International human rights organisation, Human Rights Watch (HRW) urged Sri Lanka’s major foreign creditors, including China, Japan, and India to help restructure debts and urgently mitigate the adverse human rights impacts of the country’s worst-ever economic crisis.

In a report by South Asia Director, Meenakshi Ganguly, the New York-based human rights watch dog stated that to stabilize the economy, international creditors should agree to restructure Sri Lanka’s debt so the country could secure final approval for an International Monetary Fund (IMF) loan and financing from other global agencies.

“Sri Lankan economists’ fear the economic situation could deteriorate rapidly without action by foreign creditors, placing the basic needs of millions of people in further jeopardy,” the report stressed.

The HRW reiterated that the IMF should use its procedures to make needed funds available as soon as possible, putting into place safeguards to protect people’s economic and social rights.

In April, Sri Lanka defaulted on over $50 billion in debts to international creditors, and in September, it reached a staff-level agreement with the IMF for a four-year, $2.9 billion bailout.

The first tranche of that bailout would ease the crippling shortage of foreign exchange and unlock access to other funding, including from the World Bank and the Asian Development Bank, which cannot provide new funding until the IMF agreement is completed.

Titled “Sri Lanka at Brink of Humanitarian Crisis – Financial Partners Should Support Basic Needs, Promote Respect for Rights”, the report noted that this month the United Nations renewed a humanitarian appeal, stating that 28 percent of the population faces food insecurity and that the poverty rate this year has doubled.

“Food price inflation was over 85 per cent in October, and acute shortages of foreign currency mean that many imports, including essential medicines, are scarce or unobtainable.”

The international pressure group also stressed that President Ranil Wickremesinghe’s administration should respect fundamental rights, including to peaceful protest.

“President Ranil Wickremesinghe has suppressed demonstrations and has used the notorious Prevention of Terrorism Act (PTA) to detain student activists. Wickremesinghe has even warned that he will again declare a state of emergency and deploy security forces in the event of major protests,” the HRW complained.

The report noted that without respect for human rights, including the right to peacefully protest, Sri Lankans cannot hold politicians accountable, whether for mismanagement or corruption.

It is essential that Sri Lanka’s international partners, including the US and European Union, press the government to fulfil its human rights obligations as an essential step towards addressing the crisis, it said.

Sri Lanka is exploring the possibility of collaborating with the Philippines to develop the migrant workers sector.

The Embassy of Sri Lanka in Manila organized a virtual meeting between the Ministry of Labor and Foreign Employment and the Department of Migrant Workers as a preliminary discussion on Sri Lanka’s interest to conduct a comprehensive study on the Philippines’ model of migrant worker recruitment and management.

The interactive discussion centered on potential areas for collaboration between the two countries particularly in sharing notable policies, best practices, and mechanisms for the inclusive and sustainable management of labor migration.

In her opening remarks, Ambassador of Sri Lanka to the Philippines Shobini Gunasekera highlighted the significant position of Sri Lanka and the Philippines as labor exporting countries and the valuable contribution of the migrant sector in economic recovery and development.

She expounded on the need of pursuing a stronger bilateral in strengthening the sector through the emulation of sound policies and actions that also cover the protection and advancement of the welfare and rights of migrant workers.

The utmost importance of addressing the plethora of socio-economic issues that entails labor migration such as the “brain-drain” phenomenon, job security, abuse, and social costs that adversely affect the families left behind in their home countries were also discussed.

Undersecretary for Policy and International Cooperation of the Department of Migrant Workers-Philippines (DMW) Atty. Patricia Yvonne Caunan chaired the session from the Philippines’ side. She welcomed the initiative of Sri Lanka to work with the Philippines in the capacity development in the migrant workers sector.

She briefed the attendees of the mandate, initiatives, and programs of the DMW and the potential areas where both countries may collaborate especially in policy reforms, formulation of mechanisms, and engagement with labor destination countries.

Consequently, Additional General Manager (International Affairs) of the Sri Lanka Bureau of Foreign Employment M.R.C.B Ekanayake, elaborated on Sri Lanka’s interest to learn from the Philippines’ experience in bilateral engagements with labor destination countries in the Middle East, skills and capability development of migrant workers, as well as on the established mechanisms and policies for protection of welfare and rights.

The two agencies signified their interest and committed to expand the said interaction into a series of virtual discussions in the coming weeks with the attendance of more relevant public sector stakeholders.

In the wake of Central Bank’s fresh directions to banking units allowing them to temporarily do away with the requirement to report the Statutory Liquid Assets Ratio (SLAR) ,nine banks have been identified as having asset quality stress.

