Shenali D Waduge

There are increased calls to return to the 19^th amendment, little do they know the confusions & contradictions that prevails an amendment presented as an Urgent Bill & passed given little or no time for the People to make their observations or for counsels to study, though the most alarming part was the incongruencies in what was submitted to Parliament differing to what was presented to the Supreme Court to determine. These inconsistencies hardly boast of anything great about 19^th amendment for Sri Lanka to return to it without making changes.

19^th amendment dealt with

• Executive Presidency / powers/Immunity
• Qualifications & term limits
• Dissolution of Parliament
• Returned the Independent Commissions under the Constitutional Council
• Members to Cabinet
• Right to Information

Executive Presidency / Prime Minister

• Age limit to contest – 35 years
• Unlimited Presidential term removed – Re-introducing term limit to hold office as President from unlimited (18^tha) to 2 terms
• Dual Citizens could not contest [Clause 20(4) of the 19th Amendment, Article 91(1)(d)(xiii) of the Constitution]
• President could not remove Prime Minister – only Parliament.
• President has to take advice of PM when appointing & removing Cabinet Ministers/Non Cabinet & Deputy Ministers [Clause 9 of the 19th Amendment, Article 43(2), 44(1), 45(1) and 46(3)(a) of the Constitution]
• The President may chose to consult the PM in appointment/changes/removals to Cabinet/Non-Cabinet & Deputy Ministers [Clause 9 of the 19th Amendment, Article 43(1), 44(2) of the Constitution]
• The President may at any time change subjects/functions of cabinet/non Cabinet Ministers & composition of Cabinet [Clause 9 of the 19th Amendment, Article 43(3), 44(3) of the Constitution] – this is a contradictory clause
• President cannot dissolve Parliament at his discretion as earlier. President can dissolve Parliament only if 2/3 MPs pass resolution requesting dissolution or after 4 ½ years [Clause 17 of the 19th Amendment, Article 70(1) of the Constitution] 
• Presidential Immunity removed – President is now subject to FR jurisdiction in Supreme Court. [Clause 7 of the 19th Amendment, Article 35 of the Constitution]
• Removes provision for President to submit to the People by referendum any Bill (not a constitutional amendment) rejected by Parliament. [Clause 19 of the 19th Amendment, by repealing what was previously Article 85(2) of the Constitution].
• Removal of President assigning himself any subject/function not assigned to a Cabinet Minister [Clause 9 of the 19th Amendment, by repealing amongst other provisions, what was previously Article 44(2) of the Constitution].

Parliament/Prime Minister

• No dual citizen can become a MP (Article 92b)
• Reducing Parliament term from 6 to 5 years [Clause 15 of the 19th Amendment, Article 62(2) of the Constitution]
• Cabinet & Non-Cabinet Ministers shall not exceed 30 & Deputy Ministers & those not members of Cabinet shall not exceed 40 [Clause 9 of the 19th Amendment, Article 46(1) of the Constitution]However a ‘government of national unity’ allows Cabinet Ministers to 45 and non-Cabinet & Deputy Ministers to 55. This provision will no longer only apply to the next Parliament. [Clause 9 of the 19th Amendment, Article 46(4) and (5) of the Constitution] 
• Removes provision for government to pass legislation via Urgent Bills” where President could refer any Bill certified by Cabinet as urgent in the national interest” to Supreme Court directly & SC determined the Constitutionality of the Bill within 24rs to 72hrs depending on instructions of the President. [Clause 30 of the 19th Amendment, by repealing what was previously Article 122 of the Constitution]
• A Bill has to be made available to public (gazetted) & given 14 days before it is placed on the order paper of Parliament [Clause 18 of the 19th Amendment, Article 78(1) of the Constitution] – previously people had only 7 days
• It was clear from the 19a – that the clauses took into consideration the President in power & the Legislature that was formed via national government & a PM appointed immediately after the election of the President. Legality of appointing a PM immediately after a Presidential election, while the incumbent PM had not resigned or had been sacked remains questionable.

Constitutional Council

• 7 Members of Parliament & 3 eminent persons. PM, Speaker & Opposition Leader are permanent while President appoints 1 and PM appoints 2 and other member appointed by rest of Parliament. The 3 eminent persons should not be members of a political party & are chosen by the PM & Opposition Leader & their nominations approved by Parliament. Term of 3 years (CC will continue even if Parliament gets dissolved)
• Constitutional Council will require to approve nominees of President for Chief Justice/Judges of Supreme Court/President & Judges of the Court of Appeal/Members of Judicial Service Commission/Attorney General/Auditor General/IGP/Ombudsman/Secretary General Parliament [Clause 8 of the 19th Amendment, Article 41C (1) of the Constitution]  – criteria not given
• 5 Constitutional Council members must be present. Recommendations, Approvals & Decisions must have support of 5 members. [Clause 8 of the 19th Amendment, Article 41E (3) of the Constitution],   Chairman has no vote but only if there is equal vote – confusion as 5 members required for quorum and chairman doesn’t vote except for equal vote & in such a scenario, Chairman will be voting always.
• Decisions, approvals & recommendations by Constitutional Council cannot be challenged in Court of Law by FR [Clause 8 of the 19th Amendment, Article 41I of the Constitution] 
• Article 41 of 19a – CC is immune from any legal action by any Court & no person nor institution can question decisions of the CC. Where is the democracy in this?
• Articles 41B and 41C of 19a – CC has to formulate rules on criteria for appointments which has not been done & made public. Why couldn’t selection criteria be given to the CC & the CC could have asked opinion from the Public & based on this the nominations could have been sent to the President.
• CC can reject the nominee of the President without valid reasons & President can keep sending names & this can become a virtual circus.

Independent Commissions

• Re-introduced – Election/Public Service/National Police/Human Rights/Commission to Investigate Allegations of Bribery & Corruption/Finance/Delimitation/National Procurement/Audit appointed by President only on recommendation of the Constitutional Council [Clause 8 of the 19th Amendment, Article 41B (1) of the Constitution] – Govt has virtual no say
• Election Commission on approval of the Constitutional Council can appoint Commissioner General of Elections [Clause 24 of the 19th Amendment, Article 104E(1) of the Constitution] 
• Election Commission can prevent a political party in government from using State resources including state broadcasters for their election campaign [Clause 23 of the 19th Amendment, Article 104B(4) and (5) of the Constitution] 
• Election Commission on approval of the Constitutional Council can appoint Commissioner General of Elections [Clause 24 of the 19th Amendment, Article 104E(1) of the Constitution] 
• All Commissions except Elections Commission is responsible & answerable to Parliament (Article 41 (b) (6) but Article 104B (3) says Election Commission is ‘responsible & answerable’ to Parliament. But, role of Election Commission vis a vis Parliament is not given & no Standing Orders.

How independent” are the Independent Commissions? 

• The Election Commission has just 3 members. But elections to Provincial Councils were postponed for 2 years by this Commission. When the President sacked the PM on 29 October 2018, a member of the Election Commission (Ratnajeevan Hoole) petitioned Supreme Court against holding elections. How unbiased” was this act by an independent” Commission member.
• The pandemic was used as an excuse to not conduct general elections due on 25 April 2020.

Right to Information

• Right to Access Information as provided for by law. (Clause 2 of the 19th Amendment, Article 14A of the Constitution) – contents of that Bill has not even been publicized and ridicules the nature of the people called Right to Information!

19a is full of misinterpretations & ambiguities.

19a says President may not hold a portfolio – how can this be when the President is Head of the Govt, head of Cabinet & Armed Forces & Defense?

As Head of Cabinet, the President is a Cabinet member.

The voters give executive powers to the President & voters also voted\ MPs to Parliament. Subjects and their powers are decided by the President.

President appoints all Ministers.

So what was the purpose of 19a to include President ‘may not’ hold a portfolio?

19a & Police Commission 

19a prevented the termination of the IGP for his gross neglect of duty during the Easter Sunday massacres. The only solution was to send him on compulsory leave & appoint a deputy IGP.

19a prevents democracy (will of the people) by placing restrictions to the dissolution of Parliament (not until 4 ½ years of a 5 term govt) What was the logic behind this?

The President cannot dissolve Parliament & call for fresh elections especially during times that a Government is not functioning to people’s requirements. It was why the then PM’s party not only lost the people’s mandate but he could not even secure 10,000 votes.

19a usurped democracy

19a aspired to curb the Executive Powers given by the People to the President claiming it would provide good governance. This did not happen.

The Supreme Court judgement on the 13^th amendment clearly establishes that to abolish the Executive Presidency while keeping Provincial Councils would mean a Federal Sri Lanka unless Executive Presidency is abolished together with the Provincial Councils. If the PCs are to remain then the Executive Presidency must continue. If the Executive Presidency is to be abolished so too must Provincial Councils.

Hidden objectives of the 19a (did not bring better democracy or good governance)

• Creating notion that Executive President’s powers were cause for Sri Lanka’s problems
• Making people not object to the Executive Powers spread to multiple institutions
• Putting unelectable persons to exercise executive powers (also proved a failure)
• Prevent those previously in power from returning to power
• Fantasy of the greatness of 19a resulted in ignoring security & economy

The reality is that for harmony of governance the President & PM has to be on the same page.

19a in reality weakened the Executive Powers by scattering it making governance impossible unless coordinated with the PM. 19a has made institutions under the President & PM redundant in the absence of cooperation.

19a weakened Sri Lanka.

Conflict between President & PM – Declare War & Fight

Article 30 of the Constitution makes President the Head of the State, Head of the Executive & the Government, Commander in Chief of the Armed Forces & has the right to declare war & peace.

Section 51 of 19a says ONLY the current President will hold the Ministry of Defense. That means though Article 30 says the President is Commander in Chief of the Armed Forces, he would not be able to hold a specific Ministry including that of the Ministry of Defense. So we have a situation where the President can declare war but he needs the support of the Defense Minister to fight the war & the Defense Minister has to be appointed on the recommendation of the PM. Yet the PM cannot direct the Defense Minister to fight a war as the President is the one who has to declare war as he is Commander-in-Chief.

Article 33a (2) attempts to slyly transfer power from President to PM removing the President’s prerogative under Article 154 and 154L to dissolve a provincial council/Parliament take over powers of the Provincial Council – it enables a step closer to the current speeded up efforts to declare a separate state

19a – Conflict between President & PM – appointment of Ministers

Article 43(2) of 19a President can only appoint Ministers from among Members of Parliament on advice of PM. As per this article, President is not a MP and thus unable to hold a Ministry.

While Article 30 (1) says President is the Head of State, Head of Executive, Head of Government, Commander in Chief of Armed Forces,

Article 42 (3) says PM shall be Head of the Cabinet.

Maithripala Sirisena held 3 ministries – Defense, Mahaweli Development & Environment. But these portfolios needed to have the concurrence of the PM but as per 19a – this provision was only applicable to Maithripala Sirisena. How can you have a constitutional amendment applicable for 1 President only?

If the PM was Head of the Cabinet – how can the President attend it?

President has to seek opinion of PM to appoint specific Ministers, but

Article 46(1) of 19a allows him to decide on the number of Ministers with restrictions

Article 43(1) of 19a allows him to decide subjects & functions of Ministers

Article 43(3) of 19a allows him to change functions, subjects & composition of the Cabinet without approval of PM – this means the President can keep changing Cabinet Ministers as he likes.

Article 50(a) of 19a allows President to appoint all Secretaries to Ministries

Article 42(3) of 19a President is a member of the Cabinet & Head of the Cabinet. Though he is a member & head of Cabinet, the President cannot hold a Ministry but he has to hold Cabinet meetings!

Article 33(2) of 19a – President makes Policy Statement of the Government in Parliament. What if the President is from a different party to the party holding majority in Government which means the PM should be making the policy statement though President is Head of State. What if the President & PM disagree on the policy – the President has the powers to keep on changing & appointing Secretaries of his choice & Ministers would have to work with these Secretaries.

Article 35(1) of 19a – President’s Immunity 

Only where FR of PM or other person is violated & PM can petition SC and only if SC feels that the President has violated FR of the PM or some person, the AG is directed to rectify.

Where lies the conflict? The PM decides who should be Minister but the subjects & functions of these Ministers are decided by the President as well as the Secretaries assigned to the Ministries.

The situation leaves scope for conflict between the President & PM unless they cooperate.

While the powers of the  President is curbed by 19a – he remains answerable to Parliament (Section 6 of 19a) in exercising, performing, discharging his duties including public security.

The Executive President is answerable to Parliament but Parliament is not answerable to anyone & PM is not subject to any sort of review. 19a does not provide any limitation to the PM’s powers.

19a & Supreme Court

Article 80(3) imposes a ban on Supreme Court from reviewing a law after it has been passed and no court or tribunal can inquire into it,

19^th amendment to the Constitution was presented as an Urgent Bill & rushed into enactment. There was no public debate. What was presented to Parliament was not the Bill presented to the Supreme Court. 18 petitions were filed based on the Bill presented to Parliament. There were amendments to the amendments with little time for the Counsels to study them before making their submissions. Though public had to be privy to the Bill to make their deliberations within a week as per Article 121, they did not have the latest version to do so. This was a FR violation of the People’s rights. Article 122, gives Supreme Court 24 to 72 hours depending on the President’s decision (Urgent Bill). If Article 121 is applied, Court can take up to 3 weeks to make their deliberations & Bill cannot be taken in Parliament until the determination (Regular Bill). However, 19a was scheduled for debate on April 9 & 10, 2015 – 19a was rushed through Parliament as an Urgent Bill.

19^th A was passed no different to how 13^th A was passed. The Supreme Court  was divided in the case of 13^th a – with Chief Justice Sarvananda  & 3 judges upheld the 13^th A while 5 judges claimed it contravened Article 2 of the Constitution. When Judge Palinda Ranasinghe impugned certain provisions, the AG Shiva Pasupathi made the amendments to the Bill to make it consistent with the Constitution & it was hastily passed. 13^th A remains a problem.

Article 2 of 19^th amendment attempts to replace Article 4 (b) of the current Constitution which provides the President executive powers of the People including defense. This has to be read alongside Article 33A of 19^th a which claims the President must act on advice of the PM or a Minister authorized by the PM. Thus though 19a says through Article 2(b) that executive powers are with the President, in reality it is negated by Article 33 A (2) and (3) which gives executive powers to the PM and not to the President.

This is a violation of the legal maxim ‘delegatus non potest delegare’ which in other words means delegated power cannot be delegated (thus the President cannot delegate powers given to him to the PM) – ‘shall’ is used as a mandatory requirement for the President in the 19^th amendment (Articles 33A (2) and (3) reduces the President to a mere puppet in the hands of the PM and questions the duplicity in including a clause that says the President exercises the People’s power.

19a began as a concept paper which says President shall act on advice of the PM, some party leaders objected & it was removed from gazette presented to Parliament but was present in draft sent to the Supreme Court.

