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  • LTTE continues attacks on STF in the east

    In the space of one week, Liberation Tigers of Tamil Eelam (LTTE) launched attacks on Special Task Force (STF) commandos in the eastern district at four separate locations killing 9 STF commandos injuring 13.
     
    According to LTTE officials in Ampaarai, LTTE fighters carried out three separate attacks on Friday March 29 and Saturday March 30.
     
    Liberation Tigers launched the first attack around 10:45 pm on Friday on the STF commandos posted at the road check point located between Urukaamam and Kiththul on Batticaloa-Badulla road in which an STF commando was killed and three seriously injured.

    The second attack took place Saturday around 12:30 pm on the STF mini camp at 78th mile post on Chengkaladi-Badulla road where a time bomb planted by the Tigers exploded killing two STF commandos and seriously wounding one.
     
    The third attack was on the STF sentry post in Karadiyanaaru police division in which three STF commandos were killed and four seriously wounded, Batticaloa district LTTE said.
     
    Meanwhile, two Sri Lanka Army (SLA) home guards lost their legs caught in a booby trap set by the Tigers Saturday around 6:30 am in the 16th village in Ampaarai district, LTTE in Ampaarai said.

    Few days earlier, on Sunday March 22, three STF commandos were killed and five sustained injuries when LTTE commandos launched a surprise attack on an STF mini-camp on Chengkaladi - Badulla Road, according to a news release issued by the LTTE Political division in Batticaloa.

    The mini-camp was located between Koappaaveli and Pullumalai, the Tigers said.
  • Nadesan urges UN to investigate Colombo's War Crimes
    B. Nadesan, the political head of the Liberation Tigers of Tamil Eelam (LTTE) Sunday, March 15 said the Tigers had "plenty of evidences" to document that the Sri Lankan government of Mahinda Rajapakse was "intentionally directing attacks against civilians," committing war crimes and crimes against humanity when asked to comment on the recent statement issued by the Office of the UN High Commissioner for Human Rights (OHCHR). The UN High Commissioner had warned that the actions by the warring parties could amount to war crimes.
    "There are thousands of evidences among the civilians, officials and local aid workers. The ICRC has witnessed the Sri Lankan attacks on the civilians," he said. An ICRC worker was recently killed and another wounded in the Sri Lankan artillery fire inside the 'safe zone,' announced by the Sri Lankan government.

    The ICRC is also a witness to the plight of the wounded civilians and the hospital which is struggling to operate as the Sri Lankan government is continuing to block medicines, he further said.

    "Civilians are forcibly uprooted, separated and jailed inside barbed wire internment camps. Hundreds of civilians have gone missing in SLA controlled territories and in the South," he added.

    The civilians, officials and the humanitarian workers would be able to provide detailed accounts if independent international monitors visit the civilians in Mullaitheevu, the LTTE political head said.

    More than 2,800 civilians have been killed and more than 7,000 wounded in the attacks on civilian targets by the Sri Lankan forces since late January, Nadesan said pointing to the data referred by the OHCHR. But, the real casualty figure of the civilians who perished in the Sri Lankan attacks would be higher than the figures cited by the UN statement, he said.

    "The Sri Lankan government is carrying out genocidal massacres by deliberately targeting civilians, their humanitarian supplies and the hospitals," he said adding that shells have been fired by the Sri Lanka Army in the close vicinity of Puthumaaththalan hospital.

    Air strikes using cluster bombs, artillery and Multi-Barrel Rocket Launcher attacks deploying cluster munitions and fire-bombs were systematically targeting civilians earlier in Chuthanthirapuram and now in Maaththalan, Pokkanai, Valaignarmadam, Mu'l'livaaykkaal, Iraddaivaaykkaal and the adjoining areas where civilians were residing.

    Artillery, MBRL attacks and SLAF airstrikes have been used to herd the people from Tharmapuram to Chunthanthirapuram and later to the coast stretch north of Mullaitheevu by the Sri Lankan forces.

    "The SLA shelling has also targeted World Food Program's (WFP) storage for humanitarian supplies in Chuthanthirapuram. Now, the SLA attack has again targeted the humanitarian supplies being stored before distribution in Maaththalan," Nadesan charged.

    "This is why we are continuously urging the international community to send its diplomats to visit the people here in Mullaiththeevu and listen to them," he said.
  • How 30 years of civil war in Sri Lanka have devastated the country’s ethnic Tamil population
    The atrocities committed against civilians in the country are shocking, yet the international community’s failure to intervene has allowed the Sri Lankan government to continue its gross violations of human rights, amounting to a genocide of the Tamil people.
     
    Sri Lanka’s 20-million person population is made up of 74 per cent ethnic Singhalese, 12.5 per cent ethnic Tamils, 5.5 per cent Indian Tamils, 6.5 per cent Moors (Tamil Muslims), and a small percentage of other ethnicities. The ethnic Tamils, represented by the LTTE, are struggling to obtain civil rights and freedom from the Singhalese-dominated government, represented by SLA. Because of the war, more than 630,000 Tamils have fled the country to seek refuge elsewhere.
     
    Since January 2009, the SL government has turned to an all-out war policy. Currently, 150 Tamil civilians are killed or wounded each day due to constant government bombing of an area in northeastern Sri Lanka. This area represents the last patch of land that is under LTTE control.
     
    On February 24, the U.S. Senate took part in the Hearing on Recent Development in Sri Lanka, during which the SL Government Genocide against Tamils was discussed. Dr. Anna Neistat of Human Rights Watch (HRW) said that many of the current civilian deaths are occurring in so-called government safe zones. Accounts from the HRW suggest that the shelling comes directly from the SLA, and kills and wounds hundreds of people who were told by the government that they would be safe if they stayed within this area. The government’s use of indiscriminate three-barrel rocket launchers makes the attacks particularly deadly.
     
    “Particularly outrageous were numerous attacks on hospitals. Our reports document at least two dozen attacks by artillery shelling and aerial bombardment directly on hospitals,” Neistat said at the hearing. Neistat concluded her report by saying that collecting information was extremely difficult since the SL government had “conducted a cynical campaign to prevent all independent coverage of the conflict in a clear effort to cover its abuses.”
     
    The government has denied attacks against civilians. According to the BBC, the government claims the UN’s figures of those killed are “irresponsible and sensationalist.” There are at least 250,000 civilians currently trapped in the area where there is heavy fighting, according to the BBC. During a three-week period from January 20 to February 13, over 2,000 civilians were killed and another 5,000 wounded; 85 per cent of the victims were women and children. “It is sad to say, but it is almost a certainty that the latest attacks against civilians have been carried out by the government. Impunity seems total and no one has been prosecuted for any of the incidences,” said U.S. Foreign Relations committee member Jeffrey Lunstead at the hearing.
     
    In a March 4 interview on the International Committee of the Red Cross (ICRC) web site, ICRC head of operations for South Asia Jacques de Maio reiterated the need for a mass evacuation of civilians, and said the current situation there is one of the worse disasters he has ever experienced.
     
