Sri Lankan Indigenous Community struggles in the face of the Microfinance Credit Crisis

The Centre for Policy Alternatives (CPA) is a non-partisan, independent organization primarily dedicated to strengthening institutions and building capacity for good governance and conflict transformation in Sri Lanka. The CPA is committed to conducting research and advocacy programs that critically evaluate public policies, identify alternative solutions, and promote an improved political culture and social environment.

The indigenous community, also known as the Vedda community, constitutes a group of citizens in Sri Lanka with a distinct identity and should be treated with dignity, enjoying full entitlement to all rights and privileges. Nevertheless, today, indigenous communities across the island face a multitude of challenges, with the micro-finance credit crisis emerging as a significant concern.

We do not oppose the provision of micro-finance loans and the institutions that offer them; in fact, we view it as a positive opportunity, especially for low-income communities. However, it is evident that citizens who have taken micro-finance loans are facing mounting issues related to informal loan disbursement, recovery, interest rates, and more, compounded by the unregulated nature of these practices, along with questionable and illegal conditions. The Indigenous community is particularly affected due to these situations.

The indigenous community is characterised by its unique linguistic identity. Although they communicate using the ‘Vedi language,’ their written language is Sinhala. Many are not literate in reading or writing in Sinhala. Similarly, Marine Indigenous groups living in Vaharai and Muttur use their own distinct Tamil dialect and are not well-versed in standard Tamil.

Considering these linguistic barriers, the agreements and contracts exchanged between these communities and relevant institutions during micro-finance loan transactions are often in languages they do not understand or comprehend. While a few organisations do issue documents in both Sinhala and Tamil, these indigenous communities still struggle to understand the contents. As a result, they sign these agreements without a full understanding of the content and consequently find themselves entrapped in the legal ramifications.

These communities are primarily located in the Uva, Eastern, and North Central provinces, residing in places like Dambana, Rathugala, Pollebedda, Dalukana, Dimbulagala, Vahari, and Muttur. They have lost their habitats in the forests and have integrated into mainstream society. They are now confronted with various economic, social, and cultural difficulties and complications.

Currently, the regional Vedda Leaders lead by vedda chief Uruwarige Wannila Aththo, have corresponded with the President, and the Governor of the Central Bank, highlighting the severe financial debt problem faced by their community. Their primary request is to provide relief from this debt crisis and to establish a more streamlined system for loan disbursement and collection.

We have attached relevant articles along with a video clip featuring Vedda Chief Uruwarige Wannila Aththo’s position on this issue. We kindly request your assistance in sharing this information through your media institution and promoting a social dialogue aimed at finding solutions to the microcredit crisis confronting the indigenous community in our country.

On behalf of the Indigenous Community

Centre for Policy Alternatives

Download the Press Release in English – Click Here
Download the Press Release in Sinhala – Click Here
Download the Press Release in Tamil – Click Here

 

The Proposed Amendments to the Online Safety Bill

The Centre for Policy Alternatives (CPA) has previously raised concerns with the Online Safety Bill (OSB) and challenged certain clauses in the Supreme Court.1 On the 18th of October, during the hearing on the constitutionality of the OSB,2 the Attorney General’s Department of Sri Lanka produced to the Supreme Court a series of amendments that the Government proposed to move during the Committee Stage when the Bill was to be taken up in Parliament. These “Committee Stage Amendments” would make substantial alterations to the Bill that was gazetted. Several of the amendments also deviate from “the merits and principles” of the originally gazetted OSB and thus, are in contravention of Article 78(3) of the 1978 Constitution of Sri Lanka.3 Subsequently, such substantial change requires the Government of Sri Lanka to withdraw the currently proposed OSB and re-gazette the amended version.

Download the full document in English : Click Here

Download the full document in Sinhala : Click Here

Download the full document in Tamil: Click Here

CPA Challenges the Online Safety Bill (SC/SD 89/2023)

The Centre for Policy Alternatives (CPA) and its Executive Director, Dr. Paikiasothy Saravanamuttu, filed a Petition in the Supreme Court on the 11th of October 2023 challenging the Constitutionality of the Bill titled “Online Safety”. The Bill was Gazetted on the 15th of September 2023, and tabled in Parliament [the first reading of the Bill] on the 3rd of October 2023. CPA has previously commented on this Bill, and urged that the Government withdraws the Bill which is fundamentally flawed and riddled with potential for abuse. 

In its Petition CPA argues that the Bill as a whole violates several articles of the Constitution including entrenched provisions and would thus be required to approved by the people at a referendum in addition to being passed by two thirds of the Members’ of Parliament voting in favour of the Bill. CPA argues that the vague and over broad offences contained in the Bill and the  broad powers of the so called “Online Safety Commission” will have a chilling effect on the exercise of Fundamental Rights by the citizens of Sri Lanka. 

