Sri Lanka fails to ’meet’ 33% of IMF commitments due by end-February: Verité Research

Sri Lanka failed to meet 33% of the commitments due by end-February 2024 in its International Monetary Fund (IMF) programme, according to the February update of Verité Research’s ‘IMF Tracker’.

Many of these commitments that are classified as ‘not met’ on IMF Tracker were designed to improve governance, the Verité Research said.

“These include commitments related to publishing information (transparency), and those that require the passage of governance-improving legislation.

The IMF has recognised poor governance as being at the heart of Sri Lanka’s economic crisis, and Sri Lanka is the first Asian country to have had an IMF-led Governance Diagnostic Assessment.

The status of 36% of the commitments are classified as ‘unknown’, which means sufficient data was not made available to assess their progress. By end-February, 31% of the commitments were verifiably ‘met’,” the Verité Research further said.

The second round of IMF programme funding came in December 2023. Under the updated agreement, Sri Lanka was due to meet 45 commitments by end-February. The IMF Tracker dashboard classified 14 (31%) of these as ‘met’, 15 (33%) as ‘not met’, and 16 (36%) as ‘unknown’.

Of the 15 ‘not met’ commitments, six are on publishing information. Four are on actions relating to adopting new laws: (a) Obtaining parliamentary approval on Banking Act; (b) Introducing automatic indexation of excises to inflation; (c) Making legislative change to set up a debt management agency; (d) Presenting the public finance management law to parliament.

These four actions, which are aimed at addressing governance problems, have remained neglected despite being included in the IMF staff-level agreement in September 2022.

Gotabaya’s book aims to bring back the Rajapaksas on a majoritarian wave By Veeragathy Thanabalasingham

Former President Gotabaya Rajapaksa (GR) last week published a book titled THE CONSPIRACY to Oust Me From The Presidency’ in English and Sinhala.

Instead of having a book launch event with great fanfare inviting religious leaders, politicians and foreign diplomats, as is customary for political leaders, GR sent copies of the 179-page book directly to main booksellers across the country. He issued only a media release announcing the publication of the book.

Immediately after the release of the book United National Party chairman Vajira Abeywardena MP announced that he will launch a book shortly which relates the inside story about how the incumbent President Ranil Wickramasinghe became Head of the State with a solitary seat in Parliament after the 2022 Aragalaya uprising. He had already released a compilation of newspaper cartoons about the President last week.

The local and foreign media gave much publicity to GR’s book which he described is based on first-hand experience of an internationally sponsored regime change operation. The book he said would interest not only Sri Lankans but also foreigners.

However, the book does not seem to have created much sensation among people Sri Lankans. It mostly contains matters that are already known to the public. Perhaps it would have attracted more attention if GR, who fled the country amidst an unprecedented people’s uprising and resigned from the Presidency while in Singapore, had given his book a different title.

Talking of international and local conspiracies is a habit of the Rajapaksas. They have fabricated conspiracy theories to explain their failures.

The Rajapaksas have already been saying that the people’s uprising that drove them from power two years ago is a conspiracy by domestic and foreign forces. They do not accept that the people took to the streets and revolted against them as the result of their policies which led the country to bankruptcy for the first time in the history of modern Sri Lanka.

The leader of the National Freedom Front, Wimal Weerawansa, an erstwhile staunch ally of Rajapaksas, who turned against them after having stripped of ministerial position by GR in the early part of 2022, had already released a book titled ‘ Nine ; The Hidden story ‘ on the alleged international conspiracy behind the Aragalaya last year. It is reported that Weerawansa’s book contains more details than GR’s.

With the country waiting for the national elections, the publication of GR’s book two years after he was forced to resign is interpreted as a signal of his willingness to re-enter politics.

Meanwhile, there are those who say that it was not a coincidence that the book came out at the time when elder brother Basil Rajapaksa returned from the United States to steer the Sri Lanka Padujana Peramuna (SLPP) towards the elections.

GR says in the book that he had to step down as a result of a regime change operation with the support of international powers. Despite claiming that the book is based on first-hand experience of the conspiracy, he avoided mentioning any country by name. He did not produce any credible evidence of a conspiracy.

However, his contention is that the geopolitical rivalry between China and other countries is responsible for his downfall. He argued that his downfall was the result of Chinese-funded infrastructure projects after 2006 that brought an element of geopolitical contest to the Sri Lankan political landscape.

