The NPP government is under criticism for being slow to deliver on its election promises. The opposition political parties have criticised it for not delivering on its promises with regard to renegotiating the IMF agreement to be more people-friendly. The government seems to have accepted the IMF targets for revenue collection and restricting government spending to the letter. Civil society groups are critical of the government for not repealing the Prevention of Terrorism Act (PTA) and Online Safety Act (OSA) which bolster the repressive potential of the government, and which the NPP had promised to repeal. The problem with the delay in implementing promised political reforms is that it not only undermines the government’s credibility but also has the potential to undermine Sri Lanka’s economic recovery.
Sri Lanka has received a breathing space of three months to negotiate with the US government regarding tariffs to be imposed on Sri Lankan exports to Sri Lanka’s largest export market. The country faces a similar challenge to protect its export markets with regard to the EU, its second largest trading partner and potentially its largest, which is currently favouring Sri Lanka with its GSP Plus tariff concession. This trade concession (or incentive) provides Sri Lanka with duty-free access to the EU market for over 6,000 product lines, including textiles, garments, and seafood. The continuation of GSP+ benefits is contingent upon Sri Lanka’s adherence to 27 international conventions related to human rights, labour rights, environmental protection, and good governance. It needs to be borne in mind that the GSP Plus facility was withdrawn in 2010 due to the government’s failure to meet human rights standards.
While Sri Lanka regained the GSP Plus in 2017, doubt was placed on its continuation when, in 2021, the EU Parliament called for a reassessment of the tariff concession on human rights grounds and called for the PTA to be repealed, citing its provisions for arbitrary detention and its misuse—especially against minorities in the North and East. The NPP’s own election manifesto pledged its repeal. But not only is the PTA still on the books, but it is being used to this day. In response to a query whether the EU is ready for any leniency in its approach this time because Sri Lanka is in an economic crisis, the EU ambassador Carmen Moreno is reported to have said, “We are all going through a difficult time. Again, are you telling the IMF to lower the bar? And to give you a free pass? We are giving you duty-free access. You just have to comply.” Sri Lanka risks exclusion from the scheme in 2026 if it does not if it does not demonstrate tangible progress in fulfilling its obligations.
Main Priorities
It would appear that the government’s main emphasis at the present time has been to keep the economy functioning smoothly without mishap which explains its adherence to the IMF agreement. The government feels that the growth of the economy and the elimination of corruption and waste are the two main factors that propelled it to power at the last presidential and general elections. It needs to add the EU commitments to human rights to this list as they have a bearing upon economic growth. The EU’s Ambassador has made the point that the GSP+ mechanism is not a “stick” but an “opportunity,” and the EU seeks genuine engagement, transparency, and a credible roadmap for reform. The government needs to show the same degree of commitment to implementing GSP Plus conditions as it has to the IMF agreement and in putting an end to corruption and waste. The rejuvenation of the Bribery and Corruption Commission (CIABOC) is a reaffirmation of this commitment.
However, the government appears to be reluctant to get into other areas of governance at this time, preferring to limit its focus to the areas listed above. This may account for the reluctance to deal with other priority areas such as the Prevention of Terrorism Act and national reconciliation even though they are of importance to ethnic minorities and to sections of the international community. This can be seen especially in the government’s failure to repeal the PTA despite election time pledges to do so. The irony is that the government has started to use the PTA to arrest suspects accused of crimes from the distant past and incarcerate them without recourse to judicial procedures, which can be for an extended period of time.
The NPP government seems to have given priority at this time to consolidate their hold over power. There are indications of resistance at the higher levels of the current administrative structures to the government’s efforts to reform the prevailing ways of doing things. There is a tussle between those who have been newly appointed by the NPP government to decision making roles and those who have to follow their directions. This may account for President Anura Kumara Dissanayake’s assertion at the launch of the CIABOC’s new programme that the government has given six months to government officials to change themselves to fit in with the new ethos, and if they do not, they will be changed by the government.
Future Assured
Engaging in a more inclusive governance process that includes the opposition and especially the ethnic minority parties will be important to both the government and country’s longer term stability. By honouring its commitments to human rights, good governance and national reconciliation to be found in its manifesto, the government can transform its electoral mandate into lasting progress for all Sri Lankans. Obtaining the support of the ethnic minority parties in particular is going to be important to the viability of the government in the longer term. The international community is susceptible to lobbying by the Tamil Diaspora and by international human rights organisations. Both of these groups have been very critical of the failure of successive governments to resolve the problems that can be traced to the ethnic conflict.
So far, the government has not been giving emphasis to the national reconciliation process which calls for both dealing with contentious issues of dealing with past war-time abuses of human rights and also the contentious issue of a political solution to the ethnic conflict. The government seems to have put these issues to be dealt with in a second phase of problem solving that could commence at a later point of time. Until the visit of Prime Minister Modi and discussions with him, the government took the position that provincial council elections would be held only next year even though they have been postponed for over six years. Such a position is unacceptable to the ethnic minority political parties, in particular the Tamil political parties.
The government’s way of showing change on the ground has been to ensure that all people will be treated equally without regard to their ethnicity or religion. But there is a need for more speedy resolution of the problems of missing persons, return of military-occupied lands to their original owners, reducing the size of the military to be on par with other parts of the country, giving compensation to victims of human rights violations, and holding provincial council elections. The NPP came to power promising systemic transformation. That promise must extend beyond anti-corruption and economic management to encompass democratic governance, inclusive reconciliation, and international cooperation. There is no waiting for a second phase if the continuation of the EU’s GSP Plus and the government’s success is to be assured.