Permanent residency is a business deal between two entities: an individual and a state. It has nothing to do with linguistics. There are many Germans permanently living in Vietnam, Thailand and other Southeast Asian countries, who never bothered to even learn how to say Hello, not to mention any certificate or exam...

Most countries will grant PR without requiring a language proficiency. Assuming your immigration status is regular and you are a contributing member of society.

Citizenship? Absolutely, you must speak the language. Residency? Not nearly as common.