• Government looks at weekend House sittings on 1 and 2 July to pass key regulations
• RW sends a message to Govt. MPs to refrain from travelling overseas during weekend
• Prior to leaving for London, RW sent message to Sajith promising open talks on debt plan
• Ranjith says no DDO haircut; Sajith says will support proposal to withdraw DDO proposal
• Harsha reveals in Parliament that DDO was not pushed by IMF, but was proposed by Govt.
• Talk of delayed Cabinet reshuffle returns, with six of Basil’s nominees tipped to get portfolios
• Lohan and Wimal shoot down possibility of MR being reappointed as premier in reshuffle
• Basil meets district leaders to plan; Namal meets TU reps to discuss grievances against Govt.
• SLFP looks at transformation with positive outcomes in meetings with Maithri and dissidents
• UNHRC focuses on SL again, calls for accountability while Core Group expresses concerns

President Ranil Wickremesinghe seems to have accelerated the Government’s programme to meet the commitments to the International Monetary Fund (IMF), including the economic and public sector reforms programme, with meetings being scheduled with the ruling Sri Lanka Podujana Peramuna (SLPP) and main Opposition Samagi Jana Balawegaya (SJB) this week.

A message has already been issued to all Government MPs on a presidential directive to refrain from overseas travel or travelling out of the country during the coming weekend (Friday [30 June] till Monday [3 July]). Officials from the President’s Office maintain that there will be important sessions and meetings scheduled to be held during this period.

The President is also expected to meet the Government parliamentary group on Wednesday (28).

It is in such a backdrop that moves are underway to convene a parliamentary party leaders’ meeting this Tuesday (27) to discuss the possibility of having a special weekend session of the House to discuss and decide on key processes required to proceed with the debt restructuring programme. 

In the event the party leaders approve the proposal, Parliament will be convened during Saturday (1 July) and Sunday (2 July) to debate and pass key regulations related to moving ahead with the debt restructuring programme.

Wickremesinghe, it is learnt, had also informed Opposition and SJB Leader Sajith Premadasa prior to embarking on an official visit to the UK and France last week that he would hold a discussion on the debt restructuring programme, especially on domestic debt restructuring, once he returned to Sri Lanka. The President had also informed Premadasa that the proposal on Domestic Debt Restructuring (DDR) would be presented to the parliamentary Committee on Public Finance (COPF) and to Parliament before moving ahead with it.

During the 40th anniversary event of the International Democrat Union (IDU) in London last week, President Wickremesinghe reiterated the need to finalise the country’s debt restructuring programme by this September.

Meanwhile, US Treasury Secretary Janet Yellen, whom the President met in Paris last week, has said that all creditors must provide timely debt treatment in line with their financial assurances for Ghana and Sri Lanka, while the US plans to push for the full and speedy participation of all bilateral creditors in debt negotiations at the summit for a New Global Financing Pact.

Speaking to international media on Thursday (22) in Paris ahead of the summit for a New Global Financing Pact, she had said that the international community must come together to support countries that are currently in crisis.

“At the summit, the US will continue to push for the full and speedy participation of all bilateral creditors in debt negotiations,” she had noted, adding that she was encouraged by the progress made by Zambia on debt restructuring and hoped that the debt treatment could move forward soon, while other urgent pending cases must also move forward quickly.

Zambia is expected to get a deal with its official creditors in a few days for the restructuring of its $ 12.8 billion external debt.

“I believe that all creditors for Ghana and Sri Lanka need to provide timely debt treatment in line with their financial assurances,” Yellen had said. She has observed that the US had been encouraged by the progress made by Ghana and Sri Lanka and that they expected more countries participating in the common framework.

However, there is currently a lack of clarity on the issue of Domestic Debt Optimisation (DDO), with the President and Government ministers making contradictory statements.

State Minister of Finance Ranjith Siyambalapitiya has said that Sri Lanka’s domestic debt will not be subjected to a haircut under DDO as the Government ensures that bank depositors will not face any issue related to their savings.

Speaking in a television interview last Monday (19), he said that domestic debt would only be subjected either to a maturity extension, an interest rate reduction, or an extension of the grace period.

“In any kind of situation, we do not expect to write off domestic debt,” he said.

