The International Monetary Fund has rejected a US$4 billion bailout for Sri Lanka and instead urged the country to restrict its intervention in foreign exchange markets.

Sri Lanka's finance minister Ravi Karunanayake travelled to Washington last month, where he sought “international goodwill” for the bailout, hoping to secure more than US$4 billion to finance the “restructuring” of debt.

However the proposal has been rejected by the IMF.

SriLankan Airlines increased its losses by 24% in 2014 reports ColomboPage, with the company losing Rs. 32.4 billion last year.

In annual reports submitted to parliament, the government owned company stated that mandatory aircraft modifications and an increase in finance expenses led to the loss, up from Rs. 26.1 billion in 2013.

Sri Lanka’s Investment Promotion Minister threatened legal action against a state-owned Chinese firm if it failed to halt construction on the Chinese funded ‘Port City’ project in Colombo.

The minister, Kabir Hashim told Reuters that construction work ought to be halted whilst an investigation into the project was underway. However, construction work on the project has accelerated since the new government came into office in January reported Reuters.

"Rightfully, they should stop," said Mr Hashim. "The ministry of ports will take necessary action to halt the work until this inquiry is done."

If construction, currently being carried out by the China Communications Construction Co Ltd (CCCC), was not stopped, "legal action will be instituted against them to not proceed any further," warned the minister.

In a statement delivered to the 28th session of the UN Human Rights Council, Danish Foreign Minister Martin Lindegaard highlighted victims of human rights abuses from around the world, including Sri Lanka.

See excerpts below:

"For a moment in January, we were all Charlie in solidarity with the victims of a horrific crime in Paris. A month later the world showed solidarity with the victims of a similar attack in Copenhagen,

"In the same spirit, the many hours of hectic work that lie before this Council in the coming weeks must be done in solidarity with - and with a constant focus on - the victims of human rights violations all around the world,

South Africa's Minister of International Relations Maite Nkoana-Mashabane, speaking at the Human Rights Council on Tuesday, said only the people of Sri Lanka can determine their destiny, with the support of the international community.

"We are encouraged by the recent developments in Sri Lanka and recognise that it is only the people of Sri Lanka that can determine their destiny. The international community should stand ready to support them," she said.

The High Commissioner for Human Rights Zeid Al Hussain said the deferral of the report was a "singular opportunity" for the government of Sri Lanka to lay foundations for justice and lasting peace.

Speaking during the presentation of his annual report, the high commissioner urged Sri Lanka to consult with victims when designing mechanisms, and not repeat failures of the past.

Mr Hussain repeated his reason for deferring the OISL report to September, saying it was based on his "assessment of the changing context in Sri Lanka, the broad signals of cooperation I have received from the Government, and the possibility that new information will become available for the report."

Several countries have reaffirmed their commitment to the OHCHR Investigation on Sri Lankan and its discussion in September, during the interactive debate on High Commissioner Zeid Al Hussain's annual report on Thursday at the UN Human Rights Council in Geneva.

After Sri Lanka was mentioned by several countries and NGOs, the high commissioner in his concluding remarks explained how the decision to defer the OISL report was only taken after "careful and deep consultation" and reiterated the report would be released in September.

The US said it hopes to see evidence of the Sri Lankan government's action on human rights, reconciliation and accountability when the UNHRC looks at the OISL report in September.

Pasumai Thaayagam, an NGO based in India, called on the UN Human Rights Council and the High Commissioner for Human Rights Zeid Al Hussain ensure the months up to September are used to release a stronger and more comprehensive OISL report, while holding Sri Lanka to account to address immediate human rights concerns.

The NGO urged the Council to place pressure on Sri Lanka to take meaningful action on the release of human rights defenders, highlighting Ms Jayakumari, and demilitarisation of the North-East.

See full statement below:

Pasumai Thaayagam congratulates the High Commissioner on his appointment and welcomes his report. We take this opportunity to express our deep gratitude to both Mr Zeid Raad al Hussain, and the former High Commissioner, Madam Navi Pillay, for their important and dedicated work towards the OHCHR Investigation on Sri Lanka.