In a historic ruling on Tuesday, Sri Lanka’s Supreme Court declared that former President Gotabaya Rajapaksa, ex-Prime Minister Mahinda Rajapaksa, former Finance Minister Basil Rajapaksa, and several other high-ranking officials violated the fundamental rights of the people by mishandling the economy, leading to an unprecedented economic crisis.
The judgment comes in the wake of Sri Lanka declaring economic bankruptcy in April 2020, marking its first-ever sovereign default. The island nation experienced its most severe financial crisis in history, with foreign exchange reserves reaching critical lows and public outcry manifesting in protests due to shortages of fuel, fertilizers, and essential commodities.
A five-member bench of the Supreme Court ruled on a petition filed by Transparency International, Sri Lanka, and four other activists in 2022. The majority 4-1 decision held the respondents, including the Rajapaksa brothers, responsible for economic mismanagement during the period of 2019-2022. Former Central Bank of Sri Lanka (CBSL) Governors Ajith Nivard Cabraal and WD Lakshman, as well as ex-Secretaries to the Treasury PB Jayasundera and SR Attygalle, were also found guilty of rights violations.
The petitioners contended that tax concessions amounting to SLR 681 billion granted to businesses in 2019 by Gotabaya Rajapaksa during his presidential tenure were a primary cause of the economic downturn. Other actions, such as pegging the USD at Sri Lankan Rupee 203, delaying approaching the International Monetary Fund for a bailout, and honoring a USD 500 million international sovereign bond payment in January 2022 amidst the looming forex crisis, were cited as examples of mismanagement.
Attorneys for the petitioners sought a court declaration that the mishandling of the economy by the responsible parties violated the fundamental rights of the people. As the petitioners pursued the case in the public interest and did not seek personal compensation, the court refrained from ordering compensation beyond the legal costs incurred by the petitioners.
Consequently, the apex court mandated all respondents, including the Rajapaksa brothers, to pay legal costs of Rs. 150,000 each to the petitioners.
Mahinda Rajapaksa was compelled to resign in May 2022, while Gotabaya Rajapaksa stepped down in July, both in the face of unprecedented anti-government protests sparked by the country’s worst economic crisis, resulting in acute shortages of staple food, fuel, and power. Former Finance Minister Basil Rajapaksa also resigned in June of the preceding year.
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WRITTEN BY – ASTHA DUBEY, LLOYD LAW COLLEGE, GREATER NOIDA, UP, A 1st SEMESTER LEGAL JOURNALISM INTERN AT LEGAL VIDHIYA
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