    The ICRC has repeatedly accused the government of preventing humanitarian aid from arriving to areas that are most in need. In September 2008, the SL government ordered the UN and humanitarian aid organizations to leave Tamil areas. Since then, the violence affecting civilians has escalated.
     
    The few aid workers who are able to access war areas speak of a dire and desperate situation: hundreds of thousands of people lack clean water, food, and medicine, and most are trapped in these areas. ICRC spokeswoman in Geneva, Carla Haddard, told the BBC that that the ICRC is limited in its ability to evacuate the wounded and innocent because they have not received the security guarantees and permission needed from the SL government.
     
    What’s more, those who escape from the current fighting must enter government controlled camps where they face violence, coercion, and intimidation from the army. A report by University Teachers for Human Rights in Jaffna specifies the conditions in these camps: for example, if a parent cannot produce the exact whereabouts of a missing child, the entire family is killed immediately despite international laws that prohibit such acts. Mothers are forced to separate from their children and most men are ordered to get into buses, often never to be heard from again.
     
    An HRW article quoted Brad Adams, HRW Asia Director, as saying, “To add insult to injury, people who manage to flee the fighting end up being held indefinitely in army-run prison camps. These ‘welfare centers’ are just badly disguised prisons.”
     
    The SL government shows no signs of halting their bomb raids against civilian villages and has rejected recent calls for a temporary ceasefire even though the LTTE has said that they are ready to comply with international calls.
     
    Although the SL government’s purported mission is solely to terminate the LTTE, its actions against Tamil civilians suggest otherwise. In September 2008, in an interview with the National Post, head of the SLA Sarath Fonseka said, “I strongly believe that this country belongs to the Singhalese.”
     
    The history of the Tamil and Singhalese people is long and complex. The cause of the current situation stems from British colonization.
     
    The Singhalese and Tamils have traditionally and historically ruled two separate kingdoms as distinct nations. In 1505 and then in 1658, Sri Lanka was colonized first by the Portuguese and then the Dutch. During this time the colonizers continued to rule the island’s distinct ethnic groups separately.
     
    When the British usurped Dutch rule in 1796, they continued to govern the different groups separately; however, in 1833 they decided to rule everyone on the island together for administrative purposes. It was during this time, too, that the British brought over 300,000 Indian Tamils to work as indentured servants and labourers. In 1948, the British granted independence to Sri Lanka, leaving it as one country with political power in the hands of the majority Singhalese people.
     
    Two historically distinct ethnic groups were thrust together under a centralized unitary government. In 1949, the government decided to completely deprive Indian Tamils of voting rights and deported around 100,000 people to India. The other Indian Tamils living in the highlands of Sri Lanka lost their citizenship and many basic human rights. This resulted in decreased representation for all Tamils (ethnic Tamils, Moors, and Indian Tamils) in the government, allowing the Singhalese to gain absolute power.
     
    Subsequently, in 1956, the Sinhala Only Act made Sinhalese the sole official language of the country. The law had its intended effect: thousands of Tamil civil servants were forced to resign due to lack of fluency in Sinhalese, and through much of the 1960s government forms and services were virtually unavailable to Tamils.
     
    Non-violent protests in the form of hunger strikes and peaceful sit-ins by Tamils were met with mob violence by the SL government and eventually snowballed into the 1958 riots. State-sponsored mobs murdered hundreds of ethnic Tamils across the country. This became the first of many pogroms in Sri Lanka against the Tamils.
     
    In the 1970s and 80s a multitude of discriminatory policies were established to prevent Tamils from seeking university entrance and to limit employment opportunities. During this time, violence also increased. For example, in 1974 during an International Tamil Conference for professors, scientists, and engineers, the SL government killed nine civilians and injured hundreds of others.
     
    The concept of Tamil Eelam, or a separate Tamil state, represented the will of the Tamil people to be independent from the government. In a 1977 referendum, the majority of Tamils gave their mandate to politicians for a separate state. This referendum was rejected by Parliament. Violence continued as Tamil libraries were burned down and people were tortured, killed, and mysteriously went missing. No one was held accountable for any of the atrocities committed, and those who spoke out against the government were murdered.
     
    The LTTE was originally formed by educated Tamil students as an organization to represent the voice of the silenced Tamil population. They wanted to underscore Tamil grievances and represent the Tamil people’s desire for autonomy. Initially the LTTE protested peacefully, but peaceful demonstrations did not deter the violence against them, and the organization made no headway in reclaiming basic civil rights. In 1983, another major nationwide incidence of violence and killing, now known as Black July, left 3,000 Tamils dead and tens of thousands homeless and unemployed after their homes and businesses were burned down. It was at this time that war officially began between the LTTE and the SLA – the LTTE has since pursued militant actions.
     
    The SLA is internationally financed and equipped, and has manpower at least 50 times that of the LTTE. China, India, Pakistan, and Russia supply the SL government with money, weapons, military training, and currently all four countries have soldiers in Sri Lanka assisting the attack against the LTTE. The government is said to have increased their war spending to 1.8-billion dollars; some of this money has come from the World Bank, intended for tsunami relief.
     
    The LTTE are well-known for their administrative, engineering, and planning capabilities. They have carried out suicide bombings against military targets and on the front lines of battle. These bombings have occasionally resulted in civilian deaths; both the SL government and the UN claim that the LTTE have purposefully killed civilians, but the LTTE denies these allegations. Still, the LTTE has been known to force civilians, including children, into battle against the SLA.
     
    Tamil civilians have had to pay the greatest price for the ongoing war. Already over 150,000 people have died and an additional 25,000 have gone missing. The past 30 years have been marked by human rights violations, disrespect to human dignity, extra-judicial killings, abductions, disappearances, and intimidations, leaving the remaining Tamil population living in constant fear for their lives.
     
    In 2004, 17 Tamil employees of the NGO Action Against Hunger were told to lie face down on the ground with their hands on their head and shot dead. It is unclear who orchestrated these killings: the LTTE blames the SLA, and the SLA attributes the shootings to the LTTE. Although the SLA allowed Australian forensic scientists to investigate the incident, it denied them access to the execution site.
     
    Furthermore, according to the UN, Sri Lanka is second only to Iraq in the number of enforced or involuntary disappearances in the world. Most of these disappearance are of Tamils, and as HRW explained in a news report: “the SL government is responsible for widespread abductions and ‘disappearances’ that [have become] a national crisis.”
     
    Women and children often receive the brunt of unchecked government violence. Rape of women and young girls by Sri Lankan soldiers is common, and victims and families are often punished for reporting incidents. The South Asia Human Rights Violators Index 2008 ranks Sri Lanka as the third worst violator of women’s rights.
     
    Further, hundreds of children have been killed during Sri Lanka’s military campaign, and many more have been orphaned. In August 2006, after Sri Lankan jet bombs killed 67 schoolgirls and seven teachers in a Tamil village, a government minister said, “There is nothing wrong in killing future child soldiers.”
     
