NZ PM Jacinda Ardern seeks advice on Sri Lanka crisis

New Zealand Prime Minister Jacinda Ardern said Sri Lanka is experiencing an incredibly tumultuous period as island-wide protests continue amid an economic crisis.

Economic blunders have been compounded by the pandemic, resulting in soaring inflation and a shortage of food, fuel and medical supplies, the Newshub reported.

“In terms of the foreign policy implications for New Zealand that’s where I am looking to receive an additional briefing over the coming 24 hours from the ministry,” Prime Minister Jacinda Ardern said.

The protests are calling for a change in the leadership of the Sri Lankan government, which stands accused of mismanaging public funds.

New Zealand Sri Lankans are signing a petition calling for the NZ Government to condemn the actions of the Sri Lankan leadership.

When asked if she condemned Sri Lanka’s leadership, Ardern stopped short but acknowledged the growing frustration of Sri Lankan people.

“It is a very tumultuous time politically and domestically in Sri Lanka,” she said.

The President of Sri Lanka, Gotabaya Rajapaksa, imposed a 36-hour curfew and a social media blackout in response to the protests.

New Zealand Foreign Minister Nanaia Mahuta has also weight weighed in, saying: “New Zealand strongly upholds democratic values and institutions, including free speech and the right to peacefully protest.”

She said Aotearoa New Zealand was monitoring the unfolding economic, political and security situation in Sri Lanka closely – and encouraged all parties to continue to work on a peaceful solution.

The protest is drawing attention from around the world with the diaspora also taking to the streets in the US, Australia and New Zealand.

Court prevents Cabraal from traveling overseas

Colombo Magistrate’s Court issued an order preventing Ex-Central Bank Governor Ajith Nivard Cabraal from traveling overseas.

Ajith Nivard Cabraal was also issued summons to appear in Court on the 18th of April.

The order was issued by Colombo Additional Magistrate Harshana Kekunuwela upon considering an application filed by former governor Keerthi Tennakooon.

The application charged Cabraal for abusing public funds during his tenure as the governor of the central bank.

President’s Counsel Maithri Gunaratne and Attorney-at-Law Gunaratne Wanninayake appeared on behalf of the plaintiff.

The additional magistrate has also ordered Ajith Nivard Cabraal to appear in court on the 18th of this month.

UN human rights office urges Sri Lanka to defuse tensions peacefully

The UN human rights office (OHCHR) on Tuesday (5) urged authorities in Sri Lanka to defuse tensions peacefully, after a state of emergency was declared in response to protests over the country’s deepening economic crisis.

OHCHR said that the situation has worsened and that there have been shortages of food and fuel, along with power cuts, prompting new protests by desperate Sri Lankans.

Following the state of emergency and other restrictions, Liz Throssell, Spokesperson for OHCHR said her office was “concerned that such measures are aimed at preventing or discouraging people from legitimately expressing their grievances through peaceful protests, and that they frustrate the exchange of views on matters of public interest”.

Deteriorating situation

Public frustration has been rising in recent months with largely peaceful demonstrations taking place across the country.

However, amid sudden shortages in fuel, cooking gas and essential food items; worsening inflation, currency devaluation and rolling power cuts over the past two weeks, the situation has worsened.

“This led to further protests by Sri Lankans left desperate by the rising cost of living and difficulties to obtain basic items,” Ms. Throssell added, speaking to journalists in Geneva.

‘Unwarranted’ violence

After a demonstration outside the president’s residence on 31 March, the Government declared a state of emergency on 1 April, announced a 36-hour curfew from 6pm on 2 April and shut down social media networks for 15 hours the following day. 

There have also been reports of excessive and unwarranted police violence against protesters.  

OHCHR reminded the Sri Lankan authorities that measures related to states of emergency “must comply with international human rights law”, should be limited to the extent strictly required by the situation and be proportionate to it, and “should not be used to stifle dissent or hinder peaceful protest”.

“The UN human rights office will continue to closely watch developments,” said the agency’s spokesperson.

Drift towards militarization

As UN rights chief Michelle Bachelet noted in her recent report to the Human Rights Council in February, the drift towards militarization and the weakening of institutional checks and balances in Sri Lanka have affected the State’s ability to effectively tackle the economic crisis and ensure the realization of the economic, social and cultural rights of all citizens.

The High Commissioner had also previously voiced her concern over how the Government responds to criticism and dissent in ways that undermine civic space.

“We reiterate these concerns today,” said the UN official.

“We urge the Government, political parties and civil society to engage in immediate, inclusive and meaningful dialogue to find a solution for the pressing economic and political challenges that Sri Lanka faces and to avoid further polarization of the situation”. 

Call for restraint

Meanwhile, in New York, Farhan Haq, Deputy Spokesperson for the Secretary-General, told journalists at a regular media briefing that the UN’s team in Sri Lanka is “closely following the situation.”

He said the UN Resident Coordinator in the country, Hanaa Singer-Hamdy, had reminded the Government that the rights to peaceful assembly, association and expression are universal fundamental rights which help foster dialogue between citizens and the State. 

On Friday, the top UN official in the country also called for restraint from all sides, and for the de-escalation of tensions, away from violent confrontation. 