Moreover, he said that bank depositors had nothing to fear as the Government would neither take part of their deposits nor would there be any delay in withdrawing their deposits from the banks after the DDO.

Also, he said that member funds in the superannuation funds would not face any reduction in member savings or interest rate reductions following the DDO. 

Harsha’s revelation

Meanwhile, Opposition Leader Premadasa informed Parliament last week that he would support moves to get the proposed DDO taken off the agenda and that a future SJB government would renegotiate with the IMF the deal reached with the incumbent Sri Lankan Government.

However, COPF Chairman MP Dr. Harsha de Silva revealed in Parliament last week that the IMF had not urged the Sri Lankan Government to carry out a DDO. 

He had pointed out that it was the Sri Lankan Government that had undertaken to carry out a DDO. “I heard a lot of people here speak of the IMF agreement and the domestic debt restructuring. I would like to table in the House the letter of intent to the IMF signed by President Ranil Wickremesinghe as the Finance Minister and Central Bank Governor Dr. Nandalal Weerasinghe, where it states the Sri Lankan Government’s plan for debt restructuring. 

“Many people are under the impression that it is the IMF that has called for certain debts to be restructured. The IMF has not said anything like that. The IMF has said to restructure debt but not how it should be done. According to this document, it is the Government that has said it will go for a domestic debt optimisation,” de Silva had stated in Parliament, while urging the House Chair to ensure the document was included in the Parliament hansard. 

“The letter has been signed on 6 March,” he had added.

According to de Silva, there is no point in blaming the IMF when it is the Government that has proposed a DDO.

Cabinet reshuffle

Amidst the economic reforms programme, talks have once again surfaced on an impending Cabinet reshuffle. Following months-long discussions, talk of a Cabinet reshuffle has returned, with statements being made that the President had finally agreed to appoint several parliamentarians of the ruling SLPP to the Cabinet.

However, highly-placed Government sources noted that there had been no final decision made yet on who would be given Cabinet portfolios and when.

Interestingly, the delay in making additional appointments to the Cabinet had also resulted in senior SLPPers publicly expressing displeasure at the President and the Government.  

It is also learnt that President Wickremesinghe had informed the SLPP leaders that he would not be in a position to give Cabinet portfolios to all SLPP MPs whose lists of names had been given to him on an earlier occasion. However, some social media news reports stated that the President had finally agreed to six names in the original list submitted by SLPP National Organiser Basil Rajapaksa, with SLPPers to be appointed to the Cabinet.

Nevertheless, the impending cabinet has already created a stir in the Government with talk that some Cabinet ministers holding more than one portfolio will only be permitted to hold one subject.

Also, talk of some ministers who have failed to perform their duties being likely to lose their portfolios has resulted in officials at the President’s Office and close confidants of the President being approached by Cabinet ministers with requests for lobbying Wickremesinghe on their behalf to retain their portfolios.

As usual, talk of an impending Cabinet reshuffle has also opened speculation on the possibility of appointing a new prime minister as well, especially former Prime Minister Mahinda Rajapaksa (MR).

Meanwhile, SLPP MP State Minister Lohan Ratwatte had said last week that he believed it was time for former President Mahinda Rajapaksa to retire from politics and enjoy his leisure time. He had told the media on Thursday (22) that MR would most likely not contest for the post of prime minister again. He had noted that MR had done more than enough for the country. 

Ratwatte had further stated that the SLPP would not hesitate to join hands with President Wickremesinghe in the future only if it was beneficial for the nation.

Dissident SLPP MP Wimal Weerawansa also claimed last week that there was no plan to resuscitate MR. “We have no intention of giving life to MR. There is no truth in it. It is only by showing this ‘boothaya’ (bogey) that people try to silence those who talk of the country and race,” Weerawansa claimed.

Trading accusations

Meanwhile, senior SLPP members have accused a group of SLPP parliamentarians of trying to create a conflict between President Wickremesinghe and the ruling party.

SLPP General Secretary Sagara Kariyawasam has recently stated that actions of certain SLPP Cabinet ministers were detrimental to heads of State institutions and trade union leaders loyal to the party. Kariyawasam had raised this concern during a recent meeting between the President and Government leaders.

