Sri Lanka High Commission in Ottawa

Foreign Minister Ali Sabry summoned the Canadian Acting High Commissioner Daniel Bood to the Ministry of Foreign Affairs today (11 January), and expressed the deep regret of the Government on the announcement of unilateral sanctions brought by the Government of Canada against four individuals including two former Presidents of Sri Lanka based on unsubstantiated allegations.

Foreign Minister Sabry emphasized that such unilateral action by the Canadian Government, motivated by domestic political compulsions in Canada, sets a dangerous precedent and is inimical to Sri Lanka’s interests, especially when national unity and reconciliation are of paramount importance. It was also stressed that the announcement by Canada is detrimental to the Government’s ongoing efforts towards national unity, reconciliation, and stability.

In consideration of the longstanding bilateral and development partnership between Canada and Sri Lanka, Foreign Minister Sabry urged the Acting High Commissioner to review the decision and engage constructively with Sri Lanka.

Ministry of Foreign Affairs

Colombo

11 January 2023

Sri Lanka deeply regrets the politically motivated decision by Canada to impose sanctions on four individuals including two former Presidents of Sri Lanka on 10 January 2023. This unilateral action by the Canadian Government, motivated by domestic political compulsions in Canada, sets a dangerous precedent and is inimical to Sri Lanka’s interests, especially when national unity and reconciliation are of paramount importance. On the global front, such action makes democratically elected leaders of sovereign states vulnerable to arbitrary external decisions based on unsubstantiated allegations, without following due process. This action is in violation of the rights that Canada claims to uphold.

It is of concern that this announcement by the Canadian authorities comes at a time when the Government of Sri Lanka is making concerted efforts towards economic recovery and stability, while simultaneously addressing multiple challenges posed by the unprecedented economic crisis.

The announcement also emanates in the backdrop of tangible and meaningful progress made by the Government in addressing issues of accountability and reconciliation, and in strengthening the country’s democratic and governance structures. The progressive steps thus undertaken by Sri Lanka have been both acknowledged and welcomed by the international community. Some salient measures include, inter alia, the All-Party Conference convened by President Ranil Wickremesinghe to resolve the ethnic issue; the Cabinet Sub-Committee on Reconciliation chaired by the President to resolve matters related to land, detainees and the disappeared in the Northern and Eastern provinces; the Office of Overseas Sri Lankan Affairs to constructively engage the overseas communities of Sri Lankan heritage; and the 21st Amendment to the Constitution.

Canada has been a longstanding bilateral and development partner of Sri Lanka. It is a matter of regret that the mode of communication of this decision by the Canadian authorities was in contravention of established diplomatic practice disregarding existing channels of regular bilateral interaction.

Canada is also home to a significant community of Sri Lankan heritage who engage constructively in people-to-people contacts and the socio-economic development of Sri Lanka. There is a rich and varied relationship between Canadians of Sri Lankan descent and the country of origin. A majority of this community undertakes regular visits to Sri Lanka, while many hold Canadian–Sri Lankan dual nationality. The above aspects are testimony to a vibrant and mutually beneficial partnership.

It is unfortunate that this action by the Canadian Government could polarise communities and have a detrimental impact on ongoing processes in place to secure socio-economic stability. In spite of such challenges, Sri Lanka will continue to make steady progress in consolidating national unity and reconciliation on the eve of the 75th anniversary of the country’s independence. Taking cognizance of the multifaceted engagement maintained with Canada, Sri Lanka would like to prevail upon the Canadian authorities to review this decision, and move towards a broad-based, proactive, and constructive approach in their bilateral partnership with Sri Lanka based on friendly relations and cooperation.

Ministry of Foreign Affairs

Colombo

11 January 2023

The liquidity deficit in the domestic money market, which remained significantly high during the first half of 2022, declined in the latter part of 2022. However, in spite of the improvements in money market liquidity conditions, market interest rates continued to remain high, partly due to subdued activity in the domestic money markets. At the same time, it has been observed that several Licensed Commercial Banks (LCBs) have continued to depend excessively on the overnight Standing Facilities under Open Market Operations (OMOs) of the Central Bank without considering market based funding options to address their structural liquidity needs. Such LCBs have not indicated any signs of taking remedial actions to reduce the over dependence on overnight facilities offered by the Central Bank, which are available to be used as fall back options after utilizing all other funding options. Such behaviour of LCBs affects the efforts of the Central Bank to reactivate the money markets, primarily the interbank call money market and the repo market, while posing a threat to smooth channeling of funds in the economy with a possibility of clogging the payment and settlement systems.

Press Release from Central Bank of Sri Lanka

The Sri Lanka High Commission in Ottawa commenced work for the year 2023 with a ceremony held at the High Commission premises on Monday 02 January 2023.