The former President said that it would be extremely naïve for anyone to claim that there was no foreign hand in the moves to made to oust him from power. He further said that foreign intervention in Sri Lanka started since the day he won the war against the Tamil Tigers.

“From the time I was elected as President in November 2019, local and foreign forces started working to remove me from power. Immediately after I took office, the Covid-19 pandemic began spreading in Sri Lanka and across the world. I had to spend my two and a half years in office trying to control the pandemic.”

” After the pandemic was brought under control by an effective vaccination campaign in March 2022 and when the economy was beginning to recover, the conspiratorial forces started their campaign to remove me from the Presidency. Today foreign intervention and manipulation of internal politics have become a fact of life in Sri Lanka in a manner never experienced in the first sixty years of independence of this country.”

“Attempts to remove me from office have brought a new trend in the politics of Sri Lanka, which had witnessed a peaceful transition of power through democratic elections since independence,” GR said in his media release.

His comments at various points in the book reveal his belated acceptance that he was a political neophyte. He has openly stated that he was not able to properly exercise his power as he was not the leader of the ruling party. GR should have known why previous Executive Presidents including his elder brother Mahinda Rajapaksa made sure that they were also the leaders of their parties. He thought that since the party was under the control of his brothers, he would not face any problem in the political front. May be blood is thicker than water, but political power is thicker than blood.

The main reason that prompted me to comment on GR’s book is to present some observations on important passages on the Aragalya uprising .

It appears that he wrote this book to attribute ethnicity-based political reasoning for the popular revolt against his rule. GR said it was obvious that all the Aragalaya related protests held especially in Colombo may have been motivated by the fear that if he continued in power, the Sinhala Buddhists would have been strengthened to the detriment of the minority communities. The Aragalaya, which had the support of foreign powers from the very first day, was inimical to the interests of the Sinhalese, especially the Sinhalese Buddhists.

He further said that if anyone examines thoroughly who gathered at the Colombo Galle Face Green it can be clearly seen that all of them belong to the sections of the population that already rallied against him.

“The perception that I was against the Tamils and Muslims was reinforced. Although I maintained excellent relations with the Catholic Church, they also later turned against me. Those who participated in the Aragalaya had different goals and priorities.”

” If anyone who had the impression that the purpose of the Aragalaya movement was to mitigate the hardships faced by the people as a result of the economic crisis, it is simply delusional. The agenda of diaspora Tamils demanding a united Sri Lanka instead of a unitary state was clearly visible in the Aragalaya. They have been demanding a political solution to the ethnic conflict based on a federal set up” the former president said.

He has also gone to the extent of saying that his very election to power was the result of a contest between the Sinhala and Buddhist interests on the one hand and all non- Sinhala and non-Buddhist elements on the other hand.

Although the Supreme Court ruled in November last year that the three Rajapaksa brothers and some senior officials who held key positions in their government, including the two former Governors of the Central Bank, were responsible for the collapse of the economy, GR adamantly refuses to accept that his government was responsible for the crisis. He is intent on portraying himself as an innocent victim of a dangerous conspiracy.

Now doubt his narrative is a clear demonstration of the Rajapaksas’ determination to regain the support of the Sinhala people by taking a stand against the interests of minority communities through the mobilization of the majority community. They can easily attribute the political opposition to them as a conspiracy of foreign powers.

It is clear that the objective of the Aragalya movement was genuine and in the initial stages of the struggle there were manifestations of a political revolution which was carried out peacefully and turned the attention of the whole world towards Sri Lanka.

But when the movement turned into a mass struggle, various political forces infiltrated it and diverted it to violence, by storming strategic state buildings including the President House, Temple Trees and the Prime Minister’s Office creating a convenient situation for the government of the new President Ranil Wickremesinghe to justify repression.

Aragalaya is a very recent example of the fate that would befall a popular uprising which has no clear objectives and a proper leadership guided by progressive political principles.

The Rajapaksas never dreamt that the Sinhalese people would rise up against them so quickly. They were labouring under a strange belief that the Sinhalese community would forever be slavishly loyal to them and that Sri Lanka’s political power would be their monopoly. The Rajapaksas expected the Sinhalese to support them without a murmur tolerating their shenanigans.