According to the SLPP General Secretary, some SLPP ministers have removed the heads of several State institutions appointed on the SLPP’s recommendation while also harassing leaders of SLPP-affiliated trade unions.

Kariyawasam had urged the President to intervene in the matter to ensure such situations do not arise in the future.

Meanwhile, a large number of SLPP ministers maintain that the SLPP is being unreasonable in some of its stances in relation to the Government. The young ministers of the SLPP, who have openly expressed support to President Wickremesinghe, have become a cause for concern for some leaders of the SLPP who are mostly Basil loyalists.

Also, the SLPP has dismissed recent reports that Wickremesinghe had informed the SLPP that he would dissolve the Parliament if the SLPP did not support him.

A senior SLPP member had told the media that the President had not made such a statement and that there was no conflict between Wickremesinghe and the party. “The President has not made such a statement. That news was planted by a certain group of SLPP-elected members. What happened was that when the President called the SLPP District Leaders for a discussion, we informed him not to do so and to inform the SLPP leaders if he needed to meet our members. Then he agreed to it, but there are certain individuals who were elected to Parliament from the SLPP and now pretend to be loyal to Wickremesinghe. It is they who have planted this news,” he had noted.

Amidst the statements and counter-statements on the relationship between the Wickremesinghe Government and the SLPP, Basil summoned a meeting with the party’s district leaders at the Party Headquarters last week. During the meeting, Basil had called on the district leaders and organisers to stop blaming each other and trading charges and to instead spend their time working on the people in their respective electorates.

SLPP MP Namal Rajapaksa has meanwhile commenced a series of meetings with representatives of trade unions to discuss their grievances against the Government, especially in relation to the public sector reforms programme.

The first meeting was held on Wednesday (21). During the meeting, Namal had pointed out that there were many questions that needed to be answered by the Government before moving ahead with its programme to privatise State institutions. He had noted the need for clarity and transparency in the process when an institution is being privatised. Namal had added that the highest number of State institutions had been privatised during the tenure of the United National Party (UNP).

Mahindananda’s support

Meanwhile, SLPP’s Mahindananda Aluthgamage, who is currently heading the media wing of the Government’s National Operations Secretariat, had claimed that he would not let President Wickremesinghe face the same fate that befell former President Gotabaya Rajapaksa (GR).

He had noted that people were facing difficulties in survival at present and it was not the time to play politics. “Anyone can narrate fairy tales, but the reality is very different,” he had said. 

Aluthgamage had also commended former President MR, saying that it was during his tenure that the country and its people had benefited.

He had also taken a swipe at Opposition and SJB Leader Premadasa, saying that it was a waste of time to even talk about him since a large number of SJB parliamentarians were due to join the Government.

However, Aluthgamage’s public statement supporting Wickremesinghe has once again brought to the public domain the split within the SLPP.

SLPP contradicts

The SLPP meanwhile has stated that it is not in any agreement to extend the term of office of incumbent President Wickremesinghe through a referendum, or to support him in the upcoming Presidential Election. UNP Chairman MP Vajira Abeywardena had recently stated that it was best for a referendum to be held instead of a Presidential Election and to extend the tenure of Wickremesinghe.

Kariyawasam, when asked whether the SLPP would endorse the holding of a referendum instead of the Presidential Election to be held in 2024, had told the media that they would not endorse it at all. “We will not agree with it at all. It was by holding a referendum that former President J.R. Jayewardene destroyed the country, so we are of the view that we should not drag the country to such a situation again.” 

He also said that the people should be given the opportunity to elect a president of their choice: “It is the people who should decide who the president should be. The political parties that are confident of victory will field a candidate for the Presidential Election. Those who don’t have that confidence will say various things, but we are confident that the next president will be from the SLPP.”

When queried as to whether the SLPP would support Wickremesinghe in the Presidential Election, Kariyawasam had said: “There is no agreement or discussion to support him. We have not discussed such a matter either.”

Nevertheless, there are two factions within the SLPP – the pro-Wickremesinghe faction and the anti-Government faction. This split had been witnessed during the SLPP’s Electoral Committee (Bala Mandala) meetings, with some SLPP ministers publicly speaking in support of Wickremesinghe and the other group of seniors pointing out the shortcomings of the Government.

