The report, supported by the Women in Work programme, a partnership between IFC and the Australian government, also highlights Sri Lanka’s leadership in board-level gender diversity, with women holding 27 percent of board positions, compared to 20 percent in Nepal and 14 percent in Bangladesh.

The IFC said in a statement on Monday June 03 that the report, Women’s Advancement in Banking in Emerging South Asian Countries, aims to optimise opportunities that enable women to advance to senior roles in the banking industry across South Asia. The multi-country study, among the first of its kind in the region, focuses on private-sector commercial banks in Bangladesh, Nepal, and Sri Lanka, where women constitute 30 percent of the banking workforce compared to the global average of 52 percent, the IFC said.

Research conducted across seven leading private commercial banks in Sri Lanka, representing 41 percent of the market share, formed the basis of insights on Sri Lanka.

“While Sri Lanka’s banking industry is close to achieving parity in hiring women and is considerably ahead of other countries in terms of women’s share in the workforce, women’s progression does not match their career aspirations or progression rates for men. Representation drops from 40 percent at entry-level to 27 percent in middle management and further to 20 percent in senior management roles,” the IFC said in its statement.

IFC’s Regional Director for South Asia Imad N Fakhoury was quoted as saying that investing in the potential of women leaders isn’t just about equality, it’s about unlocking the full spectrum of talent and driving sustainable growth–exactly what Sri Lanka needs for a resilient economic recovery.

“Addressing the multifaceted challenges faced by female bankers requires comprehensive and collective action, rather than isolated interventions. We must tackle these barriers—whether policy, process, or culture–related—in a targeted manner, creating an inclusive banking sector and driving greater economic growth,” he said.

The report underlines how barriers such as lack of fair evaluations, sociocultural constraints and non-conducive work environments curtail women’s growth prospects in the Sri Lankan banking industry. While banks and policymakers have initiated several steps to improve women’s participation and career progression, stronger commitment from leadership is essential to create inclusive workplaces. According to the IFC, the report reveals skepticism among many employees, including senior leaders and more than 50 percent of middle managers, regarding the importance of female leadership for businesses to be competitive.

Previous research indicates that commercial banks with at least 15 percent of women in senior management achieve up to 33 percent higher return on equity. A growing body of evidence further links an increase in women’s representation in organisations to better performance on business metrics, the study found.

“This comprehensive, data-based report is a strong starting point for the banking sector to improve long-term policies allowing women and men to achieve their potential. The sector – as well as other organisations – should take note of findings that show an increase in women’s representation in senior manager or higher roles delivers higher returns and stronger business outcomes,” Australian High Commissioner for Sri Lanka Paul Stephens  was quoted as saying.

The report also recommends targeted efforts in Sri Lanka to bolster women’s participation and advancement in commercial banking. These include establishing organisational commitment and accountability for gender diversity, building equitable and safe workplaces, and developing supportive ecosystems, networks, and professional development opportunities. These findings and recommendations aim to guide industry actors—C-suite leaders in commercial banks, policymakers, industry bodies, and investors—towards increasing women’s representation in leadership in the banking industry, the IFC said. (Colombo/Jun03/2024)

Under BIMReN Split-Site Doctoral Fellowships, doctoral candidates in BIMSTEC member countries get a research grant of up to 1 million Indian rupees and the opportunity to pursue studies at Indian research labs for 6-12 months.

The full statement is reproduced below:

Government of India has launched BIMReN (BIMSTEC-India Marine Research Network), a joint-initiative of MEA and the Bay of Bengal Programme-Inter Governmental Organization (BOBP-IGO), to facilitate sustainable development of blue economy by networking researchers and research institutions in BIMSTEC countries.

2. BIMReN aims to enable PhD students from BIMSTEC countries to conduct doctoral research in India and facilitate collaborative research among scientists / academicians from BIMSTEC countries through:

i. BIMReN Split-Site Doctoral Fellowships, which offers doctoral candidates in BIMSTEC member countries a Research Grant of up to INR 1 million and the opportunity to pursue studies at Indian research labs for 6-12 months.

ii. Twinning Research Projects, aimed at facilitating collaborations between institutions and individuals from BIMSTEC member countries, to work together on research programmes of regional interest, with an associated grant of up to INR 5 million per project of tenure of 24 months.

3. Researchers and academic institutions engaged in research in fisheries, marine or ocean sciences from across the BIMSTEC region would stand to benefit from the program. Call for the first round of entries is open until 30 June 2024. Detailed information, including features of the program and guidelines for application may also be found at: https://www.bobpigo.org/pages/view/bimren

4. For any clarifications, the following nodal point may be contacted: Dr. P Krishnan, Director, Bay of Bengal Programme – Inter Governmental Organisation, Email: info@bobpigo.org, Telephone: +91 44 42040024.

Sri Lankans are among 36 countries added to a list of 57 countries that would get 60 day stays under the scheme, The Bangkok Post reported.

The new countries eligible for ‘Destination Thailand Visa’ include Albania, Cambodia, China, India, Jamaica, Kazakhstan, Laos, Mexico, Morocco, Panama, Romania and Uzbekistan.

Visitors who want to work and visit tourist destinations will be able to get five-year visas valid for 180 days, extendable for another 180 days, the government spokesman Chai Wacharonke was quoted in the news report.

The visa will allow foreign students of higher education to stay for one year after graduation and work, instead of having to leave the country immediately after finishing their course.

