By Jehan Perera –

Jehan Perera

The government has spent the past two years trying to overcome the most serious economic breakdown in the country’s modern history. By negotiating without prevarication with the International Monetary Fund and by allowing the Commission to Investigate Allegations of Bribery or Corruption, the police and the courts to do their work, it has persuaded foreign partners and general public that it can be trusted. That credibility now gives the government an opportunity that previous governments have so far failed to obtain. It can and must use the trust it has gained to confront the legacy of war and heal a country that is still divided.

The clearest indication of its credibility is the new relationship with the IMF. Last week the Executive Board of the IMF completed the fourth review of the Extended Fund Facility and authorised the disbursement of another USD 350 million to Sri Lanka. At the same sitting it granted waivers after the government admitted that it had under reported expenditure arrears during earlier reviews and outlined steps to improve the integrity of its data. Instead of imposing penalties, the IMF was lenient to acknowledge the corrective action and the deeper commitment to fiscal transparency.

In other cases, as in Ukraine in 2001 and Dominican Republic in 2004, the IMF has frozen assistance when borrowers misstate information. That it refrained on this occasion speaks well about the confidence it places in the government’s determination to reform. Tariff increases, steeper taxes and the withdrawal of blanket subsidies have caused economic hardship to the people, yet the government has persisted. Reserves have stabilised, inflation is low and output is returning to modest growth even as turbulence in global trade poses fresh risks. Debt restructuring with bilateral and commercial creditors is close to completion, and the automatic electricity tariff formula, another unpopular measure, has been brought into play.

People’s Priorities

As a result of inflation that took place in the past, and the failure of salaries to catch up, real income is still below pre‑crisis levels. A survey undertaken by the National Peace Council in August 2024 just before the presidential election revealed that the first priority of people in their choice of candidate was economic development. The study conducted by Dr. Mahesh Senanayake and Ms. Crishni Silva of the University of Colombo offers valuable insights into the key drivers of voter behavior within Sri Lanka’s dynamic political context. Despite the continuing economic problems, voters seem willing to wait as they continue to place their trust in the government’s sincerity.

The NPC survey examines how factors such as economic concerns, perceptions of leadership, trust in public institutions, and prevailing social issues influence electoral decisions. The research showed that voters overwhelmingly prioritized candidates who would offer clear strategies to address Sri Lanka’s economic crisis, fight corruption, and ensure good governance. 93% of respondents indicated they would vote based on a candidate’s ability to resolve the economic crisis. 83% prioritized candidates committed to tackling corruption. 86% favored candidates with strong educational backgrounds, signaling a preference for qualified, competent leaders over political dynasties.

Trust also depends on tackling corruption. Nothing corrodes confidence faster than impunity. It is in relation to accountability for economic crimes that progress is most visible. Recently, a bench of three judges, acting on an indictment filed by the Bribery Commission, sentenced two former ministers to prison terms of twenty and twenty‑five years for misappropriating public funds in a sports‑equipment procurement scandal. The convictions, the first of their scale against former cabinet members, signal that no office is beyond the reach of the law and that economic crimes will be answered in court.

The Bribery Commission together with the police and judiciary is showing that state institutions can tackle the problems of corruption if the government does not interfere to block them discharging their mandates. The same principles should hold where it concerns non-economic crimes as well. The recent arrest of a former Karuna group cadre for the murder of the Vice Chancellor of Eastern University nearly twenty years ago, shows this is possible. The success in dealing with economic crimes and making those guilty of those crimes accountable to the law and the courts shows the way to dealing with the festering problem of human rights violations that took place during the three decades of war.

International Involvement

The failure of successive governments to deal satisfactorily with the issue of war crimes has led to demands for international involvement in ensuring accountability for war crimes and serious human rights violations. This has been resisted by successive governments on the grounds that direct international involvement in the form of being investigators, prosecutors and judges will be an unacceptable erosion of national sovereignty which will give power to those from the international community who have no longer term stake in the country in the same way Sri Lankan citizens have. In the past this was also an excuse for inaction.

The visiting UN Human Rights High Commissioner Volker Turke dealt diplomatically with this issue. His offer of international assistance was to offer support to domestic mechanisms. He said, “Sri Lanka has struggled to move forward with domestic accountability mechanisms that are credible and have the trust and confidence of victims. This is why Sri Lankans have looked outside for justice, through assistance at the international level. Ultimately it is the State’s responsibility and it is important that this process is nationally owned – and it can be complemented and supported by international means.”

However, the reluctance to get into the area of war crimes persists due to the possibility of political backlash. The visit of the High Commissioner to the Chemmani mass grave site was made possible because the Magistrate’s Court in Jaffna stood firm and acceded to the demand made by human rights lawyer K. S. Ratnavale that the High Commissioner should be given access to the Chemmani site. The court overruled objections by the government representatives who said that the High Commissioner should be given access only to the entrance to the Chemmani site and not to the mass grave itself. A process that is independent and open to scrutiny would strengthen the government’s standing both at home and abroad.

Winning Trust

Allowing independent observers to monitor evidence preservation, witness protection and laboratory analysis could offer the assurance victims now demand. The government already has a model for such openness. It has accepted extensive external oversight of its fiscal policy. IMF staff examine Treasury books each quarter, verify information and insist on course corrections when targets are missed. The general population now believes this supervision helps rather than weakens the country. It is regarded as a seal of confidence that attracts investment and assures taxpayers that rules apply to all.

Sri Lanka will not lay the ghosts of its war to rest until the truth about the missing persons is ascertained. Although not much reported in the media in the English and Sinhala languages, in the north and east, the issue of the Chemmani mass grave has revived painful memories and made this the topic of everyday discussion. In view of justifiable concerns and past failures to protect evidence, an international role in safeguarding evidence can be considered. In addition, international experts can be brought in to ensure that the evidence is gathered and analysed in a scientific way drawing on international experience.

Just as the government has won the trust of the IMF and the general public regarding its commitment to improving their economic lives, it can win the trust of the people of the north and east who lost their loved ones in the war. The government needs to design an accountability process that is credible, nationally owned and internationally respected. This can pave the way for national reconciliation in a world that is increasingly conflictual and divided.