Joint Opposition

Meanwhile, the joint Opposition coalition in Parliament is continuing with its work programme, with the Executive Committee of the coalition meeting on Monday (19) at the Parliamentary Complex under the patronage of the Opposition Leader. 

The Opposition members had focused their discussion mainly on the IMF programme undertaken by Sri Lanka, especially the Government’s allegedly ad hoc manner in fulfilling the IMF conditions. Premadasa had noted that the Government had yet failed to submit the details, including data of the agreement signed between the Government and the IMF.

He had also observed that while the SJB endorsed the receipt of IMF assistance, there was a lack of clarity on how the Government was going about fulfilling the undertakings to the IMF.

According to Premadasa, members of the Government are making contradictory statements on the debt restructuring programme, especially the restructuring of local debt. He had pointed out that while the President maintained that it would be done, the State Finance Minister and Central Bank Governor had said there was no such plan yet.

The Opposition Leader had noted that the Opposition could not support the Government’s move since it had failed to think of the people or their welfare.

SLFP’s transformation

The Sri Lanka Freedom Party (SLFP) meanwhile is working at uniting the party by getting its dissident parliamentarians to return to the fold.

SLFP National Organiser Duminda Dissanayake has said that the party could witness a major transformation in the coming weeks, pursuant to successful talks with its dissidents. According to Dissanayake, several rounds of meetings have been held between the dissident SLFPers and Party Leader Maithripala Sirisena and there has been a positive outcome from them.

Sirisena, during a recent media interview, had also invited the SLFP members who had joined the Government and accepted ministerial portfolios to rejoin the party. He had also dismissed claims that the SLFP was split by saying that he would work together with the SLFPers currently supporting the Government to strengthen the party.

According to Sirisena, the Election Commission has also permitted such action and the dissident SLFP members could soon work together with the party.

Holding polls

On the electoral front, the Election Commission (EC) has stated that there is no legal impediment to holding other elections, including Presidential and Parliamentary Elections, without holding the Local Government (LG) Elections, which have been postponed indefinitely.

The LG Elections have been postponed indefinitely due to the Treasury not releasing the required funds. However, there is an ongoing discussion in political circles about the possibility of holding a Presidential Election or a Parliamentary Election in the near term or before holding the Local Government Elections.

Commission Chairman Nimal Punchihewa had said that there was no legal obstacle to holding another election. “Even in the current situation regarding the LG Elections, there is no legal obstacle to holding another election, including Presidential and Parliamentary Elections.”

Cancelling nominations

Meanwhile, the Election Commission had stated that it was not possible to cancel nominations called for LG Elections 2023 by passing a resolution in Parliament and that a bill should be prepared for that purpose and passed by following the due procedures.

State Minister of Provincial Councils and Local Government Janaka Wakkumbura recently said that a proposal to cancel nominations called for the LG Elections had been submitted to the Parliamentary Consultative Committee on Public Administration, Home Affairs, Provincial Councils, and Local Government.

“We have not been informed by the Government that there is a preparation to cancel nominations. On the other hand, nominations cannot be cancelled by passing a parliamentary resolution. A bill should be prepared and it should be passed in Parliament to do it. All due procedures in passing a bill such as the receipt of the Supreme Court determination should be followed in that process,” Punchihewa said.

Wakkumbura had recently said that a proposal had been presented by the SLFP during the Consultative Committee meeting calling for the annulment of nominations.

A final decision on the matter is to be taken following a discussion with the President and Prime Minister.

Pressure on SL

Sri Lanka was once again the focus of the international community last week at the UN Human Rights Council (UNHRC), with Sri Lanka being urged to implement recommendations put forward by UN mandate holders.

UN High Commissioner for Human Rights Volker Türk has said that although the Government had regrettably rejected aspects of the council’s resolutions related to accountability, it had continued to engage with its presence on the ground. “Sri Lanka has received a dozen visits by mandate holders in the past decade and I encourage the authorities to implement their recommendations,” Türk has said.

He had expressed these views while addressing the 53rd session of the UNHRC in Geneva on Tuesday (20).

