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Sri Lanka
Area: 65,610 sq km
Population: 19.5 million (2004)
Capital City: Colombo (population 2.2m)
People: 73.94% Sinhalese, 12.7% Tamil, 7.1% Muslim, 5.5% Hill Tamil, and 1.5% other
Languages: Sinhalese, Tamil, English
Religion(s): Buddhist (69.3%); Hindu (15.5%); Muslim (7.5%); Christianity (6.9%), other (0.8%)
Currency: Rupee, divided into 100 cents
Major political parties: Sri Lanka Freedom Party (SLFP) (President’s party and largest government party), United National Party (UNP) (main opposition party), Janatha Vimukthi Peramuna (JVP) (left wing, Sinhala nationalist), Tamil National Alliance (a coalition of Tamil parties), Sri Lanka Muslim Congress (SLMC), Jathika Hela Urumaya (JHU) (Sinhala nationalist Buddhist party led by monks), Tamil United Liberation Front (TULF) (member of the TNA), Eelam People's Democratic Party (EPDP) (a Tamil party opposed to the LTTE), Ceylon Workers Congress (CWC) (represents Hill Tamils)
Government: Unicameral Parliament with Executive Presidency
Head of State (President): His Excellency Mr Mahinda Rajapakse
Prime Minister/Premier: The Hon Ratnasiri Wickremanayake
Foreign Minister: The Hon. Rohitha Bogollagama MP
Membership of international groupings/organisations: Commonwealth, The South Asian Association for Regional Co-operation (SAARC), United Nations (UN), Non Aligned Movement (NAM), Group of 77 at the United Nations (G77).
GEOGRAPHY
The Democratic Socialist Republic of Sri Lanka (formerly known as Ceylon) is about half the size of England and lies close to the southern tip of India and near the equator. From the coast, the land rises to a central massif more than 1500 m above sea level. The climate is hot and humid - monsoon from May to September and the north-east monsoon from November to March: rainfall, particularly in the south-west, is heavy.
Sri Lanka was severely affected by the tsunami on 26 December 2004, which killed some 40,000 people and displaced 400 – 500 thousand people along two thirds of the north-east, south and south-west coastline. Half the fishing fleet was destroyed, and a quarter of hotels in the affected areas sustained serious damage.
HISTORY
Sri Lanka's history has reflected its close links with the subcontinent and with South East Asia. The colonial European powers arrived in 1505. The Portuguese, the Dutch and then the British ruled Sri Lanka. Sri Lanka (or Ceylon, as it was then known) gained independence from Britain in February 1948.
Recent Political History
Following independence from Britain in February 1948, the political scene has been dominated by two parties: the United National Party (UNP) and the Sri Lanka Freedom Party (SLFP), which is now part of the People’s Alliance (PA). The SLFP was founded by S W R D Banadaranaike, who was Prime Minister until he was assassinated in 1959 by a Buddhist extremist. His widow, Sirimavo Banadaranaike, became leader of the SLFP and served as both Prime Minister and leader of the opposition.
A republican constitution was adopted in 1972 and the ruling coalition, led by Sirimavo Banadaranaike, gave itself an extra two years in power. The UNP returned to power in 1978 and adopted a new constitution based on an executive presidency. It introduced for the first time elections based on proportional representation. The UNP's Ranasinghe Premadasa, who won the presidential election in 1988, was President until his assassination in 1993.
The SLFP became part of the People’s Alliance (PA) coalition which, headed by Mrs Chandrika Kumaratunga (the daughter of S W R D and Sirimavo Bandaranaike), won general elections in August 1994. Mrs Kumaratunga then went on to win a landslide victory in elections in November 1994 and 1999 and served as President until November 2005. The PA also won the next Parliamentary elections in October 2000. Although there were reports of violence, intimidation and voting irregularities, the EU Election Observation Mission acknowledged that the result overall reasonably reflected the opinion of the people. In 2001, less than a year after being re-elected, the PA lost their majority and new elections were held in December 2001. The United National Front coalition, lead by UNP Ranil Wickremasinghe, won with 109 seats and the President’s PA came second with 77 seats, which led to an arrangement of political cohabitation between two rival parties, with the PA’s leader as President and the UNP’s leader as Prime Minister.
In November 2003, President Kumaratunga suspended parliament, sacked three key ministers taking over their portfolios (including defence) and declared a state of emergency (which was lifted a few days later). This was done on the grounds of national security, and the actions were within her Constitutional powers. No agreement on working arrangements was reached between the President and Prime Minister, and in January 2004, the SLFP signed an alliance with the JVP forming the United People’s Freedom Alliance (UPFA). In February, the President dissolved Parliament and called general elections in April. The elections in April 2004produced a new political order with the victory of the UPFA (SLFP and JVP alliance). Support for the traditional parties dropped, and smaller parties - JVP, TNA and JHU gained significant numbers of seats. The UPFA formed a minority government. In September 2004, the Ceylon Workers' Congress (CWC – representing Indian-origin Tamils) with 8 seats joined the government giving it a small majority. In June 2005 the JVP left the Government after the President’s decision to sign a post-tsunami funding arrangement with the LTTE.