    While it claims to be primarily fighting the LTTE’s terrorism, the SLA is currently waging a massive genocide against the Tamil race. Instead of stepping in to stop the brutality, the international community, including the UN, has been soft-pedalling.
     
    Impunity institutionalizes the torture, disappearances, murders, and abysmal humanitarian violations perpetrated by police and armed forces in Sri Lanka.
     
    Mass graves of Tamil families have been discovered in territories formally occupied by the Sri Lankan security forces. In 2006, 15 Tamil aid staff working on post-tsunami rebuilding were found dead, their bodies littered with bullets.
     
    Such incidents are common, but so far, no official or member of the armed forces has ever been punished, with the exception of the murder and rape of the Kumaraswamy family. In this case, a 16-year old Tamil girl, Krishanthi Kumaraswamy, was gang raped by 20 SLA officers and then strangled to death. When her mother, brother, and neighbour went searching for her they did not know that they too would be tortured, strangled, and buried that night. The whereabouts of Krishanti and the other three remained a mystery and the army flatly denied any knowledge about the missing persons. After the bodies were found by sheer accident and Amnesty International launched a sustained campaign to pressure the SL government to arrest the rapists and murderers, SLA soldiers were found guilty.
     
    When the government does agree to investigate certain cases, again under international pressure, the evidence is usually lost or becomes murky, and the case is dropped.
     
    Sri Lanka is also fast becoming the world’s most dangerous place for journalists, further limiting dissemination of crucial information about the conflict. During the recent U.S. Hearing, Bob Dietz, from the Committee to Protect Journalists said, “Many foreign and local journalists and members of the international community firmly believe that the government is complicit in the increased attacks and disappearances [of journalists]. The attacks and murders have been premeditated, and not one of the cases has been investigated and no one has been brought to trial.”
     
    On February 9, 2009, the BBC stopped providing radio news to SL Broadcasting Corporation (SLBC) since they said that many of their news reports had been blocked. SLBC chairman, Hudson Samarasinghe, admitted to censoring BBC programming, saying that he had a duty to do so at a time of war since foreign news centres, including the BBC, create fabricated news. Freedom of speech is suppressed, dissent is silenced, critical thought is discouraged, and those who speak out pay with their life. This has allowed the SLA to continue to brutalize, marginalize, and exterminate a race of people without reprisal.
     
    At a time when the plight of the ethnic Tamil people has reached a pivotal point, it is important the international community help mediate justice and peace in Sri Lanka before the SL government succeeds in ethnically cleansing Sri Lanka of its minority population. 
  • Tamil Nadu parties condemn India’s role in Sri Lanka
    The Paataali Makkal Katchi (PMK) would demand a separate state for Tamils in Sri Lanka, party founder Ramadoss said.
     
    Addressing a meeting, organised by the Sri Lankan Tamils Protection Movement (SLTPM) in Vellore on Tuesday, 10 March, he said "PMK will voice for a separate state for Tamils in the island country."
     
    “We have been raising our voice from the beginning of the ethnic war and various political parties and organisations have staged protest demonstrations and hunger strikes pressing the Centre to take proper steps to stop the war and save the innocent Tamils,” he said.
     
    Ramadoss also demanded a ceasefire by the Sri Lankan government and initiation of peace talks with the Liberation Tigers of Tamil Eelam.
     
    The party also accused the central Indian government of finalising the foreign policy on Sri Lanka without the approval of the Cabinet.
     
    Dr. Ramadoss said several of India’s foreign policies had not borne fruit and the present policy on Sri Lanka would go the same way.
     
    He said members of the SLTPM met the Vice-Consul of Japan in Chennai recently and told him that the Sri Lankan government was buying arms with money given by Japan for development works and that Tamils would be forced to boycott Japanese products if it continued to aid the Sri Lankan government.
     
    Marumalarchi Dravida Munnetra Kazhagam general secretary Vaiko alleged that the Sri Lankan government was waging war against Tamils with the help of arms procured from India, Pakistan, Israel, China and Russia.
     
    P. Nedumaran, president of SLTPM, said India had not done anything so far to stop the “war against Tamils.”
     
    Thol. Thirumavalavan, Viduthalai Chiruthaigal Katchi leader, said India was “presiding over” the war in Sri Lanka.
     
    Meanwhile, AIADMK general secretary Jayalalithaa said separately that the Sri Lankan Tamils issue would have a “definite impact” on the forthcoming Lok Sabha polls, claiming all sections of the people in Tamil Nadu were greatly distressed at the killing of Tamils in Sri Lanka.
     
    Asked whether the Sri Lankan Tamils problem would be a poll issue, Ms. Jayalalithaa, who observed a fast in support of the Sri Lankan Tamils, on Monday, 9 March, said the election results would speak for themselves.
     
    She said Tamil Nadu people were “agonised over the killing of their brothers, sisters and children” as reported in the media.
     
    Jayalalithaa argued that there was a widespread perception that the Congress-led UPA government had done nothing to help the Tamils.
     
    If the DMK government and the UPA government had any real concern for the Tamils, by now they would have rushed food and medicine.
     
    “They could have put pressure on the Sri Lankan government to bring the genocide to a halt. But they are only indulging in empty rhetoric,” Ms. Jayalalithaa alleged. She said both the governments should be accused of criminal neglect in failing to provide relief and succour to the Sri Lankan Tamils.
     
    Recalling the reports that the Indian government had been supplying sophisticated weapons and modern equipment to the Sri Lankan government and providing training to the Sri Lankan Armed forces, she said though it was common for a country to supply arms to another country the question being asked was against whom were all these weapons used.
     
    “The fact remains that Sri Lankan government is using its military might and weapons against the Tamils. It may say that it is only fighting the LTTE. But the death figures clearly show that innocent Tamils are also the targets,” she said.
  • Diaspora prepares to send relief to forsaken civilians in Vanni
    The Tamil Diaspora in Britain is organising a direct 'mercy mission' taking food and medicine to the civilians of Vanni, forsaken by the conscience of the International Community, said Dr. V. Arudkumar from London, on Tuesday, 10 March.
     
    Prominent humanitarian personalities are expected to participate in this mission, he said, which will be supported by Diaspora Tamil professionals in the medical field.
     
    Politicians and legal experts are already engaged in deliberations in materialising the mission, Dr. Arudkumar said.
     
    The move by the Tamil Diaspora in Britain comes as heavy rains and min-cyclone destroyed the tents of the displaced people causing more than 20,000 families stranded without shelters.
     
    Indiscriminate shelling by the Sri Lanka Army, using internationally banned cluster munitions and fire-bombs continued to target civilian settlements inside the 'safe zone'.
     
    An ICRC worker was killed inside the civilian zone early in March. Another humanitarian worker was wounded on March 10.
     
