Sri Lanka: A Bitter Peace
Sri Lanka: A Bitter Peace
Table of Contents
  1. Overview
Sri Lanka’s Uprising Forces Out a President but Leaves System in Crisis
Sri Lanka’s Uprising Forces Out a President but Leaves System in Crisis
Briefing 99 / Asia

Sri Lanka: A Bitter Peace

No matter which of the two main Sinhalese candidates wins Sri Lanka’s 26 January presidential election, the international community must take steps to ensure he addresses the marginalisation of Tamils and other minorities in the interest of peace and stability.

Overview

Since the decisive military victory over the Liberation Tigers of Tamil Eelam (LTTE), Sri Lanka has made little progress in reconstructing its battered democratic institutions or establishing conditions for a stable peace. Eight months later, the post-war policies of President Mahinda Rajapaksa have deepened rather than resolved the grievances that generated and sustained LTTE militancy. While the LTTE’s defeat and the end of its control over Tamil political life are historic and welcome changes, the victory over Tamil militancy will remain fragile unless Sinhalese-dominated political parties make strong moves towards a more inclusive and democratic state. The emergence of retired General Sarath Fonseka to challenge Rajapaksa in the 26 January presidential election has opened new space to challenge repressive government policies. But neither has offered credible proposals for political reforms that would address the marginalisation of Tamils and other minorities. Whoever wins, donor governments and international institutions should use their development assistance to support reforms designed to protect the democratic rights of all of Sri Lanka’s citizens and ethnic communities.

The government’s internment of more than a quarter million Tamils displaced from the Northern Province – some for more than six months – was further humiliation for a population brutalised by months of ferocious fighting. The return by the end of 2009 of most of the displaced to their home districts, and the increased freedom of movement for the nearly 100,000 still in military-run camps, are important steps forward. However, the resettlement process has failed to meet international standards for safe and dignified returns. There has been little or no consultation with the displaced and no independent monitoring; many returns have been to areas not cleared of mines and unexploded ordnance; inadequate financial resources have been provided for those returning home; and the military continues to control people’s movements. These and other concerns also apply to the estimated 80,000 Muslims forcibly expelled from the north by the LTTE in 1990, some of whom have begun to return to their homes.

The UN and donor governments should insist more strongly that all resettlement is done according to established guiding principles. Donors should end assistance to any camps where full freedom of movement is not allowed and condition additional aid on an effective monitoring role for UN agencies and NGO partners. India, Japan, Western donors, the World Bank and the Asian Development Bank should tie additional development assistance to an inclusive and consultative planning process for the reconstruction of the north. Access by the International Committee of the Red Cross (ICRC) to the more than 12,000 Tamils held in irregular detention centres on suspicion of ties to the LTTE is also essential.

The government’s approach to the development and reconstruction of the north and east is contributing to minority fears and alienation. Government plans remain unclear, with local communities and political leaders not consulted and even donors not informed of overall reconstruction plans. Strong military influence over policies, tight military control over the population and restrictions on local and international NGOs increase the risk of land conflicts, with the strong possibility of demographic changes that would dilute the Tamil character of the north. No real space has been given to Tamil and Muslim political or community leaders in the north and very little in the east.

The Rajapaksa government has initiated no political reforms to address Tamil and other minorities’ concerns. The government-sponsored All Party Representative Committee (APRC) designed to craft constitutional reforms has in effect ended with no sign of an alternative process. Tamil and Muslim parties remain weak and divided, although recent encouraging initiatives to develop a common platform and build trust among Tamil-speaking parties deserve support. Inside and outside Sri Lanka, many Tamils remain angry at the lack of accounting or justice for the thousands of civilians killed in the final months of the war. Most of the million-strong diaspora is still committed to a separate state and many would be willing to support renewed violence.

The brutal nature of the conflict, especially in its closing months, has undermined Sri Lanka’s democratic institutions and governance. All ethnic communities are suffering from the collapse of the rule of law. Disappearances and political killings associated with the government’s counter-insurgency campaign have been greatly reduced since the end of the war. Impunity for abuses by state officials continues, however, and fear and self-censorship among civil society activists and political dissidents remain widespread. Rajapaksa’s government continues to maintain and use the Prevention of Terrorism Act and Emergency Regulations to weaken its political opposition.

