damocles

Therefore, the UNHRC’s attempt will be to force Sri Lanka to proceed along the lines suggested by the Core Group even at the cost of its sovereignty and independence. Colombo will have to accept UN investigators again, as if the earlier reports of the Rapporteurs were not damaging enough. The Sword of Damocles will be hanging over Sri Lanka’s head constantly diverting its attention from its other tasks like economic development.

President Gotabaya Rajapaksa believes that real ethnic reconciliation will be achieved only through equitable social, educational and economic development and not through judicial mechanisms and other accountability measures urged by the UNHRC. President Rajapaksa believes these will only foment ethnic animosities by raking up old issues without seeing the past in a correct and unbiased perspective.

Sri Lanka also believes that the Core Group is not motivated by a genuine concern for ethnic reconciliation in Sri Lanka but by a desire to use the issue to browbeat and dominate Sri Lanka and also use it in its fight against its rivals for geo-political domination.

Sri Lankan Foreign Minister Dinesh Gunawardena has more than once rejected the Core Group’s resolution, amended or otherwise, and has urged Council members to vote against it. The stage is set for voting. And as far as Sri Lanka is unconcerned, it cares little for the consequences backed as it is by China and Russia, both with a veto in the UN Security Council.

Source:By P.K.Balachandran/counterpoint.lk

Indian High Commissioner begins tour of North Sri Lanka

India’s High Commissioner in Sri Lanka, Gopal Baglay commenced his visit to the Northern Province of Sri Lanka by offering prayers at the Ketheeswaram temple. He also attended Shivratri puja at the temple.

Indian High Commissioner Gopal Baglay has undertaken a four-day tour of the northern and eastern provinces to interact with a cross section of society there including political leaders and inspect the projects funded by India which are in various stages of implementation, sources said.

The High Commissioner also would visit the places of religious worship. This is his first such visit to the two provinces after he was appointed Indian High Commissioner in Sri Lanka.

Indian Prime Minister Narendra Modi renewed his country’s call for the implementation of 13th Amendment in full. It was repeated by India even during the ongoing session of the UNHRC.

Moreover, the Jaffna cultural centre and the Palali airport development are the two key projects financed by India.

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Maha Sangha stages Satyagraha over April 21 attacks

The Maha Sangha launched a Satyagraha campaign in Colombo today citing several demands including the need to punish the perpetrators of the 2019 April 21st attacks.

The Buddhist clergy from all three sects engaged in the Satyagraha campaign that was launched at the Independence Square today.

The demonstration was aimed at demanding punishment for the perpetrators of the April 21st attacks, serving justice for the victim, and condemning attempts to silence Buddhist organizations and leaders named in the report of the presidential commission that probed the bombings.

A resolution dubbed March 11 was revealed during the Satyagraha campaign.

The Satyagraha campaign is due to be held in other districts of the country in the coming days.

Meanwhile, a group carrying the Pakistan Flag, arrived near Independence Square today, where the Satyagraha was being held.

Those present claimed that the group had arrived to attend an event organized by the Pakistan High Commission.

The group carrying the Pakistan Flag dispersed after discussing the matter with an individual, over a police officer’s phone.

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Group carrying Pakistan flags close to satyagraha site in Independence Square

Members of the Maha Sangha commenced a satyagraha campaign at Independence Square on Thursday (11).

The movement was titled ‘Yukthiya Udesa Yathiwara Paramithawa’ (යුක්තිය උදෙසා යතිවර පාරමිතාව)

According to reports, the satyagraha campaign is organized demanding the perpetrators for the 2019 April 21st Attacks mentioned in the report of the Presidential Commission of Inquiry, be prosecuted.

While the Satyagraha was taking place a group carrying Pakistan flags was seen close to Independence Square as well.

The group said they were at Independence Square for a celebration of the Pakistan High Commission in Colombo.

The group only dispersed from the location after a police officer made a phone call and had them speak to the person on the other end of the call.

 

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Basil Rajapaksa – next presidential candidate of SLPP?

Basil Rajapaksa is ideally the next presidential candidate of the Sri Lanka Podujana Peramuna, ruling party lawmaker Sahan Pradeep has said.

“Basil Rajapaksa is the only intelligent and eligible candidate who is capable of working together with other parties while serving for the country,” Pradeep told reporters on Thursday.

The Sri Lanka Podujana Peramuna parliamentarian also said that individuals attempting to destroy the party will not be able to success in their objectives.

“There are no crooks in the Sri Lanka Podujana Peramuna,” Pradeep insisted dismissing remarks made to that effect by minister Wimal Weerawansa.