    Relief initiatives and offers of voluntary services were also reported from the Diaspora medical professionals of Australia and Norway.
     
    The Tamil Diaspora is seriously considering a 'mercy mission' as Sri Lanka is yet to provide safe passage to the requests extended by the charity organisations in Australia and Norway where doctors had urged their foreign ministries, United Nations Secretary General and the ICRC to secure urgent permission from Sri Lankan authorities to facilitate safe passage of their convoy of doctors and medical supplies to Vanni.
     
    Dr. Panchakulasingam Kandiah, Senior Consultant Radiologist of Haukeland University Hospital in Bergen, Norway, said on 27 February that the medical team of the Norwegian Tamils Health Organisation (NTHO) was prepared to work inside the 'safe zone' without any safety assurances from the Government of Sri Lanka.
     
    "However, the NTHO requires necessary guarantees for our safe passage through Colombo and government's permission to reach the conflict zone with ICRC escort," he had said in a press conference to the Norwegian media in Oslo.
     
    The latest British move is a pure humanitarian effort, Dr. Arudkumar said. "We will send an open appeal to all concerned, but are prepared to proceed with our mission as we need to act fast."
     
    All necessary judicial and humanitarian precautions would be taken care of, he said adding that a team of experts were dealing with the preparatory measures.
  • UN call for civilian evacuation lopsided – TNA MP
    Calling for the evacuation of civilians and making them to end up in the hands of their killers, is taking side with one of the parties to the conflict and amounts to another one of the war crimes, perhaps the most serious one of them when comes from a world body of human rights, said Jaffna MP, Kajendran, responding to a statement from the UN High Commissioner for Human Rights, on Friday, March 13.
    The High Commissioner, Ms. Navi Pillai called on both the Sri Lankan Government and the LTTE to immediately suspend hostilities in order to allow the evacuation of the entire civilian population by land or sea, a press release from the Office of the High Commissioner for Human Rights (OHCHR) said.
    She didn’t say anything on where should they be evacuated or on who would be responsible for them thereafter.

    By a subtle twist of realities ultimately in favour of genocidal Colombo, the OHCHR is trying to justify evacuation and not protection of civilians where they are, by equating Colombo government and the LTTE in war crimes, the MP noted.

    "This is not a balanced judgment."
    "It neither serves humanitarian cause nor the affected civilians, but favours only the oppressors."

    "What the OHCHR is envisaging is ‘enforced surrender’, even if people are not willing to surrender themselves into the hands of a genocidal government," the MP said.

    Ultimately the civilians will end up in the barbed wire camps of the government after losing a part of them in the screening process.

    "Where was the OHCHR when this was happening to the thousands who got into the hands of the government in the last couple of months, and what it was able to do on the conditions of the internment camps," asked the MP.

    "It is not a natural catastrophe justifying evacuation. It is a situation deliberately created by a chauvinistic government and by the greed of certain world powers."

    "The UN, especially its human rights arm, needs to stand upright in indicting the real culprits and in stopping their war of atrocities.

    "The talk of evacuation comes from the failure, incompetence and unwillingness in rendering protection.

    "Whether those who are now calling for evacuation are prepared to take full responsibility to the safety, wellbeing, rehabilitation and freedom of all the civilians, and what mandate and power they have is assuring them are crucial questions."

    "The UN which is not prepared to take full responsibility of the situation in the island, which has withdrawn its agencies from the war zone and which is not able to assert itself with the Sri Lankan government in protecting the civilians has no moral grounds to take side only on the evacuation issue."

    Meanwhile the already artful OHCHR press release, quoting Ms Navi Pillai, was twisted and painted further by some international news agencies to discredit the LTTE and to the benefit of Colombo. They didn’t fail to bring in the South African, minority Tamil profile of Ms. Navi Pillai.
  • China fuels Sri Lankan war
    Sri Lanka, the once self-trumpeted "island of paradise," turned into the island of bloodshed more than a quarter-century ago. But even by its long, gory record, the bloodletting since last year is unprecedented. The United Nations estimates that some 1,200 noncombatants are getting killed each month in a civil war that continues to evoke a muted international response even as hundreds of thousands of minority Tamils have fled their homes or remain trapped behind the front line.
    With the world preoccupied by pressing challenges, President Mahinda Rajapaksa and his brother, Defense Minister Gotabhaya Rajapaksa, a naturalized U.S. citizen, press on with their brutal military campaign with impunity. The offensive bears a distinct family imprint, with another brother the president's top adviser.
     Chinese military and financial support — as in Sudan, Zimbabwe, Zambia, Uzbekistan, North Korea, Burma and elsewhere — has directly aided government excesses and human rights abuses in Sri Lanka. But with U.S. Secretary of State Hillary Clinton publicly emphasizing that the global financial, climate and security crises are more pressing priorities for U.S. policy than China's human rights record, which by her own department's recent admission has "remained poor and worsened in some areas," Beijing has little reason to stop facilitating overseas what it practices at home — repression.
    Still, the more China insists that it doesn't mix business with politics in its foreign relations, the more evidence it provides of cynically contributing to violence and repression in internally torn states. Sri Lanka is just the latest case demonstrating Beijing's blindness to the consequences of its aggressive pursuit of strategic interests.
    No sooner had the United States ended direct military aid to Sri Lanka last year over its deteriorating human rights record than China blithely stepped in to fill the breach — a breach widened by India's hands-off approach toward Sri Lanka since a disastrous 1987-90 peacekeeping operation in that island-nation.
    Beijing began selling larger quantities of arms, and dramatically boosted its aid fivefold in the past year to almost $1 billion to emerge as Sri Lanka's largest donor. Chinese Jian-7 fighter jets, antiaircraft guns, JY-11 3D air surveillance radars and other supplied weapons have played a central role in the Sri Lankan military successes against the Liberation Tigers of Tamil Eelam (or "Tamil Tigers"), seeking to carve out an independent homeland for the ethnic Tamils in the island's north and east.
    Beijing even got its ally Pakistan actively involved in Sri Lanka. With Chinese encouragement, Pakistan — despite its own faltering economy and rising Islamist challenge — has boosted its annual military assistance loans to Sri Lanka to nearly $100 million while supplying Chinese-origin small arms and training Sri Lankan air force personnel in precision guided attacks.
    China has become an enabler of repression in a number of developing nations as it seeks to gain access to oil and mineral resources, to market its goods and to step up investment. Still officially a communist state, its support for brutal regimes is driven by capitalist considerations. But while exploiting commercial opportunities, it also tries to make strategic inroads. Little surprise thus that China's best friends are pariah or other states that abuse human rights.
    Indeed, with its ability to provide political protection through its U.N. Security Council veto power, Beijing has signed tens of billions of dollars worth of energy and arms contracts in recent years with such problem states — from Burma and Iran to Sudan and Venezuela.
    In the case of Sri Lanka, China has been particularly attracted by that country's vantage location in the center of the Indian Ocean — a crucial international passageway for trade and oil. Hambantota — the billion-dollar port Chinese engineers are now building on Sri Lanka's southeast — is the latest "pearl" in China's strategy to control vital sea-lanes of communication between the Indian and Pacific Oceans by assembling a "string of pearls" in the form of listening posts, special naval arrangements and access to ports.
    China indeed has aggressively moved in recent years to build ports in the Indian Ocean rim, including in Pakistan, Bangladesh and Burma. Besides eyeing Pakistan's Chinese-built port-cum-naval base of Gwadar as a possible anchor for its navy, Beijing has sought naval and commercial links with the Maldives, Seychelles, Mauritius and Madagascar. However, none of the port-building projects it has bagged in recent years can match the strategic value of Hambantota, which sits astride the great trade arteries.
    China's generous military aid to Sri Lanka has tilted the military balance in favour of government forces, enabling them in recent months to unravel the de facto state the Tamil Tigers had run for years. After losing more than 5,594 square km of territory, the Tigers now are boxed into a 85-square-km sliver of wooded land in the northeast.
    But despite the government's battlefield triumphs, Asia's longest civil war triggered by the bloody 1983 anti-Tamil riots is unlikely to end anytime soon. Not only is the government unable to define peace or outline a political solution to the Tamils' long-standing cultural and political grievances, the Tamil Tigers are gearing up to return to their roots and become guerrilla fighters again after being routed in the conventional war.
    While unable to buy peace, Chinese aid has helped weaken and scar civil society. Emboldened by the unstinted Chinese support, the government has set in motion the militarization of society and employed control of information as an instrument of war, illustrated by the muzzling of the media and murders of several independent-minded journalists. It has been frenetically swelling the ranks of the military by one-fifth a year through large-scale recruitment, even as it establishes village-level civilian militias, especially in conflict-hit areas.
    With an ever-larger, Chinese-aided war machine, the conflict is set to grind on, making civil society the main loser. That is why international diplomatic intervention has become imperative. India, with its geostrategic advantage and trade and investment clout over a war-hemorrhagic Sri Lankan economy that is in search of an international bailout package, must use its leverage deftly to promote political and ethnic reconciliation rooted in federalism and genuine interethnic equality.
    More broadly, the U.S., European Union, Japan and other important players need to exert leverage to stop the Rajapaksa brothers from rebuffing ceasefire calls and press Beijing to moderate its unsettling role.
    Brahma Chellaney is professor of strategic studies at the privately funded Center for Policy Research in New Delhi.
  • UN statement criticised by Government and Tamils.
    A statement by the UN right chief stating that both sides in Sri Lanka's conflict may have committed war crimes and must suspend fighting to let thousands of civilians escape, has been rejected by the Sri Lankan government and Tamils .
     