The campaign of retired General Sarath Fonseka has put the Rajapaksas on the defensive and united a long-dormant opposition. Alleging corruption and other abuses of power by the Rajapaksa family, Fonseka and the parties supporting him promise major reforms, including the end of emergency rule and the abolition of the Executive Presidency itself. However, Fonseka’s candidacy suffers from contradictions and poses grave risks. Promises made to Tamil parties to restore civilian control over land policies and the resettlement process in the north threaten to put Fonseka at odds with his allies in the military and run directly counter to Fonseka’s consistently Sinhala nationalist policies over the course of his career. The numerous allegations that General Fonseka was involved in attacks on journalists and other human rights violations undermine his calls for reforms and an end to impunity. It remains an open question whether the ideologically diverse set of parties that have endorsed Fonseka will be able to work together or influence his policies should he win.

International actors need to press for accountability for abuses by both sides during the war as well as challenge the government’s post-war policies. Numerous states with insurgencies have begun to look at Sri Lanka as a model. India and Western governments may yet come to regret giving Sri Lanka the green light – and even assisting it – to fight a “war on terror” prior to the government agreeing to political reforms or showing any commitment to the rule of law, constitutional norms or respect for human rights. The precedent can and should be challenged. Donors should condition further development assistance on governance reforms designed to curb impunity and make government accountable to citizens of all communities. This could eventually help open the space for Tamil and Muslim political leaders to organise effectively now that the LTTE is no longer there to control their agenda.

Colombo/Brussels, 11 January 2010

Protestors celebrate after entering the building of Sri Lanka's Prime Minister Ranil Wickremesinghe's office, amid the country's economic crisis, in Colombo, Sri Lanka July 13, 2022. REUTERS / Adnan Abidi
Q&A / Asia

Sri Lanka’s Uprising Forces Out a President but Leaves System in Crisis

Crowds of ordinary Sri Lankans stormed the presidential residence on 9 July, compelling President Gotabaya Rajapaksa to flee the country. In this Q&A, Crisis Group expert Alan Keenan lays out the background of these events and looks at what the immediate future may hold.

Sri Lanka has been through a tumultuous ten days. What exactly has happened?

In a stunning display of “people power”, massive crowds overcame large deployments of police and soldiers and other obstacles to storm the official residence and offices of the Sri Lankan President Gotabaya Rajapaksa and Prime Minister Ranil Wickremesinghe in Colombo on 9 July, leading the former to flee the country and both to agree to resign. Gotabaya’s eventual resignation on 14 July constitutes a major victory for Sri Lanka’s unprecedented island-wide protest movement. But these events leave an economy in freefall and a dysfunctional political system where the Rajapaksa family retains considerable influence. More political turbulence is to be expected.

For more than four months, citizens had been mounting constant, and almost entirely peaceful, protests demanding that Rajapaksa and his inner circle, who have dominated Sri Lankan politics for decades, step down for mismanagement of the economy and alleged corruption. In April and May, they succeeded in compelling Gotabaya’s nephew and three brothers – including Mahinda Rajapaksa, who was then prime minister, and Basil Rajapaksa, then finance minister – to leave their official positions. On 9 July, hundreds of thousands of people came together from all over Sri Lanka – walking long distances, commandeering trains and receiving free trips by bus – for what organisers had promised would be the “final push”. Gotabaya and Basil reportedly fled the presidential secretariat just minutes before the crowds entered.

The takeover of the presidential residence and office produced astonishing scenes, widely circulated on social media and global television, of huge, festive crowds of average Sri Lankans exploring luxurious spaces that until recently had been out of reach. Their playful, at times mocking, behaviour was generally tempered by respect for the properties as belonging to the people themselves.

Still, the culminating phase of the uprising saw increasing tensions between protesters and security forces and some violence. In the final hours of 9 July, someone set Wickremesinghe’s private residence on fire, largely destroying it. Police held protesters responsible, but conflicting reports from the scene make it hard to determine the fire’s source. The arson attack came soon after police officers were filmed brutally beating journalists covering protests near the prime minister’s house.

The demonstrators had been directing their anger at Wickremesinghe for some time. He had accepted the prime minister’s post on 11 May, when all others had turned it down following Mahinda’s resignation, a move widely seen as extending a lifeline to Gotabaya. Criticised for short-circuiting popular demands for Gotabaya’s removal and deep constitutional change, the new prime minister’s failed to deliver on his promise of political stability and efficient economic administration.

Following the takeover of his office and residence, Gotabaya’s grip on power became increasingly tenuous,.