“They can find work during the extended period, especially in the fields that we need,” the spokesman said.

Visitors over 50 years who want long-stay visas currently need to have health insurance coverage worth 3 million baht. This has now been reduced to 440,000 baht (400,000 for inpatient treatment and 40,000 for outpatient cover).

The cabinet also approved the expansion of e-visa application services at Thai consulates and embassies from 47 to 94 locations, commencing in September. (Colombo/May30/2024)

The United Nation’s Human Rights Council (UNHRC) passed a resolution in March 2021 that has given mandate for the global body to establish a mechanism to gather evidences outside the country over alleged human rights violations during and after a 26-year war ended in 2009.

The resolution has allowed the Office of the UN High Commissioner for Human Rights (OHCHR) “to collect, consolidate, analyse and preserve information and evidence and to develop possible strategies for future accountability processes for gross violations of human rights or serious violations of international humanitarian law in Sri Lanka, to advocate for victims and survivors, and to support relevant judicial and other proceedings, including in Member States, with competent jurisdiction”.

The resolution was approved despite strong protest by the Sri Lankan government which said the move was infringing its sovereign rights.

Sarath Weerasekera, a legislator and retired Navy Admiral as well as the Chairman of the Sectoral Oversight Committee on National Security said he has “summoned” representatives of Foreign Ministry, Defence Ministry, chief of all three forces, and attorney general to review external mechanisms that has been established as per resolution 46/1 in Geneva about the evidence gathering mechanism.

“It is a mechanism to gather evidence against the leaders of such military and elected leaders who gave orders,” Weerasekera told reporters at a media briefing on Wednesday in Colombo.

INTERNATIONAL JURISTICTIONS

“Though our government and Foreign Ministry had rejected this mechanism, this process is now on. According to this mechanism, legal cases can be filed in different countries under international jurisdictions against the military leaders and those officials who gave orders to the military,” he said.

“Already the UN Human Right Commissioner has looked into if legal actions can be taken by various countries against those involved. If that happens they can take our military and political leaders to International Court of Justice ( ICJ) and International Criminal Court (ICC). We have that threat now.”

“That will have an impact on the country’s national security because such step will demotivate our military.”

Since the end of the war in 2009, Sri Lanka has strongly rejected any human rights violation and said it had maintained zero casualties in its final war.

However, the UN has repeatedly said it has found credible evidence of nondiscriminatory killing by both Sri Lanka military and the fighters of Liberation Tigers of Tamil Eelam (LTTE) in the final phase of the war.

The new move comes as the island nation is likely to face another resolution to pressure Sri Lanka to probe alleged rights abuses at the next UNHRC meeting in four months, right groups say.

Already select Sri Lankan military and political leaders are facing some targeted travel bans and freezing of financial assets mainly by some Western nations.

TRAVEL BANS 

A new OHCHR report released on May 18 has already recommended targeted sanctions on officials responsible for disappearances in Sri Lanka since 1970 and has called for justice outside the country for the families of victims.

A limited number of Western nations have already imposed targeted sanctions, including travel bans for some Sri Lankan political and military leaders, after finding credible information about human rights violations.

The United States has imposed a travel ban on former Army Chief Shavendra Silva and his immediate family members, Navy intelligence officer Chandana Prasad Hettiarachchi, Army Staff Sergeant Sunil Ratnayake, army officer Prabath Bulathwatta, and former Navy chief Wasantha Karannagoda, citing human rights violations, the recent UN report said.

Canada last year imposed financial sanctions to freeze the assets of former Sri Lankan presidents Mahinda Rajapaksa and Gotabaya Rajapaksa, citing rights abuses.

Some top Sri Lankan military officials have been deprived of taking part in lucrative UN Peacekeeping Missions due to human rights allegations during the war.

Human rights analysts say some Sri Lankan political and military leaders are still unaware that they have been blacklisted by Western nations for rights abuses and will only become aware of such measures when they request visas from these countries.

Weerasekera admitted that there is a travel ban for senior retired military leader Shagi Gallage and the current defence secretary Kamal Gunaratne as well.

“Terrorism is no more local or regional. It is global and transnational. Therefore there has to be a concerted effort from the part of the international community to address this menace,” he said.

“We in fact defeated a terrorist group that has been banned by 32 countries. So other countries should support us. The denial of visa is wrong. We see it as a move opposing our anti-terrorism moves.”

“This is a violation of Geneva act. This is an act totally demotivating our armed forces.”

The Rajapaksas and military leaders have denied any wrongdoing, and successive governments have rejected an independent international investigation into alleged human rights violations, citing infringement on the country’s sovereignty.

Tamil families have been waiting for justice and accountability from successive governments since 2009. Rights groups say the Sri Lankan government has been dragging most of the local probes of such human rights abused accusations including thousands of forced disappearances. (Colombo/May 30/2024)

The Government Chief Whip, Prasanna Ranatunga said President Raisi recently came to Sri Lanka to open a multi-purpose dam project.

A helicopter carrying President Raisi crashed into a hillside as he was returning from opening a dam at the border with Azerbaijan.

Related Sri Lanka, Iran Presidents inaugurate Uma Oya hydro-electric project

On April 24, President Raisi and Sri Lanka President Ranil Wickremesinghe opened the 514 million dam built by an Iranian engineering company. (Colombo/April22/2024)

Released last week, just before the 15th anniversary of the war’s end and four months ahead of the next UN human rights session where Sri Lanka is likely to face a new resolution, the report has sparked significant attention from rights groups.

