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EU happy to be a ‘vector of communication’ for people to debate what is good and what is useful for Sri Lankan society
The European Union (EU) feels that a political solution to the prevailing economic crisis is essential for Sri Lanka to bring stability needed for discussions with the International Monetary Fund (IMF), and to be credible in the eyes of creditors to ensure efficient debt restructuring, EU Ambassador to Sri Lanka and the Maldives Denis Chaibi told the Sunday Times.
EU Ambassador to Sri Lanka and the Maldives Denis Chaibi Pic by Indika Handuwala
In an interview to mark Europe Day, which falls tomorrow (9), Mr Chaibi also stressed that the EU wants to be “a vector of communication” within Sri Lankan society and is pleased that a dialogue regarding the Prevention of Terrorism Act (PTA) is now taking place within wider society. “It is no longer limited to a few Non Governmental Organisations (NGOs),” he noted. Reforming the PTA was one of the main conditions put forward by the EU in order for Sri Lanka to retain the lucrative Generalised System of Preferences (GSP Plus) status.
Following are excerpts from the interview:
In June last year, the European Parliament passed a resolution expressing alarm over the human rights situation in Sri Lanka, particularly in regard to arrests made under the PTA. The resolution urged the European Commission to consider withdrawing the GSP Plus facility to Sri Lanka as a last resort if it did not replace the PTA and effectively implement 27 international conventions, including human rights conventions. An EU mission also arrived from Brussels in October last year to review Sri Lanka’s progress in implementing these 27 conventions. There has been a public debate surrounding the PTA since then, the ambassador recounted. “It is up to the Sri Lankans to decide what is good for their society, but we are happy to be a vector of communication for people to debate what is good and what is useful for Sri Lankan society.”
While amending the PTA is a positive step, the EU feels that further efforts are needed. There are also other concerns such as the criminalisation of homosexuality and certain labour rights such as the right of association for public service officials.
The GSP Plus facility is reviewed every two years and the latest report will be published later this year. Whatever the outcome of that review, Sri Lanka will still need to reapply for GSP Plus in 2023 due to the new regulation that will come into effect.
Regarding the prevailing political crisis, the facts on the ground, as perceived by Europe, are that there is a default and a grave economic crisis in Sri Lanka. A large part of the public feels that some part of the blame for the economic crisis lies with Covid-19, and the spike in prices after the invasion of Ukraine; but they also feel that mistakes were made by the Government, such as waiting for a long time to float the currency, doubling interest rates and waiting too long before going to the IMF, the ambassador remarked.
He pointed to the importance of Parliament in resolving the crisis. “There has been a (Cabinet) reshuffle. It is for the Parliamentarians to decide if this reshuffle is sufficient for the way people perceive it or not. We feel that in this context, a political solution to the economic crisis is essential. One needs an action that shows the people that the Government understands the way forward, and bring stability that is needed to discuss with the IMF in order to be credible and with the creditors in order to do some efficient debt restructuring.”
For the 27 member states of the EU, “Europe Day” refers to the day 72 years ago when Robert Schuman, who was the French Foreign Minister, put forward what came to be known as the “Schuman Declaration.” The declaration called for the pooling together of all the coal and steel production of historic rivals France and Germany in order to ensure that war between them would be materially impossible. The plan proposed the creation of the European Coal and Steel Community (ECSC). The ECSC later grew to be what is now known as the EU.
His focus of Europe Day is on promoting peace, the ambassador stressed. Within the past month, the delegation had been organising events on this theme.
This year, peace has specific significance for both Europe and for Sri Lanka. For Europe, this is due to the war in Ukraine. Peace is also important for Sri Lanka in the context of the demonstrations that are currently taking place. “The protests have been, by and large, peaceful up until now. The EU hopes they continue to remain that way and that the authorities and the security apparatus act with restraint, to respect freedom of expression and refrain from violence that will be very detrimental to the process.”
The EU has always been very transparent, engaging Sri Lanka where there have been avenues for good cooperation, but also being openly critical when it had differences, but without any hidden agenda or objective of interference, said Mr Chaibi.
The first fundamental disagreement between the EU and Sri Lanka is on reconciliation. The current United Nations Human Rights Council (UNHRC) resolution on Sri Lanka was adopted after the current Government withdrew its co-sponsorship of the previous resolution. The previous resolution had a number of mechanisms that were foreseen to allow for reconciliation and accountability in Sri Lanka. “The Government said that it would achieve the same objective but through its own domestic means and without the umbrella of a Human Rights Council resolution. We’ve been engaging with the Government. We have an annual working group on human rights and rule of law. We have discussed this every year at the joint commission and we see some efforts being made, but we want to see more.”
The EU also disagrees with Sri Lanka on the prevailing import ban. While the balance of payments is an issue, there is still a mechanism that can be found to make sure that the problem doesn’t result in an automatic import ban, he stressed.
Established in 1995, the EU delegation has been functioning in the country for more than 25 years, and Mr Chaibi believes it has been a force for good in Sri Lanka. It is the second largest export market for Sri Lanka and has been the most reliable. The EU continues to provide investment for Sri Lanka, while more than 50% of tourists arriving in the country are from Europe, he added.
While the GSP Plus facility has helped Sri Lanka increase its exports to Europe, the EU has also granted more than 1 billion euros in grants to the country to fund its development, resilience, agriculture and tourism. These programmes will continue despite Sri Lanka’s decision to default as these were funded by grants and not from loans.
Going forward, the EU has also set out plans to focus on “green recovery” over the next seven years as plans to help Sri Lanka fight the effects of climate change. “The focus will be on how we can build better with full respect for the environment,” said the ambassador, adding that the EU will provide technical assistance in this regard.
The other part of the funding looks at creating a peaceful society through social cohesion. “It will allow for more safety nets, where social mechanisms are better developed and better targeted, not subsidies for an entire product, but targeted help for those who need it the most,” he said.
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