Following the takeover of his office and residence, Gotabaya’s grip on power became increasingly tenuous, but it remained unclear how the situation would resolve itself. On the evening of 9 July, Mahinda Yapa Abeywardena, speaker of parliament and a Rajapaksa ally, announced that the president had agreed to resign in four days’ time, citing the need for a short transitional period. Meanwhile, Gotabaya’s whereabouts were shrouded in secrecy. Some local observers suggest that he and other family members found refuge at various military bases while they planned an exit from the country. They sought to leave by plane on 12 July but decided not to do so when immigration officers refused to allow Gotabaya, Basil and family members to use a private VIP entrance at Colombo’s main airport. Gotabaya and his wife ultimately flew out on a Sri Lankan air force jet early on 13 July, alighting briefly in Maldives (where their arrival brought protesters into the streets) before proceeding to Singapore the next day. From Singapore, Gotabaya sent his letter of resignation to the speaker of parliament at last.

The ultimate destination for Gotabaya and his entourage continues to be up in the air. The U.S., India and the United Arab Emirates all reportedly rejected Gotabaya’s travel requests. It is unclear where he will eventually settle, though he appears to be looking for a safe haven where he feels secure that he will not be extradited or prosecuted now that he has lost the protection that comes with being a head of state. Former president and prime minister Mahinda Rajapaksa, his son Namal and his brother Basil remain in Sri Lanka. On 15 July, the Supreme Court barred Mahinda and Basil from leaving the country while it hears a civil suit against them.

Gotabaya’s departure left behind a messy political situation with unresolved questions about the succession process. At first, these were exacerbated by the fact that he fled the country without either himself or Wickremesinghe having tendered their formal resignations. Tensions rose sharply when, on 13 July, the speaker of parliament – who had become Gotabaya’s de facto spokesperson – announced that Rajapaksa had designated Wickremesinghe to be acting president during his absence from Sri Lanka. Protesters and opposition parties decried the move as illegitimately exploiting a constitutional loophole.

Even before the formal appointment letter was issued, Wickremesinghe took a hard line. He declared a state of emergency and a curfew. He also proclaimed his intention to “eliminate the fascist threat” posed by the protesters, and later said the military should do “whatever is necessary to restore order” following the occupation of the prime minister’s office. With the security situation increasingly fraught, and clashes between security forces and protesters outside parliament, there were credible reports indicating that the government had authorised the military to use live ammunition to quell protests. Although the military – which to date has been remarkably restrained – appeared reluctant to cross that line, Sri Lanka seemed to be on the brink of a dramatic escalation in violence.

Fortunately, with Gotabaya’s resignation on 14 July, the danger of an extended leadership crisis was removed. Protesters ended their occupations of government buildings, and crowds across Sri Lanka celebrated the success of the aragalaya, or people’s struggle. On 15 July, Wickremesinghe was sworn in as acting president, a position he can hold only until parliament votes on a replacement. That vote must happen within 30 days; it is now scheduled for 20 July.

Parliament remains dominated by members of the Rajapaksa-controlled Sri Lanka Podujana Peramuna (SLPP) party, and Wickremesinghe, widely viewed as protecting the Rajapaksas’ interests, will contest with SLPP support. Should he win, it remains questionable whether any new government he forms will have the credibility with the public and protest movement to restore calm in a lasting way.

What has driven such a sustained protest movement and such large crowds to take direct action?

The protest movement is most directly a response to what Wickremesinghe has called an economic “collapse”, rooted in unprecedented tax cuts, a sudden ban on chemical fertiliser that devastated crop yields and widespread corruption, all further aggravated by the loss of tourism due to COVID-19 as well as rising fuel prices resulting from the invasion of Ukraine. With foreign currency reserves nearing zero in mid-April, the government announced it was suspending repayment of foreign debt totalling more than $50 billion. Since this default, Sri Lanka’s first ever, the economy has ground to a virtual halt. Lack of hard currency has led to severe shortages of petrol, cooking gas and other essential supplies; lines of cars, motorcycles and three-wheeled taxis waiting two or three days for fuel have become routine features of life across the island. Inflation is running at more than 50 per cent, with high food prices forcing 70 per cent of Sri Lankan households to reduce food intake and nearly half the country’s children requiring emergency assistance. Medicines and medical supplies are running out, and patients are now dying of easily treatable causes. With imported fertiliser in short supply, the next harvest of rice and other vegetables, as well as the major currency earner tea, is expected to be down by as much as half. The UN and Red Cross have both launched urgent appeals to fund food and other humanitarian assistance, with UNICEF warning of a “full-blown humanitarian emergency”.  

The economic and humanitarian situations are certain to get worse before they get better. The country is, in effect, bankrupt, and key economic activities needed to generate hard currency, such tourism, tea production and foreign remittances, are virtually absent or much reduced. Since inviting the International Monetary Fund (IMF) to assist, the government has held multiple rounds of negotiations for an Extended Funds Facility. The most recent talks in Colombo in late June saw the IMF announce “significant progress” but failed to reach a so-called staff-level agreement.

