FINANCIAL CRISIS IN SRI LANKA

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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.

  



 

 

 


[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.

[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,

http://www.journal.forces.gc.ca/vo4/no2/operatio-eng.asp 

[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

 

All India Human Rights Association (AIHRA)


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