The licensed commercial and specialized banks are required to maintain a minimum of 20 percent and a maximum of 40 percent of their adjusted liabilities in liquid assets, which typically are parked in Treasury bills and bonds.

However, in a Banking Act Direction issued recently, the Monetary Board has taken a decision to allow the licensed commercial banks “to maintain liquid assets of an amount not less than 20 percent of total adjusted liabilities, on a consolidated basis for the overall bank, until further notice”.

Hence, the circulars thus far in effect stipulating the requirement to maintain the SLAR separately for the Domestic Banking Unit and Off-Shore Banking Unit are temporarily deferred by the latest Direction issued.

Central Bank Deputy Governor Yvette Fernando yesterday said nine banks that have been identified as having asset quality stress will be reviewed soon.

“It is (asset quality review) yet to start. We are in the final stage of appointing reviewers,” she said in response to a query posed by journalists at the post-Monetary Policy Review Meeting yesterday.

In February, Fitch Ratings warned that Sri Lanka’s banks are likely to face continued asset-quality pressure in 2022, as rising macroeconomic stresses stemming from the sovereign credit profile pose a threat to borrowers’ repayment capacity, alongside the conclusion of most relief measures in 2021.

“We believe Sri Lankan banks face added asset-quality pressure from their Government securities holdings, particularly those denominated in foreign currency which accounted for around 6.5% of Fitch-rated banks’ total assets at end-9M21,” the rating agency noted.

The Deputy Governor also said the review of the banks will be conducted in a phased manner. “We will review six banks in the first phase and another three banks thereafter,” Fernando added.

In April, Fitch Ratings again placed the National Long-Term Ratings of 13 Sri Lankan banks on Rating Watch Negative (RWN).

The banks include; People’s Bank, Commercial Bank of Ceylon PLC, Hatton National Bank PLC, Sampath Bank PLC, National Development Bank PLC, DFCC Bank PLC, Seylan Bank PLC, Nations Trust Bank PLC, Pan Asia Banking Corporation PLC, Union Bank of Colombo PLC, Amana Bank PLC, SANASA Development Bank PLC and Housing Development Finance Corporation Bank of Sri Lanka.

Bangladesh has expressed willingness on direct shipping connectivity with Sri Lanka and the resumption of negotiations for early conclusion of preferential trade agreement (PTA) between the two countries.

Shipping collaboration is another major potential area that exists between two countries and discussions will be held to divert more shipping connectivity towards the port of Colombo. Diversification of trade in the field of IT, tourism

Further the port of Colombo and Chittagong can be developed as regional shipping hubs. This will enhance transshipment facilities and greater opportunities for investment. Trade and shipping can be complimented by each segment to encourage bilateral trade.

Exchange of shipping delegations between Sri Lanka and Bangladesh can usher in passenger and cruise shipping operations which will be a greater impetus to the tourist industry.

These details were disclosed following the meeting of Foreign Minister Dr A.K. Abdul Momen with his Sri Lankan counterpart Ali Sabry on Wednesday evening, on the eve of the 22nd Ministerial Meeting of Indian Ocean Rim Association (IORA).

The two foreign ministers discussed the wide spectrum of bilateral relations and expressed hope to work closely for their countries and inclusive development of the region.

Momen requested to boost trade relations between Bangladesh and Sri Lanka through increased export of agricultural products and pharmaceuticals from Bangladesh at an affordable price.

The foreign minister of Sri Lanka assured that his country is also looking forward to working together with Bangladesh.

The two leaders agreed to expedite forming an institutional platform to hold regular and comprehensive dialogues between the countries at the foreign minister level.

The issue of mutual support for each other’s candidature at various international fora was also discussed with due importance.

Foreign Minister Momen also sought the support of Sri Lanka in repatriating the forcibly displaced Myanmar nationals.

Foreign Minister of Sri Lanka Ali Sabry arrived in Dhaka on Wednesday afternoon to attend the 22nd ministerial meeting of IORA.Earlier, he also met the state minister for shipping.

Minister Sabry is expected to call on the Prime Minister of Bangladesh along with the ministerial delegations from other member states of IORA and leave Dhaka on November 26.

Sri Lanka and Bangladesh are celebrating the golden jubilee of bilateral ties this year recognizing each other’s contribution to their socio-economic development.

At present the bilateral trade between two countries amounts to $ 300.0 million and there is potential to expand further. The comparative advantages both countries enjoy and possess in trade can be harnessed for further development.

Bangladesh welcomes investments from Sri Lanka and appreciates the Sri Lanka’s professionals who are rendering a yeoman service to uplift the Bangladesh Garments, Banking and other manufacturing industries.