The report, titled “Accountability for Enforced Disappearances in Sri Lanka,” urged justice for all Sri Lankan ethnic groups, including Sinhalese and Muslims, during the war and other insurrections, rather than focusing solely on ethnic minority Tamils as in the past.

Sri Lanka ended a 26-year civil war in 2009 with the state military defeating the Liberation Tigers of Tamil Eelam (LTTE), who fought for an independent state in the island nation’s North and East. The civil war was rooted in 35 years of discrimination against ethnic minority Tamils by the majority Sinhalese.

Tamil families have been waiting for justice and accountability from successive governments since 2009 to find their relatives disappeared during the final weeks of the conflict, amid failures from global rights bodies, including the UN.

On Saturday (May 18), the island nation witnessed two commemorations: Victory Day, mostly in the southern part of the country, and Remembrance Day for the Tamils in Sri Lanka’s North.

London-based rights group Amnesty International has estimated the number of disappeared victims in Sri Lanka between 60,000 and 100,000, although the Sri Lankan government has repeatedly disputed these figures. There is no credible numbers recorded by the government.

“Impunity remains entrenched,” the OHCHR said in its report, expressing dissatisfaction with the Sri Lankan government’s measures over the last 15 years.

“Notwithstanding steps such as the criminalization of enforced disappearances and the establishment of the Office of Missing Persons (OMP) and the Office for Reparations, these have not translated into concrete results that would satisfy victims’ rights to truth, justice, reparations, and guarantees of non-recurrence.”

UN investigations have found credible evidence of crimes under international law and other violations of international human rights and humanitarian law committed by both sides of the conflict.

The government has strongly and repeatedly rejected such allegations, and there has been little to no independent or impartial national inquiry into these serious crimes.

The OHCHR said the latest report was prepared with “a series of consultations with victims exploring the impacts of enforced disappearances in Sri Lanka and their perspectives on accountability.”

It held bilateral interviews with 39 victims and convened focus groups involving 43 victims, with a higher ratio of women to compile the report.

TARGETED SANCTIONS

A limited number of Western nations have already imposed targeted sanctions, including travel bans for some Sri Lankan political and military leaders, after finding credible information about human rights violations, the OHCHR said.

The United States has imposed a travel ban on former Army Chief Shavendra Silva and his immediate family members, Navy intelligence officer Chandana Prasad Hettiarachchi, Army Staff Sergeant Sunil Ratnayake, army officer Prabath Bulathwatta, and former Navy chief Wasantha Karannagoda, citing human rights violations, the report said.

Canada last year imposed financial sanctions to freeze the assets of former Sri Lankan presidents Mahinda Rajapaksa and Gotabaya Rajapaksa, along with Chandana Prasad Hettiarachchi and Sunil Ratnayake, citing rights abuses.

Human rights analysts say some Sri Lankan political and military leaders are still unaware that they have been blacklisted by Western nations for rights abuses and will only become aware of such measures when they request visas from these countries.

“Consider further targeted sanctions, consistent with international law, against those who are credibly alleged to have been responsible for enforced disappearances and other gross violations and abuses of international human rights law or serious violations of international humanitarian law,” the OHCHR said.

The Rajapaksas and military leaders have denied any wrongdoing, though successive governments have rejected an independent international investigation into alleged human rights violations, citing infringement on the country’s sovereignty.

Alan Keenan, London-based International Crisis Group’s Sri Lanka Senior Analyst, said the latest report broadens the time horizon to include the disappearances of Sinhala youth during the insurrections led by Marxist group Janatha Vimukthi Peramuna (JVP) as well.

“It’s an issue that all Sri Lankans have been affected by, which goes to the core of the legal system and the failure of multiple governments, basically every government since the 1970s, to deal with,” Keenan told EconomyNext.

“So I think this report is important in that it reminds everybody in the international community and in Sri Lanka of the depth of the problem that Sri Lanka faces in terms of its lack of effective institutions of the rule of law and the many decades of impunity for the most serious violations of international human rights law and, during the war, international humanitarian law.”

“What’s also positive is that the range of recommendations in the report potentially benefits all communities—Tamils, Sinhalese, Muslims, men, and women, rich and poor.”

He noted that human rights issues are often presented by the government in the media as being anti-Sri Lankan and anti-Sinhala majority, favoring only Tamils, Muslims, Christians, or other minority groups.

“This report shows that acting on accountability, holding people accountable, setting up new institutions to make that possible, bringing out the truth, and reforming and strengthening the institutions of justice and the rule of law is everybody’s issue. It should benefit all communities. That’s what’s most interesting and important about this report.”

INTERNATIONAL JURISDICTION

The OHCHR has urged the international community to engage with Sri Lanka due to an “accountability gap at the domestic level,” with victims urging prosecution in a third State due to “widespread impunity in Sri Lanka.”

Citing examples of some Non-Governmental Organizations (NGOs) filing legal actions against former Sri Lankan military leaders in Brazil, Australia, Germany, and Switzerland, the OHCHR noted that no state has yet issued an arrest warrant or prosecuted any Sri Lankans suspected of involvement in an enforced disappearance.