He pointed out that certain individuals, who are opposing the president, are claiming credit for the victory of the war under Mahinda Rajapaksa’s presidency.

“…it must be remembered that he (Mahinda Rajapaksa) was able to do so while Gotabhaya Rajapaksa served as his Defence Secretary,” Pradeep said.

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Four Maldivians had met Zahran Hashim in Sri Lanka

Four Maldivians had met the mastermind of the Easter Sunday attacks, Zahran Hashim in Sri Lanka, Minister of Public Security Sarath Weerasekara told Parliament today.

He said that the Maldivians had met Hashim and others linked to the bombings on a number of occassions.

The meetings had reportedly taken place between the year 2016 and before the April 2019 attacks.

Weerasekara said that the four Maldivians have been linked to extremism and terrorism.

He said that they were put in touch with Hashim by two Sri Lankans based in Australia.

Weerasekara revealed the details in Parliament when the report on the Easter Sunday attacks by the Presidential Commission of Inquiry was debated today.

The Minister revealed the status of the investigations into the deadly bombings.

He said that steps are to be taken to ban 11 organisations based in Sri Lanka, linked to the Easter Sunday attacks.

The Minister also said that steps are being taken to strengthen National security in Sri Lanka.

Eight EU HR Ambassadors raise concern over Hejaaz Hizbullah

In a statement issued today, Eight Human Rights Ambassadors of Europe including the United Kingdom, Germany and Sweden called on the Sri Lankan government to ” respect human rights defenders such as Hizbullah”.

The statement issued by the Ambassadors of the United Kingsdom, Germany, Sweden, Finland, Lithuania, Estonia and the Netherlands said that after ten months of Detention, Hejaaz Hizbullah was being accused of speech related offences.

Prominent Attorney-at-Law Hejaaz Hizbullah was arrested by the Criminal Investigations Department on the 14th of April 2020.

He was thereafter accused in the media of various activities related to terrorism. He was thereafter produced on the 18th of February 2021 where the Attorney General informed court that the entire case against Hizbullah was to be based on purported statements made by children.

Hizbullah and his Lawyers have maintained that the entire case is a fabrication by sleuths.

The statement further said ” Mr. Hizbullah is a leading advocate if the rights of people from minority communities including Muslims in Sri Lana and a vocal critic of discriminatory policies” .

The statement called on the government to respect persons such as Hizbullah.

” We join the UN High COmmissioner for Human Rights, special procedures mandate holders, in urging the Government of Sri LAnka to respect Human Rights defenders such as Hizbullah” it said.

China Approves $1.5 Billion Currency Swap With Sri Lanka

China has approved a 10 billion yuan ($1.54 billion) currency swap with Sri Lanka, a government spokesman in Colombo said on Wednesday, giving some respite from concerns about public finances.

The deal will allow the island to weather “present difficulties”, State Minister of Money & Capital Market and State Enterprise Reforms Ajith Nivard Cabraal said in an interview with the Daily Mirror earlier on Wednesday.

Sri Lanka’s government bonds surged after the announcement, with Sri Lanka’s dollar-denominated bond due in July 2021 climbing 3.5 cents to 96.3 cents and its highest level since March 2020. The January 2022 issue jumped 4.8 cents, Tradeweb data showed.

Dwindling foreign reserves, a tumbling currency and rising debt levels have dogged Sri Lanka over the last year, leading to increasing fears of a default.

The government of Prime Minister Gotabaya Rajapaksa – which has drawn the country closer to China to the frustration of neighbour India – says this will not happen. It has called downgrades by credit rating agencies and negative comments from investment banks in recent months politically motivated.

“(The swap deal) buys time given FX reserves are at multi-year lows and there are still significant FX payments into year end,” said Raza Agha, head of emerging markets credit strategy at Legal & General Investment Management.

“But the question remains – buy time for what? The need of the hour is an IMF program to anchor fiscal consolidation given government debt was projected at just shy 100% of GDP at the end of last year,” said Agha.

Sri Lanka had previously sought a fresh currency swap deal with India.

But that prospect diminished after India said any further extension of existing funding was contingent on Sri Lanka having a staff-level agreement for an IMF program, Patrick Curran, senior economist at Tellimer, wrote in a recent report, noting the government’s position of “continuing to resist an IMF program.”

Sri Lanka’s central bank governor W.D. Lakshman said last month the country was in talks with foreign governments and multilateral partners regarding financing options.

($1 = 6.5108 Chinese yuan renminbi)

(Reporting by Waruna Karunatilake in Colombo and Alasdair Pal in New Delhi; Additional reporting by Tom Arnold in London; Editing by Chizu Nomiyama, John Stonestreet and Toby Chopra)

Source:Thomson Reuters.

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