People must be aware of the contradictions & confusions of the 19a – while 20a dual citizenship must be removed, returning to 19a without dealing with the contradictions is not the solution.

Shenali D Waduge

KAMALIKA PIERIS

 JR meddled in the transport sector. Ceylon Transport Board had been set up on 1 January 1958, during MEP rule. At its peak, it was the largest omnibus company in the world – with about 7,000 buses and over 50,000 employees.

The government of J.R. Jayewardene was intent on destroying what was now a popular symbol of efficient state enterprise, said       Wikipedia. By Law No. 19 of 1978, the CTB was broken up into Regional Transport Boards (RTBs). Sri Lanka Central Transport Board (SLCTB) was established, but it had no connection to the RTBs.

The partially constructed new CBS building, which had been built with funds generated by the CTB, was handed over to the Urban Development Authority. The Employees’ Councils were scrapped. A large amount of money was spent repainting the buses green.

Further, the change of government in 1977 saw the looting of CTB assets in broad daylight. Buses in running condition were condemned as unusable and sold to backers of the ruling United National Party at low prices. Some of them may still be seen on the roads, three decades later.

Jayewardene also re-introduced private buses running with route licenses. Most private bus owners had political backing and the buses were driven in a careless manner. Passengers faced with a state transport system now on the verge of collapse, had no option but to travel on them.

When J.R. Jayewardene became President of Sri Lanka, it was decided that Air Ceylon was beyond repair and a new airline would be formed with the help of Singapore Airlines. Air Lanka was formed as a fully state owned GCEC company. Principal owners were the government (60%), two national banks and the Ceylon Shipping Corp. (40%), with initial capitalization set at $15.7 million. The airline came under the direct purview of the Head of State.

JR’s grand idea of a national airline just because Singapore had an iconic national carrier, was copycat economics at its worst. We needed a solid base for our economy before we needed a fancy airline, said critics.

Lee Kuan Yew, Prime Minister of Singapore when requested by JR agreed to provide assistance and expertise from Singapore Airlines for a new airline. Lee Kuan Yew had this to say about the venture.

Lee Kuan Yew said, Singapore Airlines employed a good Sri Lankan captain. Would I release him? Of course, but how could an airline pilot run an airline? He wanted Singapore Airlines to help. We did. I advised him that an airline should not be his priority because it required too many talented and good administrators to get an airline off the ground when he needed them for irrigation, agriculture, housing, industrial promotion and development, and so many other projects.

An airline was a glamour project, not of great value for developing Sri Lanka. But he insisted. So we helped him launch it in six months, seconding 80 of Singapore Airlines’ staff for periods from three months to two years, helping them through our worldwide sales representation, setting up overseas offices, training staff, developing training centers and so on. But there was no sound top management. When the pilot, now Chairman of the new airline, decided to buy two second-hand aircraft against our advice, we decided to withdraw. Faced with a five-fold expansion of capacity, negative cash flow, lack of trained staff, unreliable services and insufficient passengers, it was bound to fail. And it did, conclude Lee Kuan Yew.

There was a benefit to Singapore Airlines. SIA’s 747s could not fly nonstop to Europe. The advantage of the partnership for SIA was the right to operate eastwards and westwards through Colombo. Air Lanka at this point had a wide regional and international network, and even made a modest operational profit. Also, Indian passengers could come to Sri Lanka to buy luxury goods rather than going to Singapore.

Air Lanka was the first airline to fly the Airbus A340 in Southeast Asia. The airline was making an operational profit, but was hobbled by debt servicing resulting from commercial borrowings. In 1998 Air Lanka was re-branded as SriLankan Airlines . It was partially privatized,  there was a partnership with Dubai-based Emirates Group. 

 Air Lanka/ SriLankan Airlines  faced tremendous political interference. The government insisted on being involved in all major and most minor decisions of the airline. Decisions were often based on political rather than commercial considerations, said Rajeewa Jayaweera.The work visa of the CEO Sri Lankan Airlines, appointed by Emirates, was revoked and he  was asked to leave the country because he did not do as the government said.

Appointments of Chairmen and Directors to the board of SriLankan Airlines was based on personal relationships, friendships, school ties and as a form of rewarding political loyalists. Expertise in specific fields, experience in corporate governance and what they could contribute to the airline is not the criterion.

Even the few Directors appointed from the country’s blue chip companies prefer  to lie low for fear of the companies they represent being penalized by the majority shareholder for not doing its bidding.

The 13 to 15 Chairmen appointed during the airline’s 37 years, up to 2016,  consisted  of an Airline Pilot, Civil Servants, a Retired General, Chairmen of Blue Chip companies, a Secretary to the Head of State, a Lawyer, a Secretary to the Treasury, and  a Planter, said Rajeewa Jayaweera.  Then came an owner of an Apparel Exporting company, who contributed little other than carry out instructions from the  government . (Continued)

ජයන්ත හේරත් 

Martin Luther King

දක්ෂම කථිකයා ය.

I Have A Dream ය.

කොසොල් රජුට

Dreams 16 ක්

තිබුනේය.

දියව් දියව්

ආපහු දියව්

දමව් දමව්

හිරේ දමව්

ගොල් පීස් Dream රැල්ල

ස්විස් බැංකුව ඉදිරියටත්

පැතිරිණි.

ස්විස් කොල්ලෝ කෙල්ලෝ

සමග එක්ව

සිංහල දෙමල මුස්ලිම්

කොල්ලෝ කෙල්ලෝද

අරාබි, අප්රිකානු,

යුක්රේනියානු, රුසියානු,

ඇමෙරිකානු, චීන

මෙකි නොකී සියලු රටවල

කොල්ලෝ කෙල්ලෝ

සමග එක් වී

කෑ ගසමින් ඉල්ලන්නේ

දියව් දියව්

ආපහු දියව්

දමව් දමව්

හිරේ දමව්

කිසිම ජාතිවාදයක්,

ආගම් භේදයක්

කුල වාදයක්

නැතිව 

ලංකාවේ ගෝල් පීසයෙන්

පටන් ගත් ජන

Dream රැල්ල

ලොව කෙතරම් සීග්රයෙන් පැතිරී

ජනප්රිය විද කියතොත්,

වතිකානු සහ අරාබි පල්ලිවල සල්ලි

ඉන්දියාවේ තිරුපති යනාදී කෝවිල්වලත්

ලංකාවේ පන්සල් දේවාලවල

තිබුන රත්රන්වලින්

මුළු ලොවෙන්ම පැමිණි ජන ගඟට

දවසේ පැය 24ම

කෑම බීම

ඉඳුම් හිටුම්

නොමිලයේ බෙදෙයි.

ස්විස් බැංකු ලොක්කෝ

බියවී වෙව්ලා 

නිදහසට කාරණා ලෙස 

තමන් ලඟට කළු සල්ලි ගෙන ආ

දේශපාලුවන්ගේ නම් හෙළි කර

ඔවුන්ගේ ගිණුම් වල ඇති සියලු වත්කම්

නැවත

ඒ දුප්පත් රටවල මහ බැංකු වලට

ඉක්මනින් හරවා

යවන

සිස්ටම් චේන්ජ් එක

වහාම හදයි.

ලෝකයේ සිටින අනිත්

කළු සල්ලි

සුදු කරණ

බැංකු ලොක්කෝද 

වෙව්ලා

සිස්ටම් චේන්ජ් එක

කරයි.

සියලුම ගසා කෑ

දුප්පත් රටවල

දේශපාලකයන්

ලෝකේ මොන බලවතාට

ගොට්ට ඇල්ලුවද නැද්ද යන්න

අදාළ නැත,

ස්විස් බැංකු වල

හෙළි කිරීමත් සමග

එම නඩු

ජාත්යන්තර අධිකරණයේ

අවුරුද්දක් ඇතුලත

ලයිව් ටි වී

එකේ අසා

උන් ඔක්කොම

ජීවිතාන්තය දක්වා 

හිරේ යවයි.

කළු සල්ලි

කොමිස්

මින් පසු

මේ බැංකු මගින් හෙළි කරන නිසා,

ලෝක මහ බලවතුන්

වහාම උන්ගේ ආයුධ

හදන කොම්පැනි වලටත්

දුප්පත් රටවල ඉඩම් කොල්ලයටත්

බෙහෙත් කොම්පැණි වල

අධික

ලාභ ලබන සේල්ස් වලටත්

සෞඛ්ය ඉන්ශුවර්න්ස් කොම්පැණි වල

අධික ලාභ වලටත් 

තිත තියයි.

දුප්පත් රටවල

හුදී කොල්ලෝ කෙල්ලන්ගේ

අත මිට

සාධාරණයෙන්

හම්බ කල සල්ලි වලින්

සරු වී

ඉතා සතුටින්

මාල දිවයින් සහ ඩුබායි ගොස්

ජල පෙළහර පායි.

ඔල්වරසන් නාද

ප්රිතිඝෝෂා

පවත්වා 

මාව උඩ දමයි.

මා උඩ විසි වී

බිම වැටී

ඇහැරෙයි.

අහෝ

මා ගේ Dream එක

කුඩු පට්ටම් ය …!

By Shivanthi Ranasinghe Courtesy Ceylon Today

In record time Sri Lanka’s most beloved Presidential candidate had become Sri Lanka’s most hated President. This transformation took place despite being one of the few world leaders who had successfully managed the Covid-19 pandemic. Those who congregate in the streets today with placards of ‘Go Gota Go’ forget that they are able to assemble without a second thought because of President Gotabaya Rajapaksa’s timely response to the pandemic. 

When the pandemic hit the island in March 2020, we did not have the kind of economy that could afford a lockdown. Yet, after much debate and consultations with both health and finance experts we entered our first lockdown. Pakistan refused to lockdown their country for they feared that such a move would impoverish the poor even more and that would kill more than the virus itself. 

Conversely Sri Lanka appointed a number of task forces that ensured ‘essentials’ such as food and medicine reached every household, economically challenged were supported and those suffering from various mental duress’s such as alcoholism, depression and other disorders were looked after. 

Countries with stronger economies like India forced the State sector to accept a reduced pay. Sri Lankan Government servants received their full salary despite the country losing almost all its forex revenue with the main avenues directly affected by the pandemic. For the import dependent nation, this is the equivalent of being unemployed, that is we were basically a country without an income. 

The third lockdown was definitely one we could not afford. In fact, the Cabinet decision too was to ride the wave than shut down the country yet again. However, when a section of the Government, that included Cabinet Ministers, pressed the President for the third lockdown, he complied that same day. Addressing the Nation, President Gotabaya spelled out the gravity of the situation and warned that we may all have to make sacrifices in the near future. 

Our vaccination programme was better than even the vaccine producing countries. With the West hoarding the vaccines without sharing, certain countries were unable to obtain even one anti-Covid vaccine vial. Yet, notwithstanding the difficult relations the Gotabaya Administration has with the West Sri Lanka managed to fully vaccinate her population, which includes the booster shot as well. 

Today, these magnanimous services count for nought. It is not only the youth, who do not know any better, that are agitating for the President to leave Office. Their call is directly or indirectly supported by illustrious religious and social leaders. Even business tycoon Dilith Jayaweera, who was very close to the President as a personal friend and as such worked tirelessly for the campaign, has taken cudgels against the President. 

Roadblocks and Pitfalls to Stumble President 

Almost from day one, there were elements hell-bent on making President Gotabaya’s journey a difficult if not impossible one. The ‘Sir Fail’ project began even before he became the president. 

1) The Ailing Economy

President Gotabaya inherited a trade deficit of USD 56 billion. Out of this, 37 per cent was International Sovereign Bonds (ISB). The Mahinda Rajapaksa Administration had borrowed USD 5 billion, most of which were already repaid. From foreign countries less than USD 10 billion had been borrowed as capital borrowing for development purposes. The Yahapalana Government had taken USD 12.5 billion to cover the trade deficit wrought on by daily expenses than development projects. 

The problem with ISB is that it is not issued by multilateral organisations as ADB, IMF, WORLD BANK or bilateral loans from countries as China or India. Instead, ISB are from equity and capital funds from private organisations around the world. As such, it is very difficult to restructure such loans. In essence these are short term loans – maximum five year period. At the end of the period the full loan has to be settled. 

These bonds are now maturing and Sri Lanka must pay. Last year we settled a one billion USD bill just as we were entering the third lockdown. This year we have already paid six billion USD. Another one billion USD is about to mature in few months time. 

The careful plans with which President Gotabaya entered Office to strengthen the ailing economy went awry due to the unanticipated pandemic. The Easter Attack in 2019 from which we lost most of our tourism revenue also did not help the situation. The loss of income due to the pandemic and the maturing ISB in quick succession is making a hard job harder for the Government to resolve and get the economy back on track. 

2) The Swiss Drama

The Swiss Embassy attempted to frame the newly elected President into a kidnapping case. Though that project failed miserably the vibe was clear: by hook or crook, the West will discredit Gotabaya Rajapaksa. 

3) The Boisterous Trade Unions

The Covid vaccine is the world’s only hope to return to any sense of normalcy. When the vaccination programme was satisfactorily underway the health sector embarked on trade union (TU) action. Undeterred the vaccination program was handed over to the military, who proved to be far more systematic, efficient and humane than the health sector. 

Throwing a spanner into the smooth resolving of the pandemic, the principals and teachers took to the streets demanding the Government to address the salary anomalies that have been festering for the past quarter century. This proved to be a serious setback with increase in Covid infected and related deaths. Consequently, the lockdown period too was extended. This had a debilitating effect on the economy. 

Surprisingly, President Gotabaya tolerated these TU actions. Furthermore, he caved into the demands and agreed to settle the anomalies that worked out to a whopping 

Rs 30,000 million. This ill timed decision at a juncture when the country’s finances were in dire straits created a cash crunch that directly affected the other State sectors. 

President Gotabaya’s boy scout-like actions neither helped the country nor soothed the TU. Instead, this emboldened them further. Today, all hues of organised protests are taking place across the country without fear or reservation. When protesters gathered in front of his residence on 31 March evening, he did not allow the Police to use force to disperse the crowds until they began subterfuge activities such as setting buses on fire and vandalising public property. 

The Wrong Turns in the President’s Road Map

One might presume that President Gotabaya’s unravelling was his ill timed and grossly mismanaged organic fertiliser programme. This however, was not the genesis of the catastrophe. This whole mess began on the eve of President Gotabaya’s presidency. Unbeknown to all his ardent supporters, who were busy celebrating his victory, a darker force had already taken control of the presidency. 

It cannot be stated with certainty whether Basil Rajapaksa is actually the ‘ugly American’ with a self serving agenda to sell the country to the US, as claimed by former Cabinet Minister Wimal Weerawansa. Of course the manner the dots and its sequence get connected supports Weerawansa’s accusations. These charges get further cemented by the sheer silence maintained by both the President and his media. 