Latest Political Developments
Mahinda Rajapakse (SLFP) was elected as President in November 2005 with 50.3% of the vote. The Liberation Tigers of Tamil Eelam (LTTE) enforced a boycott of the poll in Tamil areas under their control or which they strongly influence in the north and east of the country. This resulted in extremely low voter participation in these areas. Ranil Wickremesinghe, UNP Presidential candidate and Leader of the Opposition took 48.4%. The JVP and JHU, which supported Rajapakse’s candidature, decided not to join the Government.
In January 2007, a number of UNP members joined the government team giving it a parliamentary majority. A cabinet reshuffle followed.
The Internal Conflict
The ethnic conflict in Sri Lanka has been going on for over 20 years as the Liberation Tigers of Tamil Eelam (LTTE) fight for an independent homeland. Some 70 000 people are estimated to have been killed and some one million displaced.
The roots of the conflict lie in the deterioration of relations between the Tamil and Sinhalese communities from the 1950s. By the late 1970s a number of armed groups were operating in the north and east of the island. In 1983 there were serious anti-Tamil riots in Colombo resulting in the lynching and killing of some 2000 Tamils. Some Ministers in the Government of Sri Lanka were implicated in the event. Many Tamils returned to traditional Tamil areas in the North and many others began to seek asylum abroad.
One of the highest profile violent acts was the assassination of the Mayor of Jaffna in 1975 by Vellupillai Prabhakaran who later became established as the leader of the LTTE.
In mid 1987 when a Government of Sri Lanka embargo of Jaffna began to result in severe hardship, the Government of India, pushed by public opinion in Tamil Nadu, forced the Sri Lankan Government to sign the Indo-Sri Lankan Accord This provided for an Indian peacekeeping Force (IPKF) in the North and East. However relations between the IPKF and the LTTE broke down and there was heavy fighting and reports of human rights violations on both sides. President Premadasa negotiated the IPKF's withdrawal, which was completed in March 1990.
During 1988, in part against the India intervention, among the Sinhalese community grew into a violent insurgency by the Janatha Vimukthi Peramuna (JVP) and a counter-terrorist campaign. The rebellion ended in 1989 after JVP leaders were murdered. The Sri Lankan army undertook a ruthless counter-insurgency campaign and tens of thousands were killed.
There followed a period of relative peace before the situation in the North and East deteriorated in June 1990. After 18 months, negotiations fell apart and the LTTE again resorted to violence. They extended their control until they held the Tamil heartland: the Jaffna Peninsula and large areas of the North and East. The security forces succeeded in winning back most of the East, but the North remained outside their control.
The Conflict Since 1995
In July 1995, the Sri Lankan army launched a military operation, culminating in the fall of Jaffna in December 1995 to Government forces. At the end of January 1996 the LTTE began a bombing campaign in Colombo (see Terrorist Attacks below).
During 1996, the Sri Lankan army secured enough of the Jaffna Peninsula to allow the civilian population to return to Jaffna town. The LTTE reasserted themselves in the Eastern province and infiltrated back into the Jaffna Peninsula. LTTE inspired terrorist attacks continued in the south, including on the Temple of the Tooth in Kandy, the most sacred Buddhist site in Sri Lanka.
In March 1999 the Sri Lankan Army launched two major offensives in the Vanni and captured over 800 sq kms of territory from the LTTE. Fighting in the North intensified in late 1999 and the Vanni (jungle areas in the North) fell to the LTTE after some of the fiercest fighting since the conflict began. In April 2000 the LTTE carried out a major assault which led to the withdrawal of Sri Lankan troops from Elephant Pass (which links the Jaffna peninsula to the rest of Sri Lanka). With control of Elephant Pass, the LTTE continued further attacks into the Jaffna Peninsula. Fighting continued until December 2001 when the announcement of a new ceasefire by the LTTE was reciprocated by the newly elected UNF government. A Ceasefire Agreement was signed in February 2002 by the government and LTTE. Since then there has been no large-scale fighting on land, although there have been at least two clashes between the Navy and the LTTE’s Sea Tigers.
In April 2004, the LTTE’s eastern commander, Karuna and a group broke away form the LTTE. He complained that the LTTE leadership did not sufficiently look after the interests of those in the east of the country. Since then the Karuna group has fought against the LTTE in the east.
There has been an intensification of violence since the beginning of December of 2005. After the initial period of violence in December 2005 and January 2006, in which at least 200 were killed, the two sides agreed to direct talks in Geneva on 22 - 23 February 2006. The talks resulted in commitments by both sides to uphold the Ceasefire Agreement, and to ensure acts of intimidation and or violence cease. The LTTE committed itself to end attacks on the Government’s security forces and the Government of Sri Lanka committed to prevent armed groups from operating. Both parties asked the Swiss to host a further round of talks in April but this did not happe as large-scale violence resumed in April. Talks were eventually held in Geneva in October 2006, but were inconclusive.
Terrorist Attacks
Hundreds of people have been killed and injured in terrorist attacks relating to the conflict. Former Indian Prime Minister Rajiv Gandhi was assassinated in southern India in May 1991. President Premadasa was assassinated in May 1993. President Kumaratunga narrowly escaped assassination during the 1999 presidential election campaign. In July 2001, a terrorist attack on Colombo’s international airport left 20 dead and 17 injured.
