UN experts condemn crackdown on protests in Sri Lanka

UN human rights experts urged the Sri Lankan Government to guarantee the fundamental rights of peaceful assembly and of expression during peaceful protests, amid the country’s severe economic crisis.

“We are gravely concerned by the recent proclamation of a state of emergency as well as the order that blocked access to social media platforms,” the experts said. “These measures seem aimed at discouraging or preventing peaceful protests in the wake of the worsening economic crisis and the lack of access to fuel, electricity, medicines and essential food items.

“We condemn the excessive use of teargas and water cannon to disperse protesters, as well as the recent block of social media platforms. We urge the Sri Lankan Government to allow students, human rights defenders and others to protest in a peaceful manner, and to freely share their political views and express their discontent, both online and offline.”

Issuing a statement the UN also said that the Sri Lanka’s population has been hit by rising inflation, shortages of fuel and essential goods and prolonged power cuts as a result of a scarcity of foreign exchange. The economic crisis has aggravated an already dire situation on access to food and health, causing difficulties for millions of persons living in poverty and for persons with serious medical conditions to access medicines or hospitals.

On 31 March 2022, hundreds of people gathered in front of the president’s residence, demanding his resignation over his handling of the crisis, in an initially spontaneous and peaceful demonstration. Security forces fired teargas and water cannon to disperse the crowd, prompting clashes. Nearly 50 people were injured, including several journalists, and there were more than 50 arrests.

The compounded impact of foreign debt, corruption and the COVID-19 crisis, has affected the country’s economy. Experts called on the government to ensure that all human rights be respected and protected.

Thousands of people have since joined the daily protests, calling for political and economic reforms. The government imposed nationwide curfews from 2 to 4 April, arresting over 600 people found in violation of the curfew. On 2 April 2022, the president declared a nationwide public state of emergency, that has since been revoked, empowering him to override most laws with the exception of the constitution, while the government blocked access to several social media platforms. Access to these platforms was later restored.

The experts called on the authorities to engage in constructive and open dialogue with the Sri Lankan people.

“Peaceful protests and voices of legitimate dissent should not be met with unnecessary and excessive use of force by authorities,” the experts said. “Resorting to use of force against protesters will only jeopardize avenues to express discontent peacefully, risking instead an escalation of tensions.

“We urge the Sri Lankan Government to seek an open and genuine dialogue with peaceful demonstrators on political reforms and means to lessen the impact of the economic crisis.”

EU calls on Sri Lankan authorities to explore democratic ways out of crisis

The Delegation of the European Union to Sri Lanka noting that freedom of assembly and freedom of expression are pillars of any democratic society, when they remain peaceful, encouraged all parties to continue acting with restraint and find constructive and democratic ways out of the crisis.

The Delegation of the European Union issued a joint statement together with the diplomatic missions of EU Member States Germany, France, Italy, the Netherlands and Romania and with the diplomatic missions of Australia, New Zealand, Norway, Switzerland, and the United Kingdom regarding the current situation in the island nation.

Following is the full statement:

Freedom of assembly and freedom of expression are pillars of any democratic society, when they remain peaceful. We therefore encourage all parties to continue acting with restraint. We consider the end of the state of emergency as a positive step.

We call on all parties to explore constructive and democratic ways out of the current crisis that has taken its toll on the Sri Lankan people.

We stress the extreme urgency of the situation, which requires the authorities to start in-depth discussions with the International Monetary Fund (IMF) on the reforms needed to bring the Sri Lankan economy back to a sustainable path.

Sri Lanka opposition eying impeachment amid no-confidence motion: sources

Sri Lanka’s opposition is eying an impeachment of President Gotabaya Rajapaksa as calls intensify for his resignation, political sources said as efforts are also underway to collect signatures for a no-confidence motion.

The main opposition Samagi Jana Balawegaya which supported a finance bill without calling for a vote this week, had warned that a no-confidence vote would be brought.

Earlier about 10 parties linked to sacked ministers Wimal Weerawansa and Udaya Gammapila had said they will pull the plug on the government at a time chosen by them.

Efforts are under way to garner the support of legislators who are said they were ‘independent’ last week, according to political sources.

Sri Lanka is operating with four ministers and President Rajapaksa is expected to announce a new cabinet which will bring more ministers.

Sri Lanka’s parliament attempted to impeach the late President Ranasinghe Premadasa in the 1990s but the effort failed after then speaker M H Mohammed switched sides.

Impeaching a President is an exhausting process under Sri Lanka’s constitution.

The current speaker is also a from the President Rajapaksa’s party.

Article 38

2)

(a) Any Member of Parliament may, by a writing addressed to the Speaker, give notice of a resolution alleging that the President is permanently incapable of discharging the functions of his office by reason of mental or physical infirmity or that the President has been guilty of-

(i) intentional violation of the Constitution,

(ii) treason,

(iii) bribery,

(iv) misconduct or corruption involving the abuse of the powers of his office, or

(v) any offence under any law, involving moral turpitude, and setting out full particulars of the allegation or allegations made and seeking an inquiry and report thereon by the Supreme Court.