    Whilst, UN High Commissioner for Human Rights, Navi Pillay’s accusation of war crimes has irked the Sri Lankan government, her call for all civilians in Vanni to be evacuated has raised concern among Tamils.
     
    Pillay on, Friday March 13, said that certain actions undertaken by the Sri Lankan military and by the Liberation Tigers of Tamil Eelam (LTTE) could constitute violations of international human rights and humanitarian law and called on both the Government and the LTTE to immediately halt the fighting to allow all civilians to evacuate the conflict zone.
     
    Sri Lanka’s Human Rights Minister Mahinda Samarasinghe said on Saturday, March 15 rejected Pillay’s accusations that that 2,800 civilians had been killed in Sri Lanka in recent weeks as "unsubstantiated.
    "It is very, very unprofessional of her (Pillay's) office to rely on unsubstantiated figures," minister Samarasinghe told reporters.
     
    "The figures are similar to those on Tiger proxy websites." he added.
     
    The UN statement stated that although there is a Government-designated ‘no-fire’ zone for civilians in the Vanni region, repeated shelling has continued inside these areas.
     
    Samarasinghe, however, denied that government forces were firing into a demarcated "safe zone" for civilians and accused UN human rights chief Navi Pillay of relying on pro-rebel elements to arrive at her assessment.
    "The army is not shelling into the safe zone for civilians." Samarasinghe said.
     
    Tamil political observers questioned the rational behind Pillay’s call for all civilians to be evacuated from Vanni, stating that uprooting of civilians from traditional homeland and handing them over to their oppressors will only help Sri Lanka’s genocidal intentions. 
     
    In her statement, Pillay also urged the Sri Lankan authorities to give UN and other independent agencies full access to the conflict areas and Tamil detention centres in government held territories to accurately assess conditions.
     
    “We need to know more about what is going on, but we know enough to be sure that the situation is absolutely desperate,” she said.
     
    “The world today is ever-sensitive about such acts that could amount to war crimes and crimes against humanity.”
     
    “The current level of civilian casualties is truly shocking, and there are legitimate fears that the loss of life may reach catastrophic levels if the fighting continues this way,” the UN rights chief said, adding that “very little attention is being focused on this bitter conflict.”
     
    Referring to reports of LTTE holding civilians against their will in Vanni and forcibly recruiting them, the High Commissioner said: “The brutal and inhuman treatment of civilians by the LTTE is utterly reprehensible, and should be examined to see if it constitutes war crimes,”.
     
    However, responding to UN rights chief’s accusations, LTTE political wing head, B. Nadesan said: "This is why we are continuously urging the international community to send its diplomats to visit the people here in Mullaiththeevu and listen to them," 
  • Aceh tense as elections near
    The road where Abu Karim died is as pretty as a picture - a place where flowering branches hang over the dusty road and neighbours gather to while away the afternoon.

     

    There's a small mosque on the corner, and a tiny coffee stall sits tucked between the small, neat houses. It's very quiet.

    The forecourt outside Abu Karim's house is blackened with patches of rubber, where the wheels of his car spun and burned as he sat dying at the wheel.

    He had been shot twice in the head by unknown gunmen, just a few weeks before parliamentary elections.

    The police have been up and down this little street several times. No one, it seems, saw anything that might help catch his killers.

    His neighbour, Sooratnawati, helped take him to hospital the night he was shot. She told me she thinks it strange the police have not found the people who killed him.

    "Maybe it's because there were no witnesses," she said. "And I think it's weird that there were no witnesses but what can I say? Everyone said they didn't see anything."

    Inside the house Abu Karim's wife, Cut Dede, watches nervously over her four-year-old son. Like many people here she is in no doubt this was a political killing.

    Aceh Party

    Abu Karim was a former guerilla in Aceh's independence struggle. That struggle came to an end with a peace deal, signed in the aftermath of the devastating 2004 tsunami.

    The deal saw the rebel Free Aceh Movement (Gam) give up their claim to independence in return for far-reaching autonomy and the chance to form a political party.

    Aceh is now gearing up for parliamentary elections in April. For the first time ever, local parties will be able to contest the polls in this province. That includes the former rebels in the new Aceh Party who are predicted to do very well.