However, the fact remains that Basil Rajapaksa is at odds with President’s core team. As the leader, President Gotabaya should have been more sensitive to the tensions between his most loyal supporters and his younger brother. As such, he ought to have kept them separate. 

Instead, he allowed Basil Rajapaksa to select his team from private secretary onwards. This team too does not get along with President’s supporters. The Government rebel team led by Udaya Gammanpila, Wimal Weerawansa and Vasudeva Nanayakkara did not crop up overnight. From the beginning they were harassed by Basil Rajapaksa’s team. When the fuel prices first increased Sagara Kariyawasam – a Basil Rajapaksa loyalist – tried to pin the blame on Gammanpila. 

At the same time, they found certain proposals favoured by the President as the 20th Amendment to the Constitution, East Container Terminal to India and the Yugadanavi Power Plant Project unacceptable. The nationalists too disagreed with these projects. By and by, President Gotabaya began to heed the advice of those installed by Basil Rajapaksa over the wise counsel by the team that had already proven their loyalty to him. 

The President’s official team either do not know or care about the President’s image. The President’s special address to the nation clearly demonstrated this fact. The omission of President’s signature I am proud of my country, I love my country,” was very ominous. The purpose of the speech was to announce his decision to seek assistance from the IMF. 

The IMF is not favoured by many 

Sri Lankans for the austerity measures and structural reforms the organisation insists upon to receive its continuous support. Therefore, these concerns ought to have been addressed by the President sensitively and sensibly. 

Instead, the President appoints Indrajith Coomaraswamy as an adviser in the Presidential Advisory Group on Multilateral Engagement and Debt Sustainability. Coomaraswamy as the Yahapalana Government’s Central Bank Governor is largely responsible for the debt that is throttling the country. Therefore, President’s confidence in a man who was part of the problem to resolve the issue is questionable. 

There is no discernible reason for the President to make such an appointment. He has the backing of Viyathmaga – the largest think tank of professionals. State Minister Dr. Nalaka Godahewa is one such personality. He played a pivotal role to expose the Central Bank bond scams that took place in 2015 and 2016. 

Treasury bonds are a complex subject. In fact, the Yahapalana Government PM Ranil Wickremesinghe was confident that the general public would not know the difference between the treasury bond and James Bond. However, the former Securities Exchange Commission Chairman, under whose leadership the stock market grew in leaps and bounds, explained the complexities of the scam in easy to understand and digest format. 

Bypassing such personalities for those who created the current economic woes has severely discredited the President. Those who supported the President on principle find it difficult to stand by him with people like Coomaraswamy at his side. 

The President, who took timely action to negate the Swiss drama and the pandemic, has been surprisingly lethargic on the financial front. When Ajith Cabraal replaced Dr. Lakshman as the Central Bank Governor, he made a presentation to the Cabinet on 20.10.2020. He predicted the economic disaster that we are facing today and presented a six-month roadmap to address these issues. 

Though the Cabinet approved this plan, as the Finance Minister, Basil Rajapaksa simply sat on it. Eventually, Cabraal had informed the Cabinet that despite nine requests to meet the Finance Minister, he had not received an appointment. The Opposition too complained that the Finance Minister had not attended Parliament for three months. Those who supported the President loyally are bitter that their repeated warnings and friendly advice were callously and arrogantly disregarded by the President. 

President Gotabaya was elected to power to instil discipline in the country. His refusal to discipline his younger brother and allowing his brother’s team to push away his own team, has left the President very much alone today. Cardinal Ranjith’s angst against the Government is also because of the manner he had been snubbed over the Easter Attack inquiry. 

The President is not without supporters. However, he has not made an attempt to reach out to them. Instead, he is turning in circles trying to link with the TNA and the Tamil Diaspora. The olive branch he eventually offered to the Government rebel group comes too late. The rebel team too have lost control of the situation as the hyped up protests organised by invisible forces have laid the country vulnerable to an Arab Spring like operation. 

ranasingheshivanthi@gmail.com

Article jointly by

Sarath Wijesinghe President’s Counsel and former Ambassador to UAE and Israel President Ambassador’s Forum and

Jeff Goonawardena – former Counsel General in LA  -Managing director Tilanka Group of Hotels (International)-Joint Secretary Ambassador’s Forum.

Sri Lanka a most popular tourist destination

For centuries, Sri Lanka has been a popular place of attraction for foreign travellers, for various reasons. It is a world renowned destination for historical and archaeological significance, Buddhism linked with culture and historical sites of significance, natural beauty with forests plants and wild life of most rare species of world heritage sites and monuments, beautiful waterfalls and the network of rivers and historical water tanks spring from the beautiful hill country namely little England akin to climate and beautiful sceneries  in England, varied climatic condition within hours in the developed network of roads reminding of the roads in Wales an Ireland  are only a  few attractions in addition to smiles of the ever friendly villager with a broad smile always. It has the all qualification to be the best and the last destination on tourism for a tourist searching for many requirements such as greenery, beauty, best sandy glittering clean beaches with shallow sea/ river ( ‘Polhena’,  ‘Galle’, ‘Arugam bay’ and many more) Dry zone with hot windy weather with beaches and wild life with number of wildlife sanctuaries, Up country named small England and reminds of Wales and Scotland where the network of rivers spring with the number of beautiful nonstop water falls around the hill country. Places archaeological significance are in abundance with proof of reminders in various eras and dynasties of Kings from King Asoka onwards coming down to the last king who was forced to surrender in 1796. Sea is rough round the island with shallow and at times bit rough for surfing and ferocious streams for raft playing. Tea Estates which are commercial plants are beautiful with nice sceneries ideal tourist destination to see and enjoy as holiday homes which are not exploited by the tourism sector. Hot water wells and North and East are attractive to the tourist and tourism also not properly exploited. Sri Lanka could and should make tourism the main income earner as she has every ingredients to be the best destination using the natural resources beauty and all other conditions favourable to be a paradise for tourists.

Many visited and spoke of Sri Lanka for generations

Chinese traveller ‘Fa-Hian’ – Buddhist monk visited Sri Lanka as early as 410s AD and in the 12^th contrary with a group of other minks and stayed in Sri Lanka on a study mission where he made many noted on Sri Lanka and Buddhism. Italian explorer Marko Polo claimed Sri Lanka to be the best destination for tourists and tourism. In 2015 Sri Lankan capital Colombo was the world’s fasted growing tourist city in the world. Many have written on Sri Lanka which is known to the world as a best destination and continue to be and it is our duty to maintain and enhance learning from mistakes and the world tends of tourism.

Well documented

Sri Lanka and tourism is well known and well documented, lonely planet selecting as the best destination on the globe for tourism, despite adverse comments and clarifications required to eradicate misinformation Sri Lanka on steps taken to wipe off  the most fearful and dangerous terrorist outfit for ever, thereafter introducing law and order, peace, creating a haven for tourists and tourism with comparatively reasonable consumer items and excellent network of hotels and restaurants and guest houses to cater all strata of tourists. Success of tourism depends on the attitude of the people and the nation as a whole on the rest of the world now linked so close on modern technology. It is our duty to make use of the modern trends for the documentation process of tourism promotions.

We are still lagging behind

When compared to our other competing destinations with less glamour beauty and resources, we are still lagging behind due to various reasons we are able to take corrective measures and improve on. For example the UAE with less natural beauty resources and ingredients for tourism, she is a leading world tourist destination and a Hub in the Middle East attracting a large influx of tourists. Fortunately they have oil explored in 1960 which they vey wisely invested using the geographical situation creating a Naval, Air and Business Hub linked to tourism providing facilities but with meagre natural beauty and resources as ours. Same is mentioned in many other destinations flourishing in successful tourism. It is time for us to learn from mistakes, others, and our own experiences to aim to be the best global destination with a new vision, plan and vigour fighting the challenges of corona and world downward trends on draw backs on economy and other issues against forward trends. We have to learn a lot on small Singapore doing so well in trade and tourism using all resources in the tiny land using all modern ethnics and technics. Any visitor is furnished with all necessary information including the way of life consumer items places of interest and protective measures, which carries a long way to make them in of the best tourist attractions linked to trace and business.

Must draw up a new plan of action

We must draw up a new plan and a strategy considering, the challenges, drawbacks and the future needs exploiting our resources and competence as a group to promote tourism to lift it to the 21^st century as it is going to be our future and future hopes to promote tourism we have been gifted with our own free resources when other destinations are compelled to create artificial environments and needs for tourists and tourism. It is not only the hotels and other facilities that are needed to attract tourists to a country. We as hosts will have to look into and after all the needs of the visitors to their liking from the time the visitor plans to find a destination. It is essential on our part to publicise our destination to the best based on the modern digital age. Our publicity is on some standard and the internet and the media is fairly well equipped requiring final touches and fine tuning to face the digital age. Let us draw up a modern publicity platform with innovative novelties giving all the details in modern and attractive novel way. We must develop a tourism regime like the employment programme in Philippine where 30% population is overseas in employment where the country has planned the population for future employment worldwide. In the same way we have to train and develop our talents on tourism and transform the system to adopt to new trends of tourism without disturbing our culture, way of life and outlook which is a tourist attraction. Singapore is taking attempts to create artificial waterfalls and greenery due to the geographical situation when Sri Lanka is so fortunate to possess the best natural and gifted environments. Our young is well mannered friendly and educated lacking knowledge of English the Philippine young has bypassed us leading the employment and tourism sector worldwide. It is time for us to learn from other and our mistakes and weaknesses.

Situation in the country is not so satisfactory

Situation of the country should be to the liking and satisfaction of the visitor who has chosen the destination for some reason of is choice. It could be media, publicity, culture, religion, scenery and beauty of the country and many more one or more reasons. We must have proper and trained tour assistances who will identify the needs and cater the needs to the satisfaction till the end of the tour and thereafter to narrate the good news to the word over. Tour guide is to be trained, pleasant, knowledgeable honest and registered guided and supervised by the tourist authorities and the tourist police which is set up for safetyman confidence. Tourist schools to be streamlined monitored and have full supervision from the government and the tourist ministry based on the criteria adopted by other competing nations. The state must give special emphasis and attention on the law and order situation in the country to give protection and confidence to the visiting friends we are bound protect and look after. Media must be careful on reporting the matters regarding tourists and tourism always considering the good name and good will of the country and the reputation of Sri Lanka and world over. Law and order must be streamlined and given priority to give a sense of protection to everybody including the visitors, depending the security forces and the citizens for their protection.

Resources of countries

Many countries have own resources of income for them based on natural resources, ability of the citizen, or sources of income with always tourism is given prominence as a main or a subsidiary income of the nation. For example our friendly nation Israel is an agricultural country as a leader on agriculture and an innovative nation with leaders on modern technology, fighting with neighbours right round yet promoting and giving tourism top priority as an income generating process. Tourist arrive as it is a historical country with historical background, the country has exploited careful to promote the nation as a tourist destination. This is only an example many other countries worldwide promoting their countries tourism as a main or a subsidiary income. Israel is concerned and careful of their safety and safety of the visitors in addition to providing the services as hosts of the tourists. We are in a learning process rom others whilst improving ourselves.

Needs of/for tourists

Let us consider the needs and requirements of a tourist visited to our country, having spent a substantial sum. It could be to see the beauty such as water falls as described in broachers, to visit the sites of historical significance having heard from books or libraries, enjoy the beautiful beaches seen in books and images connected to swimming, surfing, fishing, or whale watching, learn on Buddhism and seeing the historical temples such as the temple of tooth, or any other one or more reasons known to himself and the group. Majority of tourists plan out the visit either by himself or a tour agent finding the most wanted and loved attractions of their choice and liking. Finding a reliable tour agent, places of stay, travel advice on sites, security, and the budgeting are main feathers of planning making arrangements on the explorations. There are so many areas and aspects to be looked into such as medical conditions of the hosts and their needs, making preliminary arrangements of sightseeing on meeting people making prior appointments, are list of issues to be looked into. We need genuine tourists who are not parasites such as some who visit to exploit the goodwill of the people and sometime engaged in illegal trades. The state must be careful in monitoring tourist influx and it is a good idea to maintain proper and detailed records.

Safe and friendly environment

Hosts expects a safe and friendly environment from the arrival and the officers including immigration, airlines, and support staff should be with a smiling face and ever prepared to assist in all the areas of need. Broachers should be in English and preferable in many other languages in detail educating the hosts on the visiting country, culture, way of life, and places of interest in detail. In Singapore the brother consists of basic laws including consumer law and procedure, all details on health and precautionary measures, I n detail in simple language and the guidance and procedure is so simple with friendly nature of the staff in the visiting country. In Sri Lanka the visiting friends are troubled by taxi drivers, touts and many others pleading and pressurising them with requests, demands in the guise of assistance discouraging the visiting tourists at the entry with fear physics and sense of danger and uncomfortable feeling which has to be avoided in the name of tourism and goodwill of the country. There are horrifying stores of taxi drivers harassing foreign and Sri Lankan passengers on return, with no proper remedy despite many unpleasant and dangerous incidents published on the media often gives drastic effects to the industry and the image of the country  appear to  be simple but complicate in terms of reputation and goodwill of the country. These are not unknown to the administration which has been given a blind eye for reasons one cannot understand other than sheer ignorance inefficiency and bad management. The environment has to be please clean attractive and orderly. Is it so in the Airport? In the eye of a frequent traveller entering the airport with lot of hopes and pleasant feelings. Advertisements and notices must be meaningful understanding and attractive. Some time ago there a massive notice giving the exhibiting fine for an offence shown to the visitors among whose there may or may not be a rare traveller when the message could have been transmitted in a more gentle way.

Duty of the host country

It is the duty of the host country to look into all aspects of the visitor in detail whoever is the invitee and the guardian or the guide as the host country is expected to supervise the professional work expected to be performed by the private or the state sector, as the blame always on the host country for mismanagement. There should be a separate tourist police and officers for the safety of the visitors, who are in the hands and custody of the local staff never mind who they are with. In many other tourist countries the tourist police seems to be active and do not seem function in Sri Lanka at all. These are not matters something new to the industry, but the blame is on leaders of industry who are responsible, and if they cannot perform they must honourable leave leaving a more efficient person to manage.

Consumer Items

Standards of Consumer items food and restaurants and hotels the visitors used must be of the highest quality or if this cannot be maintained we must give up tourist trade as failures. Tourist heads must agree with the Consumer Authority, Standards Bureau, Local Authorities, Public health Inspectors, and all chains of hotels and restaurants  countrywide to give  healthy food at a price may be difference of prices to visitors with a more strong buying power prepared to pay more. Implementation of these regulations will help even the local citizens awaiting the law and order to be implemented. Campaign against junk food, cola and unhygienic drinks, and generally junk food available mostly in leading sophisticated food chains must be monitored protecting visitors and locals equally in terms of long term prevention and protection health of all is a paramount necessity especially when we are in the most dangerous era on Covid-19 Pandemic leading the nation and the world nowhere with o hopes or an end in the near future and living on hopes, but the fact remains that we have to live with it for an unknown unlimited period and we must get ready to love with it with necessary adaptations and adjustments.