“A key stumbling block has been the immunities afforded to persons who remain in high office or have subsequently been appointed to diplomatic posts,” it said.

“Use all potential forms of jurisdiction, including under accepted principles of extraterritorial and universal jurisdiction, to investigate and prosecute crimes under international law committed in Sri Lanka, strengthen coordination in relation to ongoing investigations, and consider support for other avenues of international justice.”

International Crisis Group’s Keenan explained that cases targeting alleged perpetrators in Sri Lanka could also be pursued in other countries.

Amnesty International’s Secretary General Agnès Callamard, who witnessed the Remembrance Day by the Tamils in the final battlefield of Mullivaikkal, said the Sri Lankan government is best placed to provide answers to the victims, though past “domestic mechanisms to establish accountability in the last 15 years have been mere window dressing.”

“UNWARRANTED, PREPOSTEROUS” REPORT

Sri Lanka’s Foreign Ministry dismissed the UN report, stating that no member country had given a mandate to the OHCHR to compile such a report at a time when Sri Lanka was commemorating the 15th anniversary of the war’s end.

“This is unwarranted,” a Foreign Ministry spokesman told EconomyNext.

“The timing of the release is politically motivated and seems to be targeting the 15th anniversary of the end of the war. The content is unsubstantiated, not credible, and unfounded. It has just interviewed a few victims and targeted our senior officials and military personnel.”

He accused the United Nations Human Rights body of deliberately targeting a small country like Sri Lanka to “draw attention away from human rights violations elsewhere in the world.”

“It has asked to probe disappearances from 1970–2009. This is almost 40 years, covering a substantial period of post-independent Sri Lanka. This is totally preposterous.”

Sri Lanka will respond to the UN Human Rights High Commissioner on the content of the report through its Geneva envoy, he said.

Sri Lanka has admitted to some human rights violations but has strongly rejected any foreign probes into the allegations. Despite the island nation’s protest, the UN rights body has passed two resolutions to conduct an independent investigation with its own officials. (Colombo/May 21/2024)

President Raisi and eight others including Iranian Foreign Minister Hossein Amir Abdollahian were killed in the crash when the helicopter had a “hard landing” reportedly due to adverse weather conditions with heavy fog. However, President’s two convoy helicopters reached the destination safely.

“The Sri Lankan government has declared a national mourning day on tomorrow (May 21) on behalf of the sudden death of Iranian president Mr. Ebrahim Raisi,” the Department of Government Information said in a statement.

It also urged all the state institutions have to hoist the national flag half mast.

Raisi was in Sri Lanka on April 24 to launch the Uma Oya dam on a one-day official visit amid tight security. His helicopter crashed when he was returning to Iran after launching a dam in the Azerbaijan border.

President Raisi is seen as a hardliner and a potential successor to Supreme Leader Ayatollah Ali Khamenei.

Earlier this month, Sri Lanka’s Foreign Minister Ali Sabry said the island nation will deal with Iran for investments and trade without being caught into the United States-led sanctions.

Sri Lanka was unable to receive $450 million from Iran for a recently opened Uma Oya multipurpose project started before the sanctions.

Sri Lanka now exports tea to Iran for no dollar payment. Instead, Sri Lanka tea producers are paid by the state-owned Ceylon Petroleum Corporation (CPC) in rupees for the pending crude oil import payments for Iran.

President Ranil Wickremesinghe expressed his condolences on the tragic incident.

“Sri Lanka is deeply shocked and saddened by the tragic death of President Ebrahim Raisi, Foreign Minister Amir Abdollahian and other senior Irani official,” he said in his official X-platform.

“I express my deepest sympathies and sincere condolences to the bereaved families, the government and the people of Iran.”

Raisi, a Muslim jurist, served as the eighth president of Iran from 2021 until his death. (Colombo/May 20/2024)

BRICS is an intergovernmental organization comprising Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates, while the IORA is a regional forum, tripartite in nature, bringing together representatives of Government, Business and Academia, for promoting co-operation and closer interaction among them.

We have been invited by BRICs Foreign Minsters’ meeting in Russia on the basis that we hold the chairman ship of the IORA,” Sabry told last week at a media briefing.

“So, it has enhanced Sri Lanka’s standing internationally.”

Moscow will host the International Conference titled “Antimicrobial Resistance: A Global Challenge to the National Well-Being of BRICS. Reality and Innovation” at the end of May.

Sri Lanka, a founding member of IORA, assumed the chairmanship in October 2023.

The Moscow Conference will be attended by roughly 100 representatives of BRICS countries, as well as the World Health Organization (WHO), the UN Food and Agriculture Organization (FAO), and the World Organization for Animal Health (OIE), its official website showed.

Upon conclusion of the Conference, BRICS experts are expected to adopt a joint statement that will subsequently be presented at the High-Level Meeting of the UN General Assembly on Antibiotic Resistance in September 2024 in New York. (Colombo/May 13/2024)

“I ruled the country for more than nine years from November 2005 to January 2015 without ever selling a single state-owned enterprise,” President Rajapaksa said in statement.

“In fact, my government actually re-acquired some state owned enterprises such as the Insurance Corporation, and Lanka Hospitals that had been sold off by previous governments and these enterprises continue to make profits for the state to date.”

The Insurance Corporation ended up in state hands due to a court order, which has been questioned due to lack of opportunity to cross examine witnesses.

