Sri Lanka: Background and U.S. Relations
Bruce Vaughn
Specialist in Asian Affairs
June 16, 2011
Congressional Research Service
7-5700
www.crs.gov
RL31707
CRS Report for Congress
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repared for Members and Committees of Congress
Sri Lanka: Background and U.S. Relations
Summary
This report provides historical, political, and economic background on Sri Lanka and examines
U.S.-Sri Lanka relations and policy concerns. Recent interest in Sri Lanka has focused on human
rights issues related to the final stages of Sri Lanka’s 26-year secessionist civil war between
government forces and the Liberation Tigers of Tamil Eelam (LTTE) with its attendant
humanitarian emergency. A United Nations appointed panel found in April 2011 that allegations
that both the government and the LTTE were responsible for war crimes were credible. The
nation remains deeply divided along ethnic lines despite the end of the war. An ongoing challenge
for the international community is how to assist Sri Lanka to effectively consolidate peace with
the defeated Tamil minority. Sri Lanka’s ethno-national conflict centered on an armed struggle
between majority Buddhist Sinhalese and the LTTE whose base was drawn from the Tamil
minority concentrated in the island’s north and east.
Both the House and the Senate have considered legislation related to the situation in Sri Lanka.
H.R. 440, “To provide for the establishment of the Special Envoy to Promote Religious Freedom
of Religious Minorities in the Near East and South Central Asia,” and H.Res. 177, “Expressing
support for internal rebuilding, resettlement, and reconciliation within Sri Lanka that are
necessary to ensure a lasting peace,” were referred to Subcommittee in March 2011. The Senate
agreed to S.Res. 84, “A resolution expressing support for internal rebuilding, resettlement, and
reconciliation within Sri Lanka that are necessary to ensure a lasting peace,” on March 1, 2011.
The Democratic Socialist Republic of Sri Lanka, an island nation in the Indian Ocean, is a
constitutional democracy with a relatively high level of development. Political, social, and
economic development has, however, been seriously constrained by years of ethnic conflict and
war between the government and the LTTE. Between 1983 and 2009, a separatist war costing at
least 70,000 lives was waged against government forces by the LTTE, a rebel group that sought to
establish a separate state or internal self-rule in the Tamil-dominated areas of the north and east.
The United States designated the LTTE as a Foreign Terrorist Organization in 1997. Open
fighting in this conflict came to a close with the defeat of LTTE field forces and the combat death
of their leader Velupillai Prabhakaran in May 2009. The government continues to face the
challenge of consolidating peace with the Tamil community. Sri Lanka presents the United States
and the international community with several key challenges. Chief among these is how to help
and encourage Sri Lanka to win the peace now that it has won the war against the LTTE.
Sri Lanka offers a test case of how to respond to a brutal military victory over a violent ethno-
nationalist separatist movement. The situation presents decision-makers questions of how to
balance the imperatives of seeking accountability and resolution, providing development
assistance, and promoting broad geopolitical interests. President Rajapaksa has a firm hold on
government and popular support among the Sinhalese majority for his leadership in presiding
over a military victory over the LTTE. But Sri Lanka remains a multi-ethnic society, where long-
held historic grievances have been deepened still further by the conflict’s brutal end. The
government’s reluctance to seriously entertain notions that the Sri Lanka army’s conduct was in
any way suspect at the conclusion of the war raises questions about whether public international
condemnations of what appear to be heinous war crimes can be effective. Some government
officials have offered the view that in such situations quiet diplomacy may actually achieve more
on the ground than public condemnations. Others have argued that the promotion of international
norms of proper conduct in war require international action lest those norms of behavior be
undermined.