Environment disasters

It is sad we are destructive and destroy our environment on sand mining, deforestation, in many other ways in small an large scale sometimes with patronage from the errant government servants in the parole of the perpetrators’ on destroying our environment. For us to be on top in tourism we must give priority to environment but informational it is not given priority like in other countries which is sad to note. How could we prosper when our forest is destroyed and sand mining is taking place at a terrible rate destroying our river banks and damaging the forests on high lands which is the source of water?

Live with Covid 19

We have to live with covid 19 for an unknown period and it is time to get used to and learn with it giving priority to tourism as well as our income is say by day declining. The situation in the world including the world powers and our immediate neighbour  India and the counties are day by day declining with increase of deaths and number of patients to the highest  levels uncontrolled by all measure as sadly shown on the TV images in India with the warning to Sri Lanka to be careful reaching us across boarders and via other media such as cargo, import export and the movement of human with no order and restrictions as seen on the images and warnings by the security forces ever struggling with the unruly bombs disobeying the basic instructions so easy to follow.

Religion, Culture, crafts and such traditional trades and arts

Sri Lanka is full of cultural, religious places and full of traditional learnings will be an attractive and a productive areas in promotion of tourism and promotion of traditional skills especially in rural areas. ‘’Tovil’’ (devil dancing) and traditional plays are well known to the world and there is a demand and need to learn the process by cultural groups worldwide linked to tourism. Religious tourism will have a main roll on sightseeing of religious places of worship and learning the religion Buddhism being the most fast spreading religion in Europe and many parts of the world.

The Law and Procedure on Tourism

Tourist board act no 10 of 1966, and tourist development act no 14 of 1968 are followed by the act no 38 of 2005 in force is to be amended in due course with current proposals. Do we need change of law and whether change of law will improve tourism are matters to be considered by the Minister in charge and the governance considering tourism is going to be the main source of income and the image building we are desperately in need of. Following entities are set up under the current legislature for the management of the tourist industry. SLTDA Sri Lanka Tourism Development Authority SLITHM Sri Lanka Institute of tourism and hotel management, SLTPB SLCB Sri Lanka tourism Promotion Bureau SLCB Sri Lanka Convention Bureau

Each Bodies would have a- A chairman b-director general c-Manager Director/Chief Executive Board Members and Private Sector and government representatives.

Tourism Development Fund will consist of 1/3 of airport embark

Let levies collected from the industry with voluntary payments too and the income be dispersed among four institutions. Fourteen years of existence of the act has not shown improvements and there are opinions of duplication of matters among the institutions, and there are fears that the act is not properly implemented with the feeling that the private secrtor participation is minimal. There are improvements which are minimal such as increase of 24,451 rooms of 5.6 billion investments with 6% GDP of the country.

Embassies international community and tourism

Sri Lankan Embassies are the forerunners of the nation and it is the duty of the Ambassadors and staff to take charge of tourism along with the developments based on economic diplomacy which other countries have given priority to. Every embassy must have a tourist desk and all other sectors should come under the preview of the Ambassador as the representative of the President and the nation. Needless to say it is the duty of the Ambassador’s forum to help the process and the nation in all sectors.

Way forward

Where have we gone wrong/ and what should be our way out to emerge victorious on tourism with which we can go forward to the highest echelons in the world economy. Let us be frank and realistic in life. We have gone wrong badly in strategy, management, and absence of proper way forward full of corruption and inefficiency considering inefficiency is corruption in that of the tourist leadership feels they have failed it is the duty of the head or heads to vacate forthwith to avoid being called corrupt and incompetence. In the competing world with many competitors in the world reminding us of the adage that we are not the only beautiful girl on the beach. Thailand, Vietnam, UAE, Israel, are some who have bypassed us with less or no resources and beauty that we possess. These statements may not be palatable but the truth is to be said for the betterment of all and the nation. Israel has no resources except the human resources. We have resources not second to any other nation in the globe which we have not exploited. UAE is sandy baron land using desert for sand safari. Vietnam and Israel make use the tragedies’   they have undergone to attract tourists. Nepal uses Himalaya, Bhutan religion and simplicity, India vast places of interest, Maldives shallow sea, Israel places of historical and religious significance, UK the developments and historical aspects including the Royals, France ‘’Ifal Tower’’ and places of historical significance, and Sri Lanka – What haven’t we got to show the world of tourism?. It is sheer incompetence, lack of innovativeness, lack of strategies, planning and exploration. The words may not be palatable but may be productive and useful in the long run for the betterment of the nation. If wrong please correct and suggest a proper way out. Author could be contacted on sarath28dw@gmail.com and 0094777880166 active in UK.

Apolitics

1) WILL HE BE ABLE TO MAKE CBSL AN INDEPENDENT BODY SERVING THE COUNTRY?

DID NOT HE SAY SOMETHING LIKE THIS IN RECENT INTERVIEWS?

LET SEE?

THE ANSWERS TO ABOVE QUESTIONS DEPEND ON HIS ABILITY TO EXECUTE THE FOLLOWING?

2) HE HAS TO FIND OUT ALL THE WAYS OF SPENDING OR WASTING DOLLARS IN SRI LANKA.

3) CREATE A PRIORITY LIST TO SPEND DOLLARS AVAILABLE IN THE COUNTRY.

AND THEN USE WHATEVER AVAILABLE ACCORDING TO THE LIST. WITHOUT DOING THIS JUST TIGHTENING MONETARY POLICIES ALONE WILL NOT DO.

 WHEN YOU TRY TO DO THESE YOU WILL UNDERSTAND HOW POLITICIANS OR OTHER INTERESTED PARTIES INTERVENE IN YOUR JOB?

4) SOME GUIDE LINE IN PREPARING YOUR PRIORITY LIST

I) IMPORTING  MILK POWDER FOR LITTLE ONES ALONG WITH ESSENTIAL FOOD STUFF SHOULD BE GIVEN TOP PRIORITY.

II) IMPORTING DIESEL SHOULD BE GIVEN MUCH HIGHER PRIORITY THAN PETROL.

I WILL MENTION SOME FACTS FOR YOU TO EXPLAIN TO POLITICIANS WHO ARE LIKELY TO DISTURB YOUR DUTY.

TEA PRODUCTION HAS STOPPED.

TOURISM AND ALL RELATED SERVICES DEPEND ON DIESEL THAN PETROL.

FACTORIES ARE NOT FUNCTIONING THE WAT THEY USED TO. BECAUSE OF POWER CUTS.

PUBLIC TRANSPORT ( MAJORITY OF WORKERS USE PUBLIC TRANSPORT) USE DIESEL THAN PETROL.

III) IMPORTING VEHICLE SHOULD BE GIVEN LEAST PRIORITY. SENDING SRI LANKAN FOR EDUCATIONS ABROAD SHOULD BE STOPPED. SENDING DOLLARS FOR THOSE ALREADY STUDYING ABROAD SHOULD BE STOPPED. THEY SHOULD BE ASKED TO COME BACK TO SRI LANKA AND CONTINUE THEIR EDUCATION ONLINE. YOU CAN EASILY SAVE A FEW BILLIONS OF DOLLARS A YEAR, IF YOU IMPLEMENT THIS.

I DO NOT THINK YOU OR GOVERNMENT HAVE MANY OTHER OPTIONS. IT IS NOT LIKE IN THE PAST. I MEAN, DOING SOMETHING TO BUY TIME TO DO SOMETHING IRRELEVANT OR INEFFECTIVE. PEOPLE ARE ALREADY ON STREETS PROTESTING AGAINST THE GOVERNMENT.

YOU HAVE TO HIRE COMPUTER PROFESSIONALS TO CHECK AND PREVENT DOLLAR OUTFLOW FROM BANKS SPECIALLY FOR THINGS MENTIONED IN (III). DO NOT ASK HELP OF POLICE OR INTELLIGENCE SERVICES IN THIS CASE AS THEY ARE THE ONES BEHIND THIS OUTFLOW.

SOME PEOPLE SAY INTELLIGENCE OFFICERS LOG INTO CUSTOMERS ACCOUNTS AT MIDNIGHT. NARCOTICS DEALERS WHO ARE WILLING TO PAY BACK WITH HIGH IBTEREST LIKE 200%  ARE SAID TO BE AMONG THE RECIPIENTS OF SUCH DOLLARS..

YOU HAVE FIND OUT WHICH INTELLIGENCE OFFICERS LOG INTO BANK CUSTOMERS ACCOUNTS FOR THESE AND SPECIALLY WHO AUTHORIZE SUCH ILLEGAL ACCESS OF DOLLARS IN BANKS. SRI LANKAN WORKING DO NOT SEND THEIR MONEY LIKE EARLY BECAUSE THEY ARE AWARE OF THE SITUATION. INVESTORS ARE ALSO AWARE OF THE SITUATION.

5) WE SURELY CANNOT AFFORD TO PAY ANYBODY ( WHETHER PROFESSIONAL OR

OTHERWISE) IN DOLLARS AT THE MOMENT. UNFORTUNATELY SOME ARE BEING PAID.

FOR THE CBSL GOVERNOR DR. NANDALAL WEERASINGHA’S INFORMATIONS I WOULD MENTION A FEW EXAMPLES HERE.

a) SRI LANKAN CRICKET COACH IS A FOREIGNER. THERE ARE PLENTY OF GOOD CRICKETERS AND EXPERIENCED PROFESSIONALS IN SRI LANKA WHO CAN TAKE HIS PLACE.

THE REASON FOR HUGE PAYMENT TO THIS FOREIGNER IS NOT HIS ABILITY, IT IS BECAUSE A GOOD PERCENTAGE OF HIS SALARY IS GIFTED TO SOME SRI LANKAN NATIONALS. IT HAS BEING GOING ON FOR VERY LONG TIME. TODAY WE CANNOT HAVE IT ANYMORE.

b)  THERE ARE A LARGE NO OF FOREIGNERS RECEIVING PAYMENTS FROM DEFENSE MINISTRY. IF YOU CHECK THEIR EDUCATIONAL BACKGROUND MAJORITY OF THEM ARE NOT QUALIFIED. SOME OF THEM ARE CALLED DEFENSE CONSULTANT. BUT MOST OF THEM ARE SCHOOL DROPOUT IN FOREIGN COUNTRIES. YET THEY MANAGE TO RECEIVE THEIR PAYMENTS BECAUSE SOME INFLUENTIAL SRI LANKANS GET HUGH KICK BACKS.

BELIEVE ME, SOME OF THOSE FOREIGNERS ARE ENGAGED IN BLOODY USELESS THINGS.

DO THINGS TO SATISFY LOW CLASS MENTALITIES OF HENCHMEN OF SOME POLITICIANS. AND FAR BEYOND SCOPE OF INTELLIGENCE OFFICERS OR DEFENSE MINISTRY. FOR EXAMPLE, FIXING CAMERAS ILLEGALLY ( SOMETIMES EVEN IN GIRLS ROOMS) AND THROWING PARTIES WHILE WATCHING THROUGH THEM. THERE ARE MORE SERIOUS ONES. I WRITE ABOUT THEM LATER.

I KNOW YOU REJECT MY SUGGESTIONS AT ONCE HERE. BUT IF YOU REALLY LOVE THIS COUNTRY THERE ARE THINGS YOU CAN DO IN THIS REGARD. FOR EXAMPLE YOU CAN APPROACH HIS EMINENCE CARDINAL MALCOME RANJITH PEIRIS AND OTHER  FATHERS OF CHURCHES AND EXPLAIN TO THEM THAT , TO PREVENT CARNAGE LIKE EASTER SUNDAY ATTACK IN FUTURE, THEY MUST DO SOMETHING TO PREVENT THESE PAYMENTS.

IN FACT THEY MUST DO SOMETHING TO MAKE DEFENSE MINISTRY SECRET FUNDS AUDIT-ABLE. THERE SHOULD NOT BE ANY UN-AUDITED FUNDS IN A DEMOCRATIC COUNTRY LIKE SRI LANKA. MAIN REASON, SUCH FUNDS ARE BEING USED BY CRIMINALS (ALTHOUGH THEY HAVE DIFFERENT PROFESSIONAL TAGS ATTACHED).

YOU HAVE TO TAKE INITIATIVE AS PATRIOTIC CITIZEN, EVEN IF THIS ACTION IS NOT WITHIN YOUR JOB SCOPE. OTHERWISE SRI LANKAN CITIZENS MONEY WILL BE USED TO ATTACK SRI LANKANS.

c) I AM SURE THERE ARE SRI LANKANS CAPABLE OF DOING THE JOBS OF FOREIGNERS EMPLOYED HERE. WE SURELY ARE NOT IN A POSITION TO PAY THOSE FOREIGNERS IN DOLLARS ANY MORE.

THE MYTH THAT WE NEED SUCH FOREIGNERS ( THAT THEY ARE THE ONLY PERSONS CAPABLE OF DOING SUCH JOB ) HAVE BEEN CREATED BY PERSONS WHO RECEIVE HUGH KICK BACK.

WE MAY HAVE TO CHANGE REGULATION TO REPLACE SUCH PERSON WITH A GROUP OF PROFESSIONALS (SRI LANKANS, I MEAN).

I TELL YOU A GOOD EXAMPLE. WE CAN HAND OVER THE JOB OF CEO (

FOREIGNER) OF AIR LANKA TO A GROUP OF SRI LANKAN PROFESSIONALS. IF THERE ARE OCCASIONS THEY CANNOT REACH A DECISION THE MINISTER OR THE PRESIDENT WILL HELP.

6) THERE IS SOMETHING CBSL GOVERNOR DR NANDALAL WEERASINGHA CANNOT SKIP. HE HAS TO FORWARD SUGGESTION TO PARLIAMENT TO PASS LAWS TO GAIN CONFIDENCE OF INVESTORS AND SRI LANKAN WORKING ABROAD IN OUR BANKING SYSTEM.

SOME IDEA TO BE INCLUDED IN THOSE LAWS ARE AS FOLLOWS.

NOBODY OTHER THAN RELEVANT BANK OFFICERS SHOULD BE ALLOWED TO LOG INTO  BANK CUSTOMERS ACCOUNT. FOR OTHERS IT IS PUNISHABLE CRIME. IF ANY POLICE OR INTELLIGENCE OFFICERS NEED TO DO SOME CHECKING THEY MUST PRESENT A WRITTEN REQUEST TO THE HEAD OF THE BANK. SUCH CHECKING SHOULD BE CARRIED OUT BEFORE A REPRESENTATIVE OF THE HEAD OF THE BANK.