Critics however have blamed the Rajapaksa administrations for running down state enterprises for off-budget spending and to give jobs to henchmen and family members.

In additional some SOEs, like the re-acquired Sri Lanka has not only run losses but have figured in high profile corruption scandals.

Anti-privatization was a policy plank of the Janatha Vimukthi Peramuna from 2004, and was seized by subsequent Rajapaksa administration.

The full statement is reproduced below:

The sale of national assets and state owned enterprises

The government’s plans to sell off certain national assets and state owned enterprises have given rise to discontent among trade unions, political parties and the general public. The present divestiture drive is ostensibly aimed at minimizing govt. expenditure on loss-making state owned enterprises and meeting certain IMF conditions in that regard. I ruled the country for more than nine years from November 2005 to January 2015 without ever selling a single state owned enterprise. In fact, my government actually re-acquired some state owned enterprises such as the Insurance Corporation, and Lanka Hospitals that had been sold off by previous governments and these enterprises continue to make profits for the state to date.

My government had a pragmatic approach towards state owned assets and enterprises. If a state owned enterprise was making profits and providing a good service to the public, we saw no reason to privatize it. At times, a government may take a strategic decision to manage the prices of certain goods or services produced by state owned enterprises for the overall benefit of the economy or to help low-income earners. The energy sector is a good example of this. There is no government in the world that does not subsidise certain earmarked economic activities.

During my tenure as President, even if some state owned enterprises made losses due to a government decision to manage prices, our management of the economy resulted in an unbroken nine year economic boom. We had no difficulty in paying off our debts or meeting the costs of the subsidies we maintained and nobody even spoke of privatization when I was President. Since the divestiture of certain sectors can have far reaching consequences for the country especially when foreign parties are involved, this is an issue that has to be approached with caution. As was resolved at the SLPP May Day rally, any restructuring of state owned enterprises should take place with maximum transparency, according to a national plan, in a manner consistent with national security and in consultation with the employees.

Having said that, I wish to stress that the trade union sector for its part, should take a more nuanced approach towards private sector participation in state owned enterprises. Going by the dictionary definition of privatization, any involvement of the private sector in the ownership structure or the control of a state owned asset or enterprise can be characterized as privatization. However, trade unions should not oppose every attempt to obtain foreign or private sector investment in a government owned enterprise. A pragmatic and non-dogmatic approach to such matters is required.

If there are unutilized government properties or underperforming government enterprises, it makes sense to obtain private sector participation to turn such enterprises around. If a profitable state owned enterprise needs further investment to add a new feature which cannot be financed by the government, it makes sense to award a share of that enterprise to a private investor in exchange for the investment. If an investor is willing to build a new enterprise from scratch, it makes sense to award shares in that enterprise to the investor so that a new state asset comes into being.

Some political parties have an ideology driven, dogmatic approach to privatization and seeks to privatize anything and everything that can be privatized. Many trade unions also have a similarly dogmatic attitude and tend to oppose any involvement of the private sector in state owned enterprises. Both these extremes are harmful to the country. Trade unions should regard proposals to obtain private or foreign participation in a state owned enterprise on a case by case basis and look at the overall benefit of such collaboration to the country. The only real way national assets and strategically important state owned enterprises can be safeguarded is by having a government that takes a pragmatic and non-dogmatic approach to such matters. This is why it is important to take note of the fact that when I ruled the country for more than nine years, the economy flourished and there was not even a discussion on the subject of privatization.

The present government is an interim arrangement formed to run the country for the remainder of former President Gotabaya Rajapaksa’s term. Even the pro-privatisation lobby should realize that the hasty divestiture of state owned assets at a time like this will not produce the best outcome for the country. Furthermore, the next Presidential election is only a few months away. Hence, as a measure to ease the widespread discontent over the government’s divestiture drive, I wish to propose that all moves to sell off state owned assets or enterprises be postponed until a new government is formed after the next Presidential election. The new government will then be able to deal with state owned properties and enterprises in accordance with the mandate they obtain at the election.

Sri Lanka has been hit by Western sanctions imposed on Iran and Russia. The island nation could not receive $450 million from Iran for a recently opened Uma Oya multipurpose project started before the sanctions.

Sri Lanka was also forced to buy light crude from Malaysia and Dubai instead of Iran after 2012 sanctions.

The Western economic sanctions have already prevented Russian tourists from using their usual payment system and discouraged some visitors from Russia visiting to Sri Lanka, tourism industry officials say.

“We are not going into their sanctions. There are number of areas where the sanctions do not get caught. So, a lot of countries work on that,” Ali Sabry told reporters on Wednesday (08).

“We will do in terms of international rules and regulations,” he said citing how Sri Lanka is paying pending import bill of $251 million for crude oil to Iran.

Sri Lanka now exports tea to Iran for no dollar payment. Instead, Sri Lanka tea producers are paid by the state-owned Ceylon Petroleum Corporation (CPC) in rupees for the pending crude oil import payments for Iran.

“It is important for us that these captive markets are not neglected,” Sabry said.

Iran President Ebrahim Raisi visited Sri Lanka last month on a official tour to launch the Uma Oya project. (Colombo/May 11/2024)

The government of former president Gotabaya Rajapaksa led by current ruling party Sri Lanka Podujana Peremuna (SLPP) forced Muslims and Christians to cremate the dead bodies of those who died of Covid-19 in 2020.