In the last two years there has been a resurgence of terrorism which had drooped away with the signing of the 2002 Ceasefire Agreement. Foreign Minister Kadirgamar was assassinated in August 2005. On 25 April 2006, a female suicide bomber targeting Commander of the Army, Lt General Sarath Fonseka detonated herself at the Sri Lankan army headquarters in the Fort area of Colombo resulting in 11 deaths and many injuries. Fonseka was injured but survived. The Sri Lankan airforce and army, and naval units took action against LTTE positions south of Trincomalee the same day. This was the first large-scale military action since the Ceasefire Agreement in 2002. Terrorist attacks and military action have continued since.
The Peace Process
When she came to power in 1994, President Kumaratunga made a solution to the conflict with the LTTE her major priority. Peace talks were offered and a cease-fire began in January 1995. But in April that year the LTTE broke off the talks and returned to a military campaign. There were no further attempts to broker peace talks until February 2000 when the Norwegian government announced that it had agreed to a request by both parties to the conflict to work towards bringing the two sides together for peace talks.
On 24 December 2000, the LTTE announced a month-long unilateral cease-fire, which was extended until 24 April 2001. The PA government did not reciprocate, saying a cease-fire would be consequent step once peace talks began. The following year the LTTE again announced a month-long cessation of hostilities from midnight on 24 December. The newly elected UNF government quickly reciprocated. The cease-fire was extended until 24 February 2002, and on 22 February the Norwegians announced that the Sri Lankan government and the LTTE had signed an agreement on the cessation of hostilities.
The agreement committed the parties to put an end to hostilities and restore normalcy for all Sri Lankans and committed the parties to begin peace talks. Six rounds of talks were held producing a number of agreements in principle, including agreement to explore a solution founded on the principle of internal self-determination for the Tamil people, based on a federal structure within a united Sri Lanka; and agreement to develop a human rights roadmap. However in April 2003, the LTTE suspended their participation in the peace talks saying they wanted agreement on an interim administration before they would negotiate on other issues. The LTTE failed to attend a major donor meeting in Tokyo in June 2003 at which the international community demonstrated its commitment to reconstruction and development in Sri Lanka.
Both the Government and the LTTE submitted proposals for an interim administration for the North East. Before these proposals were discussed however, President Kumaratunga took over several Government ministries in November 2003 claiming that the UNP Government was endangering Sri Lanka’s security. This ended the uneasy cohabitation between the President and Prime Minister Wickremasinghe (long time political rivals). After several months of uncertainty the President dissolved parliament and called elections. Her UFPA coalition (her SLFP and the Sinhala nationalist left wing JVP) won the most seats and was later able to command a small majority. During the election campaign, the LTTE stated their willingness to negotiate with any party, which had a mandate for talks. The government said that restarting the peace talks was a priority for them and renewed the mandate of Norway as peace facilitators. Since then and despite energetic shuttle diplomacy there has been no agreement on a resumption of talks.
It was initially hoped that following the tsunami in 2004 would present an opportunity for the two sides to work together in a common purpose and might pave the way for a return to the negotiating table, but this did not prove to be the case.
A 'no peace, no war' scenario continues to prevail. The ceasfire agreement remains in place but is under pressure due to ongoing violence in the East, including political assassinations and paramilitary activity (including by the Karuna LTTE breakaway group) continues.
Longer Historical Perspective
ECONOMY
GDP: US$ 19.6bn (2004)
GDP per head: US$ 870 (2004)
GDP Growth: 5.4% (2004)
Consumer Price Inflation: 7.6% (2004)
Major Industries: Agriculture, forestry, fishing (19.4%), Manufacturing (15.8%), Construction (9.5%), Utilities (1.5%), Services (52.0%)
Major trading partners: Main destinations of exports are: US (32.4%), EU (32.4%), Middle East (7.5%), and CIS (3.5%). Main origins of imports are: India (18%), Singapore (8.7%), Hong Kong (7.7 %), China (5.7%), Iran (5.2%)
Aid & development: The international donor community agreed US$ 4.5 billion for the period 2003-6. This was conditional on progress in the peace process, which unfortunately has not been achieved. Donors have pledged approximately US$500 million for post-tsunami reconstruction.
Tourist arrivals by country of residence: Jan-Sept 2005 - India 82,434; UK 68,493; followed by Germany, France, Australia and North America
Exchange rate: (November 2005) US$1 - 101.75 rupees, £1 Sterling - 175.39 rupees
The Department of Trade and Industry (DTI) monitor trade and investment figures worldwide. For current economic background and sector reports on Sri Lanka please visit the UK Trade and Investment website:
In March 2000 the Indo-Sri Lankan Free Trade Agreement (FTA) came into effect. At the SAARC (South Asian Association for Regional Co-operation) conference held in Pakistan in early January 2004 a wider free trade agreement between all SAARC members (due to enter into force in January 2006) was signed. A SAARC summit in Dhaka in November 2005 confirmed this start date.
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