“Our UN team encourages all citizens to engage in dialogue for peaceful solutions,” said Mr. Haq.

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Speaker says Parliament can’t ask Prez to step down

Speaker Mahinda Yapa Abeywardane is reported to have ruled out the possibility of Parliament to ask President Gotabaya Rajapaksa to step down .

At the hurriedly summoned party leaders’ meeting in Parliament, the main opposition Samagi Jana Balawegaya (SJB) has sought parliamentary intervention to prevail upon the President to quit in a move to douse tension in the country.

However, the Speaker has rejected it saying Parliament has no democratic right to ask the president to resign. He said the current crisis should be resolved only through democratic means.

He said the President had called for the parties to get together and evolve a solution to form an interim government. The Speaker said it was up for the people who elected the President to decide on it.

Also, the opposition declined to join hands with the government for an interim government.

Meanwhile, the government’s parliamentary majority was shaken after 42 MPs including ten from Sri Lanka Podujana Peramuna (SLPP) vowing to sit independent in the House.

On behalf of the SLPP group, MP Anura Priyadarshana Yapa announced the decision to function independent of the ruling side. Afterwards, former President Maithripala Sirisena announced the decision of Sri Lanka Freedom Party (SLFP).

MP Wimal Weerawansa who spoke on behalf of the 11 party alliance spelled its decision once again and asked the Speaker to intervene.

Sajith urges Executive Presidency abolition

Opposition and Samagi Jana Balawegeya (SJB) Leader Sajith Premadasa yesterday (5) called for the abolition of the Executive Presidency, urging the process of abolition to be commenced within this week.

“This deal-making brand of politics has been rejected by the country. The country is asking for a new start. The people are telling this Government to go home. That is the truth. There is nothing outside of that that we can do here. These 150 members of the Government approved the 20th Amendment to the Constitution. Now, the time has come to change the Executive Presidency. Let us make this an opportunity to do so. Start the process to abolish the Executive Presidency this week itself,” said Premadasa while speaking in Parliament.

Addressing Prime Minister Mahinda Rajapaksa, Premadasa reminded Rajapaksa that even his own people were against Rajapaksa retaining even a little bit of power as the Premier through the 20th Amendment to the Constitution.

“Remember during the debate on the 20th Amendment to the Constitution Bill where we said that we do not need a Constitution to make the Prime Minister a scarecrow and the President all-powerful or vice versa. We spoke about checks and balances. It is clear that we need to change the Executive Presidency, but we also do not need an all-powerful Prime Minister. There need to be checks and balances.”

Premadasa called on the House to begin the mechanism to abolish the Executive Presidency within this week.

“Let us have a backbone, and within this week, bring the mechanism to abolish the Executive Presidency. Let us stop playing opportunistic politics and agree to one policy.”

The 19th Amendment to the Constitution, passed in 2015, diluted the powers of the Executive Presidency, while the 20th Amendment to the Constitution, passed in 2019, enhanced them and simultaneously weakened the powers of the Prime Minister.

Furthermore, Premadasa spoke about the wave of islandwide public protests that have intensified over the past week, mostly centred around the “Go Home Gota” slogan.

“The Parliament must reflect the voice and heartbeat of the people on the roads. There need not be another voice here since we represent the public. Today, the public has stepped onto the roads with no fear despite the curfew, the state of emergency, and the brief social media ban. The entire country is telling in one voice that we cannot continue on this path; that this group of people cannot do this. If we cannot represent their struggle here, is it any surprise then that they are saying that all 225 of us are not needed?” he questioned.

He stressed that nobody from the SJB will be an “opportunist at this moment to become temporary ministers and play musical chairs”.

“If we are coming to power, we will come with the blessings of the people, and not in any other way,” he added.

On Sunday (3), the 11 constituent parties of the governing alliance, led by Government Parliamentarians Udaya Gammanpila, Wimal Weerawansa, and Vasudeva Nanayakkara, proposed that an all-party Interim Government be formed as a solution to the current political crisis gripping the country. Following the resignations of the Cabinet of Ministers on Sunday, four Cabinet portfolios (Finance, Foreign, Education, and Highways) were appointed to maintain stability in the country until a full Cabinet is appointed. However, newly appointed Finance Minister, President’s Counsel (PC) M.U.M. Ali Sabry resigned overnight. The Government lost its two-thirds majority in the Parliament yesterday as 40 members of Parliament (MPs) announced that they will function independently. Although President Gotabaya Rajapaksa has called on the Opposition to show a 113 majority to hand over power, the SJB, the National People’s Power (NPP), and the Tamil National Alliance (TNA) have stressed that they will not accept any solution that does not include the resignation of the President.

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Four-hour talks between President and SLFP MPs who quit govt

The parliamentary group of Sri Lanka Freedom Party (SLFP) that quit the government called on President Gotabaya Rajapaksa this evening (April 05).

According to reports, the meeting lasted for nearly four hours.

Speaking to the media afterwards, SLFP general secretary MP Dayasiri Jayasekara said the party’s parliamentary group will continue to sit independently in the House despite the discussions.