The Rajapaksas either need to return to power or ensure that someone who does not hold them accountable for past misrule comes to power. There is no doubt that their moves in the coming days will be based on this objective. They have no other way to rebuild their party and regain the support of the Sinhala people other than indulging in propaganda about an imaginary international conspiracy and anti-minority politics.

When we look at today’s geopolitical situation, it is not new that powerful countries intervene in the internal affairs of other countries and manipulate the political forces there, but it should be understood that the actions of the rulers create a conducive situation for such interventions.

GR’s view that popular the uprising was against the interests of Sinhalese Buddhists is an insult to the sanity of that community. Only the next elections will show whether attempts at majoritarian mobilization will gain traction with the Sinhalese masses.

But no longer should majoritarian mobilization be allowed to cover up corruption and misrule. If not, there will be no future for Sri Lanka.

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Sri Lanka and China standards agencies to sign agreement

Sri Lanka Standards Institution and the Standardization Administration of China will sign an agreement to iron out barriers in trade linked to non-tariff areas, Minister Bandula Gunawardena said.

“It has been proposed to sign a Memorandum of Understanding between the Sri Lanka Standards Institute and China’s Standardization Administration to reduce technical barriers in trade between Sri Lanka and China,”
Gunawardena said on Tuesday announcing Cabinet decisions.

The Standardization Administration of China is the standards organization authorized by the State Council of China.

“The clearance of the Attorney General and the approval of the Ministry of External Affairs have been received for the relevant draft MoU. The Cabinet of Ministers approved the proposal to sign the said MoU,” Gunawardena said.

Sri Lanka is seeking to expand on trade agreements to facilitate exports of goods and services.

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President and Sumanthiran discuss IMF proposals

ITAK Parliamentarian M. A. Sumanthiran discussed the proposals of the International Monetary Fund (IMF) after other opposition parties boycotted the meeting.

During the discussions, Secretary to the Treasury Mahinda Siriwardena provided insights into the ongoing negotiations with bilateral creditors, commercial creditors, and ISBs, with an optimistic outlook towards completing the process by the end of June this year.

Notably, Mr. Sumanthiran raised pertinent concerns regarding the lack of published technical assistance reports of the IMF which is an analysis as to why certain recommendations are made, which is a necessity for the publication of analytical data to inform parliamentary deliberations.

President Wickremesinghe, acknowledging the importance of transparency, assured that the government would release the data to the ITAK and Parliament, facilitating informed debate and decision-making.

Furthermore, the Central Bank Governor highlighted the government’s efforts in adhering to the recommendations outlined in the governor’s diagnostic report, emphasizing the commitment to a structured roadmap for implementation. President Wickremesinghe affirmed the government’s willingness to make these technical assistance reports available to the members of parliament and invited Sumanthiran and other Opposition members to attend a meeting and engage with the IMF to further discuss the proposals.

In response, Sumanthiran expressed his readiness to participate constructively in the dialogue, pledging support for constructive measures while highlighting areas that warrant attention and rectification, the President’s media unit said.

Present at the meeting with President Ranil Wickremesinghe were Prime Minister Dinesh Gunawardane, Leader of the House Susil Premajayantha, State Ministers of Finance Shehan Semasinghe and Ranjith Siyambalapitiya, Senior Advisor to the President on National Security and Chief of Presidential Staff Sagala Ratnayaka, Secretary to the President Saman Ekanayake, Governor of the Central Bank Dr. Nandalal Weerasinghe, and Secretary to the Treasury Mahinda Siriwariwardena, representing the government.

Representing the Opposition ITAK Parliamentarian M.A. Sumanthiran attended the meeting.

Sri Lanka Among World’s Least Miserable Nations: Mental State of the World Report

In a significant revelation, Sri Lanka has emerged as one of the world’s least miserable nations, according to the 2023 Mental State of the World Report by Sapien Labs. The report, which analyzes mental health metrics globally, sheds light on Sri Lanka’s remarkable standing in terms of mental well-being.

Topping the charts in the Mental Health Quotient (MHQ) category, Sri Lanka secured the second-highest position worldwide with an impressive score of 88. Only surpassed by the Dominican Republic, which clinched the top spot with a score of 91, Sri Lanka’s performance highlights its citizens’ overall positive mental health.

