SC to hear FR petitions against those who caused economic crisis on July 5

The Supreme Court today fixed the date to hear Fundamental Rights (FR) petitions that were filed seeking legal action against those who were responsible for causing the economic crisis on July 5. 

The apex Court had already granted leave to proceed with the petitions. The petition cites 39 respondents. They include the present Prime Minister Ranil Wickremesinghe, former Prime Minister Mahinda Rajapaksa, former Finance Minister Basil Rajapaksa, members of the former Cabinet, the Central Bank’s former Governors Ajith Nivard Cabraal, Prof. W.D. Luxman and the Bank’s Monetary Board members.

Three academics petitioned the Supreme Court, claiming that their fundamental rights have been violated due to the mismanagement of the economy by the cabinet of ministers and Central Bank officials.

The petitioners — Dr. Athulasiri Kumara Samarakoon, Soosaiappu Neavis Morais and Dr. Mahim Mendis — state they are aggrieved by the hardships faced by the country’s citizens from high levels of inflation, non-availability of vital resources, goods, commodities, and other essential items, including fuel, Liquid Petroleum Gas, medicine and food, and the dearth of foreign currency.

All these hardships arose consequent to the mismanagement of the economy by several of the respondents cited in their petition, they argue.

The petitioners say Sri Lankans are facing unprecedented economic hardships, with extreme inflation causing the price of essential goods and services to increase at extreme rates.

They charge that since 2019, foreign currency reserves have been intentionally depleted by the CBSL’s Monetary Board.

They also argue that a host of tax cuts imposed by the Government after President Gotabaya Rajapaksa assumed office were imposed “for no reason but for the politically motivated deliverance of an election promise” and that “further mismanagement of the economy of the Republic has caused the dire economic situation faced by the Republic.”

The petitioners also say the International Sovereign Bond repayment made in January 2022 has caused loss and damage to the CBSL due to the misconduct and/or by wilful default of the Monetary Board members.

Moreover, by artificially maintaining the exchange rate at below Rs. 203 to the US dollar despite the objection of some members of the CBSL’s Monetary Board, other members of the Monetary Board including former Governor Ajith Nivard Cabraal and former Treasury Secretary S. R. Attygalle caused loss and damage to the CBSL and “irreparable loss and damage to the citizens of the Republic.”

Aside from ruling that their fundamental rights have been violated, the petitioners have also sought an interim order directing the Auditor General to conduct an audit into the affairs of the CBSL’s Monetary Board and determine the loss caused to CBSL by the decision to set the value of the Rupee at 203 and over the delay in obtaining facilities from the International Monetary Board (IMF) consequent to decisions taken by former Governor Cabraal.

The petitioners have also sought an interim order preventing Mahinda Rajapaksa, Basil Rajapaksa and the President’s former secretary P.B. Jayasundara from alienating any of their assets within the country pending the hearing and determination of the application.