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Sri Lanka: Background and U.S. Relations
Contents
Historical Setting ........................................................................................................................ 1
Domestic Politics ........................................................................................................................ 1
Sri Lanka’s Economy .................................................................................................................. 2
Human Rights and War Crimes ................................................................................................... 3
U.S.-Sri Lanka Relations............................................................................................................. 4
Geopolitical Context ................................................................................................................... 5
Sri Lanka Chronology ................................................................................................................. 7
Figures
Figure 1. Map of Sri Lanka ......................................................................................................... 8
Tables
Table 1. Direct U.S. Assistance to Sri Lanka, FY2010-FY2012 ................................................... 5
Contacts
Author Contact Information ........................................................................................................ 9
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Sri Lanka: Background and U.S. Relations
Historical Setting
Once a port of call on ancient maritime trade routes, Sri Lanka is located in the Indian Ocean off
the southeastern tip of India’s Deccan Peninsula. The island nation was settled by successive
waves of migration from India beginning in the 5th century BC. Indo-Aryans from northern India
established Sinhalese Buddhist kingdoms in the central part of the island. Tamil Hindus from
southern India settled in the northeastern coastal areas, establishing a kingdom in the Jaffna
Peninsula. 1 Beginning in the 16th century, Sri Lanka was colonized in succession by the
Portuguese, Dutch, and English, becoming the British crown colony of Ceylon in 1815. In the late
19th century, Tamil laborers were brought from India to work British tea and rubber plantations in
the southern highlands. Known as Indian Tamils, the descendants of these workers currently
comprise approximately 5% of Sri Lanka’s population and are clustered in the south-central “tea
country.” Descendants of earlier Tamil arrivals, known as Sri Lankan or Ceylon Tamils, constitute
up to 13% of the country’s population and live predominantly in the North and East. Moorish and
Malay Muslims (largely Sunni) account for another 8% of the population. The majority of Sri
Lankans (about three-quarters) are ethnic Sinhalese, most of them Buddhist.2 In 1972, Ceylon
was renamed Sri Lanka (“resplendent land”), as it was known in Indian epic literature.
Although Ceylon gained its independence from Britain peacefully in 1948, succeeding decades
were marred by ethic conflict between the country’s Sinhalese majority clustered in the densely
populated South and West, and a largely Hindu Tamil minority living in the northern and eastern
provinces. Following independence, the Tamils—who had attained educational and civil service
predominance under the British—increasingly found themselves discriminated against by the
Sinhalese-dominated government, which made Sinhala the sole official language and gave
preferences to Sinhalese in university admissions and government jobs. The Sinhalese, who had
deeply resented British favoritism toward the Tamils, saw themselves not as the majority,
however, but as a minority in a large Tamil sea that includes approximately 60 million Tamils just
across the Palk Strait in India’s southern state of Tamil Nadu.
Domestic Politics
The Republic of Sri Lanka has a multi-party democratic structure with high levels of political
conflict and violence. The country’s political life long featured a struggle between two broad
umbrella parties—President Mahinda Rajapaksa’s Sri Lanka Freedom Party (SLFP) and the
United National Party (UNP). The president’s United Freedom People’s Alliance (UFPA), of
which the SLFP is the main party, has consolidated power. President Rajapaksa gained
widespread popularity among the Sinhalese majority for ending the war. The SLFP may be
viewed as more Sinhala nationalist and statist.3 There are reportedly concerns among Tamil
politicians that the government intends to maintain a robust military presence in the north and
promote population transfers from the Sinhalese south to historically Tamil areas as a way of
1 Estimates of the size of the Tamil community in Sri Lanka vary. The State Department Background Notes estimates
the community at 18% of the total population while the CIA World Factbook estimates it to be 8.5%.
2 U.S. Department of State, “Background Notes: Sri Lanka,” November 2007, at http://www.state.gov/r/pa/ei/bgn/
5249.htm.
3 David Rampton and Asanga Weilikala, “The Politics of the South,” Asia Foundation Sri Lanka Strategic Conflict
Assessment 2005 Series, 2005, at http://www.asiafoundation.org/pdf/SL_Politics_of_the_South.pdf.
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reducing Tamil nationalism.4 There are indications, however, that the SLFP’s influence may have
reached its high point as rising discontent is reported due to increased costs of living.