July’s political turmoil will likely add further delay. Even if the IMF persuades a new government to make the reforms needed to win the requested $3 billion bailout, it will disburse no funds until it deems Sri Lanka’s external debt to be “sustainable”. For that to happen, Sri Lanka must reach a deal to restructure the debt held by international creditors, who will have to accept a lesser payout on bonds, lower interest rates or extended terms of repayment. The earliest likely date for the IMF to release funds would be early 2023. In the meantime, Sri Lanka is urgently seeking “bridge financing” to allow it to pay for the fuel and other essential supplies needed to get the economy running again and avoid a humanitarian catastrophe. In June, Wickremesinghe floated the idea of a donor conference that would see India, China and Japan, as well as other countries, pledge support. It will take a massive infusion of humanitarian support to prevent the kind of mass desperation that would threaten much worse political instability and violence.

What steps are needed to establish a new government and restore the political order needed to address the economic crisis?

The forced departure and resignation of Gotabaya Rajapaksa could augur a political sea change for Sri Lanka, but with Rajapaksa loyalists still appearing to control parliament and with Rajapaksa ally Wickremesinghe having a good chance of being chosen to serve out Gotabaya’s term, it is unclear how deep the change will be. Disappointed hopes for change, amid extreme economic hardship, could yet produce further instability. The coming days and weeks will test the ability of Sri Lanka’s political class to act in the collective, rather than party or personal, interest, by adopting political reforms essential to meeting popular aspirations.

The swearing-in of Wickremesinghe on 15 July as acting president begins the constitutionally mandated process of selecting Gotabaya’s successor. Parliament has 30 days to choose, from its own ranks, someone to assume the presidency for the remainder of the current president’s term, which in this case runs until November 2024, unless there is an agreement to hold fresh elections sooner. That president will then need to appoint a prime minister and cabinet that has parliament’s confidence. The current parliament is widely detested, but there is no constitutional way around the fact that it is the current 225 parliamentarians who will determine the country’s next group of leaders.

Wickremesinghe is currently the front runner for the presidency. The SLPP has suffered defections since March, but appears to still have a parliamentary majority, and on 15 July the party’s secretary-general announced that it was backing Wickremesinghe. Scarred by arson attacks on government politicians’ houses on 9-10 May, feeling vulnerable without the Rajapaksas in power and knowing they are deeply unpopular, many SLPP members see Wickremesinghe, who has proven his loyalty to the family, as their best protection. Running against Wickremesinghe are SLPP defector and former Rajapaksa loyalist Dullas Alahapperuma, Sajith Premadasa, leader of the main opposition party Samagi Jana Balawegaya, and Anura Kumara Dassanayake, leader of the leftist Janatha Vimukthi Peramuna. With an absolute majority required to win, a first-round victor is unlikely, and, Alahapperuma is believed best placed to pick up additional support in the later rounds of voting that most expect to see. The fact that the vote will, unusually, be by secret ballot, adds an additional element of unpredictability.

As in May, when his appointment as prime minister was welcomed by some – including Western governments – as a possible source of stability, Wickremesinghe might appear to some to offer a similar chance for a new start if he were to become president. Yet his presidency would also bring major risks: the quintessential career politician, with cases of alleged corruption by close associates during his 2015-2019 premiership receiving wide publicity, and his close association with the Rajapaksa family now well established, Wickremesinghe is hardly an obvious vehicle for the kind of change protesters, and much of the population, demand. His assuming the presidency threatens to tarnish for many the sense of victory felt with Gotabaya’s resignation and could raise doubts about whether the needed change is possible within the current political system.

To reduce the risk of renewed instability, ... any new government must address the political factors behind the economic collapse.

To reduce the risk of renewed instability, a Wickremesinghe government – or indeed any new government – must address the political factors behind the economic collapse and respond to popular demands for meaningful reform. Three steps in particular would go a long way to proving the new government has listened to the people and is serious about change.

First, the new government should agree from the beginning that it is serving on an interim basis and commit itself to fresh elections before the end of 2022, as many in the opposition and in the protest movement have been calling for. Fresh, and relatively quick, polls appear essential to restoring the legitimacy of the presidency, parliament and political order as a whole. The risk is considerable that a new president and prime minister will not agree to new elections, instead trying to stay in power through the duration of current terms – though this may be tempered by the knowledge that any government that hopes to rule for very long will have to take responsibility for extremely difficult and likely unpopular economic reforms.