Accountability on violations

UN Deputy High Commissioner for Human Rights (HCHR) Nada al-Nashif on Wednesday (21) urged the international community to use the accepted principles of universal and extraterritorial jurisdiction to investigate and prosecute alleged perpetrators of human rights violations in Sri Lanka, as long as the accountability deficit remained in the island nation. 

She has also called on them to support the relevant accountability processes in Third World states as well as the fair application of targeted sanctions against credibly alleged perpetrators of rights violations in Sri Lanka.  

Presenting the oral update on Sri Lanka at the UNHRC, al-Nashif has highlighted certain key developments and trends from the UN Office of the High Commissioner for Human Rights’ (OHCHR) close monitoring of the situation in Sri Lanka ahead of the full written update that will be presented to the council at its 54th session. 

She has stated that the economic crisis continues to have a severe impact on the rights and wellbeing of many Sri Lankans. “Discussions with creditors are underway and although the International Monetary Fund approved a financial support package, which is an important first step, it is crucial to ensure that the burden of the potential reforms does not further compound inequalities.”

She has stated that robust safety nets and social protection measures were needed in order to shelter the most vulnerable from the negative spillovers of economic restructuring. She has added that it was also vital to address the underlying factors of the crisis, including corruption, which was a demand of the protests that took place last year (2022). The protest movement loudly expressed society’s aspirations for better governance and an inclusive vision for Sri Lanka, she has noted. 

Al-Nashif has stated that 12 months on, the full potential for the historic transformation that would address longstanding challenges had yet to be realised. “Our office urges the Government and the political parties in Sri Lanka to use this opportunity for democratic renewal, for deeper institutional reforms and to advance accountability and reconciliation as well as the promotion and protection of human rights.

“We encourage the dialogue that the President has initiated with the Tamil political parties and welcome his promise to stop land acquisition for archaeological, forestry, or security-related purposes, an increasing source of local conflict and tension.” 

She has noted that plans for more inclusive memorialisation and other forms of dealing with the past have been announced and that the Supreme Court has issued an important order for compensation to be paid to the victims of the 2019 Easter Sunday attacks. “However, these intentions need to materialise into new laws, policies, and practices that will make good on these promises and bring about tangible change,” she has emphasised. 

Similarly anticipated is the Constitutional Council’s new appointments to the Human Rights Commission of Sri Lanka – an important test of the independence and effectiveness of this critical national institution, al-Nashif has said. 

She has said that the announcement of plans for a Truth Commission or similar reconciliation mechanism requires attention. “Sri Lanka has witnessed too many ad hoc commissions in the past that failed to ensure accountability. The Office on Missing Persons (OMP) has not achieved the results that provide satisfaction to victims.” 

“What is needed is a coherent plan that connects the different elements of truth, redress, memorialisation, and accountability and creates the right enabling environment for a successful and sustainable transitional justice process,” she has noted.

Core Group concerned

The Core Group on Sri Lanka meanwhile has expressed concerns over the continued use of the Prevention of Terrorism Act (PTA). The Sri Lanka Core Group comprised Canada, Malawi, Montenegro, North Macedonia, the UK, and the US.

UK Human Rights Ambassador Rita French told the UNHRC that the Core Group welcomed Sri Lanka’s initial steps towards addressing concerns around land returns, long-term detentions, and corruption. “These steps can provide a basis to begin a process to protect the rights of all Sri Lankans, from all ethnic and religious communities,” she has said.

However, French said the Core Group on Sri Lanka remained concerned by the continued use of the Prevention of Terrorism Act. “We acknowledge an ongoing effort to replace the PTA and urge the Government to ensure that terrorism legislation is consistent with Sri Lanka’s international obligations. We also call on the Government to protect freedoms of expression and association.”

The Core Group said that as Sri Lanka takes forward its stated commitment to reconciliation, they stress the importance of transparency, accountability, inclusivity, and of building meaningfully on past work and recommendations that address the root causes of conflicts and impunity.

“It is crucial that Sri Lanka safeguards its representative democracy by maintaining voters’ confidence in the country’s electoral systems and ensuring the independence of its institutions and commissions,” French has added.

The Core Group has also called on Sri Lanka to work with the High Commissioner and his office and that it remains ready to support Sri Lanka in addressing HRC resolution 51/1.