Life & food

 The story of life is also the story of food. food that sustains us, nourishes us and creates bonds of love.  Growing that food is a passion, a vision and a lifelong dream. food grown with love and honesty does not cure hunger, it cures distance. it brings people together, families together, neighbourhoods together and villages together. for 50 years the fields, the farms, the sun, the water, the soil and our unwavering dedication give the power to bring people together.

Situation report – Sri Lanka – 08 Feb 2023

Background

Sri Lanka recently celebrated its 75th year of independence, with the presence of dignitaries from countries including India, Pakistan, Bangladesh, the Maldives, Nepal, Bhutan, and Japan. The main opposition parties, Samagi Jana Balawegaya, Tamil National Alliance, and National People’s Power, boycotted the Independence Day celebrations, citing the cost and the lack of true independence for the Tamil people.

The main concern among Sri Lankans is the country's economic recovery and a speedy resolution to its issues. One of the major issues is the conduct of local council elections on March 9. The outcome of these elections is seen as a litmus test for the SLPP-led coalition headed by President Ranil Wickremesinghe. Another political issue is the implementation of the 13th Amendment to the Constitution, which President Wickremesinghe is determined to enforce in full, despite opposition from three top-level Buddhist chapters.

President Wickremesinghe's statement that the 13th Amendment would be fully implemented has drawn criticism from the pro-nationalist camp. The SLPP, a main coalition partner of the government, has expressed concerns about the allocation of land and police powers to the provinces and called for the president to not make hasty decisions.

The prolonged power cuts and increases in taxes and fuel prices have also caused public agitation. On the overseas front, Foreign Minister Ali Sabry has taken credit for the successful passage of the Universal Periodic Review at the UNHRC headquarters in Geneva.

During the 75th independence day of Sri Lanka, leaders of different countries extended their wishes and support to the country. US President Joe Biden conveyed his wishes to President Wickremesinghe and looked forward to strengthening bilateral friendship. Indian Prime Minister Narendra Modi extended his wishes to Prime Minister Gunawardena and discussed the 13th Amendment with the President. Chinese President Xi Jinping extended best wishes to the President, Prime Minister, and Foreign Minister.

Japanese State Minister for Foreign Affairs Takei Shunsuke extended Japan’s support to Sri Lanka's IMF assistance program and encouraged Sri Lanka to pursue China for support. However, China's response to Sri Lanka's debt restructuring program has not been satisfactory for the IMF, and US Under Secretary of State Victoria Nuland noted China's assurances as insufficient. China's Foreign Ministry Spokesperson Mao Ning responded that the Export-Import Bank of China was providing an extension on the debt service due to help relieve Sri Lanka's debt repayment pressure.

The UK and US urged Sri Lanka to repeal the Prevention of Terrorism Act (PTA) and decriminalize same-sex conduct during the UN Human Rights Council's Universal Periodic Review. Foreign Affairs Minister Ali Sabry assured that a truth-seeking mechanism and new security legislation, replacing the PTA, are being finalized.

The Sri Lankan government informed the Chinese government of the expectations of the IMF regarding support for Sri Lanka's debt restructuring program. The US Secretary of State, Anthony Blinken, is expected to raise the issue of China's contribution to debt restructuring programs during his planned visit to Beijing. Under Secretary Nuland visited Sri Lanka and expressed US support for Sri Lanka to secure the IMF deal.

Nuland also discussed the upcoming Local Government Elections and land-related concerns with Tamil and Muslim political leaders. Opposition leader Premadasa recently stated that a future government under the SJB would not be obliged to support deals with the IMF or other international funding agencies. This debate is expected to continue in Parliament this week during the President's policy statement debate from 8^th Feb 2023

A meeting between Sri Lankan Opposition Leader Premadasa and Commonwealth Secretary-General Patricia Scotland was cancelled. Premadasa's office cancelled the meeting due to Scotland's inability to attend on time and Premadasa's prior commitments at public meetings. There was criticism towards the government's decision to hold a ceremony in Kandy for the President to accept the credentials of 17 new foreign envoys due to the cost involved and the economic crisis.

 

Upcoming LG polls, Party politics facing more inner-crisis

The upcoming local government polls have become a source of controversy, with a delay in printing the gazette for the polls and discussions of postponing the elections due to various reasons including funding and regulation of election expenditure. The notice to commence the local government election process was finally submitted to the government printer by the returning officers of relevant districts and published in a gazette notification

The Sri Lanka Podujana Peramuna (SLPP) is facing challenges in its campaign work for the Local Government Elections. Despite the Sri Lanka Freedom Party (SLJ) and National People's Party (NPP) having already held campaign meetings, the SLPP has yet to conduct any with the participation of their leaders. An SLPP dissident group, the Freedom People's Alliance (FPA), claims that the previous government's actions are preventing SLPP voters from supporting the party openly. Basil Rajapaksa, an SLPP theoretician, has taken charge of the party's campaign and has summoned all SLPP organizers for a meeting. Independent candidates are reportedly planning to form an alliance for the local government polls, which are being discussed by SLPP seniors.

The Constitutional Council has clashed over the decision to make new appointments to the independent commissions, including the Election Commission. Opposition leader Premadasa objects to the inclusion of the Election Commission in the list and the advertisement calling for applications has been halted temporarily. However, the majority of the council members have decided to proceed with publishing the advertisement.

Expected IMF bailout

While observing the highlights on the escalating tensions between the US and China over Sri Lanka's IMF bailout. The US has criticized China's influence over the Sri Lankan government, with concerns over the country becoming too heavily indebted to China. The US has also expressed disappointment over the Sri Lankan government's decision to seek a bailout from the IMF, which is seen as granting too much power to the international financial institution. On the other hand, China has defended its investments in Sri Lanka, stating that they are part of its Belt and Road initiative to promote economic development in Asia. The article concludes by saying that the US-China spat over Sri Lanka's IMF bailout highlights the larger geopolitical tensions between the two countries, with the global balance of power at stake.

The International Monetary Fund (IMF) has been providing financial support to Sri Lanka through its bailout program aimed at helping the country address its macroeconomic challenges and support reforms. In 2016, the IMF approved a $1.5 billion extended arrangement under its Extended Fund Facility to support Sri Lanka's economic reform program. However, the program faced challenges, and in 2020, the IMF approved an additional $401 million in emergency financing to support the country's response to the economic impacts of the COVID-19 pandemic.

As of 2023, the current situation regarding the IMF bailout program for Sri Lanka is that the country is in the midst of negotiations with the IMF for a new program to address its ongoing economic challenges, including high public debt, weak growth, and balance of payments difficulties. However, the negotiations have been complicated by the recent tensions between the US and China over the country's debt and its ties with China, with both countries vying for influence in Sri Lanka. Some analysts believe that this international competition could potentially impact the outcome of the negotiations and the IMF's decision on the program.