Updated January 14, 2022
Sri Lanka
Background and Historical Setting
including efforts to reduce the authority of the executive
The Democratic Socialist Republic of Sri Lanka, known as
presidency.
Ceylon until 1972, is a constitutional democracy in South
Figure 1. Sri Lanka In Brief
Asia with relatively high levels of development. It is
strategically 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 also settled in northeastern coastal areas and
established a kingdom on the Jaffna Peninsula. Beginning
in the 16th century, Sri Lanka was colonized in succession
by the Portuguese, Dutch, and English.
Although Ceylon gained its independence from Britain
peacefully in 1948, succeeding decades were marred by
ethnic conflict between the country’s Sinhalese majority,
clustered in the densely populated South and West, and the
largely Hindu Tamil minority living in the North and East.
Following independence, the Tamils —who had attained
educational and civil service positions under the British—
increasingly faced discrimination from 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
Sirisena’s governing coalition began to fracture after a poor
Tamils, saw themselves not only as the majority in Sri
performance in February 2018 local elections, losing to the
Lanka, but also as a minority in a larger regional context
newly-formed Sri Lanka Podujana Peramuna (SLPP) party,
that includes over 60 million Tamils in southern India.
which capitalized on rising Sinhalese ethnic nationalism. In
late 2018, Sirisena sparked a political crisis when he tried
Civil War and Subsequent Political
unsuccessfully to dismiss then-Prime Minister Ranil
Developments
Wickremesinghe of the opposition United National Party
For 26 years, from 1983 to 2009, Tamil militant separatist
(UNP), and replace him with Mahinda Rajapaksa.
group the Liberation Tigers of Tamil Elam (LTTE) sought
The 2019 and 2020 Elections
to establish a separate state or internal self-rule in the
Tamil-dominated areas of Sri Lanka. Political, social, and
Gotabaya Rajapaksa, brother of former President and
economic development was constrained by the ethnic
current Prime Minis ter Mahinda Rajapaksa, was sworn in
conflict and war between the government and the LTTE,
as president in November 2019. Gotabaya won the election
which cost an estimated 70,000-130,000 lives.
with 52.3% of total votes, while his main political rival,
Sajith Premedasa of the UNP, received 42%. Gotabaya had
After the civil war’s violent end in May 2009, when the
campaigned heavily on a platform of national security,
military crushed LTTE forces and precipitated a
pledging to suppress Islamist extremism. His and his
humanitarian emergency in Sri Lanka’s Tamil-dominated
brother’s key base of support is the Sinhalese Buddhist
north, attention turned to whether the government had the
majority. Most Tamils, who are largely Hindu, as well as
ability and intention to build a stable peace in Sri Lanka.
most Muslims, voted for Gotabaya’s opponent. Former
Former President (2005-2015) and current Prime Minister
Prime Minister Ranil Wickremesinghe of the UNP
Mahinda Rajapaksa faced criticism for an allegedly
announced his resignation following the election. This
insufficient response to reported war crimes by government
move opened the way for Gotabaya to select his brother as
forces, a nepotistic and ethnically-biased government,
prime minister. The Rajapaksas’ political base was further
increasing restrictions on media, and uneven economic
strengthened in 2020 when the SLPP won 145 of 225 seats
development. In the January 2015 presidential election,
in parliament. The SLPP, with its allies, now has over two-
Mahinda was defeated by Maithripala Sirisena.
thirds support in parliament, which gives the Rajapaksas the
Parliamentary elections later in 2015 led to the formation of
supermajority needed to carry out amendments to the
a unity government supportive of Sirisena’s reform agenda,
constitution. In October 2020, Sri Lanka’s parliament
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Sri Lanka
passed an amendment that strengthens the powers of the
to deal with past human rights abuses. An Office of Missing
president and reverses previous reforms.
Persons was established, and a Right to Information law
Observers view Gotabaya’s election as
was passed during Sirisena’s term of office. President
bringing a return to
Gotabaya Rajapaksa has been reluctant to fulfill previous
nepotistic and authoritarian government, and marking a
commitments made to the U.N. Human Rights Council
shift to a national security approach to dealings with the
relating to a transitional justice agenda. Human Rights
Tamil community. For the location of his swearing-in
Watch (HRW) states that “Respect for fundamental human
ceremony, Gotabaya chose a sacred Buddhist shrine in the
rights in Sri Lanka has been in serious jeopardy under the
ancient capital of Anuradhapura. The shrine commemorates
Gotabaya Rajapaksa presidency.... His administration has
the defeat in the second century BC of King Elara, a Tamil
blocked accountability for grave abuses linked to the 26-
Hindu king, by the Buddhist King Dutugemunu, and signals
year civil war.”
