Sri Lanka

Lord Moylan Excerpts

Monday 16th May 2022 Lords Chamber

Asked by

[Lord Moylan]

To ask Her Majesty’s Government what assessment they have made of the economic situation in Sri Lanka; and what steps they are planning to take to support that country.

[The Minister of State, Foreign, Commonwealth and Development Office (Lord Ahmad of Wimbledon) (Con)]

My Lords, we are closely monitoring the concerning economic situation in Sri Lanka, including issues of food security and livelihoods. The International Monetary Fund has assessed Sri Lanka’s debt as unsustainable. We welcome the start of in-depth discussions with the IMF on a financial assistance package and reforms needed to put debt on a sustainable path. The World Bank, to which the United Kingdom is a major donor, is providing support to health services and low-income families.

[Lord Moylan (Con)]

My Lords, Sri Lanka is an important Commonwealth country. Although I welcome the fact that the Government are monitoring the situation, I would have hoped something a little more vigorous and direct might become available at the moment. We are in danger of seeing our neglect of Sri Lanka over time leading it to drift off into the malign sphere of China. If the Government could be a little more helpful in terms of practical help at the moment, I also ask my noble friend whether we could do something in the longer term that would help: as friends of mine in Sri Lanka have requested, help them put in place the governance and parliamentary structures that would help to combat defalcation in the future and restore public confidence in the expenditure of public funds.

[Lord Ahmad of Wimbledon (Con)]

My Lords, I assure my noble friend that we are working in very practical terms. Indeed, at the start of this year, as the Minister for South Asia, I visited Sri Lanka myself and engaged directly with the Government in Colombo, and also visited other parts of the country to ensure that all voices across Sri Lanka are fully heard and engaged with when it comes to the United Kingdom’s approach. My noble friend is also correct that we are looking at practical support and working through agencies, particularly the World Bank and the IMF, to look at the immediate issues of the debt, which needs to be put on to a sustainable footing. We are also in very structured dialogue through the high commissioner directly, with whom I am engaging on a daily basis, to ensure that the political and the security situation are sustained, which allows peaceful protest but at the same time prevents violence, which has been seen during the protests since this emergency began.