Dicey HR record throttles Lanka

Thrown out from global debt cancellation programme

By Munza Mushtaq
Sri Lanka’s dicey human rights situation is likely to cost the country dearly, with the island being thrown out from an international debt cancellation programme.

The United States Congress is expected to endorse a legislative proposal shortly urging for the cancellation of debts owed by some of the world’s poorest countries but nations including Bhutan, Sri Lanka and Laos have been singled out due to their human rights situation and other financial management standard issues.

Sri Lanka’s debt to the United States alone amounts to a whopping Rs. 53 billion while the total foreign debt is a massive Rs. 1.3 trillion according to the Central Bank 2007 Annual Report released last week.

Jubilee USA Network, a group representing more than 80 religious denominations, development agencies, and human rights organisations from across the United States are spearheading the campaign calling for the cancellations of the debts.

The network is of the view that the lending practices of international financial institutions are responsible for the suffering of the poor in developing nations.

“Twenty-two countries have already received close to 100 percent cancellation of their debts to the IMF, World Bank and regional development banks,” the network disclosed.

Sri Lanka falls under the International Monetary Fund’s (IMF) Heavily Indebted Poor Country (HIPC) programme but according to reports, the island does not meet the Jubilee Act standards in human rights and financial management standards.

“The proposed legislation calls for ‘greater responsibility’ in lending and borrowing in the future. Supporters of the bill say current lending practices are hampering development initiatives in many countries in Africa, Asia, and Latin America,” a report filed in OneWorld stated.

The legislation calls on the US Treasury Department to negotiate with the IMF and World Bank for an agreement for debt cancellation for several poor nations that need financial help to meet the Millennium Development Goals (MDGs) set by world leaders in 2000, the report added.