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 8th
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.
No comments:
Post a Comment