IF ANY LOSS TAKE PLACE, THE VICTIM SHOULD BE PAID WITH THE MONEY OF THE BANK OFFICERS AND HEAD OF THE BANK. IF NEED ARISE THEIR PROPERTIES MAY BE SOLD FOR THIS PURPOSE.

 ALL LOGIN CREDENTIALS (USERNAME, PASSWORDS ETC) SHOULD HAVE  A TERMINAL NUMBER  ASSIGNED. THEN BANK OFFICERS CAN LOG INTO ANY CUSTOMERS ACCOUNTS USING THAT USERNAME, PASSWORD ETC, ONLY FROM ONE PARTICULAR TERMINAL. IF THERE ARE ANY LOSSES SIMPLE LEGAL ACTION WHICH PLACE WRONG DOERS IN JAIL IS NOT SUFFICIENT. THEIR PROPERTIES SHOULD BE SOLD TO COMPENSATE VICTIMS.

WHY ?

(IF YOU HIRE SOME COMPUTER PROFESSIONALS AS I HAVE MENTIONED EARLY AND ASK THEM TO CHECK, YOU WILL COME TO KNOW THAT SOME INTELLIGENCE OFFICERS LOG INTO BANK CUSTOMERS ACCOUNTS FROM THEIR HOME USING DIFFERENT KINDS OF DEVICES. AND THEY DRAG AND DROP CUSTOMERS MONEY INTO ACCOUNTS OF STUDENTS STUDYING FOREIGN COUNTRIES, OR INTO ACCOUNTS OF IMPORTERS OR EVEN INTO ACCOUNTS OF NARCOTICS SMUGGLERS ETC .

SOME OF INTELLIGENCE OFFICERS DO NOT UNDERSTAND THAT THEY ARE COMMITTING A CRIME IN DOING SO. EVEN WHEN THEY UNDERSTAND THAT THEY ARE COMMITTING CRIMES, THEY ARE NOT AFRAID OF DOING SO BECAUSE THERE ARE SOME POWERFUL POLITICIANS BEHIND THEM. )

By P.K.Balachandan Courtesy NewsIn.Asia

Colombo, April 16: The Rajapaksa regime in Sri Lanka, extremely hard-pressed though it economically and politically, might still survive  thanks to disunity among the Opposition parties and the massive infusion of financial and material aid to the country from abroad. The fact that the politically savvy Prime Minister Mahinda Rajapaksa has come out of his shell and is fronting for the reclusive and apolitical President Gotabaya Rajapaksa, is also expected to buttress the government.  

There are essentially six critical factors working in favor of the regime. The first factor is the Rajapaksas’ firm resolve to stay put in power so long as they have the backing of the constitution and the law. Their resolve is a major challenge to the Opposition which is chronically divided. President Gotabaya Rajapaksa has categorically told his detractors that he will not resign because he still has the mandate secured in the last elections and that he will not accept any corrective mechanism outside the framework of the constitution. This stance is fully backed by his elder brother, Prime Minister and political heavy weight, Mahinda Rajapaksa. The firmness of the Rajapaksas’ means that the Opposition will have to marshal all its resources and put the brothers on the mat if it is to dislodge them. But it appears that it is incapable of doing so.   

The second factor is opposition disunity. Although after the defection of 42 MPs from the ruling coalition, the government had only one more than the required number to stay in power, it has survived because the opposition has multiple and clashing aims and is also lacking a single leader.  In an act of bravado, the Janatha Vimukthi Peramuna-led National People’s Power (NPP) rejected the President’s call to parties in parliament to accept cabinet portfolios in an all-party interim government. The JVP and NPP leader Anura Kumara Dissanayake said President Rajapaksa could not make such a suggestion when the people were demanding his exit at once and with one voice. The NPP/JVP MP, Vijitha Herath, said that the President should be impeached”, which is a very complicated process.

MPs of the breakaway group of the ruling Sri Lanka Podujana Peramuna (SLPP), the Sri Lanka Freedom Party (SLPP) and the 11-party alliance, jointly wrote to the President asking him to appoint an all-party government, and also a National Executive Council” functioning above the cabinet. They also demanded a repeal of the 20 th.Amendment, which gives the President gargantuan powers; and the re-enactment of the 19 th.Amendment which had given more powers to parliament. The main opposition party, Samagi Jana Balawegaya (SJB), started collecting signatures for a Motion of No Confidence against the government. The Tamil National Alliance demanded the abolition of the Executive Presidency. But the Tamil Progressive Alliance (TPA) said that this demand was too ambitious and opted for the restoration of the 19 th.Amendment instead. The United National Party (UNP) leader Ranil Wickremesinghe asked the President to resign making way for him to  become a caretaker President till the next election.

The opposition parties were also divided on the question of seeking IMF help to resolve the economic crisis. The Lanka Sama Samaj Party (LSSP) and the JVP/NPP are against going to the IMF, while the SJB and the United National Party (UNP) were for it.

The third factor is the inability of the Leader of the Opposition, Sajith Permadasa, to reconcile these different demands. He is unable to present one list of demands and press the government to accept them making use of the government’s wafer thin majority in parliament. The opposition is amorphous and leaderless.

The fourth factor in favor of the government is the assumption of leadership by Prime Minister Mahinda Rajapaksa, a past master in politics. He is filling the void created by Gotabaya Rajapaksa who has gone into a shell. Disregarding his poor health, Mahinda Rajapaksa left the backseat he had been occupying since 2019 end to engage with politicians and state the government’s case to the public. It was Mahinda Rajapaksa and not Gotabaya Rajapaksa who delivered an address to the nation over TV. In that, he showed empathy for the suffering public. But he also stated that the opposition had spurned his offer of positions in the government to jointly solve the country’s problems. He then justified the government’s decision to dig in and do its best to solve the problems on its own as mandated in the last elections.

The fifth factor is the amorphousness of the demonstrating citizens’ group demanding the President’s resignation. The demonstrators are basically apolitical middle and upper class youth. For them, protest is a part time activity. It is also a floating population, lacking an organizational structure and leadership. Prime Minister Mahinda Rajapaksa has cleverly offered to talk to them, knowing full well that they are not in a position to talk with one voice, except to keep chanting Gota Go Home”.        

The sixth and the most critical factor is the help that the international community is giving to enable Sri Lanka to come out of the economic woods. Indian aid of US$ 2.5 billion to buy essential fuel, food and medicines, has been arriving, to the great relief of the government as well as the masses. India will help with ‘bridge financing’ to enable Sri Lanka before it gets the IMF facility.

China too has promised US$ 2.5 billion in loans and buyer’s credit. The modalities for the disbursal of these funds are being worked out. Both India and China have enormous geostrategic and economic stakes in Sri Lanka and political stability is a necessary condition for those interests to be realized.

The US is at a remove as compared to India and China, but it is vitally interested in roping Sri Lanka into the anti-China, Indo-Pacific grouping. To achieve this, Washington will need a friendly and stable government in Colombo. Washington has clout in the IMF and the World Bank, which Sri Lanka has decided to approach for funds. It is expected that the US will help Sri Lanka in this regard. The encouraging part is that the Rajapaksa government has shed its reserve about approaching the IMF and will be sending a team of distinguished neo-liberal economists to negotiate with international funding institutions. President Gotabaya Rajapaksa has also spoken to other countries like Japan and South Korea and these have promised help.

With the onset of seasonal rains, hydro-electric power generation is  expected to increase giving relief from long-duration power cuts. On the agricultural front, the Prime Minister has withdrawn the policy of disallowing chemical fertilizers and has revived the fertilizer subsidy to infuse life into the dying agricultural sector.

With the government indicating its determination to stay put and the international community inclined to help the incumbent government,  some of those who left it are believed to be thinking of trekking back. SLFP MP Shantha Bandara is already back and is a State Minister now. And fellow partyman, Ranjth  Siyambalapitiya, has also come back as Deputy Speaker. More MPs are likely to come back to the Rajapaksa fold.  It is therefore likely that the government of the Rajapaksas will stay put to steer the ship of State through the troubled economic waters.

At 53% in 2021-22, Punjab has worst debt-to-GSDP ratio. CAG data shows UP’s interest payments have grown by 6% in 5 years. Andhra’s outstanding debt hit Rs 3.89 lakh crore in 2021-22.

New Delhi: On 4 April, Prime Minister Narendra Modi held a long meeting with secretaries of the central government and, among the many concerns raised at the meeting, the most oft-highlighted one was the poor health of state finances.

Officials told the PM that some Indian states could go down the same path as Sri Lanka if they did not discontinue the freebies announced during election campaigns and manage their finances better.

Sri Lanka is currently facing its worst economic crisis in history: The public has had to suffer long queues for fuel, cooking gas and essentials, and long hours of power cuts, for weeks now.

The Sri Lankan government said Tuesday it was going to default on its external debt of around $51 billion, pending a bailout from the International Monetary Fund (IMF). The island nation’s debt has soared to 102.8 per cent of its gross domestic product (GDP) in 2021, with a shortage of foreign exchange reserves to finance its external debt.

Although there is some fear that Indian states could face a similar situation if they do not bring down their debt in the next few years, it is technically unlikely for state governments to default on the debt repayments, as the Centre imposes strict limits on their borrowings. 

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Also Read: Why Modi govt’s large borrowing plan this year will also pinch all ordinary borrowers 

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The problem

On a general level, the Covid-19 pandemic is seen as the primary reason for a surge in debt levels of Indian states. However, the slowdown in economic activity had begun in 2018-19, nearly two years before the pandemic hit. 

There was a decline in states’ own tax revenues, which led to them borrowing more in order to finance their scheduled spending.

Another factor said to be responsible for the poor financial health of state governments is Centre’s Ujwal DISCOM Assurance Yojana (UDAY) scheme, which allowed the state governments that own power distribution companies to take over 75 per cent of these companies’ debt till September 2015, and pay back the lenders by selling bonds.

However, state-specific factors have also resulted in declining finances.

N.R. Bhanumurthy, vice-chancellor at the B.R. Ambedkar School of Economics University, Bengaluru, said that after the Fourteenth Finance Commission, states got a lot more flexibility in spending on developmental activities, but most of their spending went into populist schemes with slow growth in revenues.

 You need to distinguish the reasons for poor fiscal health for different states as they all follow a different political cycle. Therefore, they all have different policies to adopt,” he said.

These reasons have resulted in high debt-to-GSDP (gross state domestic product) ratios. Debt-to-GSDP ratio signifies how healthy a state is in terms of funding its expenditure without accumulating future debt.

A cursory glance at the data on state finances from the Comptroller and Auditor General (CAG) shows that for some states, interest payments have grown faster than revenues in the last five years, creating a debt trap and making their debt unsustainable.

Punjab and Uttar Pradesh — both states that recently went to polls — announced populist schemes with such unsustainable debt, making matters worse.

Take Punjab, for instance. Before the Aam Aadmi Party (AAP) won the elections, it promised the people 300 units of free electricity a month for every household. In addition, it promised Rs 1,000 a month to every woman in the state. According to experts, even the most conservative estimates suggest that together these schemes would cost the exchequer an extra Rs 20,000 crore a year. This is when Punjab’s outstanding debt has risen by Rs 1 lakh crore in the last five years to Rs 2.82 lakh crore.

Luckily, Punjab’s interest payments have increased only 3 per cent in the last four years as compared to its revenues, which have grown by 9 per cent. However, at 53 per cent in 2021-22, Punjab has the worst debt-to-GSDP ratio among all the states in India.

Interest payment for a state or a country is the interest that must be paid back on the loan borrowed.

UP, where the ruling BJP promised to give free LPG cylinders, saw its interest payments rise faster than their revenues. CAG data shows that while UP’s revenues have increased only 5 per cent in the last five years, its interest payments have grown by 6 per cent.

The debt situation in some states like Bihar, Rajasthan and Andhra Pradesh is even worse. Andhra’s outstanding debt has hit Rs 3.89 lakh crore in the financial year 2021-22, registering an increase of almost Rs 40,000 crore compared to the previous year, accounting for 32.4 per cent of the gross state domestic product (GSDP). 

RBI’s warning 

In a report in November, the Reserve Bank of India (RBI), while reviewing states’ budgets, highlighted that the debt-to-GSDP ratio for 18 states and union territories has grown to 31.2 per cent from 22.6 per cent in the last 10 years, ending September 2021.

The Fiscal Responsibility and Budget Management (FRBM) committee headed by former revenue secretary N.K. Singh had mandated states to achieve a debt-to-GSDP ratio of 20 per cent by the financial year 2022-23.

The RBI report also said that market borrowing, which forms the largest component of the total outstanding debt of states and union territories, reached 63.6 per cent of their GDP by March 2022. Market borrowing is the loan that governments, whether central or state, raise by issuing market securities such as bonds.   

As the impact of the second wave wanes, state governments need to take credible steps to address debt sustainability concerns. The combined debt-to-GSDP ratio is expected to remain at 31 per cent by end-March 2022,” the report said.

States with the highest debt-to-GSDP ratio in 2021-22 include Punjab (53.3 per cent), Rajasthan (39.8 per cent), West Bengal (38.8 per cent), Kerala (38.3 per cent) and Andhra Pradesh (32.4 per cent). 

Improvement 

Budgets for the current financial year presented by 13 large states — accounting for 80 per cent of India’s GDP — show that aggregate gross fiscal deficit (GFD) is set to ease to 3.3 per cent in 2022-23 as compared to 3.4 per cent in 2021-22, according to a March report by ICICI Securities.

As the economy recovers, states’ own revenues have seen an improvement aided by higher transfers made by the Centre on account of tax devolution. According to the recommendations of the Fifteenth Finance Commission, the Centre has transferred Rs 8.83 lakh crore in 2021-22, Finance Minister Nirmala Sitharaman said in Parliament. Along with that, the Centre also transferred Rs 1.59 lakh crore to the state government on account of Goods and Services Tax (GST) compensation.

These are some of the reasons why states have shied away from fully utilising their borrowing limits, the report said. For 2020-21, the Centre had enhanced states’ net borrowing limit from 3 per cent of GSDP to 5 per cent in 2020-21, which was the Covid-affected year. This meant that states could borrow up to 4 per cent of the GSDP unconditionally in any given fiscal, but must implement certain incremental reforms for the remaining 1 per cent.

States did not fully utilise this limit in 2020-21, the ICICI Securities report said.

Preliminary data suggests that states’ fiscal deficit was under 3 per cent in 2021-22 until January — much below the 4 per cent normal limit recommended by the Fifteenth Finance Commission. 

In 2017, the FRBM panel had suggested a limit for general government debt – the debt that both Centre and states raise — of 60 per cent of GDP by 2022-23. Within this overall limit, a ceiling of 40 per cent was adopted by the Centre and 20 per cent by the states. 