A striking finding from the report is that merely 14% of Sri Lanka’s population reports feeling distressed or struggling, marking the lowest percentage globally. This stark comparison contrasts with other nations such as Brazil, South Africa, and the UK, where up to 35% of the population faces mental health challenges.

This remarkable achievement underscores Sri Lanka’s commitment to prioritizing mental well-being and implementing effective measures to support its citizens’ mental health. It also reflects positively on the country’s social and cultural fabric, indicating a strong support system and resilience among its populace.

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Government’s Push for Electoral Change Raises Eyebrows: Cabinet Paper Proposing Amendments to Parliamentary Elections Act

The government has stirred controversy with its latest move to overhaul the parliamentary election system. Justice Minister Wijeyadasa Rajapakshe has submitted a Cabinet paper proposing amendments to the Parliamentary Elections Act, aiming to introduce a mixed electoral system. This system would see 160 MPs elected through the First Past the Post (FPTP) method and another 65 through proportional representation (PR).

The FPTP system awards seats to candidates with the most votes in individual constituencies, while PR allocates seats in proportion to parties’ overall vote shares. While some political parties have expressed support for the proposed changes, others remain skeptical. Minister Rajapakshe, currently in London, highlighted the varied responses from political factions during discussions.

This initiative isn’t new; previous governments have attempted similar electoral reforms without success due to political disagreements. Proportional representation, the current system, has faced criticism for its perceived electoral irregularities. The timing of the proposed changes, just ahead of elections, has prompted speculation within political circles about the government’s motives.

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Sritharan’s agreement, a green light for Ranil? (an IF video)

ITAK leader S. Sritharan’s agreement to meet the IMF is an indication that incumbent Ranil Wickremesinghe stands to gain Tamil votes at a future presidential election, claims a political analyst.

This is especially so in view of forecasts that none of the candidates will be able to poll 50 per cent of votes, said Vipula Karunatilake.

According to him, both the SJB and the NPP have failed to gain trust from the three million decisive votes, which could most likely favour Wickremesinghe.

Karunatilake and Samabima Party leader Deepthi Kumara Gunaratne take a look at how Tamil votes will decide the outcome.

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SLPP expresses concerns over President’s direct dealing with individual MPs

Sri Lanka Podujana Peramuna (SLPP) is reported to have reiterated its concerns with President Ranil Wickremesinghe over his direct dealings with individuals of the party bypassing its hierarchy.

It was communicated to the President when he met with SLPP leaders Mahinda Rajapaksa and Basil Rajapaksa last week.

Such concerns were reiterated in the wake up of some MPs and electoral organizers siding with the President.

Currently, a sediment of SLPP MPs remain loyal to the President. Most of them hold ministerial positions in the government. SLPP MP Chief Government Whip Prasanna Ranatunga openly advocates candidacy to the President at the upcoming presidential election. However, the SLPP is yet to take any formal decision although all indications point to its support to the President.

The SLPP raised similar concerns on a previous occasion too in this regard

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Thirty Sri Lanka ruling party MPs discussing alliance with opposition SJB: Ashok

Thirty MPs of the ruling Sri Lanka Podujana Peramuna are in talks with the main opposition Samagi Jana Balawegaya (SJB) about joining forces, SJB legislator Ashok Abeysinghe said.

Speaking to reporters at an event in Kurunegala on Sunday March 10, Abeysinghe said five out of 11 SLPP parliamentarians that were elected from the Kurunegala district will team up with the SJB for the upcoming elections.

“We don’t intend to accept any MP from the SLPP. We only plan to take MPs without corruption charges and don’t have any court cases. Even now about 30 MPs are talking to us about forming an alliance with us,” the MP said.

“In the next few weeks, the media and the country will know who that is,” he added.

The SJB has been harshly critical of President Ranil Wickremesinghe for working with the SLPP, on whose support he has had to rely on since assuming office. Wickremesinghe has extended repeated invitations to opposition parties including the SJB to assist him in his economics reform agenda, but the SJB has refused citing his alliance with the SLPP.

Meanwhile, State Minister Arundika Fernando said on Wednesday March 06 that a large majority of the parliamentary group of the ruling Sri Lanka Podujana Peramuna (SLPP) believe that President Ranil Wickremesinghe should run for president.

