News

BASL concerned about impact of economic crisis on rule of law and democracy

Published

4 years ago

2022/01/15

The Bar Association of Sri Lanka (BASL) has said that it is gravely concerned about the signs of a looming economic crisis in Sri Lanka and its possible impact on the rule of law and democracy and on the living conditions of the people.

Secretary to the BASL, Rajeev Amarasuriya has said that the spiraling inflation, shortages of essential goods including cooking gas, the unavailability of foreign currency, people’s inability to remit monies overseas, the downgrading of Sri Lanka’s ratings by multiple international rating agencies, the temporary closure of the oil refinery at Sapugaskanda, reports of the operations of certain foreign airlines being suspended, warnings of a possible power crisis are all indicators which demonstrate the urgency of the need for the government to address the economic crisis without any further delay.

Text of the BASL statement: “A downturn in the economy can have far reaching adverse consequences to the Rule of Law and Governance of a Country. At its worst, economic decline can result in a complete breakdown of Law and Order, but even prior to that, serious repercussions flow from growing financial hardships that have to be borne by citizens that perpetuates inequality and the ability of citizens to enjoy or vindicate their rights, be they public or private rights. It goes without saying that the worst affected by economic hardship are the most vulnerable in society,” Amarasuriya said

Given below are excerpts of the press release: “It is an undisputed fact that since March 2020 there has been a gradual erosion of foreign reserves from approximately USD 7 billion. Although it was announced by the Central Bank that the reserves have increased to USD 3 billion, it remains to be ascertained how much of that are usable reserves to repay the debt and used to redress the prevailing balance of payments crisis. Even out of the available reserves a large proportion contains moneys obtained in the form of short-term foreign exchange swaps.

“There have been several sovereign credit ratings downgrades in the corresponding period by all the major credit rating agencies. The latest being the downgrades by Fitch Rating Agency to CC and Standard and Poor’s (S & P) to CCC. The International Sovereign Bonds yields across all tenures have remained in double digits for over a period of 2 years. This has made rollover of maturing sovereign bonds not feasible.

“There have also been reports of a flight of foreign capital both from the equities and as well as the money markets. Foreign participation in both markets at present is only negligible. The Economist magazine named Sri Lanka as one of the most vulnerable countries to the expected fallout in emerging markets from the anticipated raising of interest rates by the Federal Reserve of the United States. Debt to GDP from approximately 85% in 2019 is now estimated to have risen to approximately 104% of GDP. However, in the same period the government revenue as a percentage of the GDP has fallen from approximately 12% to 10%. Year on Year headline inflation in the month of November 2021 was recorded at 9.92% and December 2021 recorded a double digit figure of 12%, the highest in the past 7 years. The Net International Reserve Position of the Country has been negative for over three months consecutively. All of this has resulted in the scarcity of foreign exchange to sustain essential imports.

“The ability of the government to meet its total dollar requirements of approximately USD 6.9 billion in 2022 is being questioned, although the Central Bank has pledged that such commitments will be met. Questions as to the stability of the financial sector are also being raised.

“The BASL notes with deep concern the statement made in late December by the Joint Chambers of Commerce calling upon the government that if actions as envisaged by the recently announced Roadmap by the Central Bank of Sri Lanka are not materialized within the anticipated timeframes to reconsider other alternative courses of action available to the country such as engaging with the IMF to explore the funding options they can offer. The Joint Chambers have warned that if conditions do not improve many local companies would look to relocate their business operations overseas and that the ability to attract Foreign Direct Investment (FDI) into the country will be constrained.

“The BASL acknowledges that the government has been confronted with extraordinary challenges in the form of the pandemic which has caused disruptions to the economic activities. It also recognizes the fact that the government has taken measures to address the challenges arising thereof. Similarly, the Government has sought to undertake remedial measures to address the fallout from the prevalent crisis consequent to the loss of access to financial markets and the resulting paucity of foreign exchange domestically thereof. However, none of those measures have brought about the desired results and have failed to build confidence to reverse the flight of foreign capital from the equities and money markets. Neither have these steps resulted in regaining access to international financial markets to raise debt.

“Enjoyment of a living standard based on desired lifestyle choices and income has become a challenge. Our members who are mostly self-employed are particularly vulnerable and adversely impacted by these events as savings and assets form the bedrock of their economic safety net. Some of the measures taken by the Government have directly impeded the ability of our members to perform their professional duties, particularly the purported regulation that compels the conversion of foreign inflows into rupees within a stipulated time period.

“We believe that the present crisis is the crescendo of the crisis emanating from the systematic undermining of the rule of law and governance based on executive convenience and expediency rather than on institutional independence and autonomy over a long period of time by successive governments.