The way forward 

Bhanumurthy said there is a need for some kind of fiscal council or interstate mechanism that can ensure that FRBM limits on spending are strictly adhered to, along with ensuring the quality of expenditure.

Efficiency in public spending should now become part of discussions. This can happen through tax-benefit models that look at how state resources can be best utilised,” he said.

There is also a need to establish outcome documents that will keep the state spending in check, he said. 

A. Prasanna, chief economist of ICICI Securities Primary Dealership, said states’ overall debt-to-GSDP can be brought down by two approaches. One is to have different policies for each state.

There has to be a differentiated approach for different states,” Prasanna said. The policy, for example, for Gujarat cannot be the same as for West Bengal because the starting conditions are different and their political economy is different. So different states cannot shrink their debt-to-GSDP ratio at the same speed.”

The second, he said, is for the Centre to raise government loans and pass them on to the state.

Another approach, which can also be a long-term solution, is that whenever there is a review of FRBM rules for both Centre and states, the Centre should run higher deficits and take more debt than states,” he said. What we have seen from the GST borrowings episode is that Centre has more ability to borrow compared to states. Progressively states should be asked to adhere to a lower cap on deficits and debt.”

(Edited by Uttara Ramaswamy)

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Also Read: Why Modi govt will meet its tax targets this year without much effort despite slow growth

Courtesy mint

Elon Musk has recently announced that he would pay $54.20 per share for Twitter, valuing it at about $40 billion.

As Tesla chief Elon Musk has launched a hostile takeover effort for Twitter with a $43 billion cash takeover offer, Snapdeal CEO has cracked a joke on Twitter on this multi-billion dollars bid.

CEO Kunal Bahl has suggested to Musk that instead of buying Twitter, he can buy Sri Lanka, the country which is witnessing its worst economic crisis with prices of food items such as a kilogram of rice soaring to 500 Sri Lankan rupees.

Bahl wrote a WhatsApp viral on Twitter in which he said that Elon Musk’s Twitter bid is $43 billion and Sri Lanka’s debt is $45 billion. “He can buy it and call himself Ceylon Musk,” Bahl wrote with a laughing emoji. Ceylon is Sri Lanka’s other name.

Courtesy India Today

With Sri Lanka on the brink of bankruptcy and saddled with dwindling foreign reserves and $25 billion in foreign debt, the CSE will remain temporarily closed for a week from April 18.

The stock market will remain temporarily closed for a period of five business days from Monday. (File

The Colombo Stock Exchange will remain temporarily closed for a week from Monday to provide investors an opportunity to have “more clarity and understanding” of the current economic conditions in crisis-hit Sri Lanka that would help them “to make informed investment decisions,” it was announced on Saturday.

“The stock market will remain temporarily closed for a period of five business days from April 18, 2022,” the Securities and Exchange Commission of Sri Lanka (SEC) said in a press release.

Also Read | Economic crises all around: What’s going on in India’s neighbourhood

Sri Lanka is facing its worst economic crisis since gaining independence from the UK in 1948. The economic crisis also triggered a political turmoil in the island nation with citizens holding nationwide street protests for weeks over lengthy power cuts and shortage of fuel, food and other daily essentials and demanding ouster of President Gotabaya Rajapaksa.

The Board of Directors of the Colombo Stock Exchange (CSE) in a communication on Friday called upon the SEC to temporarily close the stock market citing the present situation in the country, the release said.

Many other stakeholders of the securities market, including the Colombo Stock Brokers Association, have also sought the temporary closure of the market on the same grounds.

The SEC said it carefully considered the grounds that have been adduced by them and has evaluated the impact the present situation in the country could have on the stock market, in particular the ability to conduct an orderly and fair market for trading in securities.

“The SEC is of the view that it would be in the best interests of investors as well as other market participants if they are afforded an opportunity to have more clarity and understanding of the economic conditions presently prevalent, in order for them to make informed investment decisions,” the release said.

Therefore, acting in terms of the relevant provisions, the SEC decided to direct the CSE to temporarily close the stock market for a period of five business days commencing from April 18, it said.

Sri Lanka is on the brink of bankruptcy, saddled with dwindling foreign reserves and USD 25 billion in foreign debt due for repayment over the next five years. Nearly USD 7 billion is due this year only.

The government announced Tuesday that it is suspending repayments of foreign debt, including bonds and government-to-government borrowing, pending the completion of a loan restructuring programme with the International Monetary Fund (IMF).

President Rajapaksa has defended his government’s actions, saying the foreign exchange crisis was not his making and the economic downturn was largely pandemic driven by the island nation’s tourism revenue and inward remittances waning.

Courtesy Outlook

The Sri Lankan Army also denied speculation that soldiers were undergoing training to assault protesters. 

Following speculations on social media that military might be roped in to crush ongoing anti-government protests in the country, the Sri Lankan Army on Saturday said they would not be part of a crackdown on protests and would not resort to any violence.

The army said in a statement that they would thoroughly uphold the Constitution. It went on to deny speculation that soldiers were undergoing training to assault protesters. 

The statement said, “Troops, as everyone witnessed in the past few days, have not at all interfered with any of those peaceful protesters or organisations, nor have they acted against the interests of the state as disciplined members of an organisation which brought peace to this country through immense and invaluable sacrifices.”

The Army’s statement came after former Army Commander Sarath Fonseka commented that the troops must not obey illegal orders inferring a crackdown on the protesters. Stressing that the Army must rethink “before acting on unlawful orders”, Fonseka in an address to Army Commander Gen Shavendra Silva and Kamal Gunaratne – top bureaucrat of the Defence Ministry, had said the troops must not obey any illegal order.

Fonseka, who was promoted to the rank of field marshal for commanding the Army to victory over the LTTE in 2009, had both Silva and Gunaratne serving under him.

Sri Lanka is currently facing its worst financial crisis and the government is facing intense protests from the people, which entered its eighth day on Saturday. The protesters are demanding the resignation of President Gotabaya Rajapaksa as well as of the entire Rajapaksa family in the wake of the poor handling of the ongoing crisis.

Sri Lanka is facing an acute shortage of foreign exchange, which led to the country’s default on external debt of $51 billion earlier this week.

There is also shortage of foodstuff, cooking gas, and vehicular fuel. Prices of all commoditties, including essential food items, have also skyrocketed in the ongoing crisis.

The Rajapaksas’ political future is shaky. New Delhi will only prolong the hardship faced by Sri Lanka unless Colombo turns to the US.

Sri Lanka should move closer to the US and resolve its ongoing crisis. For all the Rajapaksas’ giving cold shoulder to the International Monetary Fund’s offer for help, it is with diplomatic assistance provided by India that Sri Lanka must mend ties with the US.

On 12 April, Sri Lanka declared the default on all payments on its $51-billion external debt to buy oil and agricultural commodities. The alarming level of food scarcity in the country has mobilised the population to demand the ouster of President Gotabaya Rajapaksa with the slogans ‘Go Gota Go’ and ‘Go Home Gota’ echoing on the streets. His decision to impose a public emergency on 1 April intensified protests further, leading to its quick revocation four days later. On the same day, former President Maithripala Sirisena-led Sri Lanka Freedom Party decided to withdraw its support from the ruling coalition led by Mahinda Rajapaksa. Till now, 42 members of the Sri Lankan parliament have withdrawn their support from the ruling coalition, including 12 from the Rajapaksas’ Sri Lanka Podujana Peramuna, leading to the government’s loss of majority.

The Opposition, led by Sajith Premadasa’s Samagi Jana Balawegaya (SJB), has announced a no-confidence motion against the government while also bringing a private member’s Bill to scrap the 20^th Amendment and remove the powers of the executive presidency. Simultaneously, the party has also initiated the impeachment proceedings against Gotabaya. The demand to restrict the President’s powers has found support from the SLFP, which has demanded that the 19^th Amendment be re-introduced with added powers” to curtail the executive powers of the presidency and an all-party interim government be formed without the involvement of the Rajapaksa family. On his part, former Prime Minister Ranil Wickremesinghe has proposed bringing a resolution in parliament that will allow the legislature to take over public finance from the President.

After riding a majoritarian Sinhalese Buddhist wave for more than a decade, the Rajapaksa family’s ongoing downfall has upended the Sri Lankan political dynamics. In the public imagination, the loss of legitimacy faced by President Gotabaya due to his failed macroeconomic policies, coupled with the allegations of dynastic corruption, has interlinked the ouster of the Rajapaksa family with the future political and economic stability in Sri Lanka. Nonetheless, neither Gotabaya nor Mahinda have given any indication that they are planning to leave. Instead of taking responsibility for the ongoing crisis, Mahinda sought to deflect the blame for the deteriorating economy on the youngsters protesting against his government, proclaiming that every second you [youth] protest, we are losing vital dollars.”

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China bailing out

In this regard, China, the chief patron of the Rajapaksa family, has become circumspect to bail out its erstwhile allies. As the economic situation deteriorated in Sri Lanka with the onset of the pandemic in March 2020, China initially came to the rescue by providing $1 billion in loans. Subsequently, it also provided $1.5 billion in a currency swap deal. However, the consistent rise of the anti-China sentiment among the Sinhalese Buddhist majority forced Beijing to reassess the utility of its support to the Rajapaksa family.

While Mahinda had consistently harnessed Sinhalese majoritarian sentiments to dominate national politics, the failure to contain the anti-China sentiments in the Sinhalese South generated concerns in China about its future investments in the country. After the Rajapaksa government cancelled the Chinese hybrid energy projects in northern Sri Lanka, ostensibly under Indian pressure, the Chinese felt further aggravated. Thus, in his January visit to the island, Chinese Foreign Minister Wang Yi made a point to demand equal negotiations” with the country, without third party” interference. He also remained non-committal to a request for $3.5 billion in concessional” trade-credit for Chinese exports to Sri Lanka.

Mend ties, but with caution

China’s reluctance to restructure Sri Lankan loans and the backlash from the Sinhalese Buddhist leaders forced the Rajapaksa brothers to mend ties with India. Thus, in August 2021, Sri Lanka sent a new High Commissioner to New Delhi after keeping the post vacant for 18 months. It also announced the Integrated Country Strategy” for India. Along with promoting trade and investment, the strategy also sought to boost religious links and Buddhist exchanges and hand over a sacred Sita temple stone” from Sri Lanka for the Ram Mandir in Ayodhya. The Rajapaksas’ turn towards India brought quick dividends. Following a series of high-profile visits, the latter provided an economic package worth $2.4 billion in preferential loans and lines of credit. In return, Sri Lanka made progress on Indian projects like the Western Container Terminal (WCT) and the Trincomalee oil farm.

At a time of continuing economic distress, India’s support to Sri Lanka has earned a tremendous amount of goodwill. New Delhi’s decision to send 11,000 metric tonnes of rice on the eve of the Tamil and Sinhalese New Year is also a step in the right direction. But, India’s help to the people of Sri Lanka should not transpire into the support of the Rajapaksa family. Having lost popular legitimacy, their political future is shaky at best. Therefore, if New Delhi continues to make a deal with them, it will only prolong the hardship faced by the commoners in Sri Lanka. The solution to the country’s current economic predicament is possible only if the Rajapaksa family makes way for the interim government. In this regard, the disunity in the Opposition in Sri Lanka is a significant factor behind the confidence of the Rajapaksa brothers even in the face of mass protests. However, if the situation continues to deteriorate, the Narendra Modi government would have to host thousands of Sri Lankan refugees in Tamil Nadu. This makes it prudent for India to play an essential role in securing political stability in Sri Lanka.

Make Sri Lanka look westwards

At the same time, given India’s own economic situation and the magnitude of Sri Lanka’s economic crisis, it is unfeasible for the Modi government to continue funding the island’s purchases of food and oil. Therefore, India also needs to push Sri Lanka to improve its ties with the US. Historically, the Rajapaksa brothers have shown a great deal of stubbornness in taking support from the International Monetary Fund (IMF). In 2020, too, as the country began to face a balance of payment crisis, its leaders rejected taking help from the IMF. Due to its pro-China stance, the Sri Lankan government declined the Millennium Challenge Corporation grant of US$ 480 million offered by the US. Further, under Gotabaya’s presidency, Sri Lanka has also criticised Quad as an exclusive military alliance” with the potential to lead to a Cold War in the Indo-Pacific. However, having made a default on its external borrowings, now, Sri Lanka has no recourse left but to take help from the IMF.

After burning many bridges with the US under the Rajapaksa family’s arrogance, Sri Lanka now needs diplomatic support from India to navigate the ongoing economic crisis. This gives the latter a strategic opportunity to pull the island out of Beijing’s debt trap” and take it closer to the US, with which its interests remain aligned in the Indo-Pacific. Doing this would also allow New Delhi to retain its influence in future dispensations in Colombo.

Shrey Khanna is a Staff Research Analyst working on the Indo-Pacific Programme at the Takshashila Institution. He tweets at @Shreywa. Views are personal.

(Edited by Humra Laeeq)

By Ravi Jalhotra

Colombo [Sri Lanka], April 17 (ANI): Amid protests in Sri Lanka over the country’s worst economic crisis, an advisor to the Sri Lankan President Gotabaya Rajapaksa on Saturday said the government has tried to control drug dealers “who have a lot of money” and that they are “very angry”.
In an interview with ANI, Walpole Piyananda, Advisor to the President of Sri Lanka on International Religious Affairs also said that “fundamental Leftist groups” were also working against the government and sections of the minority community in the country “were angry” with the government.
He indicated that ongoing protests against the Sri Lankan government in which demands are being made for Gotabaya Rajapaksa’s resignation were also a result of “fundamentalist groups taking advantages right now, especially drug dealers.”
“Drug dealers are hanging around… this government tried to control (it), many of them (have been) caught. They are very angry with the government. They have a lot of money,” he said.
He said that the Catholic Church has a “misunderstanding” with the government and that the Muslims are “angry” with the government due to the government’s move to “reclaim” some of the Buddhist temples in Northern and Eastern Sri Lanka that were “taken over”.
On the ongoing economic crisis, Piyananda said that the Sri Lankan government had steered the country through a difficult COVID-19 pandemic.
Referring to the discontent among people due to economic hardship, he said “they weren’t maybe thinking what had happened in the past.”
Piyananda recalled civilisational links between India and Sri Lanka.
“Thank you so much to India. India is like our big brother… all of our culture, custom, tradition, all of (it) came from India. We depend on India all the time,” Walpole Piyananda, Advisor to the President of Sri Lanka on international religious affairs said.
“Since our Lord Buddha was born in India… we have great relationships from that time till now,” he added.
Piyananda, a practising Buddhist monk, said the present government of Sri Lanka tries to follow the “principles of Emperor Ashoka”.
He thanked India for the help extended to Sri Lanka amidst its worst economic crisis. Piyananda said Sri Lanka needs financial help to deal with the economic crisis.
Sri Lanka is grappling with an economic crisis that has led to massive protests against the ruling Rajapaksa government.
Sri Lanka’s economy has been under pressure since the onset of the COVID-19 pandemic. A crash in the tourism sector was followed by a crash in the agriculture sector after the government’s move to ban all chemical fertilizers in a bid to make the Island country’s agriculture fully organic.
Sri Lanka is facing a foreign exchange shortage, which has affected its capacity to import food and fuel, as well as resulted in the country defaulting on its foreign debt. (ANI)

Rabi Sankar Bosu Courtesy CGTN

India’s Foreign Minister Subrahmanyam Jaishankar attends the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) summit in Colombo, Sri Lanka, March 29, 2022. /VCG

Editor’s note: Rabi Sankar Bosu is an Indian contributor to Chinese media outlets. He writes about Chinese politics, social and cultural issues, and China-India relations with a special interest in the Belt and Road Initiative. The article reflects the author’s views, and not necessarily those of CGTN.