Initially, Sri Lanka followed the Westminster
SRI LANKA IN BRIEF
parliamentary model. In 1978, however, the
Population: 21.3 million; growth rate: 0.9% Urban pop.
UNP instituted a strong executive presidential
14% with 1.1% annual increase
system of government. Under this French-
Area: 65,610 sq. km. (slightly larger than West Virginia)
style system, the popularly elected president
Capital: Colombo (est. population of 1.3 million)
has the power to dissolve the 225-member
unicameral parliament and call new elections,
Head of Government: President Mahinda Rajapaksa
(Sri Lankan Freedom Party)
as well as to appoint the prime minister and
cabinet.
Ethnic Groups: Sinhalese 74%; Tamils 18%; Moors 7%
Languages: Sinhala 74%; Tamil 18%; English widely used
President Rajapaksa’s was reelected to second
Religions: Buddhist 69%; Muslim 8%; Hindu 7%;
six-year term in January 2011; the current
Christian 6%; unspecified 10% (2001 census)
parliament was elected in April 2011. The
president’s family plays an important role in
Life Expectancy at Birth: female 77 years; male
73 years
government. The U.S. State Department found
that “both elections were fraught with
Literacy: 90.7%
violations of the election law by all major
Gross Domestic Product: 7.4% growth. per capita
parties and were influenced by the governing
GDP in purchasing power parity $4,900
coalition’s massive use of state resources.”5
Inflation: 6.5%
The ruling UPFA now has a significant
Unemployment: 5.4%
majority in parliament. The leader of the
opposition, General Sarath Fonseka, was
Labor Force: Agriculture 32.7%, industry 26.3%,
arrested following the presidential election
services 41%
and found guilty by court martial of engaging
Exports: Garments, tea, rubber, gems and jewelry,
in political activity while in uniform. As a
refined petroleum, and coconuts
result, he lost his rank and pension. He was
Destination of Exports: U.S. 20.6%, U.K. 12.9%,Italy
also subsequently found guilty of corruption
5.5%, Germany 5.3%, India 4.5%
and was sentenced to 30 months in jail.6 The
next presidential election is scheduled for 2015 and the next parliamentary election is to be held
by 2016. Given the UPFA’s large majority in parliament, it is likely that it will serve out its full
term.
Sri Lanka’s Economy
The left-leaning UPFA government and President Rajapaksa are reportedly mistrustful of calls to
privatize state enterprises, despite having implemented well-received reductions to taxes and
bureaucracy related to investment. Rajapaksa has reportedly identified improving the investment
climate in Sri Lanka as a priority. Large trade deficits and balance of payments remain a concern.
Other presidential economic priorities reportedly include rural and infrastructure development.
Development in war-ravaged Tamil parts of the north and east of the nation could do much to
4 “One Country, Two Nations,” The Economist, November 27, 2010.
5 U.S. Department of State, Bureau of Democracy, Human Rights, and Labor, “2010 Human Rights Report: Sri Lanka,”
April 8, 2011.
6 “World Report Sri Lanka,” Human Rights Watch, http://www.hrw.org
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lessen Tamil grievances. India is Sri Lanka’s largest source of foreign direct investment and
invested an estimated $110 million in 2010. The economy grew by 8% in 2010 and is expected to
grow by 7.4% annually for the period 2011 to 2015.7 Rising costs of living may be driven by a
spike in oil prices and increasing food costs. Floods in January and February 2011 destroyed an
estimated 35% of the country’s rice crop, leading some to speculate about the prospect of
potential future food riots.8
Human Rights and War Crimes
A March 2011 U.N. panel of experts has found credible allegations9 of war crimes by both the
government and the LTTE and recommended the establishment of an independent mechanism to
investigate war crimes in Sri Lanka.10 The report found that most of the casualties in the final
stages of the war were caused by government forces which shelled “no-fire zones” where they
had urged civilians to congregate. The government also reportedly shelled hospitals and food
distribution lines. The LTTE apparently used civilians as human shields and shot civilians trying
to escape being used as a strategic human buffer in the fighting. At one point, 280,000 or more
civilians were trapped in the fighting.11 The government has denied that it killed civilians during
the final stages of the war.12 It also described the U.N. panel of experts as “an unwarranted and
unnecessary interference with a sovereign nation.” Media reports indicate that there is little
prospect that the government of Sri Lanka will hold anyone accountable for war crimes because
of the involvement of top government figures. Sri Lanka established its own Lessons Learnt and
Reconciliation Commission (LLRC), which has been described as lacking credibility or
impartiality. 13
U.N. Secretary General Ban Ki-moon has reportedly taken the position that he alone does not
have the authority to establish an independent mechanism to investigate alleged violations of
international humanitarian and human rights law in Sri Lanka as recommended by the U.N. panel.
