Electricity and fuel prices have shot up as Sri Lanka’s economy adjusts to the sudden drop in the value of the rupee after the Central Bank acceded to IMF pressure and abandoned – for now - its long standing policy of artificially propping up the local currency.

Diesel and kerosene prices rose 36 and 49 per cent respectively whilst electricity rates for domestic consumers are to rise by 40 per cent. Bakeries are threatening to increase the price of bread, a staple - especially for the working poor.

In the past two weeks the rupee has lost 5.7 per cent of its value against the US dollar. Consequently the prices of fuel and other imported commodities have risen.

At the same, the Central Bank is finally signalling an end to cheap credit from Sri Lanka’s increasingly state controlled banks – another key demand of the IMF.

Cheap state directed credit was an important factor in fuelling import demand - see our earlier post here.

These changes will hit hard President Mahinda Rajapakse’s support base – namely the middle and lower middle class, urban and rural voters in the Sinhala majority areas.

The UNP is already talking of an anti UPFA alliance with the TNA and JVP. However, economic difficulties may strengthen rather than undermine Rajapakse’s impeccable Sinhala nationalist credentials.

New York based Human Rights Watch have denounced the Sri Lankan Army’s own inquiry into alleged rights violations as a delaying tactic, attempting to ward off international pressure.

“The Sri Lankan army’s announced inquiry appears to be a transparent ploy to deflect a global push for a genuine international investigation, not a sudden inspiration nearly three years after the war,” said Brad Adams, Asia director at Human Rights Watch.

“The program of rehabilitation and on-going detention without charge of surrenderees continues to breed distrust among Tamil populations in the North, and many are still struggling to rebuild their lives after they were severely disrupted by the IDP internment.”

"Upon arriving in the camp she and the other IDPs were placed under close surveillance while the Army questioned people and attempted to screen out LTTE members – she was subjected to a strip search and was forced to go to the bathroom in front of the Army men, as they would not allow the IDPs to leave the presence of the guards even for these private acts. She began crying while telling this part of her story, saying that she felt shame because of this degrading treatment. She said that no matter what the government did now to try to win her trust, she could not give it because of how she was treated in Menik Farm."

"Petty theft and rape of young girls, by both the Army and camp residents, remain problems even now for those still living in Menik Farm, and the current residents expressed concern that life in the camps was destroying their culture and morality. Furthermore, it was reported that when some members of Menik Farm met with workers from an Indian NGO to discuss the camp conditions, the drinking water in the camp was shut off for five days afterwards – with the camp authorities explicitly saying that the water was withheld as punishment for talking to the NGO."

"This internment, particularly the harsh conditions and extreme surveillance, was not justified as necessary to national security, and IDPs who were detained deserve some sort of remedy for this violation of their rights. The government should also be sharply criticized for this policy, and further investigation should be conducted into the IDPs claims that the internment was a cover for maintaining control over the Tamil population. Furthermore, some IDPs are still living in Menik Farm, and their concerns about rape in the camps and the government-created obstacles to resettlement on their lands should be addressed."

"The bright vision painted by the government was a far cry from the reports I heard from people who had gone through rehabilitation."

The European Union Parliament has agreed a resolution to continue to push the UN to establish a commission to investigate crimes committed by all sides during the military conflict in Sri Lanka, as recommended by the Panel of Experts’ report last year.

The resolution, which outlined the EU’s position on the upcoming UNHRC session, also pledged EU support of efforts to strengthen accountability processes on the island.

Tamils in Australia have expressed disappointed and concern at the Australian prime minister's response to LLRC report.

In a statement, the Australasian Federation of Tamil Association (AFTA) said,

"[The statement by Prime Minister Rudd] lacks either the persuasive language or open caution to Sri Lanka for its failure to address alleged violations of international humanitarian and human rights".

The minister of cultural affairs, T.B. Ekanayake, announced that the government intends to amend the Public Performance Act, so that a body, entitled the Public Performance Board (PPB), would in future approve the lyrics and context of songs for public release.

The proposals were made after a young Sinhalese singer, Gayan Perara was accused to distorting a a Buddhist hymn or Gatha, in his latest release, 'Tiken Tika'.

Ven. Mahamega Pagnaratne thera of Sunethra Devi International Buddhist Centre, has reported filed a complaint with the Mirihana police force.

The UN high commissioner for human rights, Navi Pillay, raised concerns regarding the appointment of General Shavendra Silva as sri Lanka's deputy permanent representative to the UN, in a letter to the UN secretary general Ban Ki Moon.

Speaking to journalists after the UN General Assembly meeting on Monday, Pillay said,

"It's a matter of concern,"

"The United Nations has very clear policies on vetting and this is part of the work that my office does.

Reports have emerged of attacks by Sri Lankan security forces on Tamil youths in Vanni.

TamilNet reported on Tuesday that a number of Tamil youngsters were dragged off the street and assaulted in seemingly random attacks in Nedungkeani, in the district of Mullaithivu.

The youths were beaten and stripped naked before being tortured in a nearby canal.

Local residents are reported to have shut themselves inside their homes in fear of the Sri Lankan security forces, while the youths’ screams could be heard.

The United States will support a resolution pushing Sri Lanka to address accountability issues at the UN Human Rights Council session next month.

The resolution would be asking for the same ‘internal mechanism’ that the UN panel of experts recommended nearly one year ago.

Under Secretary of State for South and Central Asia Robert Blake responded to reporters in Colombo when he was asked if the US would support a resolution.