The OIC raised the forced cremations issue at the 46th United Nations Human Rights Council (UNHRC) in February 2021 after the SLPP government rejected repeated requests by local and global Islamic bodies.

The policy was later reversed, but the move hit diplomatic ties with Middle Eastern and OIC nations which is the highest source of employment for Sri Lankan expatriates.

Rajapaksa’s arrogant policy, which he later blamed on experts, led the OIC and Middle East nations to reject Sri Lanka’s repeated requests for credit lines to buy oil and loans before the country collapsed after an unprecedented economic crisis in 2022.

“I think that was a major setback in that point in time with our relationship with the OIC and Middle East, but that’s why we worked overtime to reach out to the OIC and build relationships with them,” Foreign Minister Sabry told reporters at a media briefing on Wednesday (08).

“Wherever we met, we explained the circumstances on which this happened. They do understand that, and their only hope is we not to repeat that kind of discriminatory treatment in the future.”

“But they are happy with the stand Sri Lanka has taken particularly on the Palestinian issue,” Sabry said.

“We have been very very vociferous both in Sri Lanka and outside in all forums in multilateral or otherwise. Basically, when I met with the OIC, when I met Palestinian foreign minister and then generally the Muslim world and the Middle East, they are very very happy with the stance Sri Lanka has taken.”

“So, I can say that the Sri Lankan relationship with the Muslim countries and the Middle East is almost and all-time high.”

Minister Ali Sabry faced harsh criticism from human rights defenders and from members of the Muslim community for what they claimed was his silence in the face of the inhumane, unscientific decision by the Rajapaksa government.

The Rajapaksa government’s stubborn insistence on cremating Muslim and Christian victims of the Covid-19 virus was against the communities’ religious believes and drew widespread condemnation and concern of Muslim countries and leaders.

Rajapaksa, after the economic crisis hit the country, was forced to flee in the face of massive protests against him in July 2022. (Colombo/May 09/2024)

The Commission said it will call for nominations within the specified period.

“The Election Commission will call for nominations for the presidential election within the specified timeframe in terms of the provisions of the Constitution of the Democratic Socialist Republic of Sri Lanka and the Presidential Elections Act No. l5 of 1981, and that by virtue of the powers vested in the Election Commission to fix the date for the election, it will hold the presidential election between 17 September 2024 and l6 October 2024,” Election Commission Chairman R M A L Rathnayake said in a statement.

Sri Lanka’s key parties are gearing up for elections where some parties are expected to form loose alliances to support their candidates.

Sri Lanka’s Central Bank Governor Nandalal Weerasinghe warned earlier this week that that the country could go back to the 2022 crisis if any future government changes the current International Monetary Fund (IMF) subscribed economic policies and reforms.

“We need to continue the same process going forward and if there is a deviation, that would be a challenge. That’s the important message we want to give,” Weerasinghe told reporters at a media briefing in Colombo on Tuesday.

“This is to make the public aware because the public are the final decision makers. People should be aware that if we deviate from the current economic policies, there is a risk of we may go back to a situation like the previous crisis,” he said at a press conference when questioned by journalists.

“It is not an issue with under which government. It is about the importance of continuing the same economic policies going forward. What we have done is we have informed the public that the economy might go back to the situation like the past crisis if we don’t go with the current policies,” he said.

With elections coming up in Sri Lanka, the World Bank has also expressed concern that reform fatigue could set in, leading to potential policy reversal, particularly with regard to state-owned enterprises (SOEs).

Related
World Bank concerned over potential reform fatigue in Sri Lanka’s election year

President Ranil Wickremesinghe’s government has temporarily halted foreign research ships after strong security concerns raised by neighbour India and the United States following the visit of two Chinese research vessels in 14 months.

Sabry said Sri Lanka has banned foreign ships for research purpose though they have use the island nation’s ports for replenishments and crew changes.

“What we basically say is not a ban, but a moratorium for a year that until we expand our capacity and build our capacity to understand what is necessary, for which we have appointed a committee. We will have a temporary pause for this particular year for all marine research activity,” he said at a media briefing on Wednesday.

“In the meantime, our navy is building its own capacity. That’s why we made a request to the Japanese to give us a beachcraft to monitor. Those authorities have agreed on that. \So that will give our navy the ability also to do their own research and then once they start working with collaboration with foreign countries.”

“They will act as equal partners to understand the gravity of it subject to that we only allow ports of call. Ports of call, we will continue to allow without a research component.”

Chinese Embassy in Colombo raised strong protest against the move to allow a German research vessel early in March following the island nation’s authorities turned down a Beijing request for a research vessel in February.

When the ban was announced, the government failed to specifically reveal its stance on requests for replenishment or crew change for foreign research vessels.

Sri Lanka is in the process of introducing a SOP (Standard Operation Procedure) for handling foreign research vessels and to improve the capacity of relevant officials in handling foreign research ships.

Two Chinese research ships were allowed to dock in Sri Lanka ports within 14 months through November 2023 with one called for replenishment and the other for research.

Chinese research ship Shi Yan 6 arrived in Sri Lanka in October 2023 and docked in Colombo port, for what Beijing citing was for “geophysical scientific research” in collaboration with the island nation’s National Aquatic Resources Research and Development Agency (NARA).

In August 2022, Chinese navy vessel Yuan Wang 5 docked at Hambantota in southern Sri Lanka for replenishment.