Such a mechanism, he argues, would require either the consent of Sri Lanka or an international
body such as the Security Council or the General Assembly.14 The U.N. High Commissioner for
Human Rights has called for a “fully fledged international inquiry” and added that she thought
the panel’s report would shock the international community into finally taking action.15 Sri Lanka
has stated that it does not consider the report an official U.N. report. Sri Lanka is not a member of
the International Criminal Court (ICC). Thus, the Security Council would have to request the ICC
to investigate war crimes in Sri Lanka. Russia and China, as permanent members, have veto
power in the Security Council and are thought to oppose formal Security Council involvement in
the matter.16
7 “Sri Lanka: Country Report,” The Economist Intelligence Unit, May 2011.
8 “Key Political Risks to Watch in Sri Lanka,” Reuters, March 1, 2011.
9 Joe Lauria, “Sri Lanka War Crimes Claims Credible,” The Wall Street Journal, April 26, 2011.
10 Report of the Secretary-General’s Panel of Experts on Accountability in Sri Lanka, March 31, 2011.
11 Joe Lauria, “Sri Lanka War Crimes Claims Credible,” The Wall Street Journal, April 26, 2011.
12 “World Report Sri Lanka,” Human Rights Watch, http://www.hrw.org.
13 “UN Panel on Sri Lanka Delivers Report,” Aljazeera, April 12, 2011.
14 “UN Chief Says Can’t Order Probe into Sri Lanka War,” Reuters, April 25, 2011.
15 Catherine Washington, “War Crimes Inquiry Only Hope of Justice for Victims,” The Times, April 27, 2011.
16 “Sri Lanka Rejects UN War Crimes Report, Calls it Unofficial,” Reuters, April 26, 2011.
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Some have observed that a strong effort by the United Nations and the international community
to force a criminal investigation into war crimes could be counter-productive as it would likely
further bolster Rajapaksa’s popularity on the basis of Sinhalese nationalism. These observers
argue that a focus on building the institutions of civil society and democracy, including freedom
of the press and a more open political process, may have a stronger long-term affect on peace,
stability, and ethnic integration. 17
The 2010 State Department Human Rights report on Sri Lanka issued on April 8, 2011, found
“the government [of Sri Lanka] and its agents” were responsible for “serious human rights
problems” in 2010. These included arbitrary and unlawful killings, disappearances,
discrimination against the Tamil minority, a continuation of a climate of fear among minority
populations, the torture and abuse of detainees by security forces, as well as restrictions of
freedom of the press, assembly and association. It also observed that official corruption with
impunity and a lack of transparency were also serious problems.18
U.S.-Sri Lanka Relations
U.S. policy towards Sri Lanka has historically supported Sri Lanka’s sovereignty and territorial
integrity as well as its democratic institutions and socio-economic development. The United
States has also supported policies that would foster inter-communal harmony and ethnic
reconciliation with the Tamil minority of the country.