“In these circumstances, the BASL calls upon the government to seek the assistance of acknowledged independent and non-partisan experts both domestically and internationally and also of multilateral institutions that have a proven record of providing resources financially as well as in the form of technical expertise that will enable sustainable solutions to this crisis. It is our belief that such assistance will result in the prescriptions that manifest to the world Sri Lanka’s belief in institutions as a country where effective governance is not contingent on personalities. It will manifest the fact that Sri Lanka has the desire and institutional capacity to respond to the exigencies brought by the present crisis via prescriptions that subscribe to the Rule of Law. Moreover, it is our belief that only such a response will create the institutional framework that ensures the efficient collection of revenue and the result in the efficient allocation of scarce resources and the formulation of monetary policy that ensures economic stability rather than a permissive one which facilitates executive expediency and convenience. The achievement of these outcomes is in our opinion indispensable to resolve the crisis at hand.”

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India vs Pakistan match is a godsend for T20 World Cup hosts Sri Lanka

Published

1 hour ago

2026/02/15

Priyan

The last time India and Pakistan played in Sri Lanka was in 2023 at the Asia Cup, when fans from both countries and the host nation thronged the R Premadasa Stadium in Colombo [Aljazeera]

Almost 30 years ago today, India and Pakistan formed a combined cricket team to take on Sri Lanka ahead of the 1996 Cricket World Cup in an unprecedented moment of unity in the sport’s history.

The two age-old rivals put aside their differences and came together in an act of solidarity to support a fellow South Asian team, who faced the threat of match boycotts in a tournament they had battled hard to host.

India versus Pakistan is the most highly marketed fixture at every multination tournament – the World Cup, Asia Cup or Asian Games – whether it’s a men’s, women’s or Under-19 event.

Few sporting events globally carry the weight and anticipation of an India-Pakistan cricket match. So, when Pakistan’s government ordered its team not to face India at the ongoing T20 World Cup, the tournament was briefly pushed into a state of chaos.

It also left Sri Lanka, the designated host of the fixture, holding its collective breath.

A week of negotiations led to a dramatic late U-turn by the Pakistani government and the match will now take place as scheduled on Sunday at the R Premadasa International Cricket Stadium in Colombo.

But what if the boycott had gone ahead? The impact could have been catastrophic, not just for Pakistan, but also for the International Cricket Council (ICC), as well as Sri Lanka.

With the crisis seemingly averted, the island nation stands poised to reap the benefits in its financial landscape, diplomatic standing and community.

The tourism and hospitality industry was one of the hardest hit during Sri Lanka’s financial meltdown and this match will see an enormous influx of fans from India and Pakistan coming into the country.

Hotels in and around Colombo were fully booked out well ahead of the tournament but the industry braced itself for heavy losses after Pakistan threatened a boycott.

“There’s been a massive impact since the boycott was announced,” Sudarshana Pieris, who works in Sri Lanka’s hospitality sector, told Al Jazeera.

“All major hotels in Colombo were fully booked by Indian travel agencies well ahead of the match and once the boycott was announced, we lost almost all of those bookings,” he said.

“But after Pakistan reversed their decision, hotel room rates shot up by about 300-400 percent at five-star establishments in Colombo.”

It’s not just hotels but several other local businesses – from street vendors to high-end restaurants – who are hoping for an increased footfall and spending over the weekend.

These short trips and the experiences they offer could influence visitors to extend their stay or return to Sri Lanka on holiday, long after the game has ended, in a potential long-term benefit to the industry.

Another relatively underestimated impact of the game would be the employment opportunities it creates, albeit temporarily, in the media, event management, security and transportation industries.

Asanka Hadirampela, a freelance journalist and broadcaster currently working as a Sinhala language commentator for the World Cup, recognises the marquee match as a great opportunity from a personal standpoint.

“This is my first World Cup as a broadcaster,” Hadirampela said.

“The India-Pakistan fixture is the biggest and most-watched game of the tournament. So to get to work on such a match is exciting and I consider it a special achievement.”

The lines are always blurred between sport and politics in South Asia.

So while the financial gains are expected to be significant, the fixture’s impact on the region’s geopolitical environment cannot go amiss.

Pakistan’s boycott, too, was explicitly political, as confirmed by the country’s Prime Minister Shehbaz Sharif when he said that they were offering support to Bangladesh after the Tigers were kicked out of the tournament by the ICC.

The reversal of Pakistan’s decision, which they said came after requests to reconsider the boycott by several regional “friends”, was steeped in politics, too.

Sri Lanka’s President Anura Kumara Dissanayake reportedly had a phone conversation with PM Sharif, urging his government to rethink their decision to boycott the game as the successful staging of this encounter would not only position Sri Lanka as a capable host of global sporting events but also reinforce its standing as a neutral mediator in a region fraught with geopolitical complexities.

Sri Lanka and Pakistan have always maintained strong diplomatic relations, which have extended to the cricket field as well.

Sri Lanka were one of the first teams to travel to Pakistan following their 10-year ostracisation from international cricket, which came as a result of a terrorist attack targeting the Sri Lankan team in March 2009.

When Al Jazeera reached out to Sri Lanka Cricket (SLC), its vice president Ravin Wickramaratne confirmed that SLC did, indeed, reach out to the Pakistan Cricket Board (PCB) after the boycott was announced.

“We asked them to reconsider the decision,” Wickramaratne said.