(b) No notice of such resolution shall be entertained by the Speaker or placed on the Order Paper of Parliament unless it complies with the provisions of sub-paragraph (a) and –

(i) such notice of resolution is signed by not less than two-thirds of the whole number of Members of Parliament, or

(ii) such notice of resolution is signed by not less than one-half of the whole number of Members of Parliament, and the Speaker is satisfied that such allegation or allegations merit inquiry and report by the Supreme Court.

(c) Where such resolution is passed by not less than two-thirds of the whole number of Members (including those not present) voting in its favour, the allegation or allegations contained in such resolution shall be referred by the Speaker to the Supreme Court for inquiry and report.

(d) The Supreme Court shall, after due inquiry at which the President shall have the right to appear and to be heard, in person or by an attorney-at-law, make a report of its determination to Parliament together with the reasons therefor.

(e) Where the Supreme Court reports to Parliament that in its opinion the President is permanently incapable of discharging the functions of his office by reason of mental or physical infirmity or that the President has been guilty of any of the other allegations contained in such resolution, as the case may be, Parliament may by a resolution passed by not less than two-thirds of the whole number of Members (including those not present) voting in its favour remove the President from office.

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US asks citizens to ‘reconsider’ travel to Sri Lanka in new advisory

The United States in its latest travel advisory on Wednesday has cautioned its citizens from travelling to Sri Lanka amid the ongoing economic crisis and unrest in the country.

Pointing to the fuel and medicine shortages in Sri Lanka, the US’ new ‘Level 3’ advisory also mentioned terror threats as a concern.

“Reconsider travel to Sri Lanka due to COVID-19 and fuel and medicine shortages. Exercise increased caution in Sri Lanka due to terrorism,” said the US State Department said in its latest travel advisory.

“There have recently been protests over the economic situation and queues at gas stations, grocery stores and some pharmacies. Protests have occurred throughout the country and have mostly been peaceful. In some instances, police have used water cannons and tear gas to disperse protesters,” the advisory said.

Mentioning the power outages in the nation, the advisory further said, “There have also been daily planned power outages across the island, as well as some unplanned power outages, as fuel for backup generators is increasingly scarce. Public transportation in some instances has been limited or curtailed. Travellers should monitor local media for updates on the ongoing situation.”

Meanwhile, the US has also issued a level-3 travel health notice for Sri Lanka due to Covid-19. The ‘level-3’ indicated a high level of coronavirus cases in the country. “Your risk of contracting COVID-19 and developing severe symptoms may be lower if you are fully vaccinated with an FDA-authorised vaccine. Before planning any international travel, please review the CDC’s specific recommendations for vaccinated and unvaccinated travellers,” said the travel advisory.

Meanwhile the US Embassy in Colombo said the travel advisory was updated to reflect the impact of Sri Lanka’s economic and political challenges on travelers.

In a twitter message, it said the overall level of the advisory remains at ‘Level 3’ and that the terrorism language has stayed consistent since April 2019.

“Updated travel advisory for Americans in Sri Lanka to reflect the impact of SL’s economic & political challenges on travelers. Please note the overall level of the advisory remains at Level 3 & the terrorism language has stayed consistent since April 2019,” the US Embassy tweeted.

People are continuing their protests against the incumbent government over the shortage of food and fuel and power cuts. Protesters are also demanding that the president and his entire government resign.

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Not ready to accept any proposal unless President resigns: Anura

The National People’s Power (NPP) MP Anura Kumara Dissanayake said today that they were not prepared to accept any proposal such as an interim government unless President Gotabaya Rajapaksa resigns from being the President.

He told Parliament that any proposal that are being made while President Rajapaksa in power, would not alleviate people’s violent protests, as one of the key demands of the people was President to quit from the post.

He said none of the proposals made by the President was effective in resolving the burning issues of the people and added that people strongly demand that the President should “go home”.

“Resigning from the Cabinet or forming an interim government were not the solutions to the current issues,” he said.

MP Dissanayake said they were ready to make proposals or accept any mechanism proposed to resolve the crisis on condition that the President should resign from the post in the first place.

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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.

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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.

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Pharmaceuticals in short supply; GMOA declares a health emergency

Sri Lanka’s State Ministry of Production, Supply, and Regulation of Pharmaceuticals said that government hospitals are running short of 40 different medicines due to the present crisis.

Secretary to the State Minister Dr. Saman Ratnayake told News 1st that stocks of 60 different medicines will only last for another week, and less than a month.

However, facilities have been arranged for pharmaceutical importers to import medicines under the Indian Credit Line.

In addition, The Bank of Ceylon and People’s Bank have decided to open Letters of Credit valued at USD 7 Million each.

However, health professionals have warned that the entire health system would collapse within the next week if the crisis is not resolved.

Dr. Senal Fernando, the Secretary of the Government Medical Officer’s Association speaking to reporters said the GMOA has decided to declare a health emergency across Sri Lanka.

