Sri Lanka is among the highest-risk financial systems in Asia’s emerging markets, said a report by a credit ratings agency, citing the rapid growth in credit.

"Hong Kong and China were joined by Indonesia and Sri Lanka in the December 2011 assessment [of high-risk financial systems], although Vietnam dropped out as credit growth eased," said a report by Fitch Ratings.

The higher credit leveraging by banks and growing asset prices were cited as reasons for the revised risk warning.

Though Fitch upgraded Sri Lanka’s credit rating in July 2011, the agency ended the year warning that “foreign direct investment has been surprisingly slow to recover after the end of the country’s long civil war in 2009.”

Fitch also expressed concern about the devaluation of the Sri Lankan rupee in November 2011.

"India and Sri Lanka are the only Fitch-rated emerging Asian countries to run deficits on “basic balance” (the current account plus net foreign direct investment)," the report said.

"This structural weakness may help explain why the Indian rupee fell to a record low against the US dollar in December 2011, while Sri Lanka devalued its currency in November."

Fitch Ratings also cut its growth forecast for emerging Asia, citing the impact on the region of the global financial crisis.

The growth forecast for 2012 is now 6.8%, down from 7.4% estimated in June 2011.

The region includes China, India, Indonesia, Korea, Malaysia, Mongolia, Philippines, Sri Lanka, Taiwan, Thailand and Vietnam.

"This reflects both the deterioration in the outlook for the world economy and the lagged impact of policy tightening in some countries, including the region’s two giants, China and India," the report said.

"Both China and India face a combination of slowing activity and stubbornly high inflation, underlining the risks that can arise from allowing inflation to rise above desired ranges."

See the LBO report on Sri Lanka here, while PTI covers the warning that devaluation will put pressure on inflation in both India and Sri Lanka.

The LLRC report "falls short of addressing the evidence of war crimes and crimes against humanity" said the British All Party Parliamentary Group for Tamils (APPG-T), adding, "it is important now that the international community holds Sri Lanka to their obligations under international law to allow for an international independent investigation".

Read the statement, released Thursday, here in full.

Extracts reproduced below.

"The Government of Sri Lanka has long deflected calls for an international independent investigation into allegations of war crimes and crimes against humanity stating that the LLRC would fulfil its obligations under international humanitarian laws (IHL) to address accountability.

"Although the report appears to offer a more realistic view of the post-war situation and provide some positive recommendations to address the current human rights concerns in Sri Lanka, the LLRC’s conclusions on the prosecution of the conflict contradict many of the findings of the United Nations Panel of Experts report on Sri Lanka."

"However, as anticipated by many reputed human rights groups LLRC report falls short of addressing the evidence of war crimes and crimes against humanity, committed during the final phases of the conflict, by the government and the Liberation Tigers of Tamil Eelam (LTTE) and fails to advance accountability for the victims."

"Governments, including the UK, have said they will support the establishment of an international investigation unless the Sri Lankan government demonstrates progress on accountability."

"It is important now that the international community holds Sri Lanka to their obligations under international law to allow for an international independent investigation to ensure that the victims of war crimes and crimes against humanity get justice and the process of reconciliation can pave the way for lasting peace on the island."

"The All Party Parliamentary Group for Tamils now expects nothing but a robust engagement with the Sri Lankan State from here on to address issues of accountability."

Sri Lanka’s President Mahinda Rajapaksa has slammed the Tamil National Alliance for criticising the LLRC report and calling for an international investigation.

Talking to reporters on Tuesday morning, the president accused the TNA for still harbouring an ‘LTTE mentality’ and denounced the call for an international investigation as ‘treacherous’ and harmful to the country.

"They think and act like the LTTE. The LTTE behaved similarly. They came to talks (with the government), put conditions and withdrew," Rajapaksa said.

"They are proving to be as difficult as the LTTE in talks, adopting the same negative tactics".

"The Eelam dream is still reigning in them. What the Tamil Alliance should do is to nominate representatives to the Select Committee for a political solution," he added.

External Affairs Minister GL Peiris also criticised the calls for an international investigation.

“That the TNA is calling for an international probe is a matter for profound regret” Mr Peiris said.

Talks between the TNA and the Sri Lankan government have struggled from the onset due to disagreements on contentious issues, such as the devolution of police powers to the Tamil provinces.