a link to ancient Sinhalese civilization. The context for the
2019 presidential election was at least partially set by the
Economics
April 2019 “Easter bombings” that killed over 250 people
Sri Lanka’s economy has suffered during the Coronavirus
at several churches and hotels in Sri Lanka, and highlighted
Disease 2019 (COVID-19) pandemic. Declines in tourism,
security failures of the Sirisena government. As a result,
reduced export earnings, foreign debt payments, and
security was a key theme in the election, which played in
declines in remittances have all had an impact. In January
favor of Gotabaya Rajapaksa, a former Secretary of
2022, foreign reserves were reported to have declined to
Defense who is credited by many Sinhalese with playing a
$1.6 billion, enough for only a few weeks ’ imports, raising
central role in defeating the LTTE in 2009 and ending the
concerns about a sovereign default. Observers believe this
country’s 26-year-long civil war.
will lead Sri Lanka to seek a bailout package from the IMF
later in 2022. President Gotabaya Rajapaksa requested a
U.S.-Sri Lanka Relations
rescheduling of Sri Lanka’s debt to China during Foreign
Historically, U.S. policy toward Sri Lanka has included a
Minister Wang Yi’s visit to Sri Lanka in January 2022. As
focus on supporting Sri Lanka’s democratic institutions,
of April 2021, China reportedly accounted for 10% of Sri
encouraging economic development, and promoting human
Lanka’s $35 billion in foreign debt, though loans to Sri
rights. U.S. policy has also promoted bilateral trade and
Lankan state-owned enterprises and the central bank could
addressed regional geopolitical dynamics. Through foreign
reportedly make this much higher.
aid and diplomacy, the United States has supported
initiatives intended to strengthen governance, democratic
Strategic Setting
reform, rule of law, and human rights in Sri Lanka. The
Sri Lanka is situated near strategically important sea lanes
United States is Sri Lanka’s single-largest market,
that transit the Indian Ocean. These lanes link energy-rich
accounting for approximately 25% of Sri Lankan exports .
Persian Gulf states with the economies of Asia. Maritime
Bilateral military cooperation includes port calls, a
trade is increasingly integrating the Indian and Pacific
partnership to establish a Sri Lankan Marine Corp and a
Oceans’ littoral regions. Sri Lanka and India share close,
National Defense College, exercises, and the donation of
long-standing historical, cultural, and religious ties. India
Coast Guard cutters to the Sri Lankan navy.
became involved in the counter-insurgency war against the
LTTE following the 1987 Indo-Sri Lanka Agreement.
Bilateral relations have encountered obstacles in recent
Between 1987 and 1990, India lost over 1,200 soldiers in
years. The Millennium Challenge Corporation (MCC)
this conflict before then-Indian Prime Minister Rajiv
Compact, which was negotiated with the Sirisena
Gandhi was killed by an LTTE suicide bomber in 1991.
government, approved a five-year $480 million Compact in
More recently, in January 2022, India and Sri Lanka signed
2019 aimed at reducing poverty through economic growth
an agreement to jointly redevelop the Trincomalee oil tank
in Sri Lanka. The MCC board subsequently discontinued
farm and launched an inter-city train service with support
the Compact with Sri Lanka in December 2020 following
from India in line with India’s “Neighborhood First” policy.
the recommendation of a Sri Lankan special committee to
reject the agreement.
As a candidate, Gotabaya Rajapaksa stated he would
“restore relations” with China, which were not as close
The United Nations, Sri Lanka, and
under Sirisena as they were under Mahinda Rajapaksa.
Human Rights
Concern mounted during Mahinda Rajapaksa’s presidency
Sri Lanka co-sponsored a U.N. Human Rights Council
over Sri Lanka’s deepening relationship with China,
resolution on accountability for human rights abuses during
including China’s 2014 naval submarine visit to Sri Lanka.
the Sri Lanka civil war that was adopted by the Council in
Beijing has continued to invest significantly in Sri Lanka’s
October 2015. The resolution followed the September 2015
infrastructure. In 2017, Sri Lanka leased port facilities at
publication of the Report of the U.N. Office of the High
Hambantota to China for 99 years for an estimated $1.1
Commissioner for Human Rights Investigation on Sri
billion. China is working with Sri Lanka to build a $13
Lanka and was viewed by many at the time as a positive
billion Port City project on 660 acres of reclaimed land in
step toward justice in Sri Lanka. Following the adoption of
Colombo’s harbor. China’s activities in Sri Lanka are part
the resolution, however, former President Sirisena backed
of Beijing’s Belt and Road Initiative, aimed in part at
away from supporting any significant involvement of
gaining access to ports in the Indian Ocean to help secure
international judges in a special judicial mechanism to
China’s interests along vital sea lanes. China’s economic
prosecute war crimes. Then-High Commissioner for Human
and investment presence in Sri Lanka is causing continuing
Rights, Zeid Ra’ad Al Hussein, noted steps taken by Sri
concern among some strategic analysts and policymakers in
Lanka, but also called for a transitional justice mechanism
Washington, New Delhi, and other capitals.
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Sri Lanka
IF10213
Bruce Vaughn, Specialist in Asian Affairs
Disclaimer
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https://crsreports.congress.gov | IF10213 · VERSION 15 · UPDATED