FINANCIAL CRISIS IN SRI LANKA
FINANCIAL
CRISIS IN SRI LANKA AND HUMAN RIGHTS VIOLATIONS
Written By: SHRADDHA TIWARI,
2nd
Year B.A.LL.B. (HONS)
School of
Law Christ University, Bangalore
Edited by:
YASH JAIN
4th Year B.B.A.LL.B. (Hons.)
Amity Law School, Noida
ABSTRACT
Sri Lanka, an island
nation in the Indian Ocean, is enduring its worst economic downturn since
gaining independence. A human rights problem is progressively emerging from
this crisis. In this essay, the author gives a quick overview of Sri Lanka, the
country's current predicament, and how it is harming Sri Lankan citizens' human
rights. The author has also discussed the necessity for worldwide attention as
well as nonviolent crisis resolution strategies. The author has come to the
conclusion that Sri Lanka's protracted political crisis, which also causes an
economic crisis, is the cause of the human rights catastrophe. The author has
discovered that one of the solutions to this problem is worldwide backing and a
carefully thought-out future structure are one of the solutions to deal with
the crisis effectively and efficiently.
Keywords: Crisis, Human Rights, Violations, Economic,
International Organisations
INTRODUCTION
Sri Lanka is
experiencing the worst economic crisis since its independence in 1948 from the
British empire, which has serious implications for the human rights of its
citizenry. It is a free market economy. The country had experienced annual
growth of 6.4 percent from 2003 to 2012[1], which was
driven by the growth of non-tradable sectors that were warned to be both
unsustainable and inequitable by the World Bank[2]. Growth
has slowed since then. The World Bank demoted Sri Lanka from higher
middle-income category to lower middle-income status in 2019. The ongoing
crisis in the island state of Sri Lanka started in 2019. It has led to
unprecedented levels of inflation, near-depletion of foreign exchange reserves,
shortages of medical supplies, and an increase in prices of basic commodities.
According to reports, a number of interrelated reasons, including tax
reductions, money creation, a national initiative to switch to organic or
biological farming, the 2019 Easter bombings in Sri Lanka, and the COVID-19
pandemic's effects in Sri Lanka, are what caused the crisis to emerge. The
consequent economic woes led to the protests in Sri Lanka in 2022. Even if the
economic effects of the nation's debt issue are frequently highlighted, little
attention is paid to how this financial crisis is quickly evolving into a human
rights crisis. It is imperative to bring the serious human rights violations
brought on by the economic crisis to the attention of the national government
and the international community.
PRESENT SCENARIO
Sri Lanka, a country
in the Indian Ocean, has around $2 billion in foreign exchange reserves, which
it will need to pay off $7 billion in debt by 2022. The rupee is still losing
value, and in February 2022, inflation reached a 13-year high of 15.1%.[3]
There is a shortage of necessities due to the crisis, including food, fuel,
cooking fuel, etc. Medicine is in scarce supply throughout the nation. Due to
the lack of internal price controls and the currency crisis, it had become more
difficult for vendors to buy drugs, which had resulted in severe shortages of
5% of the drugs listed with the National Medicines Regulatory Authority of Sri
Lanka, including drugs for diabetes, high blood pressure, and cholesterol. Due
to the incapacity to administer treatments, clinics and hospitals turn away
patients, many of them are women and children. The economic crisis in Sri Lanka
has a significant impact on every area of the service industry. Children's
education in Sri Lanka has suffered as a result of COVID-19's impacts. Due to a
lack of printing paper, exams for millions of pupils in Sri Lanka's Western
Province were postponed in March 2022. Additionally, there is a lack of
textbooks. Children are suffering as a result of what is allegedly government
economic mismanagement, and they are unable to exercise their right to an
education.
