Former Sri Lankan Presidents Added to Sanctions

Summary#

These final regulations amend the Special Economic Measures (Sri Lanka) Regulations to add two former Sri Lankan presidents, Gotabaya RAJAPAKSA and Mahinda RAJAPAKSA, to Canada’s sanctions list. The additions block certain financial and commercial dealings with them and make them inadmissible to Canada. The measures came into force on the day they were registered (January 6, 2023) and were published in the Gazette on January 18, 2023.

What it does#

• Adds Gotabaya RAJAPAKSA and Mahinda RAJAPAKSA to the schedule of the Special Economic Measures (Sri Lanka) Regulations.
• Prohibits people and entities in Canada, and Canadians abroad, from:
  • dealing in property owned or controlled by a listed person;
  • facilitating transactions related to that property;
  • providing financial or related services connected to those dealings;
  • supplying goods to a listed person or someone acting for them;
  • providing financial services for the benefit of a listed person.
• As a result of being listed, those individuals are treated as inadmissible to Canada under the Immigration and Refugee Protection Act.
• A separate instrument, the Special Economic Measures (Sri Lanka) Permit Authorization Order, lets the Minister of Foreign Affairs issue permits that authorize specific otherwise‑prohibited transactions in limited cases.
• The regulations apply from the day they were registered (January 6, 2023) and, for certain procedural purposes, apply before Gazette publication.

Who's affected#

• The two named individuals: Gotabaya RAJAPAKSA and Mahinda RAJAPAKSA.
• People and companies in Canada, and Canadians abroad, who might have financial or commercial ties with those individuals.
• Banks and other financial institutions in Canada. They must update screening and monitoring to reflect the new listings.
• Businesses or persons who want a permit to carry out a restricted transaction with a listed person.
• Enforcement agencies: the Royal Canadian Mounted Police and the Canada Border Services Agency monitor and enforce the rules.
• The regulations say the newly listed individuals are likely to have limited links with Canada, so major impacts on Canadian businesses are not expected.

Why it matters#

• These listings are a targeted sanction. They aim to increase pressure on Sri Lanka over concerns about human rights and obstruction of justice.
• For everyday people, the practical effects are mostly indirect: banks and firms must screen for these names, and transactions with the listed people are blocked unless a permit is granted.
• There are penalties for knowingly breaking the rules: a summary conviction can lead to a fine of up to $25,000 or imprisonment for up to one year, or both; conviction on indictment can lead to imprisonment for up to five years.
• Canada says targeted sanctions like these have smaller economic side effects than broad trade sanctions, since they focus on specific people rather than an entire country.