RESOLUTION PC 2-1

FORUM: POLITICAL COMMITTEE

QUESTION OF: The Situation in Sri Lanka

SUBMITTED BY: ITALY

CO-SUBMITTERS:Brunei Darussalam, European Union, Estonia, Israel, Netherlands, Saudi Arabia, United States of America.

STATUSPassed (by committee)

THE POLITICAL COMMITTEE

Recognizing that the crisis in Sri Lanka and resulting protests are caused by the Sri Lankam government, which resulted in the resignation of the cabinet members and the former President Gotabaya Rajapaksa, with the crisis being blamed on the corruption of the Rajapaksa family,

Aware that the economic emergency in Sri Lanka caused by improper investments, inflation on necessities, COVID-19 restrictions, and the government’s choice of falling into the “cheap debt market”,

Bearing in mind that currently, Sri Lanka has approximately $7.6 billion of debt against $2 billion in foreign exchange, $1.5 billion of which comes from China in the form of swap agreements,

Highly concerned that about 6.7 million people are not consuming an adequate diet and 5.3 million people are reducing the number of meals partaken during the day while more than 60% of families are eating less, cheaper, and less nutritious food,

Noting that a bailout fund from International Monetary Fund (IMF) was provided to help Sri Lanka to alleviate emergency shortages,

  1. Recommends the provision of security services regulated by multiple countries such as South Korea, Singapore, and the United States to make sure money is directed to the right areas and not into the pockets of governmental figures;
  2. Requests the Sri Lankan government to temporarily cease plans introduced by the former President until the country is able to come into an economically stable situation, through ways such as but not limited to:
    1. raising the ban on chemical fertilizers to increase the food supply within the nation while encouraging the production of organic fertilizers 
    2. putting a pause on any current plans on creating infrastructure and instead asking the nation to generate revenue by concentrating on efforts on managing trade routes that are controlled by the nation to allow the flow of money coming from said trade routes;
  3. Calls upon relevant countries and organizations to provide financial support such as credit lines and grants to Sri Lanka in alleviating the country’s economic crisis, through ways such as but not limited to:
      1. finalizing the bailout deals from the International Monetary Fund (IMF) with terms of political reformation including but not limited to the reformation of the electoral system to ensure democratic and social justice and to avoid economic mismanagement
      2. ensuring that the World Bank and the Multilateral Investment Guarantee Agency (MIGA) encourage more economically developed Member States (MEDCs) to invest directly in Sri Lanka to increase foreign investment;
  4. Strongly urges the Sri Lankan government to restore economic sustainability in ways such as but not limited to:
    1. implementing independent monetary policies through ways such as but not limited to:
    2. stabilizing interest rates and exchange rates to encourage different economic sectors
    3. providing loans to industries and agriculture to raise direct taxes to counteract the damage caused by tax cuts from the previous cabinet
    4. allocating a portion of the financial reserve to the export industries which will attract foreign investments
    5. increasing the transparency of economic policies, which will reduce suspicion;
  5. Advises the Sri Lankan government to decrease their spending on the military by 10% by the year 2030 through ways such as:
    1. advising the government to make military pacts with other countries to prepare for a potential invasion instead of spending money on their own army
    2. asking those who lost jobs in the military to be given one year to find jobs;
  6. Encourages the formation of an environment that expands the private sector and the provision of more and better jobs by actions such as:
    1. microlending
    2. increasing tourism.