Recent U.S.-Sri Lanka relations have centered on human rights abuses committed at the end of
the civil war between Sri Lankan government forces and LTTE fighters. The U.S. Permanent
Representative to the United Nations, Ambassador Susan Rice, welcomed the U.N. Panel of
Experts Report on Sri Lanka and stated that the U.S. supports:
an effective, transparent post-conflict reconciliation process in Sri Lanka that includes
accountability for violations by all parties. The report indicates the need for an independent
and full accounting of the facts in order to ensure that all allegations of abuse are addressed
and impunity for human rights violations is avoided.19
U.S. Assistant Secretary of State for South and Central Asia Robert Blake, who was also
previously U.S Ambassador to Sri Lanka, reportedly stated that the U.S. first looks to host
governments to take responsibility for such issues but that “international mechanisms can become
appropriate in cases where states are either unable or unwilling to meet their obligations.”20
Among other objectives, the U.S. Department of State has described U.S. development assistance
priorities for Sri Lanka as seeking to
increase human and economic security, improve public confidence in local and regional
authorities, promote political reconciliation and land reform, facilitate community
17 “The United Nations and Divided Sri Lanka,” The Wall Street Journal, April 28, 2011.
18 U.S. Department of State, Bureau of Democracy, Human Rights, and Labor, “”2010 Human Rights Report: Sri
Lanka,” April 8, 2011.
19 Ambassador Susan Rice, U.S. Permanent Representative to the United Nations, “Statement on the Release of the UN
Panel of Experts’ Report on Sri Lanka,” New York, April 25, 2011.
20 “US Wants Sri Lanka to Act First on Wartime Rights Violations,” Reuters, May 4, 2011.
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reintegration, uphold military and police professionalism and respect for human rights, and
strengthen the Government of Sri Lanka’s counterterrorism, port and border security, civilian
authority, and demining capabilities.21
Congress has also expressed its views on the situation in Sri Lanka. In December 2010, 17 U.S.
Senators and 30 Representatives called for a international accountability mechanism to
investigate alleged human rights violations by Sri Lanka at the end of the war. 22 Senator Casey
for himself and others submitted S.Res. 84, “Expressing support for internal rebuilding,
resettlement, and reconciliation within Sri Lanka that are necessary to ensure a lasting peace,”
which was considered and agreed to by unanimous consent in the Senate on March 1, 2011.
Congressman Wolf for himself and others submitted H.R. 440, “To provide for the establishment
of the Special Envoy to Promote Religious Freedom of Religious Minorities in the Near East and
South Central Asia,” which was introduced and referred to the Committee on Foreign Affairs,
Subcommittee on Africa, Global Health, and Human Rights, on March 1, 2011.
U.S. foreign assistance for Sri Lanka in 2010 and the FY2012 request for bilateral assistance for
Sri Lanka are outlined in Table 1 below. FY2011 levels of funding on a country by country basis
are as of yet undetermined.
Table 1. Direct U.S. Assistance to Sri Lanka, FY2010-FY2012
(in millions of dollars)
Program or Account
FY2010 (actual)
FY2012 (Req.)
DA 9,900
15,994
Food For Peace Title II
17,822
0
FMF 1,000
500
IMET 731
695
INCLE 0
1,600
NADR 450
3,450
Total
29,903
22,239
Sources: U.S. Departments of State, Congressional Budget Justification for Foreign Operations FY2012, Annex:
Regional Perspectives.
Abbreviations: DA: Development Assistance, FMF: Foreign Military Financing, IMET: International Military
Education and Training, INCLE: International Narcotics Control and Law Enforcement, NADR: Nonproliferation,
Anti-Terrorism, Demining, and Related (mainly humanitarian demining assistance, but includes modest anti-
terrorism assistance to be increased in FY2008), P.L. 480 Title II (grants), Section 416(b) of the Agricultural Act
of 1949, as amended (surplus donations), and Food for Progress. Food aid totals do not include freight costs.
Geopolitical Context
Sri Lanka is situated near strategically important sea lanes that transit the Indian Ocean. These sea
lanes link the energy rich Persian Gulf with the economies of East Asia. The West’s ability to
21 U.S. Department of State, Congressional Budget Justification for Foreign Operations, FY2012, Annex: Regional
Perspectives.
22 “US Lawmakers Urge Sri Lanka Rights Probe,” Agence France Presse, December 17, 2010.