Both drew strong Indian protests citing security concerns in the Indian Ocean.

India uses the Colombo port as its main transshipment hub and accounts for around 70 percent of the total transshipment volume of the port. (Colombo/May 09/2024)

The project was cancelled by Rajapaksa without any discussion with Japan or its main funding agency Japan International Cooperation Agency (JICA) in 2021, leading to severed ties in the diplomatic relations between the two countries.

Sri Lanka President Ranil Wickremesinghe has apologized to the Japanese government in May 2023 in his official visit to Tokyo for the cancellation of the project.

Though Japan has agreed to resume all the project stopped due to Sri Lanka’s unprecedented economic crisis, Tokyo has not agreed to resume the LRT after the then Japanese government went out of way to help Sri Lanka to fund the project.

“What we did was, we made request to them. We haven’t agreed on that,” Sabry told reporters at a media briefing on Wednesday (08).

“The agreement right now is to restart what was commenced and stalled at the time of crisis. LRT is a different thing. We told that we are keen on restarting the LRT. Nothing further was discussed on LRT. We expressed on our side that we are keen.”

The cancellation of the JICA-funded project by President Gotabaya Rajapaksa’s government, which was closer to Beijing has hurt Japan, top Sri Lankan diplomats have said.

The East Asian nation has long been the top concessional financial aid provider to Sri Lanka with mutually beneficial diplomatic ties going back seven decades.

Sri Lanka has agreed to pay about $3.4 million (about billion Sri Lankan rupees) to a consultancy led by Japanese firms, after the LRT project was cancelled suddenly. (Colombo/May 09/2024)

“Applications from eligible persons have been called to fill the vacancies in the posts of member in
the Office on Missing Persons (OMP),” it said in a statement.

Applications should be prepared in accordance with the information available on the Parliament website and sent on or before May 27 to; ‘Secretary-General to the Constitutional Council, Constitutional Council – Office, Parliament of Sri Lanka, Sri Jayewardenepura Kotte by registered post, or by email to constitutionalcouncil@parliament.lk the statement said.

Applicants should indicate ‘Appointment of Members to the OMP’ on the top left-hand corner of the envelope, or as the subject of the email.

President Ranil Wickremesinghe has said the government hopes to resolve the issue of missing persons by 2025. “We are committed to resolving the land issue in the North and addressing the missing persons’ matter before the conclusion of 2025,” Wickremesinghe was quoted in a statement by his media division earlier this year.

The Council of the European Union in November in a Joint Staff Working document on the progress of Sri Lanka, highlighted concerns regarding the independence and effectiveness of the Office on Missing Persons and the Office of Reparations, after the introduction of the 20th amendment of the Sri Lankan Constitution in October 2020.

A trade concession scheme with the European Union trade bloc, namely, the Generalised Scheme of Preferences Plus (GSP+), for Sri Lankan exports is conditional on compliance with international human rights conventions.(Colombo/May6/2024)

Kamalkawa made the comments after meeting her Sri Lankan counterpart Ali Sabry in Colombo.

“The restoration of stability and economic development in Sri Lanka, which is at a strategic location in the Indian Ocean, is essential for the stability and prosperity of the entire Indo-Pacific region,” Kamalkawa told reporters in Colombo.

Kamalkawa said she had conveyed Japan’s expectation for the early signing of the MOUs between the Officials Creditor Committee (OCC) and Sri Lanka. Japan co-chairs the OCC.

“This stressed the importance of reaching a debt restructuring agreement with all the creditors in a transparent and comparable manner,” she said.

“I also conveyed Japan’s intention to further support Sri Lanka’s development by swiftly resuming existing yen loan projects once the MOU on debt restructuring is signed and the Sri Lankan government’s intention to swiftly conclude a bilateral agreement is confirmed.”

Diplomatic ties between Japan and Sri Lanka hit low after former president Gotabaya Rajapaksa unilaterally cancelled a $1.5 billion railway project.

Sri Lanka President Ranil Wickremesinghe when visited Japan in May last year apologized to the Japanese government for the unilateral cancellation of a Japan-funded $1.5 billion light rail transit (LRT) project.

LRT CANCELLATION 

The cancellation of the Japan International Cooperation Agency (JICA)-funded project was controversial in Sri Lanka after the government under then President Gotabaya Rajapaksa, which was closer to Beijing, unilaterally suspended the project as well as another $500 million tripartite deal to develop the Colombo Port’s Eastern Container Terminal (ETC) together with India.

Japan halted all its yen loan funded projects after Sri Lanka defaulted, as its lending agency is barred from increasing loans to a country in debt distress.

Japan has given grants to help over the crisis and facilitated discussions to speed up bilateral debt restructuring.

Japanese Foreign Minister did not say if the LRT project is also included in the raft of projects intended to be resumed soon after signing the MOU.

Sri Lanka defaulted on its external debt in April 2022, after printing money to cut rates and target ‘potential output’ (macro-economic policy) after the end of a civil war under a ‘flexible’ inflation targeting regime triggering serial currency crisis and a steady spike in foreign debt.

Gotabaya Rajapaksa’s 2020 tax cuts were added to record money printing to cut rates, in yet another attempt to push up growth after what state macro-economists claimed was a ‘persistent output gap’.

Wickremesinghe who is seen as a pro-Japanese leader has helped to rebuild the diplomatic ties with Japan in the last two years.