“It [boycott] would have impacted Sri Lanka economically, whether directly or indirectly.

“We have always had a good relationship with the PCB and we have always supported them, so we’re happy with their decision.”

A little over 24 hours ahead of the match in Colombo, there is a sense of palpable excitement and a growing buzz around the fixture as it returns from the brink of cancellation.

As of Saturday morning, 28,000 tickets had been sold for the game but local organisers expect a capacity crowd of 40,000 to make it into the stands.

Come Sunday, thousands more will line the streets in and around Maligawatte, the bustling Colombo suburb that houses the famous Premadasa Stadium.

INTERACTIVE -STADIUMS- T20 MEN'S CRICKET WORLD CUP - 2026 - FEB3, 2026-1770220847 — ***(Aljazeera)***

Business

“We Are Building a Stable, Transparent and Resilient Sri Lanka Ready for Sustainable Investment Partnerships” – PM

Published

6 hours ago

2026/02/15

Priyan

Prime Minister Dr. Harini Amarasuriya addressed members of the Chief Executives Organization (CEO) during a session held on Thursday [3 February 2026] at the Shangri-La Hotel, Colombo, as part of CEO’s Pearl of the Indian Ocean: Sri Lanka programme.

The Chief Executives Organization is a global network of business leaders representing diverse industries across more than 60 countries. The visiting delegation comprised leading entrepreneurs and executives exploring Sri Lanka’s economic prospects, investment climate, and development trajectory.

Addressing the gathering, the Prime Minister emphasized that Sri Lanka’s reform agenda is anchored in structural transformation, transparency, and inclusive growth.

“We are committed not only to ensuring equitable access to education, but equitable access to quality education. Our reforms are designed to create flexible pathways for young people beyond general education and to build a skilled and adaptable workforce for the future.”

She highlighted that the Government is undertaking a fundamental pedagogical shift towards a more student-focused, less examination-driven system as part of a broader national transformation.

Reflecting on Sri Lanka’s recent political transition, the Prime Minister stated:

“The people gave us a mandate to restore accountability, strengthen democratic governance, and ensure that opportunity is not determined by patronage or privilege, but by fairness and merit. Sri Lanka is stabilizing. We have recorded positive growth, restored confidence in key sectors, and are committed to sustaining this momentum. But our objective is not short-term recovery it is long-term resilience.”

Addressing governance reforms aimed at improving the investment climate, she said:

“We are aligning our legislative and regulatory frameworks with international standards to provide predictability, investor protection, and institutional transparency. Sustainable investment requires trust, and trust requires reform.”

Turning to the recent impact of Cyclone Ditwa, which affected all 25 districts of the country, the Prime Minister underscored the urgency of climate resilience.

“Climate change is not a distant threat. It is a lived reality for our people. We are rebuilding not simply to recover, but to build resilience, strengthen disaster mitigation systems, and protect vulnerable communities.”

Inviting CEO members to consider Sri Lanka as a strategic partner in the Indo-Pacific region, she highlighted opportunities in value-added mineral exports, logistics and shipping, agro-processing, renewable energy, pharmaceuticals, and innovation-driven sectors.

“We are not looking for speculative gains. We are seeking long-term partners who share our commitment to transparency, sustainability, and inclusive development.”

She further emphasized collaboration in education, research, vocational training, and innovation as essential pillars for sustained economic growth.

Concluding her address, the Prime Minister expressed appreciation to the Chief Executives Organization for selecting Sri Lanka as part of its 2026 programme and reaffirmed the Government’s readiness to engage constructively with responsible global investors.

The event was attended by the Governor of the Western Province, Hanif Yusoof, and other distinguished guests.

[Prime Minister’s Media Division]

News

Prez AKD congratulates BNP’s Tarique Rahman on B’desh election win

Published

6 hours ago

2026/02/15

Thilina Walpola

President Anura Kumara Dissanayake has extended his congratulations to the Bangladesh Nationalist Party (BNP) and its leader, Tarique Rahman, following their landslide victory in Bangladesh’s parliamentary elections.

“Best wishes to the people of Bangladesh for reaffirming their faith in democracy, and congratulations to Mr. Tarique Rahman on leading the BNP in these elections. The results reflect the trust placed in him. I look forward to strengthening ties between our two nations,” President Dissanayake said, in a post on ‘X’.

The Bangladesh Nationalist Party won a landslide parliamentary election on Friday, securing a resounding mandate in a pivotal vote that is expected to restore political stability in the South Asian nation.

The parliamentary election held on Thursday was Bangladesh’s first vote since the 2024 Gen Z-driven uprising that toppled long-time premier Sheikh Hasina.

Opinion polls had given BNP an edge, and the party lived up to the forecasts, with the coalition it dominates winning 209 seats to secure an overwhelming two-thirds majority in the 300-member Jatiya Sangsad, or House of the Nation, Jamuna TV showed.

Soon after it won a majority in the overnight vote-count, the party thanked and congratulated the people and called for special prayers on Friday for the welfare of the country and its people.