The Petition also challenges various individual aspects of the Online Safety Bill which violate Articles of the Constitution including but not limited to; 

Firstly, the several vague objectives of the Bill including the power of the Online Safety Commission to “protect” people against the damage caused by “alarming or distressing statements”. 

Secondly, the over broad and unconstitutional nature of the listed “prohibited statements” within the Online Safety Bill. 

Thirdly, the arbitrary and unreasonable powers granted to the Online Safety Commission, including the exercise of judicial power which is inconsistent with the Constitution. 

Fourthly, the arbitrary powers granted to the Minister to appoint private individuals as “experts”, who are then given extensive powers, which impact the liberties of citizens and with no accountability. 

CPA also challenges the Online Safety Commission’s ability to make rules and the Minister’s ability to make regulations on ‘Online Safety’ because the Clauses within the Online Safety Bill regarding these abilities lack precision and sufficient criteria.

As such CPA and its Executive Director argue that the Online Safety Bill is inconsistent with Articles 3, 4(c), 10, 12, 14(1)(a),(b),(c),(e),(f), and (g) and 14A(2) of the 1978 Constitution of Sri Lanka and thus cannot be enacted into law, unless it is approved by the People at a Referendum in addition to a two-thirds vote of the whole number of the Members of Parliament. 

To read the Full Statement in English – Click Here

 

 

Land Issues in the Northern and Eastern Provinces in Sri Lanka

Documentaries

Land has been a catalyst for conflict for several decades in Sri Lanka. 15 years after the war, this issue persists particularly in the North and East provinces of Sri Lanka. Recently, archaeology and national heritage have been used as tools to marginalize minorities.15 years after the war this should not continue. Is reconciliation possible in Sri Lanka?

 

Animations

Land has always been a source of conflict in Sri Lanka, particularly in the Northern and Eastern Provinces, where a civil war raged for over 30 years. Various entities still continue to exploit land disputes to create ethnic tensions between communities.
One notable location is Kurunthurmalai, also known as Kurundi Temple in Sinhalese. Interventions by the Archeological Department and the construction of a new Buddhist temple, and discriminatory rules imposed on the Tamil community, barring entry to the site for worship have heightened fears among locals about their rights to land and freedom to practice their religion.
These critical issues continue to impede the reconciliation process in Sri Lanka, even a decade after the conclusion of the war. Such activities raise questions about whether the state is genuinely committed to achieving reconciliation.

In Mannar, Sri Lanka, local communities are sounding the alarm over two major development projects that could devastate their livelihoods and environment. The Sri Lankan Cabinet’s decision to expand wind power stations in partnership with Adani Green Energy Limited has sparked concerns about land destruction and depleted fishing waters. Additionally, unsustainable sand mining activities by private businesses are putting the island’s ecosystem and groundwater reserves at risk. Experts warn that these projects could disrupt migratory bird flight routes and natural habitats, further threatening local species. As mega-scale developments continue, the community fears displacement and a loss of their traditional ways of life.

Photo stories

CPA’s research in the North and East demonstrates accusations against the Department of Archaeology and others of bias towards promoting Buddhist historicity. The continued appropriation of lands belonging to and used by minorities disrupts religious inclusivity and coexistence. This is a series of photos depicting some land conflicts that are being researched by CPA. Further research and insights on these issues are forthcoming.
Watch the Photo story here
The land conflict in the North and the East has multifaceted implications. Previously, CPA looked into several contested sites in the region, where land appropriation had led to grave socio-cultural implications. In this series, we delve in to the socio economic implications of land conflict faced by minority ethnic communities living in the North and East region.

 

Key Cases

 

For over 6 months, Cattle farmers in Mailathamadu have protested against the encroachment of their ancestral grazing land. This dispute highlights challenges of achieving reconciliation and addressing historical grievances in a post-war context. The government’s response has been mixed, deepening Tamil distrust and raising questions about its commitment to genuine reconciliation.

 

32 buddhist temples have been initiated at the Kuchchaveli Divisional Secretariat. Kuchaveli is a majority of Tamil-speaking administrative division in Trincomalee, with the majority of the community being muslims and tamils. 2506.5 acres of private land belonging to Tamils in the the Kuchchaveli region are alleged to have been acquired forcefully for the construction of these 32 Buddhist temples.

 

Vedukkunaari Aathi Lingeswarar Temple has been at the center of controversy during recent times as the Department of Archaeology has claimed it as part of an ancient Buddhist pilgrim site and has banned people from entering the site. This, along with several acts of vandalism, has sparked new concerns regarding post-conflict minority rights in the Northern Province. This can be seen as yet another attempt by the state and its institutions to suppress the cultural rights of people.