In a remarkable decision, the Supreme Court of Sri Lanka has declared that several former political dignitaries, including former President Gotabaya Rajapaksa, former Prime Minister Mahinda Rajapaksa and former Finance Minister Basil Rajapaksa, breached the public trust and violated Article 12 (1) of the Sri Lankan Constitution in their management of the economy.
The bench reached its conclusion with a majority of 4-1, attributing the responsibility for Sri Lanka’s economic crisis between 2019-2022 to the respondents. The ruling noted that the situation led to the total collapse of economic and social life in society, ultimately undermining public order and the rule of law.
According to Transparency International Sri Lanka (TISL), the court found that the actions of the respondents directly contributed to the economic crisis. The court highlighted that the authorities should have been aware of and taken measures against issues that negatively impacted the economy instead of exacerbating them.
Efforts by the respondents to attribute their actions to policy decisions were rebuffed by the court, which emphasized they had the authority and knowledge to prevent such an outcome but failed to act in public interest. They were found to have fundamentally ignored the directives of the constitution by failing to uphold the significant public trust vested in them. The cumulative actions and inactions of the respondents were identified as key elements leading to the economic debacle.
This judgment stemmed from a Fundamental Rights Petition filed in June 2022 by TISL and co-petitioners Chandra Jayaratne, Jehan Canaga Retna, and Julian Bolling.
Sri Lanka has been grappling with a major political and economic crisis, which peaked in 2019 and was precipitated by several factors. High spending combined with a declining tax base resulted in large budget deficits and debt levels. This was further intensified by the COVID-19 pandemic and the impact of the war in Ukraine on fuel and food prices. The crisis led to significant shortages, high inflation, power cuts, and humanitarian need. Massive protests in mid-2022 overthrew the Rajapaksa government, but economic problems persist.
Finding a solution has been challenging, with an IMF bailout delayed due to negotiations over Sri Lankan debt held by China and India. Concerns persist about a potential drain of people and brain power as many skilled workers leave the country owing to economic hardships. While political leadership changed, the challenges of governance, instigating necessary reforms, and resolving debt issues persist.