Following the mass resignation of the Sri Lankan cabinet, there is no proper authority to be held responsible for the crisis, said one local doctor who took part in a protest outside of the capital, Colombo.

According to local doctors, medication required for the daily clinics, diabetes patients, as well as heart patients is in short supply, while medical equipment is also scarce.

Sri Lanka imports most of its pharmaceuticals from Asian nations such as India, China, Pakistan, and Bangladesh.

Due to the foreign exchange crisis, the importation of pharmaceuticals is in limbo, as the country needs to source an additional USD 20 Million to avert a major crisis

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Sri Lanka’s currency plunges to world’s worst-performing in economic meltdown

Sri Lanka’s rupee has plunged to a record low to become the world’s worst-performing currency, as President Gotabaya Rajapaksa struggles to contain a worsening economic and political crisis.

The Sri Lankan rupee was hovering near SLRs300 per US dollar on Wednesday, down 32 per cent year to date and lagging even Russia’s rouble, after Rajapaksa ended emergency rule just days after it was imposed.

Sri Lanka is facing a foreign exchange crisis as its government grapples with looming debt payments, widespread protests and an economic emergency.

The backpedal on the emergency decree from Rajapaksa’s government came after his new finance minister, Ali Sabry, quit less than 24 hours into the job.

Sabry’s resignation was the latest in a rush of departures. The country’s entire cabinet quit over the weekend following nationwide protests over severe food and power shortages as well as runaway inflation.

Central bank governor Ajith Nivard Cabraal, who was scheduled to oversee a policy meeting on Thursday, also resigned on Monday.

The hollowing out of Rajapaksa’s administration has stoked concerns over the country’s ability to secure help from the IMF to avoid defaulting on looming international bond payments.

Previous finance minister and the president’s brother Basil Rajapaksa had been preparing to fly to Washington to discuss terms with the IMF prior to his resignation over the weekend.

“Things don’t look good. So much depends on whether they can get any IMF funding,” said Steve Cochrane, chief Asia-Pacific economist at Moody’s. “A stable government matters.”

Cochrane said raising interest rates could help curb inflation and potentially bolster the rupee. “But there are other factors driving inflation that the central bank has little control over,” he added, including commodity prices pushed up by Russia’s invasion of Ukraine, supply chain constraints and lack of foreign reserves to pay for imports.

Analysts said markets were focused on a $1bn sovereign dollar bond repayment due on July 25. On Wednesday, that bond was trading well below face value at a record low of $0.58, as doubts mounted over Sri Lanka’s ability to come up with enough dollar funding to make the payment.

As finance minister, the president’s brother oversaw a regime of drastic tax cuts that prompted global rating agencies to repeatedly downgrade the country’s sovereign credit rating, leaving it frozen out of international debt markets.

That forced Sri Lanka to make interest payments on its sovereign bonds from dwindling foreign reserves, which have come under pressure during the coronavirus pandemic. The tourism sector, one of the island nation’s main revenue generators, has been hit particularly hard.

The IMF estimated in late February that Sri Lanka had only about a month worth of foreign reserves left.

“With the government in disarray, the prospects of securing an IMF package look bleak,” said Alex Holmes, Asia economist at Capital Economics. “That again elevates the chances that the government will eventually have to resort to a sovereign default”.

(Financial Times)

Sri Lanka’s GDP growth projected to dip to 2.4% in 2022 – ADB

The Asian Development Bank’s (ADB) annual flagship economic publication has forecast a muted recovery from the coronavirus disease (COVID19) pandemic as Sri Lanka’s economy grapples with macroeconomic challenges arising from high debt, low foreign reserves, and inflationary pressures.

ADB said it projected Sri Lanka’s economic growth to dip to 2.4% in 2022 and improve marginally to 2.5% in 2023.

The Asian Development Outlook (ADO) 2022 observed that even as the Omicron variant of COVID-19 subsides, the country is facing several headwinds. Rising food, fuel and commodity prices, higher import prices, supply chain disruptions, shortages stemming from the foreign exchange squeeze, demand side pressures, and exchange rate depreciation will drive inflation higher in 2022.

Inflationary pressures are expected to moderate in 2023 as global prices fall and supply constraints ease.

“A strong vaccination drive helped economic activity recover from the impact of multiple COVID-19 waves, with tourism, one of the worst hit sectors, gaining strength at the turn of the year,” said ADB Regional Economic Advisor for South Asia Rana Hasan. “At the same time, strong growth is being held back by Sri Lanka’s debt overhang, large external financing requirements, energy shortages, and high inflation. Immediate measures to restore macroeconomic stability and debt sustainability are crucial for recovery to gain traction.”

Underlying macroeconomic weaknesses, the pandemic’s lingering impacts, energy shortages and external shocks pose downside risks to the economic outlook.

In the absence of access to sustained balance of payment financing, foreign exchange reserves will continue to be limited, and external sector vulnerabilities are likely to persist. The implications of the Russian invasion of Ukraine will be seen through higher oil and food prices as well as reduced tourism and exports earnings.