Rajapaksa reiterated at this meeting that police powers will not be devolved to the provinces, one of the most basic demands, by the TNA.

The Sri Lankan high commissioner to the United Kingdom, Chris Nonis, has presented Sri Lanka’s controversial LLRC report to selected British Parliamentarians at the houses of parliament on Tuesday.

According to the official government news portal, www.news.lk, Chris Nonis explained ‘that the holistic approach of the LLRC is entirely consistent with restorative justice embedded with accountability.’

Several MPs and Lords attended the meeting, but unlike the US state department and human rights organisation like Amnesty International and Human Rights Watch, no criticism of the LLRC was reported.

An official statement by the British foreign office regarding the LLRC is yet to be made, however parliamentarians and others who spoke at the event, displayed incredible ignorance about Sri Lanka and its history of inquiries into itself.

Following are some of the comments that were made,

Conservative MP James Wharton said:

“This is an extremely welcome opportunity to discuss the way forward for Sri Lanka after what has been a very difficult period of its history. The High Commissioner gave us a very thorough overview of the (LLRC) Report including answers to a wide range of questions. I know that a number of my Parliamentarian colleagues look forward with the intent to seeing Sri Lanka progress over the coming months and years”.

Sir Harold Walker KCMG, President, British Society for Middle Eastern Studies and former Chairman, Royal Society for Asian Affairs said:

“It is commendable that the Sri Lankan Government released such a comprehensive and hard-hitting report; of course. The world will be watching to see that the report is followed through.

"However, so far, the signs are clear that the Government of Sri Lanka do intend to follow the Report through. They must however be allowed time for this process, in particular since it follows such a long period of conflict, and these issues cannot be settled overnight”.

President of the Friends of Sri Lanka, Sir Peter Heap said:

“This was a very valuable meeting, well attended by Members of Parliament and representatives from many other organisations. The Sri Lankan High Commissioner gave a superb account of the Report of the LLRC and of the government’s response. It was a very useful reminder for everyone present that Sri Lanka was doing a great deal to bring together the different communities and to restore prosperity in the conflict-affected areas”.

See related articles about the LLRC:

Editorial: No more excuses, it is time to act (18 Dec 2011)

Human rights organisations slam report, urge world to act (18 Dec 2011)

US has ‘concerns’ over LLRC (20 Dec 2011)

The Tamil National People Front (TNPF) - stated there was an "urgent need" for an international, independent investigation, and urged international action of the continuing "genocide" of the Tamil nation, reported Tamilnet on Tuesday.

During a press briefing in Jaffna, Vice President of the TNPF, Gajendrakumar Ponnambalam said,

"The report places the blame on the LTTE and other tamil groups. We can no longer remain patient.

There is urgent need for the International Community to conduct an independent investigation. What happened is genocide.

While the war ended two and a half years ago, structural genocide against Tamil people is continuing, and International community should not hesitate to raise its voices."

"While Colombo regards any independent investigation into war crimes as a threat its sovereignty, we demand that all dastardly crimes and instruments of oppression carried out against the Tamil people from 1948, the year of independence, need to be presented as evidence before an independent panel, and perpetrators of the crimes should be brought to justice."

"We also condemn the continued engagement of the Tamil National Alliance (TNA) with the Government of Sri Lanka while the Government has embarked on a planned agenda of oppression against Tamils.

We demand that TNA should avoid making vague and slippery statements on the LLRC report, and make a public statement of categorically rejecting the contents of the LLRC report,"

"TNPF applauds the memorandum issued by the 76 members of the Tamil Civil Society to the TNA, which reinforces our belief that Tamil people will always take a righteous stand on seeking justice on the basis of equality and exercising the Tamils right to self-determination.

And we are concerned with the agenda followed by the TNA that is inimical to the political future of the Tamil people.

"Colombo is insisting that the release of the LLRC report has obviated the need for another investigation. If Colombo is convinced that the report contains the truth, why should it be scared of an independent investigation,"

The TNPF is a group of former TNA parliamentarians and civil society members, formed in early 2010 in exasperation at the TNA's reluctance to base its policies on the Tamil nation's rights.

Detailing the "lack of security" faced by Tamil women across the North-East, in the aftermath of the armed conflict, International Crisis Group (ICG) detailed how "the heavily militarised and centralised control of the north and east – with almost exclusively male, Sinhalese security forces" raises problems for Tamil women in terms of their "safety, sense of security and ability to access assistance", in a report published Tuesday.

