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Repression of civic space threatens financial reform – HRW

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The International Monetary Fund (IMF) should urge Sri Lanka’s government to abandon draft legislation that would severely curtail civil society and jeopardize the IMF’s program in the country, Human Rights Watch said in a letter to the IMF that was released yesterday (March 12).

The proposed Non-Governmental Organizations (Registration and Supervision) Act is among several recent and planned measures that would curtail fundamental freedoms, despite the critical role of public scrutiny in promoting good governance and combating corruption.

The IMF’s US$3 billion bailout of Sri Lanka – which is linked to government commitments to reform – helped stem the immediate economic crisis after the country defaulted on its foreign debt in 2022, but further progress is threatened by the adoption of laws by President Ranil Wickremesinghe’s administration that would severely restrict basic rights. The Online Safety Act, enacted in January, creates vague and broad speech-related offenses punishable with lengthy prison terms. The Anti-Terrorism Bill, currently before parliament, contains sweeping new speech-related offenses and arbitrary powers of arrest. And the draft law to regulate nongovernmental organizations could make independent civil society activity all but impossible in Sri Lanka.

“As the economy collapsed in 2022, Sri Lankans demanded good governance and an end to corruption, but instead now face draconian laws and policies that threaten human rights and undermine reforms,” said Meenakshi Ganguly, deputy Asia director at Human Rights Watch. “The protests helped bring President Wickremesinghe to power, but instead of listening to calls for change, he’s clamping down on peaceful dissent.”

A 2023 IMF study of Sri Lanka known as the Governance Diagnostic Assessment stated that “[a]nticorruption efforts are unlikely to achieve their objectives unless they also encompass initiatives designed and led by groups outside of government who are committed to rule-based inclusive economic and social progress.” However, the study found that civil society’s participation in oversight and monitoring of government actions has been “restricted by limited transparency, the lack of platforms for inclusive and participatory governance, and by broad application of counter-terrorism rules.” As a result, “opportunities for public participation and oversight of official behaviour, including by civil society, are increasingly restricted.”

The government on January 30, 2024, provided the draft NGO law to selected members of civil society, who were given three weeks to respond. The bill does not address any evident need, but instead seeks to subject civil society organizations to invasive government scrutiny and interference, and threatens civil society members with prison if they don’t comply with cumbersome administrative procedures.

The National Collective of CSOs and NGOs, a coalition of Sri Lankan civil society organizations, wrote to the government on February 28 that the proposed law would “violate the fundamental rights to freedom of association and expression,” while damaging the delivery of services by civil society organizations, including to “the many families who are struggling to make ends meet in the midst of severe economic hardship.”

The United Nations High Commissioner for Human Rights, Volker Türk, in his March 1 update to the UN Human Rights Council on the crisis in Sri Lanka, said he was “concerned by the introduction of new or proposed laws with potentially far-reaching impact on fundamental rights and freedoms … which variously strengthen the executive, grant broad powers to the security forces, and severely restrict rights to freedom of assembly, association and expression, impacting not only on civic space but the business environment.”

The IMF should protect the credibility and efficacy of its program in Sri Lanka by publicly calling upon the government to abandon the proposed NGO law, impose a moratorium on use of the Online Safety Act, and amend the Anti-Terrorism Bill to ensure that it respects human rights standards, Human Rights Watch said.

“The IMF and other international partners supporting Sri Lanka’s economic recovery recognize that this crisis has its roots in misgovernance and corruption,” Ganguly said. “If their efforts are to be successful, they need to stand firm against the government’s attempts to curtail fundamental civil and political rights.”

(hrw.org)

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‘Company issuing visa at BIA not Indian or Indian based’

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The Indian High Commission in Colombo has issued a statement over reports of Indian companies taking over visa issuance at Bandaranaike International Airport (BIA) in Katunayake.

The statement notes “companies referred to in these reports are not India based or Indian and are headquartered elsewhere. Any reference to India in this context is unwarranted.”

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Chaos at BIA raises questions (Video)

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Questions have been raised after chaos at the Bandaranaike International Airport (BIA) in Katunayake last night (May 01) has sparked widespread outrage.

This is with regard to a controversial takeover of the on-arrival visa issuance process at BIA by an Indian company – VFS Global since yesterday evening.

It is learnt that the company has levied an extra $25 alongside the standard $75 fee.

Long lines of frustrated travellers were also seen at the airport for several hours, which is a stark difference to the procedure smoothly managed in a matter of mere minutes by the Immigration and Emigration Department in the past.

Footage of a Sri Lankan citizen expressing outrage over Indian nationals deciding visa matters for fellow Sri Lankans, has also been making rounds on social media.

Although 10 Sri Lankan and Indian officers had commenced work from 5.00pm yesterday, the lines remained well over 9.00pm. Amid tensions, higher officials of the BIA and security forces had also arrived at the premises.

At 11.30pm the company officials temporarily suspended issuing visas and left the BIA with the money collected, reports say.

Upon the directive of the Controller General of Immigration and Emigration – Harsha Ilukpitiya, Immigration officers have commenced their usual duties with no issues since then, enabling the previous process to continue smoothly.

Concerns have been raised over the lack of transparency in this arrangement.

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CoPF decides on Parate Law

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The Committee on Public Finance (CoPF) has approved, subject to conditions, the Recovery of Loans by Banks (Special Provisions) (Amendment) Bill which was amended to facilitate legal provisions for the suspension of Parate Law until December 15 2024. 

Accordingly, the banks’ practice of acquiring properties of whose loans are yet to be paid off will be suspended until December 15 and the Recovery of Loans by Banks (Special Provisions) Act No. 4 of 1990 will be amended to facilitate the necessary legal provisions.
The approval was given when the Committee on Public Finance met in Parliament recently (30) under the chairmanship of Member of Parliament Dr. Harsha De Silva.

Officials representing the Ministry of Finance said that they hope to provide temporary relief to the creditors. Accordingly, the committee questioned the officials what action will be taken in this regard after December 15. Thus, the officials present failed to give a clear answer in this regard and the committee recommended to provide a road map for the actions to be taken after December 15 to those subject to Parate Law.

Also, the committee recommended that all the parties who have done business with the banks subject to Parate Law should be given a fair opportunity to negotiate with the banks.

The committee also questioned the officials about the distribution of loans under the Parate Law. The chair of the committee inquired about the manner in which the micro, small scale and medium scale enterprises in particular have received loans under this law and the criteria under which they are classified. The officials did not have the correct data about this and the chair of the committee instructed the officials to provide that data to the committee.

The committee also inquired the percentage of the sectors that were most affected. Furthermore, the committee asked the officials to provide data on the implementation of the Parate Law in other periods compared to the specific period in which there was an economic recession due to the impact of the corona virus in 2020, 2021 and 2022. The officials present mentioned that the data on this matter this will be presented to the committee in the future.

Meanwhile, the committee has also given its approval for the orders under the Foreign Exchange Act No. 12 of 2017 and the regulations under the Sri Lanka Securities and Exchange Commission Act No. 19 of 2021. Also, the committee approved the regulations under the Import and Export (Control) Act No. 1 of 1969.

State Minister Dr. Suren Raghavan, Members of Parliament Premnath C. Dolawatta and Madhura Withanage participated in this committee.

Also, officials representing several government institutions including the Ministry of Finance, Economic Stabilization and National Policy, the Auditor General’s Department, the Central Bank of Sri Lanka, and Sri Lanka Customs were present in this committee.

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