The signing of the agreement between India and Sri Lanka to set up hybrid power projects in three islands off the Jaffna coast, located hardly 50 km from India’s southern Tamil Nadu state on March 29 had captured much attention from the global media and Indian media outlets. This deal is seen as “a strategic victory for India in its competition with China for influence in the Indian Ocean” as noted by the U.S.-based Associated Press in a demeaning manner. Notably, the power projects were awarded for $12 million to a Chinese venture, Sinosar-Etechwin, in 2019.

However, such type of media-planted fascinating stories on Sino-India ties and Sino-Sri Lanka ties by Western media outlets as well as certain sections of Indian media is a clear attempt “to drive a wedge between China and India.” It will create a negative perception of the relationship between the two great neighboring countries – India and China – at a time when the two countries are engaged in mending their ties, leaving behind the memories of the 2020 Galwan Valley clash. More importantly, it is unwise to judge China’s relationship with Sri Lanka in the context of India’s relationship with China.

The use of the phrase “a strategic victory for India” does not reflect the real scenario of India and China’s role in Sri Lanka at all. It is a prejudiced thinking that Sri Lankan economic catastrophe has offered an opportunity for India to strengthen its friendship with Sri Lanka and to dominate the Indian Ocean region. India and China, both are Sri Lanka’s good friends and close neighbors. Both are Sri Lanka’s development partners. The U.S.-led Western world may be reminded that despite different circumstances and differing geopolitical realities in the two countries, both India and China stand by their closest ally Sri Lanka in the fight against COVID-19 pandemic as well as terrible economic crisis and acute shortages of essential commodities in the island nation.

It should be noted here that as a true neighborhood friend, China has extended support to Sri Lanka’s fight against COVID-19. In addition to donating medical equipment, China has gifted three million doses of Sinopharm vaccines, and another 23 million doses were provided at very low, concessionary rates, as Sri Lankan ambassador to China, Palitha Kohona told in an interview with Daily Mirror on January 7.

On the other hand, India, driven by its “neighborhood first” policy, began providing COVID-19 vaccines to its immediate neighbors under its “Vaccine Maitri” initiative in January 2021. India either sold or granted a total of 12.64 million doses to Sri Lanka as of April 13.

Coordinator of China’s BRICS Affairs and Vice Foreign Minister Ma Zhaoxu (C) chaired the Second BRICS Sherpas’ Meeting 2022, from April 12 to 13, 2022. /Chinese Foreign Ministry

As Sri Lanka is currently facing its worst economic recession in history with acute shortages of essential commodities leading to nationwide spontaneous protests with the call for “Gota Go Home,” both India and China have extended support to Sri Lanka’s economic recovery and development.

In the past three months India offered about $2.5 billion to help shore up the sinking economy of the island nation. On the other hand, China has been doing its best to help Sri Lanka as much as possible for its rapid post-COVID economic recovery. China approved a swap arrangement amounting to 10 billion yuan (about $1.57 billion) in addition to the $2.8 billion assistance that China extended to Sri Lanka since the outbreak of the pandemic.

In 2009, Sri Lanka, with the strong assistance from the international community, ended a 30-year-long civil war against the Liberation Tigers of Tamil Eelam (LTTE). The Chinese government and the Chinese people have continued to provide a large number of concessional low interest rate loans and investments for Sri Lanka’s post-war reconstruction. While the West and India are still debating the growing Chinese footprints in the island, the fact is that China is taking the lead in maritime, aviation, trade, tourism and cultural cooperation in Sri Lanka under the Belt and Road Initiative.

On the other hand, the Ukraine-Russia conflict has opened up a new horizon for India and China to build a united front against the United States, which is merely using Ukraine as a pawn against Russia. So far, both India and China abstained on Ukraine-related resolutions at the UN Security Council and Human Rights Council. On March 21, U.S. President Joe Biden sneered at India for its “shaky” response to the Russian offensive and threatened to impose sanctions on India under the Countering America’s Adversaries through Sanctions Act (CAATSA). However, during his virtual meeting with President Biden on April 11, Prime Minister Modi explained New Delhi’s “neutral stance” on the Ukraine conflict and made it clear that India has no intention to hurt Russia ties.

It is an opportune time, therefore, for the two close neighbors to speak out in one voice against the U.S. for its failure to assume due responsibility, including how the U.S.-backed NATO alliance in Europe ignored Russia’s security concerns as well. The U.S. and its Western allies are in no position to lecture India and China about their national interests or their relationship with any member of nations in the international arena – be it Russia or Sri Lanka.

During his visit to India on March 25, the Chinese foreign minister said that the two sides should not allow the border dispute to define their relationship or to affect the overall development of bilateral ties. It is hoped that in the current geopolitical situation, China and India, as two important regional powers and emerging economies as well as members of BRICS, SCO and G20, will steer bilateral cooperation to bring real benefits to the two countries and peoples. The two neighboring countries will support each other’s participation in the regional cooperation process, and jointly promote peace, stability, and development in the world.

(If you want to contribute and have specific expertise, please contact us at opinions@cgtn.com. Follow @thouse_opinions on Twitter to discover the latest commentaries in the CGTN Opinion Section.)

By Uditha Devapriya Courtesy The Island

I’d like to say this is the beginning of the end, but it’s not. The latest spate of protests to hit the country has now been going on for more than a week. These protests have targeted one thing and one thing only: the Rajapaksas’ exit from power. While some argue we need to go beyond this objective and ask all parliamentarians to resign, others point out the difficulty or impracticality of such campaigns. Meanwhile, Colombo’s middle-class teenagers are busy formulating plans for the future. Some are talking about chasing rogues away, while others are busy thinking of launching youth-driven political parties.

Let’s be honest. Before last Thursday, with power cuts below seven hours, Sri Lanka’s suburban middle-class, English-speaking but not overwhelmingly so, were willing to grind their teeth and endure. Obviously they had no choice. Already inconvenienced by gas and fuel shortages, they suffered from other woes. Sweating in the dark, some of them stuck in flats and apartments, they could do very little about what was happening.

Then the power cuts shot up to 13 hours. For a population that threw their rage at Ravi Karunanayake for ordering two-and-a-half hour blackouts in 2019, this was more than unbearable. It was intolerable. Perhaps it struck the middle-classes the most, but all of a sudden protests were organised, gatherings were called for, and catch-phrases that had been the stuff of memes were turned into symbols of anger. If you analyse the Mirihana gathering, you will realise that every hour or so brought in different layers from Colombo’s suburbs, and that it began with a professional and educated middle-class protesting not just the shortages, but Mirihana’s exemption from power cuts.

What did these protestors want? They wanted the government to go home. They have been saying that for the last one-and-a-half years. Many of them claim they saw the present crisis coming, and are now playing the part of Cassandra. They have been hemmed in on the one hand from shortages and severe inflation, and on the other from import restrictions. Today these deprivations are dictating the trajectory of their protests: by the time Mirihana began unfolding, they were planned much larger demonstrations for Sunday.

Pushed into sheer desperation, an otherwise protest-resistant middle-class sided with student activists and various other inner-city groups. For a few days and nights at least, they were willing to let go of their class identity and embrace a movement aimed at toppling a much reviled government. The irony here should not be lost on anyone: in effect, the same middle-class that watched on gleefully as the police baton-charged student activists under the previous government are now holding hands with those same activists.

What are we to make of such developments? It’s important to recognise their progressive potential before anything else. Over the last few months, the most vocal defenders of this regime have gone quiet. Predictably, there have been a few murmurings of protest among its biggest supporters, especially its ideologues. This is why the curfew was so laughable if not counterproductive, since on social media and in public, the likes of Charitha Herath and Roshan Ranasinghe expressed dissent and made their exit, while Namal Rajapaksa tweeted that he disagreed with his own uncle’s social media block. To defend this administration in such a context would be to back a dead horse, not so much because it has run out of steam as because nothing it has done and is doing can justify its grip on power.

Ironically, the government has undermined the very ideals that brought it to power. On the one hand, despite much rhetoric about national dignity, we are entering into one deal after another with one country after another. We have not been told of what these deals entail and whether they will take a toll on Sri Lanka’s sovereignty. On the other hand, a regime that sported its nationalist credentials have, over less than a week, drained the people of their love for the army, owing to its deployment of the military against protestors. Perhaps the most popular catchphrase of the SLPP campaign was ranawiru gaaya”, or love for the war heroes. Now all that is gone: even the most fervent supporters are siding with activists and protestors, claiming themselves to have been cured of such gaaya.”

These are, certainly, failures of governance. Yet while critiquing them, I think we should be subjecting the protests to constructive critique as well. I say that because we’ve seen this happen before, albeit on a smaller scale: what was the 2015 election about, after all, than a concerted effort against the Rajapaksas and their wretched excesses?

Yet notwithstanding the enthusiasm that marked their defeat and exit that year, the reformist good governance” administration brought in their place disintegrated barely a year later. That was due to two reasons: an obsession with personality over policy, which focused on keeping the Rajapaksas not just out of politics but out of parliament and the democratic mainstream altogether, and a failure to recognise the crisis as one of systemic proportions, rather than of corrupt politicians, parties, and cliques.

The second point merits much reflection. By reducing the ills of the Mahinda Rajapaksa regime to the Rajapaksa family, the yahapalana government gave the impression that all it needed to cure the country of political corruption was to send them packing. This is why it entered into deals with, and handed ministerial posts to, former Rajapaksa loyalists, something that got the yahalapanists mileage, but cost them credibility.

When the yahapalanists tried to regain their momentum in 2019, after a long constitutional crisis, the Easter Attacks happened, putting an end to the idea of a second term. The SLFP’s socially progressive potential, meanwhile, had been forestalled by the UNP’s capitulations to the neoliberal right, epitomised fittingly by the image of Mangala Samaraweera and Eran Wickramaratne holding a placard bearing their fuel price formula at a press conference. In the end Gotabaya Rajapaksa got to monopolise the security and sovereignty debate: an in-many-ways inevitable consequence of reformist politics which linger on issues of corruption, to the exclusion of other more material, systemic, and structural problems.

History tends to repeat. Today we are seeing a repetition of all this in the protests against the Rajapaksas. I don’t include all the protests, because there are many of them: some in Colombo, many outside. Not surprisingly, the Colombo protests, in keeping with the class composition of those who live in and transit there, have turned into Big Match parades. What started out with much promise and aplomb have reduced to a set of people holding slogans and out-sloganeering others. These are the trappings of a typical middle-class anti-State campaign, not necessarily cut off from the rest of the country, but not linked as much as it should be there. Focused on the corruption of a few, middle-class demonstrators are fixated almost entirely on driving Gotabaya and the rest of his clan out.

The situation is different in the villages. There the fury and the rage are real. People are not holding placards and organising pageants: they are storming the metaphoric Bastilles that the Rajapaksas have erected around themselves. In 2015 hordes of voters went and wept with Mahinda Rajapaksa when he lost the presidential election. Today these same people, and their progeny, are defying the police and running to Carlton, full of righteous anger. In Polonnaruwa, a group of voters stormed and destroyed Roshan Ranasinghe’s house. Many miles away in Kesbewa, another group burnt a hoarding in front of Gamini Lokuge’s house. These are not isolated incidents: they are linked, symbolic of a new beginning.

Meanwhile, brought together by unions and collectives, garment workers are going beyond Colombo’s fixation with the Rajapaksas: their rallying cry is, Bring the dollars we earned for you back!” The you” isn’t a reference to the Rajapaksas, rather to the company bosses who lent their support, overtly or tacitly, to the First Family. These bosses and their acolytes have been as complicit in entrenching inequalities as has the political class: in late 2020, after the second wave hit, for instance, they connived in busting unions, in forcing factory workers to report to work despite obvious health risks. These workers possess the one thing Colombo’s middle classes lack, namely organisation. They should hence reach out.

The demonstrations have taught us some important lessons. The Rajapaksas may or may not go out, with a bang or a whimper. Yet the needs of the country extend beyond their exit from politics. In the eyes of Colombo’s middle-classes, they have overstayed their welcome, and they need to vamoose. But for estate workers and garment workers, the struggle has transcended the excesses of one family. This is why these protests should shift from urban centres to peasant and working class heartlands. The Colombo protests are haphazard and are running the risk of deteriorating into Big Match parades. As an activist-friend put it, life in Colombo has always been a Big Match.” Life elsewhere, however, has not.

Courtesy The Daily Mirror

The flight that left Ratmalana today morning – N750GF – for Dubai, belongs to British national and UK millionaire George Davies, the Daily Mirror learns.

Rumors were rife that former Finance Minister Basil Rajapaksa had left Colombo for Dubai on this flight, but sources confirmed that this private aircraft was carrying foreign nationals who had arrived last month.

According to details, the N750GF was carrying two foreign nationals including Davies on board and arrived in Sri Lanka on March 28. It departed Ratmalana Airport on April 16 morning for Dubai, UAE. 

Davies is an Engish fashion designer and is the owner of several leading garment brands. 

Courtesy Adaderana

The Security and Exchange Commission (SEC) of Sri Lanka has directed the Colombo Stock Exchange (CSE) to temporarily close the stock market for a period of five business days commencing from the 18th of April.

In a statement, the SEC director, Tushara Jayaratne said the Board of Directors of the CSE, by way of a communiqué dated April 15, had called upon the Commission to temporarily close the stock market citing the present situation in the country.

Many other stakeholders of the securities market including the Colombo Stock Brokers Association had also sought the temporary closure of the market on the same grounds, according to the SEC director.

Accordingly, the SEC has carefully considered the grounds that have been adduced by them and has evaluated the impact the present situation in the country could have on the stock market, in particular the ability to conduct an orderly and fair market for trading in securities.