The right to adequate
food is also no longer protected as a result of the island-wide emergence of
protracted lines for vital commodities like milk powder and the dramatic
increase in food prices. Critics accuse the government of creating shortages of
essential products in an effort to preserve its foreign exchange reserves. To
deal with the severe shortfall, the cash-strapped nation struggles to finance
vital imports. Long-lasting power outages introduced by the government have
caused severe disruptions to daily life and livelihoods. Companies are being
shut down. The lack of cooking gas resulted in the closure of hundreds of
bakeries. The government's hurried and disastrous agricultural shift worsened
the spiralling economic and debt difficulties. Given these circumstances, the
World Food Programme has started an emergency response campaign, saying that
over 62,000 Sri Lankans need aid right away. The country's inflation rate
reached a record high of 54.6 percent in July 2022, while food inflation
increased to 81 percent. The island nation's foreign reserves ran out, making
it impossible to pay the interest on the loans, and in May 2022, it stopped
making payments on the USD 51 billion debt. Gotabaya Rajapaksa, the former
leader of Sri Lanka, resigned on July 15 after fleeing the nation as
demonstrators overran
important government
facilities in Colombo. Ranil Wickremesinghe, a six-time prime minister, was
chosen by MPs to become Sri Lanka's new president on Wednesday[4].
There are other additional difficulties that Sri Lankans deal with on a daily
basis.
AFFECT OF THE CRISIS ON HUMAN RIGHTS
Even if the economic
effects of the nation's debt issue are frequently highlighted, little attention
is paid to how this financial crisis is quickly evolving into a human rights
crisis. It is imperative to bring the serious human rights violations brought
on by the economic crisis to the attention of the national government and the
international community. Every day that a person goes without taking their
prescription raises the possibility that medical issues will worsen, infringing
both on their right to live and their right to get medical care. Undoubtedly,
the financial crisis is a significant human rights catastrophe, and it will
disproportionately affect the most vulnerable people. Citizens are at risk of
facing extreme poverty. They are dealing with severe hardships, emotional
anguish, and social annoyance. The average quality of life has substantially
decreased. The number of tragic fatalities among elderly people, who have been
fainting and dying while waiting in sweltering heat for fuel, is rising.
Violence incidents, including killings brought on by arguments at fuel line
lines, are also on the rise.
Large-scale
anti-government protests have broken out across the country as a result of the
economic problems linked to enduring corruption and political ineffectiveness.
Despite the fact that most protests are nonviolent, tragic instances have
nonetheless happened, such as the one in Rambukkana where Sri Lankan police
shot at protesters angry about the recent rise in fuel prices in an effort to
quell their unrest and restore order. Trade unions, political parties, student
unions, and professional organisations are joining the anti-government movement
pushing for political and economic reforms as the protests move into the next
phase.
The government has
failed to defend the human rights of its people. The complete spectrum of human
rights, including economic and social rights like the right to a sufficient
standard of living and the right to health, food, and education, are already in
threat due to the crisis. The nation's ability to combat the situation is
limited. It is important to keep in mind that, as the Asian Financial Crisis
shows, the financial instability of tiny countries can nevertheless have an
effect on others. As a result, the issue in Sri Lanka is a global concern.
Michelle Bachelet, the UN High Commissioner for Human Rights, denounced the violence
that broke out across the nation in May and claimed at least seven lives. In
her recent report to the Human Rights Council in February, UN High Commissioner
for Human Rights Michelle Bachelet[5]
noted that the State's capacity to effectively address the economic crisis and
ensure the realisation of the economic, social, and cultural rights of all
citizens has been hampered in Sri Lanka by the country's trend toward
militarization and the deterioration of institutional checks and balances. The
Government's actions in response to criticism and dissent have raised concerns
from the High Commissioner about how they threaten civic space. The UN
representative stated, "We reiterate these concerns today.[6]
SOLUTIONS
The Sri Lankan
government was hesitant to enlist the assistance of the International Monetary
Fund (IMF). But the administration chose to ask the IMF for help since the
nation continues to have Asia's worst inflation rate. In order to recover and
be guided to protect economic and social rights in the face of severe financial
difficulties, Sri Lanka requires foreign assistance. The nation looks to the
international community for reliable financial assistance with debt
restructuring and debt reduction. Support for Sri Lanka has previously been
provided by China and India in the form of loan lines and currency swaps.