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pressure the Sri Lankan government was viewed as somewhat limited due to China’s growing
involvement in the country.23 China’s aid to Sri Lanka has reportedly increased dramatically since
2005. In the view of some analysts and observers, China is seeking to gain influence with the Sri
Lankan government as part of a “string of pearls” naval strategy to develop port access in the
northern reaches of the Indian Ocean.24 Indian defense planners are reportedly particularly
concerned with Chinese efforts to develop ports in the region.25 India is home to an estimated 60
million Tamil people and New Delhi has raised concerns over the treatment of Tamils in Sri
Lanka. China is reportedly investing significantly in the development of a port in Hambantota, Sri
Lanka, on the country’s southeastern coast. China is also reportedly helping to develop port
facilities in Gwadar, Pakistan; Chittagong, Bangladesh; and Sittwe, Burma.26 Colombo was also
reportedly upset with Western calls for a truce in the lead up to their defeat of the LTTE in May
2009. Rajapaksa stated “They are trying to preach to us about civilians. I tell them to go and see
what they are doing in Iraq and Afghanistan.”27
Sri Lanka will likely be watched closely by the international community for how it handles
human rights and war crimes issues related to the end of the war and for how it handles its
reconciliation with its Tamil minority. The international community may also be increasingly
interested in the role that Sri Lanka may play in the evolving geopolitics of the Indian Ocean
region.
23 Sujan Dutta, “USA, India Engaging with Sri Lanka Amid Growing China Role,” BBC News, March 11, 2009.
24 Michael Richardson, “Full Steam Ahead for Naval Might,” The Straits Times, January 15, 2009.
25 India and China continue to have unresolved border disputes that date back to their 1962 border war, and broader
rivalries over influence in the region.
26 “Chinese Billions Helping Lanka Ward Off Western Peace Efforts,” Asian News International, May 2, 2009.
27 Nicolas Revise, “Bitter With West, Sri Lanka Turns East for Cash and Support,” Agence France Presse, May 3,
2009.
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Sri Lanka Chronology28
5th century BC
Sinhalese emerge as dominant group on Ceylon
3rd century BC
Tamil migration from India begins
1505
Portuguese arrive in Ceylon
1658
Dutch replace Portuguese influence
1796
British influence in Ceylon begins
1815
British begin to bring Tamil laborers from India to Ceylon
1948
Ceylon gains independence
1949
Tamil plantation workers disenfranchised
1958 Anti-Tamil
riots
1971 Sinhalese
Marxist
uprising
1972
Ceylon changes its name to Sri Lanka
1976 LTTE
formed
1983
Separatist civil war begins
1987
Government forces push LTTE back to Jaffna and Indian peacekeeping forces are
deployed to Sri Lanka
1988
Left wing nationalist Sinhalese JVP campaign against Indo-Sri Lankan Agreement
1990
Indian troops leave Sri Lanka as conflict escalates
1991
LTTE responsible for assassination of Indian Prime Minister Rajiv Gandhi
1995-2001 War
escalates
2002
A Norwegian-mediated ceasefire is signed
2004
Karuna leads a split within the LTTE and a tsunami kills 30,000
2005
Then-Prime Minister Mahida Rajapaksa wins presidential election
2006
Fighting between government forces and LTTE resumes
2008
Government pursues military option to end conflict
2009 Kilinochchi falls to government forces as international concern over plight of
civilians grows and the LTTE is defeated
2010
President Rajapaksa wins reelection by a wide margin and his ruling coalition wins a
substantial victory in parliament. The constitution is changed to allow Rajapaksa to
seek an unlimited number of terms as president
28 Much of this chronology is drawn from “Sri Lanka Timeline,” BBC News, http://newsvote.bbc.co.uk.
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Sri Lanka: Background and U.S. Relations
Figure 1. Map of Sri Lanka
Source: Map Resources. Adapted by CRS.
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Author Contact Information
Bruce Vaughn
Specialist in Asian Affairs
bvaughn@crs.loc.gov, 7-3144
Congressional Research Service
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