    Abu Karim's death is one of several recent attacks against the former rebels and their new political party. Three men have died, and one has been injured in the shootings.

    Grenades have landed in Aceh Party offices, and campaigning has been interrupted on several occasions.

    But Aceh's police spokesman, Farid Ahmad, is adamant: the killings have nothing to do with politics.

    Instead, he says, the motive was most likely in-fighting between the former guerillas, many of whom have failed to reintegrate properly.

    "The people that did this," he tells me, "maybe they're hungry, or don't have a job and so they use their weapons to find food. It's not political."

    Army security

    Whoever killed Abu Karim, his death is feeding tensions in Aceh ahead of the elections.

    Rumours pointing towards the involvement of groups linked to the Indonesian army are unsubstantiated, but potent nonetheless.

    And they come at a time when the army is quietly repositioning itself back in Acehnese villages.

    Down a rugged track in one sleepy village we found nine young soldiers holed up in an abandoned house. They told me they had lived there for three and a half months, patrolling the nearby villages in case of any problems.

    "Elections in other places sometimes end in violence," they told me, "so particularly in this area, where there was conflict in the past, there's a need to make sure things will be secure here".

    But according to the peace deal, this kind of security is not what the army's for. At Aceh's tiny airport, we found the former Finnish president Martti Ahtisaari - the architect of that peace deal, known as the Memorandum of Understanding, or MoU.

    I asked him what he thought of the army going back into the villages. "That's totally against the MoU," he said.

    "The MoU is very clear - the army had to remove itself from the villages and focus on external defence. We have to be careful that we don't create similar sorts of situations that existed during the conflict years, otherwise there's a risk of intimidation."

    The Aceh Party has vetoed any mention of independence on the campaign trail.

    But some in the army are reported to be worried that that is the new party's true agenda. With polling day less than a month away, there's a nervousness in the air.

    As one young politician here put it: people think these elections are the end of Aceh's peace process. Actually, they're the beginning.

  • US Senators call for immediate ceasefire
    A bipartisan group of seven senior U.S. Senators in a letter to Foreign Secretary Hilary Clinton blamed the Government of Sri Lanka and the Liberation Tigers for the "impending catastrophe," and said: "The situation in Sri Lanka is unacceptable and must be remedied as quickly as possible.
    We commend your recent statement with UK Foreign Minister David Milliband that called on the government and the LTTE to adhere to a ceasefire, allow access to humanitarian agencies, and resume political discussions to bring the long-standing ethnic conflict to an end. An enduring peace can be achieved only through a political solution that treats the Tamil minority as equal citizens under the law. Without such an agreement, the violence will only continue."

    Excerpts of the letter signed by Robert P Casey Jr (D-PA), Patrick Leahy (D-VT), George Voinovich (R-OH), Sherrod Brown (D-OH), Joe Lieberman (ID-CT), Barbara Mikulski (D-MD) and Richard Burr (R-NC) is provided below.
     
    “As you are aware, the humanitarian crisis in Sri Lanka continues to deteriorate, a situation we have been following closely and with increasing alarm. The International Committee of the Red Cross recently warned of an “impending catastrophe” and estimates that 150,000 civilians remain trapped in the Vanni - the region of northeast Sri Lanka where war is being waged between the Government of Sri Lanka and the Liberation Tigers of Tamil Eelam (LTTE).”

    “On February 24, the Senate Foreign Relations Subcommittee on the Near East and South Asia held a hearing on the crisis in Sri Lanka. In their testimony, the witnesses described horrific atrocities by the LTTE.”
     
    “Yet, the Sri Lankan government has acted no more responsibly. Not only does it refuse to grant humanitarian aid workers access to the conflict zone, there are reports that it also shells civilians and hospitals in the so-called “safe zone” for Tamil citizens. Descriptions of government camps for civilians fortunate enough to leave the conflict zone reminded us of detention centers, rather than safe havens for refugees. In addition to the violence and dismal humanitarian situation, we are also concerned about the state of Sri Lankan democracy. Since fighting intensified over the past year, President Rajapaksa’s government has been waging a war against the media. Journalists have been murdered and imprisoned; their cases have gone uninvestigated and their perpetrators unpunished.”

    “The situation in Sri Lanka is unacceptable and must be remedied as quickly as possible. We commend your recent statement with UK Foreign Minister David Milliband that called on the government and the LTTE to adhere to a ceasefire, allow access to humanitarian agencies, and resume political discussions to bring the long-standing ethnic conflict to an end. An enduring peace can be achieved only through a political solution that treats the Tamil minority as equal citizens under the law. Without such an agreement, the violence will only continue.”
  • EU Parliament calls for halt in violence
    The EU Parliament passed a resolution, with a large majority, calling for immediate ceasefire between the Sri Lanka Army and Liberation Tigers of Tamileelam in order to allow the civilian population to leave the combat zone.
     
    Condemning all acts of violence against civilians in the safe zone and expressing serious concern for the plight of the people in the refugee camps run by the Sri Lankan government, the EU Parliament demanded full and unhindered access to international and national humanitarian organisations, as well as journalists to the combat zone and to the refugee camps.
     
    Thursday, March 12 resolution called for immediate ceasefire without any conditions and expressing concern not only for the plight of civilians in the safe zone, but also for the inmates of the internment camps run by Colombo are viewed as significant stances by political observers.

    The resolution was passed by 358 votes to 232, on average, according to Robert Evans MEP.

    Full text of the resolution follows:

    P6_TA-PROV(2009)0129

    Sri Lanka

    European Parliament resolution of 12 March 2009 on the deteriorating humanitarian situation in Sri Lanka

    The European Parliament,

    – having regard to Rules 91 and 90(4) of its Rules of Procedure,

    A. whereas an estimated 170 000 civilians find themselves in an emergency situation, trapped in the battle zone between the Sri Lankan army and the forces of the Liberation Tamil Tigers of Eelam (LTTE) without access to the most basic aid,

    B. whereas UN agencies have documented more than 2300 civilian deaths and at least 6500 injuries since late January 2009,

    1. Calls for an immediate ceasefire by the Sri Lankan army and the LTTE in order to allow the civilian population to leave the combat zone; condemns all acts of violence and intimidation which are preventing civilians from leaving the conflict area;

    2. Condemns the attacks on civilians as documented by the International Crisis Group;

    3. Calls on both sides to respect international humanitarian law and to protect and assist the civilian population in the combat zone, as well as in the safe zone;

    4. Is concerned about reports of serious overcrowding and poor conditions in the refugee camps established by the Sri Lankan Government;

    5. Demands that international and national humanitarian organisations, as well as journalists, be granted full and unhindered access to the combat zone and to the refugee camps;

    6. Calls on the Sri Lankan Government to cooperate with countries and aid organisations that are willing and able to evacuate civilians;