See here for report - Sri Lanka: Women’s Insecurity in the North and East - in full.

Extracts reproduced below:

"Women in Sri Lanka’s predominantly Tamil-speaking north and east are facing a desperate lack of security in the aftermath of the long civil war."

"Today many still live in fear of violence from various sources. Those who fall victim to it have little means of redress. Women’s economic security is precarious, and their physical mobility is limited. The heavily militarised and centralised control of the north and east – with almost exclusively male, Sinhalese security forces – raises particular problems for women there in terms of their safety, sense of security and ability to access assistance."

"They have little control over their lives and no reliable institutions to turn to. The government has mostly dismissed women’s security issues and exacerbated fears, especially in the north and east. The international community has failed to appreciate and respond effectively to the challenges faced by women and girls in the former war zone. A concerted and immediate effort to empower and protect them is needed."

"The fact that women must rely on the military for everyday needs not only puts them at greater risk of gender-based violence, but also prevents them from building their own capacity within communities."

"The heavily militarised and centralised systems of control in the north and east exclude most residents, but especially women from decisions that affect their security. While there are some female civilian officials and some programs nominally directed at women, all activities occur within a male, Sinhalese, military structure. The government has constrained access for international humanitarian organisations and even more so for local civil society. The vision of security the government has pursued is a masculine, militarised one. Human security is lacking."

The Commonwealth Secretary General, Kamalesh Sharma, said on Tuesday that he hoped the LLRC report would "advance the cause of accountability", adding, 

"It is for the government and people of Sri Lanka to chart their country''s way forward after the military defeat of the forces of terrorism,"

"The Commonwealth, as a partner of Sri Lanka, which is a founder member of the modern Commonwealth, remains ready to assist the government in dealing with the challenges of building a harmonious and sustainable peace."

"It is clear from the lack of opposition protest that large defense expenditure, despite the end of the war, has become normal in Sri Lanka."

The leader of the Tamil National Alliance (TNA) added his voice on Monday, to the now deafening call of the Tamil nation, and human rights activists worldwide, for an independent, international investigation.

Sampanthan urged the international community to ensure a "mechanism for accountability", stating that the LLRC report “categorically fails to effectively and meaningfully deal with issues of accountability”.

Acknoweledging that “the findings of the LLRC offend the dignity of these victims”, Sampanthan added,

“The LLRC concludes that, on these issues, the government is not responsible. Instead, it shifts blame onto individual soldiers and surmises that any violations that may have been committed were merely isolated incidents."

"For example, large numbers of disappearances that resulted from the surrender of unarmed persons to government forces have been cynically dismissed as isolated incidents perpetrated ‘by a few'. The LLRC unjustifiably rules out the possibility that these violations were systematic.”

See also:

Tamils civil society slam TNA's dithering leadership (14/12/11)

TG View: Representing an oppressed nation (13/02/11)

A former senior military official in the Sri Lankan army states that the army "assassinated surrendering Tamils" reports The Daily Telegraph newspaper in the UK Sunday - Sri Lankan army commanders 'assassinated surrendering Tamils' (19/12/11).

The witness, a major general, states that the defence secretary, Gotabaya Rajapaksa, gave "some instructions to a field commander to get rid of those LTTE [Tamil Tiger] cadres [who] are surrendering without adhering to normal procedures".

The witness added that such instructions  "should come from either the secretary of the defence, with the knowledge of the president involved. He also has to be kept informed. The commanders could not undertake such decisions."

According The Daily Telegraph, the confession, made in a sworn deposition seen by newspaper, was made a high ranking military official who had extensive security clearance and access to the army's senior most figures.

The witness, who fled from Sri Lanka, is currently seeking asylum in the United States.

Now that Sri Lanka's farcical attempt at accountability - the Lessons Learnt and Reconciliation Commission (LLRC) report - has finally been published, there can be no more excuses.

The LLRC has for too long been the international community's fig leaf, used by governments across the world, including the US and the UK, to stall calls for accountability and a credible investigation into allegations of war crimes, crimes against humanity and genocide.

The commission's inquiry, its findings and its recommendations serve only to further vindicate the overwhelming justification for an independent, international investigation. For the victims, justice is well overdue. The time to act is now.

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