Foreign Minister Kamalkawa said emphasized the importance of various reforms undertaken by Sri Lanka for the re-normalization of the Sri Lankan economy.

“Furthermore, Japan and Sri Lanka are both island nations surrounded by sea. Japan intends to further strengthen cooperation with Sri Lanka in the maritime domain in order to realize a “Free and Open Indo-Pacific”, she said.

Japan plays a crucial role in the Quad, which is a quadrilateral Security Dialogue and a strategic forum involving the United States, Japan, Australia, and India amid concerns over Chinese breaches in the Indian Ocean.

Japan also plays a crucial role in the broader Indo-Pacific region due to its strategic location, economic power, and commitment to maintaining a free, open, and rules-based international order.

Kamalkawa said Japan will offer a vessel to Sri Lanka in the request from Sri Lanka equipped with sonar to be used for compiling data and charts. (Colombo/May 4/2024)

Economy Next’s opinion piece titled ‘Sri Lanka’s collapse in new sovereign default wave is not really China’s fault’ by Bellwether published in May 2023 has been finalized for the award under the Regional/Local category.

The article discusses sovereign debt defaults and blames US monetary policy for creating conditions that make them more likely.

It argues that easy money policies by the Federal Reserve (Fed), followed by tightening, contribute to sovereign debt crises when reserve collecting (de facto pegged central banks) try to run independent policy and offers a critical perspective on the international monetary system.

This is the first time the news website has been finalized for such an international award.

From Sri Lanka, Economy Next is the sole media outlet that has been among the finalists for the 2024 awards.

The winners will be announced at the June 20 hybrid awards ceremony.

SOPA’s annual Awards for Editorial Excellence are given to recognize and reward great journalism. The annual awards are highly coveted and have become a highlight of the regional media calendar.

SOPA’s Editorial Committee, composed of senior journalists, oversees the awards in coordination with SOPA’s board of publisher representatives.

The Journalism and Media Studies Centre at The University of Hong Kong, known as JMSC, has administered the awards since 2011, recruiting distinguished former or current journalists and academics from around the world to be judges.

More than 90 SOPA awards are given out each year in an array of categories, which are periodically reviewed to keep pace with the ever-evolving ways that journalism is delivered to consumers. (Colombo/May 3/2024)

Philippe Lazzarini, head of UNRWA, in a letter addressed to President Ranil Wickremesinghe, “expressed sincere appreciation for Sri Lanka’s substantial financial contribution towards addressing the humanitarian crisis in the Gaza Strip,” a statement by the president’s media division said.

“Lazzarini emphasized the dire situation faced by over two million Palestinians in Gaza, particularly the majority who are Palestine Refugees under UNRWA’s mandate. Despite formidable challenges, UNRWA staff remain steadfast in delivering essential aid, advocating for adherence to international humanitarian law, and ensuring continuous humanitarian support across Gaza.”

The contribution from Sri Lanka to UNRWA “will significantly bolster efforts to address critical humanitarian needs, especially for the more than a million individuals seeking shelter in UNRWA facilities.”

Expressing gratitude for Sri Lanka’s unwavering commitment to Palestine Refugees and to UNRWA, Lazzarini conveyed confidence in continued support from the Sri Lankan government, according to the statement.

The deadline for the Children of Gaza Fund has now been extended until May 31. Originally scheduled to conclude on April 30, the extension follows appeals from across the island.

Those wishing to donate should deposit their contributions to Bank of Ceylon (7010), Taprobane Branch (747), account number 7040016 before the deadline. Donors are also requested to forward the receipt of their deposit to 077-9730396 via WhatsApp, as per the instructions from the Presidential Secretariat. (Colombo/May1/2024)

“Countries in the global south need the support of the global north on having access to low cost funding, debt relief, transition of latest technology, the digital divide. So I think this is time for the global north to walk the talk and collaborate,” he said.

Sabry was speaking at a panel on ‘North to South, East to West: Rebuilding Trust’ at the Special Meeting on Global Collaboration, Growth and Energy for Development 2024.

The minster tweeted that, during the discussion, he had noted that peace and stability lead to development and prosperity and competing powers must keep the channels of communication open.

“Peace and stability is very important. As a result of which, as you pointed out, though economies or GDPs have grown eight times despite the challenges, a precondition was peace and stability. So as we, members of the global south, would like and request members of the global north and the players who have so much power — with great power comes great responsibility — don’t close the channels of diplomacy. Open channels of communication,” he said.

High Representative of the EU for Foreign Affairs and Security Policy/Vice-President of the European Commission Josep Borrell Fontelles who spoke on the same panel also called for increased cooperation.

“We need more cooperation. Climate, demography, technology, everything needs more cooperation,” he said.

The world has to start respecting the existing rules and amend those to suit modern needs, said Fontelles.

“We don’t have to re-invent the wheel. Many things could work, the way they are. Why they don’t work is because there’s a big gap in what we say and what we do,” he said. (Colombo/Apr29/2024)

The Japanese Foreign Minister meet President Ranil Wickremesinghe and Prime Minister Dinesh Gunawardena.

The Japanese Foreign Minister and her delegation will have official discussions with the Foreign Minister Ali Sabry.

She will be accompanied by senior officials of the Ministry of Foreign Affairs of Japan. (Colombo/Apr29/2024)