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Sri Lanka’s Finance Minister Quits After Just One Day, as Economic Crisis Worsens

Sri Lanka’s new finance minister quit after one day in office as President Gotabaya Rajapaksa faced more calls from lawmakers to step down for mismanaging the economy, with soaring living costs triggering street protests that spiraled into a political storm.

Ali Sabry, who was sworn in on Monday and replaced the younger Rajapaksa brother Basil, would have been part of a team to oversee the nation’s debt recast — key to obtaining support from the International Monetary Fund. No official reasons were immediately given for his resignation.

His departure is in keeping with the trend of government officials and politicians distancing themselves from the powerful Rajapaksa family in the face of growing public anger over a surge in inflation that is now Asia’s fastest.

Eleven parties within the ruling coalition said in parliament Tuesday that they would function as independent lawmakers, bringing the total to 30 members. Another 12 lawmakers from Rajapaksa’s SLPP party will also distance themselves from the government, putting a simple majority in the 225-seat legislature for the president’s coalition in doubt.

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GMOA declares an emergency health situation from tomorrow

The General Committee of the Government Medical Officers’ Association (GMOA) today decided to declare an emergency health situation from tomorrow due to the prevalent severe drug shortage in the country, GMOA Secretary Dr. Shenal Fernando said.

He said the decision to announce the emergency health situation was taken to protect the lives of patients following an emergency general committee meeting held today to discuss the present situation, including the imposition of the emergency law and the severe drug shortage prevaling in the country.

During a meeting held with Production, Supply, and Regulation of Pharmaceuticals State Minister, Channa Jayasumana, the GMOA revealed that there would be a severe drug shortage in the country due to the poor management by the government and the current economic crisis, Dr. Fernando said.

“The crisis will remain until the dollar issue is resolved.” However, with the present economic crisis, the current drug shortage will move into a very serious situation in the future. The government declared the public health service an essential service on February 12 after a series of power outages and protests inconvenienced the public.

“After declaring the health services essential, the government should have ensured the supply of essential medicinal drugs in the country,” Dr. Fernando said.

Therefore, the government and the health ministry should take full responsibility for the emergency drug shortage, he said.

“The dollar crisis did not emerge suddenly. Therefore, the government and the health ministry should have applied a methodology. The government should have told the truth to the people and the health sector. The Health Minister was continually informed in this regard while requesting for discussions, but did not consider any of them. Now the health ministry says that there would be a huge issue with essential drugs. Therefore, the doctors have been told to curtail certain routine services that are essential, “Dr. Fernando said.

He said without revealing a health emergency situation to the country, we would not be able to find adequate funds to overcome this situation and to maintain the health situation in the country.

“The government should cut down on other development projects to allocate funds needed to get down essential drugs to its people,” Dr. Fernando added.

Worse-than-ever forex crunch killing businesses, industries

Sri Lanka’s foreign currency crunch in the country is worse than before despite the depreciation in the rupee, further affecting businesses amidst the threat of wiping out industries.

Banks are not opening letters of credit (LC) with importers and businesses in need of raw materials are struggling daily, industry officials say.

LCs opening has gotten from bad to worse, an importer said noting that there’s no end in sight for this issue.

On Wednesday, the Bank of Ceylon (BoC) had suspended telegraphic transfers as they didn’t have any US dollars to execute transactions, a senior BoC official told the Business Times. The gray market for US dollar is trading at Rs. 350 to 390 rates. There are virtually no inward remittances owing to this disparity, this official as well as several other bankers said. They said the 50 per cent export earnings surrender stipulated by the Central Bank is also posing a challenge to shore up forex reserves.

“There’s no confidence in the system and migrant workers aren’t sending their hard-earned money through the banking system,” a senior banker added. The same status quo prior to the currency depreciation had only got worse, he said. He said the expected upside of the currency depreciation isn’t seen.

Kapila Ariyaratne, CEO Seylan Bank told the Business Times on Thursday that there was an uptick in inward remittances during the first two weeks after the rupee was depreciated but since then has declined drastically. “The inflows must increase.”

An importer said there’s ‘runaway depreciation’ which the banks cannot beat. Mahendra Jayasekera, Managing Director Lanka Tiles PLC

said that his company is struggling to import machinery to meet production demand. “We are struggling to open Euro 6 million import LC to bring large machines for the past four months,” he told the Business Times on Thursday. He feared that in the future importing raw materials will also be a challenge. “Our appeal is for all political parties to get together and to come up with a viable solution.”

A second banker said that honouring customer LCs is a big challenge as some are paying large bills. “We need to be reasonable and control the foreign currency outflow,” he said adding that the capacity of each bank to manage and accommodate LCs is diminishing fast.

Small transactions are driving up the exchange rates in leaps and bounds, bankers lament. A third banker said the situation has become so bad that they cannot spare US$1, 000 for foreign travel per individual. He said the impact on import-dependent businesses especially in the small and medium enterprise sector is quite uncertain, noting:. “It will be at least six months before the International Monetary Fund standby facility will be negotiated – if at all. Sustaining these businesses till then is a real challenge.”

Economists say the move to depreciate the rupee was too little too late.