Global institutions
like the United Nations must continually examine any excessive use of force by
authorities against protestors and any repression of lawful dissent in light of
the ongoing demonstrations and turmoil in Sri Lanka.[7] There is
yet hope that State parties will support Sri Lanka and uphold their collective
and honourable obligation under the UN Charter and other human rights conventions,
namely to assist other governments in implementing their economic, social, and
cultural rights. Additionally, it is hoped that international actors would be
able to persuade the Sri Lankan government to seek out an open and sincere
conversation with the up in arms populace about political reforms and how to
handle the economic crisis. Sri Lanka urgently requires direction and
assistance to deal with the crisis' effects and restore faith in the ability of
the affected population to seek respect for their human rights.
As UN rights chief
Michelle Bachelet noted in her recent report to the Human Rights Council in
February said, “We urge the Government, political parties and civil society to
engage in immediate, inclusive and meaningful dialogue to find a solution for
the pressing economic and political challenges that Sri Lanka faces and to
avoid further polarization of the situation”[8]
The UN High
Commissioner for Human Rights has also called on the authorities to
independently, thoroughly, and transparently investigate all the attacks that
have occurred especially on the peaceful protesters. There needs to be
meaningful and inclusive dialogue with all parts of society, to address the
socio-economic challenges faced by the people. Political stability is critical
to creating an environment for negotiations with the International Monetary
Fund (IMF), which can then set up the way forward for economic recovery.
CONCLUSION
Ongoing political
crisis and inadequate planning have led Sri Lanka to face the worst economic
crisis which is hampering the human rights of its citizens as well. There is an
immediate need to address this issue and the help of the international
community is needed. United Nations has also started to look into the matter
and trying to figure out the broader political and systematic root causes that
have perpetrated discrimination and undermined human rights and these need to
be addressed continuously. It is also finalizing the next United Nations
Sustainable Development Framework for Sri Lanka, which covers the years from
2023 to 2027, and includes several strategies and programmes to assist the
nation in creating a more inclusive, sustainable economy that benefits both
people and the environment. The author hopes that Sri Lanka will get due
support from international organizations and finds a peaceful solution to the
present crisis soon.
[1] Bharatha Mallawarachi, Easter Bombings Damaged Sri Lanka
Economy Beyond Tourism,
The Diplomat, https://thediplomat.com/2019/07/easter-bombings-damaged-sri-lanka-economy-beyond-tourism/
[2] Dr. Yasoda Wijerathna, Stand in Solidarity with Sri Lanka as the Country’s Economic
Crisis Devastates the Human Rights of the Citizenry, McGill, https://www.mcgill.ca/humanrights/article/stand-solidarity-sri-lanka-countrys-economic-crisis-devastates-human-rights-citizenry
[3] Id.
[4]Pravina Srivastava,
Sri Lanka: UN experts sound
alarm on economic crisis, newsx, https://www.newsx.com/world/sri-lanka-un-experts-sound-alarm-on-economic-crisis.html
[5] Akhere
Unuabona, Human Rights must be at heart
solution for Sri Lanka crisis, UN,https://news.un.org/en/story/2022/05/1118442
[6] Dr. Sean M. Maloney, The International Securityassistance
Force: The Origins Of A Stabilization Force,
[7] Council of Europe Commissioner for Human Rights,
Safeguarding human rights in times of economic crisis, https://rm.coe.int/safeguarding-human-rights-in-times-of-economic-crisis-issue-paper-publ/1680908dfa
[8]UN closely following developments in Sri
Lanka calls for a meaningful dialogue to resolve the crisis, Colombo Page, http://www.colombopage.com/archive_22A/Apr06_1649226339CH.php
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