Sri Lanka: SC holds ex-prez Gotabaya, ex-PM Mahinda responsible for economic crisis in nation

The Sri Lankan Supreme Court determined on Tuesday (Nov 14) that a group including former president Gotabaya Rajapaksa and former prime minister Mahinda Rajapaksa violated people's fundamental rights by mismanaging the economy between 2019 and 2022. According to a report by News 1st, Chief Justice Jayantha Jayasuriya, and Justices Buwaneka Aluwihare, Vijith Malalgoda and Murdhu Fernando delivered the majority decision in the matter while Justice Priyantha Jayawardena. 

The petition in the case was filed by Professor Mahim Mendis of the Open University of Sri Lanka, former chairperson of Ceylon Chamber of Commerce Chandra Jayaratne, Transparency International Sri Lanka, Julian Bowling and Jehan Kanakaratne. 

The petition said that a tax relief of around $2 billion for businessmen when Gotabaya Rajapaksa served as president was the main reason for the economic crisis, the report said.

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The petitioners also highlighted economic mismanagement issues, including the pegging of the Sri Lankan Rupee against the US Dollar, a delay in securing assistance from the International Monetary Fund (IMF), and the repayment of $500 million sovereign bonds during a forex crisis.

The apex court ordered for the petitioners to be paid $459 each, the report added. 

The Sri Lankan economy collapsed as it shrank 7.8% in 2022, pummelled by long power cuts, soaring inflation, a plunging rupee and record high interest rates caused by the worst financial crisis in more than 70 years.

Last year, violent demonstrations were held across the country for months following which Gotabaya stepped down from the president's post. The anti-government protesters were angry over power outages, shortages of basic goods and rising prices and demanded that Gotabaya should resign.

Citing analysts, a report by the news agency Reuters last year said that economic management by successive governments weakened Sri Lanka's public finances, leaving the national expenditure over income and the production of tradable goods and services at inadequate levels.

Despite the worsening economic situation, the government initially held off talks with the IMF. However, it eventually opened talks with the global lender. 

(With inputs from agencies)