    7. Instructs its President to forward this resolution to the Council, to the Government of Sri Lanka, to the Secretary-General of the United Nations and, for information, to the Commission.
  • Why everyone should boycott Sri Lanka
    The United Nations Agreement on Human Rights states, amongst other things, that individuals have the “right to life”, “the right to equality before the law” and “the freedom of assembly and association”.
    The United Nations Agreement on Human Rights forbids, amongst other things, “torture and inhumane degrading treatment”, “arbitrary arrest and detention” and “hatred based on race, religion, national origin, or language”.
    Sri Lanka, however, being one of the 192 countries of the United Nations, has broken its agreement to abide by the Geneva Convention, by mercilessly launching a massive military campaign to exterminate every Tamil in Sri Lanka, for one reason and one reason only; they are Tamil.
    Since the start of 2009, more than 3000 Tamils, most of who are innocent civilians, have been executed. All the hospitals in the areas of conflict have been fired upon, several times, destroying them and killing already wounded patients who went to seek medical help, as well as doctors and nurses. The small number of surviving doctors living amongst the civilians have set up make-shift hospitals in schools, temples and churches, but without adequate medical facilities.
    The Sri Lankan government is doing everything in its power to thin down the Tamil population, including refusing the access of medical aid and food into the war zones and banning international aid groups, such as the ICRC, from providing essential care to the injured and dying Tamils.
    As the genocide of Tamils in Sri Lanka continues to escalate, we cannot just sit by as Tamils of the international community and watch our brothers and sisters back at home being butchered on a daily basis.
    As British Tamils, we have a duty to do all we can to stop the ongoing humanitarian crisis in Sri Lanka and to save our people. After attempting many different strategies to bring an end to this horrific war with little success, international Tamils have decided to chance their tactics and launch an attack on the Sri Lankan economy.
    Each Sri Lankan product that is purchased contributes towards financing the arms and ammunitions that are being used to slay our Tamil people back at home. As Tamils, by buying these products, we are contributing towards the complete annihilation of our own people.
    Consequently, to cause a downturn in the Sri Lankan economy, all Sri Lankan products must be boycotted for the next 100 days. Listed below are a few products which must be avoided:
    1. Food items by Larich, Maliban and Nestle milk products
    2. Food items that are imported by Sri Lankan Tamils and packed in Britain.
    3. Garments made in Sri Lankan and sold in supermarkets such as Marks and Spencer and footwear including Bata
    4. Products made from rubber and coconut
    5. All forms of tea grown in Ceylon.
    6. Medicinal products
    7. Fish, fish products and vegetables
    Investors are also being requested to stop purchasing bonds, treasury bills and shares in corporations as well as saving their earnings in Sri Lankan banks. This will directly affect the foreign reserve that the Sri Lankan government uses to by weapons from other countries in its genocidal war on Tamils.
    Before buying any product, consumers are advised to ask the retailer if the product is from Sri Lanka. If it is, buying it is not only costing the consumer money, but is also costing Tamil lives.
    Many retailers are willing to cooperate but are asking for the consumers to conduct the boycott, and then they too will stop buying Sri Lankan products. We appeal to the few importers of Sri Lankan products to the UK to give this matter their urgent consideration and seek alternative sources of similar products in South Asia.
    This appeal, if successful, could bring down the Sri Lankan economy and salvage thousands of Tamils in Sri Lanka.
    Every Sri Lankan product that is bought by each individual consumer is serving to help the Singhalese to defeat the Tamils so every British Tamil must make these diminutive sacrifices to pressurise the Sri Lankan government to stop the war.
    Let us all work together as a community, the Tamil community, to ensure that soon, very soon, our people back at home can live with the serenity, self - respect and equality that they deserve.
  • Negative outlook for Sri Lanka…
    Sri Lanka’s credit rating outlook was downgraded to negative following the ‘marked’ decline in the country’s foreign exchange reserves.
     
    Down grading Sri Lanka’s credit rating outlook from stable to negative, Fitch Ratings on Friday February 27, rated Sri Lanka’s long-term foreign currency rating at B+, four levels below investment grade.
     
    Fitch also cited concerns about the stresses in the country's balance of payments, its fiscal deficit and the government's increased reliance on foreign-currency borrowing in recent years.
     
    "Without a sharp contraction in domestic demand to curtail imports, or a significant depreciation of the exchange rate to otherwise correct the trade imbalance, Sri Lanka may not have access to sufficient international funding to cover the current account shortfall and its international debt repayments, resulting in ongoing pressures on official reserves," the rating agency said in an email statement.
     
    Credit rating was not the only economic indicator that projected a bleak outlook for the country. In the same week the rating was downgraded the local currency hit an all time low value and the parliament was told that the country’s outstanding debt is at an all time high.
     
     
    All time low
    Sri Lanka's rupee, which has been steadily losing value in the past few months, hit a new all-time low of 115.75/95 a dollar on Friday February 27 amid import dollar demand from state banks, according to brokers.
     
    "The dollar is sold at 115.75 level and the offer is at 115.95," said a currency broker, who asked not to be named.
     
    Three other dealers confirmed the rate. "State banks are buying dollars for import bills, while one state bank still sells dollar at 114.25."
     
    Record debt
    On Thursday February 19, Sri Lanka’s Revenue minister, Ranjith Siyambalapitiya announced in the parliament that the country’s  total debt in the past 8 years had exceeded Rs. 3,400 billion.
     
    The minister further said that interest costs stemming from local and foreign loans had more than doubled during the same period.
     
    From 2001 to 2008, the country’s total local and foreign debt amounted to Rs. 3,436,837 million and by the end of last year interest costs per year was at a record Rs. 210 billion. An increase of Rs. 16 billion compared to the Rs. 94 billion interest costs in 2001.
     
     
    Presidential confession
    Sri Lankan political leaders who have been claiming that
    President Rajapakase’s Mahinda Chnintana has saved Sri Lanka from the devastation of the global economic meltdown, are now starting to realise the direction the country’s economy is heading.
     
    Rajapaksa speaking at a SAARC meeting last week labelled the financial crisis as a "common challenge to our region and to the world".
     
    "The effects of synchronised slow-down in developed economies, can reach us sooner than later," Rajapaksa cautioned.
     
    Sri Lanka’s economic growth slowed to 6.3 percent in the third quarter of 2008 from 7 percent in the previous three-month period as declining overseas demand eroded the country’s key exports - tea, rubber and textile.
  • UN nods ‘fight to the finish’
    The position taken by UN Security Council Friday, February 27, indicating no go beyond ‘hearing’, and the considerate briefing of John Holmes largely endorsing and trusting Colombo’s agenda and assurances for civilians, are read between the lines by international political observers as a ‘knowing wink’ at Colombo to pursue its offensive.
     
    Alternatively, the UN stance either paves way for intervention by interested powers outside of the UN or perhaps reveals an actuality that the UN can be shaken not when people face genocide, but only when ground realities endanger the Sri Lankan state, observers said.
     