Fernando claimed the SLPP’s parliamentary group overwhelmingly believes that President Wickremesinghe should be the one to govern the country going forward.

That same day, amid speculation over the possibility of an early dissolution of parliament, President Wickremesinghe joked to SJB legislator Harsha de Silva that the chairmanship of a parliamentary committee the latter heads may not last much longer.

Sri Lanka is supposed to hold its next presidential election between September 17 and October 17. President Wickremesinghe has said the presidential election will be held first, followed by a parliamentary election next year. However, he has remained largely noncommital about his candidacy.

Spokespersons for the government have also made remarks about the possibility of abolishing the executive presidency, which would effectively render the need for a presidential election moot.

There is also some speculation that Wickremesinghe might dissolve parliament sooner than anticipated, but this has yet to be confirmed.

US will continue to monitor legislative developments impacting human rights in Sri Lanka – envoy

US Ambassador to Sri Lanka Julie Chung has asserted that the United States will continue to monitor legislative developments in Sri Lanka that could challenge its progress on human rights, reconciliation, and civic space.

Taking to ‘X’ (formerly Twitter), the diplomat highlighted that the joint statement issued by the Core Group earlier this month at the 55th Session of the United Nations Human Rights Council (UNHRC), along with other statements made by local and international organizations, underscore shared concerns, notably that Sri Lanka’s much-disputed Online Safety Act could be used to criminalize a wide range of expression, suppress dissent, and undermine Sri Lanka’s digital economy.

Speaking in this vein, Ambassador Chung urged for comprehensive consultations to be made between the Government of Sri Lanka and other stakeholders, including civil society, prior to the enactment of any legislation with potentially serious implications for fundamental freedoms and civic space in the future, and that the due legislative process be followed in this regard.

On 04 March, the Core Group on Sri Lanka, at the 55th Session of the UHRC raised concerns with regards to several legislative developments regarding human rights, reconciliation and civic space.

In a joint statement, the Core Group, comprising of Canada, Malawi, Montenegro, North Macedonia, the United Kingdom and the United States of America, noted that certain legislative developments imposed recently have given cause for concern.

As such, they noted that the Online Safety Act has “the potential to severely restrict online communication, and could potentially criminalise nearly all forms of expression, creating an environment that has a chilling effect on freedom of expression”.

Thus, the Core Group urged the Sri Lankan Government to enact amendments to align the Act with Sri Lanka’s human rights obligations and commitments.

Speaking further, the Group reiterated their concerns surrounding the controversial Prevention of Terrorism Act (PTA), continuing to call for it to be replaced with legislation that is consistent with Sri Lanka’s international obligations.

Attached below is the full statement issued by the Core Group at the 55th Session of the UNHRC:

Thank you, Mr President.

This statement is on behalf of the Sri Lanka Core Group comprising Canada, Malawi, Montenegro, North Macedonia, the United Kingdom and the United States.

High Commissioner,

There have been several important legislative developments regarding human rights, reconciliation and civic space. Unfortunately, some of these developments give cause for concern.

The Online Safety Act has the potential to severely restrict online communication, and could potentially criminalise nearly all forms of expression, creating an environment that has a chilling effect on freedom of expression. We urge the Government to enact amendments to align the Act with Sri Lanka’s human rights obligations and commitments.

We continue to call for the Prevention of Terrorism Act to be replaced with legislation that is consistent with Sri Lanka’s international obligations. We acknowledge the recent release of nine Tamil leaders detained last November. We encourage the release of unjustly held long-term PTA detainees and for Sri Lanka to maintain a moratorium on its use.

While we note the Government’s efforts to establish a Commission on Truth, Unity and Reconciliation we stress the importance of an inclusive participatory process to build trust in advance of any legislation. Any future Commission must be independent, inclusive, meaningful, and transparent, meet the expectations of affected communities, build upon previous transitional justice processes, and provide pathways for accountability.

As the Government brings forward other legislation with potentially serious implications for fundamental freedoms and civic space, we encourage comprehensive consultations with stakeholders, including civil society, and due legislative process.

We welcome the Government’s stated commitments on land releases but note with concern reports of increased tensions around land seizures in the North and, particularly, the East of the country.

High Commissioner, we urge the Government to engage with you and your office to address these and other challenges, and we remain ready to support Sri Lanka in addressing HRC resolution 51/1.

Thank you.