Secondly, to address popular demands for change, the next government should also commit to amending the constitution to abolish the executive presidency, which since 1978 has concentrated an extraordinary amount of power in the president, weakening all other institutions of government and doing enormous damage to Sri Lankan democracy and the country’s well-being. The 20th amendment, pushed through by Gotabaya and the SLPP in October 2020, further turbo-charged presidential powers. According to a Supreme Court judgment in June, any amendment that returns executive power to the prime minister and cabinet will need approval at a referendum. Such a referendum could be held on the same date as a general election, ideally by the end of 2022. In a statement on becoming interim president, Wickremesinghe promised to return to the 19th amendment, which had reduced but not eliminated the president’s executive powers before it was repealed by the 20th amendment’s passage.

Thirdly, the incoming government should prove it is serious about criminal investigations into alleged corruption by previous regimes. It should re-establish the kinds of specialised police investigative units that were active from 2015 to 2019, give full support to an independent anti-bribery commission, cooperate fully with parliamentary oversight committees, support legislation to establish an independent Public Prosecutor’s office in the Attorney General’s Department, and renew previous cooperation with the UN and World Bank’s Stolen Assets Recovery program investigating major cases of corruption.

The sooner a broadly acceptable government is established to replace the Rajapaksa administration, the greater chance there is that it can begin to take up the herculean task of finding solutions to the country’s urgent economic and humanitarian needs. This will require finalisation of an economic reform package that the IMF can accept, which in turn will strengthen negotiations with Sri Lanka’s multiple international creditors, whose agreement to accept losses on their investments is essential to Sri Lanka’s debt being declared “sustainable”. The more consensus can be reached in parliament on the necessary policy reforms, the more credible they will be internationally. The IMF, in turn, must be careful not to press for austerity measures that will too deeply undercut popular acceptance and fuel further political unrest. Prior to finalising an IMF bailout, the government will face the enormous challenge of working with donors to find billions in short-term financing to pay for the fuel needed to get the economy running again and will need to devise a plan for feeding its population as the agricultural economy collapses and harvests shrink. 

What can Sri Lanka’s international partners do to help manage the crisis?

Once a new president is selected by parliament and a new government is established, international donors should be generous with short-term humanitarian and food aid but more demanding with regard to the governance reforms that would need to accompany a long-term bailout. On humanitarian relief, donors interested in preventing Sri Lanka from collapsing further should make available funding well beyond the modest amounts in both the UN humanitarian and Red Cross emergency appeals.

At the same time, influential states should directly, and through the IMF, urge the new government to put in motion the process described above to amend the constitution to abolish the executive presidency and establish the independent oversight institutions that are needed to prevent large-scale corruption and gross economic mismanagement. Sri Lanka’s crisis is to a significant degree the result of a political system without meaningful checks on, or accountability for, economic decision-making. The window of opportunity to escape the executive presidency’s dead ends and re-establish a fully parliamentary system should not be lost. The country’s foreign partners should also encourage the IMF to insist on meaningful anti-corruption policies and strengthened rule-of-law institutions as part of its conditions for approving a bailout.

The emergence of a broad popular movement demanding deep political reforms, an end to corruption, and accountability for theft and other alleged crimes by the Rajapaksas and other politicians has created an opening for Western governments and the UN Human Rights Council to reframe their longstanding calls for “accountability” in ways that are more clearly in sync with public opinion, especially among the Sinhala majority. Framed in its broadest sense, the principle of accountability can connect widespread demands – from all of Sri Lanka’s communities – for accountability for economic mismanagement, theft and other abuses of power, with more difficult aspects of the Human Rights Council’s agenda, including accountability for alleged crimes committed during the country’s 26-year civil war, an idea that remains controversial among Sinhalese and politically challenging for Sri Lankan governments.

Whatever government is in place when the Council meets next in September, a new resolution will be needed that reaffirms the ambitious reform scheme laid out in 2021 and extends the mandate, with proper funding, of the important Sri Lanka Accountability Project managed by the UN High Commissioner for Human Rights. Should a future Sri Lankan government emerge that is committed to tackling impunity, pursuing the recovery of stolen assets and supporting a restructured state with more inclusive governance, the UN and foreign governments should offer targeted forms of support. These can include technical support for domestic anti-corruption initiatives and assistance to relaunch the assets recovery effort begun by the coalition government of 2015-2019, under the auspices of the program run by the World Bank and UN. Support of this nature stands the best chance of domestic acceptance and could help the country begin to work its way out of the persistent political and economic crisis from which it has struggled to emerge.

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