    While the UN Secretary-General Ban Ki-Moon on Tuesday, February 24, called for a suspension of fighting and beginning of political discussions, John Holmes, Under Secretary-General for Humanitarian Affairs and Emergency Relief Coordinator, who briefed the Security Council Friday spoke of tackling underlying political issues only after the end of fighting.
     
    “It appears that the UN Secretariat’s public call is undermined by a more private green light to the Sri Lankan military’s offensive in north Sri Lanka”, reported Inner City Press on Friday.
     
    In British Parliament Wednesday, Liberal Democrat MP Edward Davey questioned British Foreign Secretary David Miliband why Britain’s representative in UN earlier failed to support a briefing on Sri Lanka while ministers in London call for ceasefire.
     
    Miliband replied: “I am sorry to hear the hon. Gentleman talk in that way, because he knows that a failed resolution—one that faces a veto—is worse than no resolution at all, and it would strengthen precisely the forces that he and I oppose. I can assure him that our diplomats, whether in New York or in the region, are all working off the same script, which is one that has been set by the Prime Minister and me.”
     
    The British silence at UN on Friday may mean that the UN Security Council is still not seasoned to consider the plight of Tamils in Sri Lanka.
     
    At the beginning of the UN briefing Russia said that it is only a ‘one-time hearing’.
     
    The permanent representative of US was not present during the briefing.
     
    The British representative at UN, John Sawers, who earlier said that the LTTE’s long ‘blighting’ of Colombo should be brought to an end, neither demanded a presidential statement of the council after the briefing nor answered questions put on Sri Lanka by the media, according to Inner City Press.
     
    Interestingly, John Holmes admitted his ‘knowing’ stance on events.
     
    When asked by Inner City Press on reportedly mischievous translations he received while visiting civilians in Vavuniyaa, he replied, “you should credit me with enough intelligence to assess what people told me, surrounded by the military’s armed guards”.
  • … May Need Bailout as debt drains reserves
    Sri Lanka may need a bailout from international donors to help pay its debts as the island’s 26- year civil war draws to a close.
     
    Since August, the South Asian nation has spent half its foreign reserves, now $1.7 billion, on supporting its currency, paying debt and buying imports. That doesn’t leave much after the government shells out another $900 million due in 2009. The reserves aren’t getting replenished as the ailing world economy pummels exports and overseas investors flee emerging markets.
     
    President Mahinda Rajapaksa’s government is unwilling to turn to the International Monetary Fund, which requires austerity measures in return for loans. Securing financing from other countries may be challenging for a nation whose credit rating from Standard & Poor’s is the lowest apart from those of Bolivia, Pakistan, Grenada, Argentina and Lebanon. Fitch Ratings downgraded its outlook on Sri Lanka today.
     
    “Sri Lankan authorities have to act fast to beef up the country’s reserves,” said Ashok Parameswaran, senior emerging markets analyst at Invesco Inc. in New York. “Otherwise, they may have to devalue their currency significantly.”
     
    Since December, countries including Russia, Vietnam and Kazakhstan have weakened their currencies rather than use reserves to prop them up. That has made imports costlier, reducing demand for goods from overseas.
     
    Neighbouring Currencies
    Sri Lanka kept its exchange rate at about 108 rupees per dollar between January and October 2008 to slow inflation, even as the currencies of neighbouring India and Pakistan weakened. The Sri Lankan rupee has since dropped to 114.95.
     
    “Sri Lanka has relaxed the rupee in stops and starts, but they need a controlled devaluation,” said Agost Benard, a Singapore-based sovereign analyst at S&P. “The implicit currency peg will have to change and that’s one of the long-term solutions to the nation’s foreign-exchange problems.”
     
    S&P cut Sri Lanka’s rating by one level in December to B, five steps below investment grade. Fitch Ratings lowered the nation’s rating outlook to negative from stable because of “heightened concern” over a “marked” decline in the nation’s reserves. It affirmed Sri Lanka’s rating at B+, which is four levels below investment grade and unchanged since April 2008.
     
    Sri Lanka is banking on currency swaps with central banks, sales of treasury bills and bonds and offering higher interest rates on deposits to citizens living abroad to boost reserves.
    Tamil Tigers
     
    Once the northern region of the country is recovered from the Liberation Tigers of Tamil Eelam, peace will lead to more remittances and aid for construction of houses, schools and hospitals, said P. Nandalal Weerasinghe, chief economist at the Central Bank of Sri Lanka. This will provide “some balance of payments support,” he said.
     
    The Tamil Tigers, who have been fighting for a separate homeland, have retreated from most of the northern part of the island nation. They now control a pocket of only 87 square kilometers (34 square miles) in the Mullaitheevu region in the northeast, the Sri Lankan Defense Ministry said Feb. 22.
     
    John Keells Holdings Plc, Sri Lanka’s biggest diversified company, last week doubled its stake in Union Assurance Plc, a local insurer, to 74 percent. The company said it’s anticipating that the liberation of Tamil Tigers-occupied territories will spur demand for finance and insurance.
    To be sure, the dispute hasn’t ended yet.
     
    “Although there is the possibility of outright military defeat of the Tamil Tigers, a potentially different style and lower-intensity conflict will continue to pose a risk to growth prospects and public finances,” S&P’s Benard said.
     
    Still Raiding
    Tamil Tigers launched an air raid in the Sri Lankan capital, Colombo, on Feb. 20. Their two aircraft were shot down, one crashing into a building housing the Inland Revenue Department and the second north of the city.
     
    Sri Lankan police yesterday arrested a Tamil newspaper editor in connection with the air raid, prompting a protest by media rights group Reporters Without Borders.
     
    At the end of November, Sri Lanka had 1.4 trillion rupees ($12 billion) of foreign debt outstanding. Its total debt is 3.4 trillion rupees, or 75 percent of the nation’s gross domestic product, according to S&P.
     
    Liabilities increased as Sri Lanka, which spends a fifth of its annual budget on defense, borrowed from local and foreign sources to build roads and ports, among other spending. The nation’s budget deficit has averaged 8.7 percent of GDP in the past decade.
     
    Debt ‘Distress’
    Sri Lanka must reduce reliance on dollar-denominated short- term commercial borrowings to ease public debt “distress,” the IMF said in October. It called on the government to weaken the rupee as part of a “comprehensive policy package that would underpin confidence in the currency.”
     
    The central bank said Jan. 19 that it will neither let the currency fall nor approach the IMF for a bailout to pay for imports and repay its debt.
    On Feb. 19 Governor Nivard Cabraal said the central bank received $200 million from Malaysia, declining to reveal the terms of the deal or whether it was a swap or any other facility with Bank Negara Malaysia. Bank Negara didn’t respond to an e- mail sent by Bloomberg News for comment.
     
    “It’s unlikely that Sri Lanka will go to the IMF for funds,” said Dushni Weerakoon, deputy director of the Institute of Policy Studies in Colombo. “At whatever cost, they will try to raise small sums from other countries.” 
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