Mr. Jayaratne said the SEC is of the view that it would be in the best interests of investors as well as other market participants if they are afforded an opportunity to have more clarity and understanding of the economic conditions presently prevalent, in order for them to make informed investment decisions.

Therefore, acting in terms of the provisions contained in Section 30 of the Securities and Exchange Commission Act No. 19 of 2021, the SEC has decided to direct the CSE to temporarily close the stock market for a period of five business days commencing from April 18.

Courtesy Adaderana

The Sri Lankan delegation led by Finance Minister Ali Sabry will depart the island in the early hours on Sunday (April 17) to take part in the discussions with the International Monetary Fund.

The talks are taking place in Washington, United States from 19-24 April.

The finance minister is accompanied by Central Bank Governor Dr. Nandalal Weerasinghe and Secretary to the Finance Ministry Mahinda Siriwardene.

Courtesy Adaderana

The pole antenna structure installed at the Galle Face Green by a leading telecommunications service provider in the country has been removed, Ada Derana correspondent says.

Concerns were raised on social media platforms with regard to the Capacity Enhance solution at the Galle Face Green premises where the ongoing public protest against the government is staged.

Taking these concerns into account, the company decided to de-install the antenna structure.

In a notice, the company said the sole purpose of the installation was to alleviate congestion levels in the Galle Face area.

It also assured the customers of its best efforts to reduce congestion levels in the area using existing infrastructure facilities.

A 20-feet pole antenna structure was installed at the Galle Face Green area on Friday (April 15). 

The initiation of the said installation is one of the network solutions being implemented to alleviate the network congestion in the area experienced by the customers, the company said further in its statement.

Capacity augmentation and quality of service improvement initiatives, in response to customer feedback, are carried out by the company as part and parcel of its daily operations.

It also stated that this installation was submitted for the approval of the Telecommunications Regulatory Commission of Sri Lanka (TRCSL) and the activation of the augmented capacity would follow the receipt of TRCSL approvals.

However, the antenna structure was removed today, after the installation was met with controversy.

By Noor Nizam – Peace and Political Activist, Political Communications Researcher, SLFP/SLPP Stalwart, Convener “The Muslim Voice”, 15th., April 2022

The power of “ABILITY” of Gota against “CONSPIRACY” of those looking for a “Regime Change”. The protest taking place in Sri Lanka has been planned out in the same way the “Truckers Protest” was staged in Canada against PM Justin Trudeau by the American Republicans. 

The SJB, JVP, NPP and some elements of the SLFP and the Anti government groups are behind this attempt to set in a regime change. The US Embassy gave away a lot of money to many NGO’s and so-called Civil Society groups a few months ago under the disguise of support to help social media platforms. 

Gota with his ability will continue and the Nation will see prospective changes for good in the future. Able Ambassadors like HE. Palitha Kohana will get the Chinese $2.5 billion in financial support to wade off the island nation’s inflation-driven crisis, in addition to the IMF $4.5 billion being negotiated by Hon. Ali Sabry – Minister of Finance and the assured Indian government loan (credit line) of $. 1 Billion, for which agreements have already being signed, Insha Allah. 

But HE. Gotabaya Rajapaksa should be aware that some of the Government officials and Sri Lankan diplomats heading foreign missions supported by INGO’s and the Social Media/YouTube channels are “STABBING” the President and the duly elected government behind the back. 

Once the economical issues are cleared, the President should set-in-motion a public inquiry to probe these incidents. Sri Lankan “PATRIOTIC” diaspora domiciled in North America and Europe will then be able to expose these “TRAITORS” in public for necessary action.

මහින්ද රාජපක්ෂ ශ්‍රී ලංකා ප්‍රජාතාන්ත්‍රික සමාජවාදී ජනරජයේ අග්‍රාමාත්‍ය

ජේසුස් ක්‍රිස්තුස් වහන්සේ මරණය පරාජය කරමින් උත්ථානය ලැබූ විජයග්‍රාහී ප්‍රීතියේ සැමරුම් දිනය පාස්කුවයි.

කිතුනු ජනතාවගේ ප්‍රධානතම මංගල්‍යක් වන පාස්කුව ලොවපුරා කිතුනු බැතිමතුන් සමඟ ශ්‍රී ලංකේය කිතුනු ජනතාව සමරනුයේ මහත් හරසරිනි.

පාස්කු මංගල්‍යයට පෙර කිතුනු බැතිමත්හු ජේසුස් ක්‍රිස්තුන් වහන්සේ කුරුසිය මත දිවි පිදීමේ යාගය මහ සිකුරාදා දිනයේ සිහිපත් කරනුයේ  දුක්විඳීම හා  මරණය මෙනෙහි කරමිනි. 

පරිත්‍යාගශීලී ජීවිතයක වටිනාකම මෙන්ම ධෛර්යය හා ශක්තිය ජීවිතයට ළඟාකර ගතහැකි අධ්‍යාත්මික මාර්ගය මෙනෙහි කිරීමට අද වැනි දිනයක් සියලු දෙනාට එක සේ වැදගත්ය.

ඒ සඳහා ඔවුහු අළු බදාදා සිට දින හතළිහක කාලයක් දුක් ප්‍රාප්තියට වඩාත් සමීපවෙමින් යාඤාවෙන් භාවනාවෙන්, උපවාස ශීලයෙන් හා විවිධ පුණ්‍ය ක්‍රියා ඔස්සේ අධ්‍යාත්මික සහනය ප්‍රාර්ථනා කරති.

සමාජීය හා සදාචාර සම්පන්න පැවැත්ම විනාශ කරන සහ සමාජය අඳුරු ගන්වන නපුරු බලවේග පලවා හැරීම සඳහා පාස්කු අලෝකය  ජනතාවට සහනාලෝකයකි.

සමාජ සාධාරණත්වය, මනුෂ්‍යත්වය සහ ප්‍රේමය වෙනුවෙන් සිය ජීවිතය කැපකළ ජේසුස්  ක්‍රිස්තුන්  වහන්සේ ලොවට ගෙන ආ ජීවිත ආදර්ශය තුළ සැබෑ ජීවන වෙනසක් අත්දකිමින් මානව දයාවෙන්, සහජීවනයෙන් හා අන්‍යෝන්‍ය ප්‍රේමයෙන් යුතුව දිවි ගෙවීමට කිතුනු ජනතාවට හැකිවේවා! යැයි මම ප්‍රාර්ථනා කරමි.

ශ්‍රී ලාංකේය කිතුනු බැතිමතුන් සැමට සුබ පාස්කු මංගල්‍යයක් වේවා !

National Joint Committee

Under our Constitution (vide Article 40) when the office of the President falls vacant prior to his term of office by resignation or otherwise, his successor has to be elected by Members of Parliament and the new President will hold office for the remaining period of the office of President. The new President is elected by secret ballot and by absolute majority. Thus, the 113 Members of Parliament may ultimately decide who the new President is to be in place of the President elected by the people. Those who prosecute this campaign should first disclose to the people whom they would bring as the new President of Sri Lanka. The people need to know the policies of the new President and his qualifications.

This campaign started with the slogan that the President and all 225 Members of Parliament should go home but paradoxically now we find this campaign being confined to a ‘Gota-Go’ campaign. Is the new President going to be selected by the very people who needs to be sent home? There’s something terribly wrong with this ongoing campaign. There is obviously a political motive behind this campaign. Even more it is obvious that NGOs are playing a proactive role for a regime change in the same way they did in 2015 with the able assistance of the Government of the US. The food and drinks offered to protesters with sophisticated packing are obviously not from sympathetic supporters but from organized groups showing signs of a foreign hand. We can see that some of the slogans are against the Maha Sangha and the Buddhist public in general.

The National Joint Committee (NJC) accepts that this Government has failed so miserably that the present Cabinet of Ministers can no longer claim any right to govern. The country is economically not in a position to hold elections at this moment. Therefore it is the duty of both the Government and the Opposition to amend the Constitution to find a suitable solution to the present crisis. The NJC supports the proposal made to the Government by two members of the expert panel that have been appointed to draft a new Constitution to put in place an apolitical Cabinet of Ministers as a temporary measure during this crisis. They have proposed to have an interim Cabinet of Ministers consisting of 15 members who are not Members of Parliament with the required expertise in the respective subjects and functions of the relevant Ministries. Once the country is back on track elections can be held and people will get the opportunity to elect suitable people to govern this country with a Cabinet of their choice.

Intellectuals and professionals cannot contest and succeed in getting elected under the present electoral system. Therefore it is necessary that we revert back to the First Past the Post” system of elections so that independent candidates without the support of political parties could contest elections. It is not possible to get capable people with integrity into Parliament under the proportional representation system where political parties submit lists of candidates decided by their leaders. Therefore, the NJC is strongly of the view that the First Past the Post” system should be brought in as a matter of priority.

Mr. Gotabhaya Rajapaksa came into power promising to uphold the rule of law and to bring in good governance practices. However soon after he came into power the 20th Amendment was brought to bring in his kith and kin to power. The President’s brother was brought into Parliament through the back door and given the Finance portfolio and his other siblings and nephews were bestowed with Ministries lavishly. Provisions relating to the National Procurement Commission was removed completely. This was to facilitate the disposal of national resources. Soon 40% shares of the Yugadhanavi power plant was sold to the Americans giving them the monopoly to supply natural gas without competitive bidding. Sri Lanka lost millions as a result of this deal. This is a national crime.

Having come to power with the vote of the nationalists they were soon sidelined. Two prominent Ministers were sacked from the Government without any justifiable reason. Therefore there is a serious doubt whether this Government would act in the national interest in the future. It is necessary therefore that before the people extend their support to the present Government a new Constitution be adopted forthwith ensuring that;

1. The electoral system is changed to the First Past the Post” system so that independent professionals could contest the elections without the support of political parties.
2. The Article 9 in the present Constitution on Buddhism be retained.
3. The unitary character of the State, the National Flag and the National Anthem are not changed.
4. The right to use the Sinhala language in the Northern and Eastern provinces be restored.
5. The supremacy of Parliament is restored and all subordinate legislation whether enacted by Provincial Councils or any other body is subject to laws enacted by Parliament to ensure the concept of  one country one law”
6. All agreements entered into with foreign companies and governments are examined by the Supreme Court before they are entered into and approved by Parliament.
7. No procurement by the State be permitted without competitive bidding unless in an extreme emergency.

The NJC can no longer support the Government unless a firm commitment is made to ensure that the promises given to the people prior to the election are fulfilled without any reservation.

Lt Col. Anil Amarasekera (Rtd.)                       Mr. K. M. B. Kotakadeniya. Senior DIG.(Rtd)

Co-Presidents National Joint Committee

12^th April 2022

MALINDA SENEVIRATN​E

Rev Fr Cyril Gamini (RFCG hereafter) has found his voice. RFCG, after shooting his mouth and naming names in a zoom discussion, was duly complained about and required to make a statement. Having named names, he was required to offer tangible proof, for lack thereof would amount to defamation. He ducked. He hid under his own cassock. We wonder if he went to confession at any point thereafter. 

Anyway, RFCG is back at his own games of casting aspersions, loose-cannoning if you will. He’s careful, RFCG is. He deliberately and meticulously avoids talking about the perpetrators of the crime: the NTJ, Zahran, Naufer and, if you want to be ideological about it, Islamic Fundamentalism. Instead he goes for soft targets and puts both feet in the mouth (as always). He talks about conspiracy, but not related to the attacks themselves; for him it’s about negligence and the alleged protection of the negligent. And, not untypically, a wide-eyed media that tends to extrapolate beyond belief attributes the allegations of this maverick priest to ‘The Catholic Church’. 

RFCG was ranting in response to comments made by Secretary, Defence, Kamal Gunaratne. He asks what moral right Gunaratne has to ‘protect political leaders.’ Was Gunaratne protecting anyone? Has nothing been done about the Easter Sunday attacks in terms of investigation, legal action, compensation for families of those killed and the injured, countering extremism and in ensuring that such attacks are not repeated? Gunaratne stated some facts. The state has done much in terms of the second set of questions. The details of the numbers arrested, enlarged on bail, indicted etc., are well known. Well, RFCG clearly is ignorant of all that. Other measures taken have been detailed in numerous comments, statements and reports. Yes, RFCG is not interested in any of that. What moral right does he have, then, to talk about truth and justice? We don’t know how well versed he is about the Ten Commandments or if he does, the value he places on them, how many he has broken etc., but clearly he’s at odds with the 9th, as per Deuteronomy 5:20: ‘You shall not give false testimony against your neighbor,’ in the expanded interpretation of ‘neighbor’ of course.

The ninth commandment honors the right to one’s own reputation.[1] It finds pointed application in legal proceedings where what people say depicts reality and determines the course of lives. Judicial decisions and other legal processes wield great power. Manipulating them undercuts the ethical fabric of society and thus constitutes a serious offense. Walter Brueggemann says this commandment recognizes that community life is not possible unless there is an arena in which there is public confidence that social reality will be reliably described and reported.”

He asks questions to which answers have been given many times, for example, ‘What are the investigations carried out by the investigation teams including the CID so far to prove that it is not such a political conspiracy?’ This is like asking someone ‘Is there any evidence that Jesus was born in what is today known as Iceland?’ and being answered, ‘Is there any proof that he was not?’ The main task of investigation is to consider what happened and based on facts to make determinations on any matter, conspiracy included. In RFCG’s court (where he is judge, jury and prosecutor) it’s a flip: conspiracy as hypothesis and all energies to be expended to determine first and foremost and to the end whether or not hypothesis holds. Bunkem!

RFCG seems to be intent on sticking his dagger into SSP and former SIS chief Nilantha Jayawardena. Nilantha Jayawardena as indeed is anyone and everyone in the intelligence agency had to do his job: obtaining intelligence information and passing on the information to authorities that are mandated to act upon them. No negligence there. Negligence can only be attributed to agencies and individuals mandated to act upon such information. Negligence, obviously, is a significant fault.

Former President, Maithripala Sirisena was negligent, even though he is not an intelligence officer nor an investigator. The then Minister of Public Administration and Management and Law and Order Ranjith Maddumabandara, also not an intelligence officer nor an investigator, was negligent. They were both aware. They did nothing. NOTHING, repeat. The hero in charge of stuff during that period, Shani Abeysekera, is far more culpable since he had the leads and brushed them off. Indeed he had some of the would-be terrorists cornered, but was either clueless or slothful. For a full discussion, read ‘The Easter Sunday Attack: negligence and the negligent.’ We know what happened later. RFCG knows too, but he doesn’t mention the man at all. Why not?

For the record, consider the following:  735 suspected of direct or indirect involvement in the terrorist attacks were arrested. Of them, 196 are in remand custody, 19 in detention, 81 served indictments while 453 have been enlarged on bail. There are 27 cases filed against 79 persons in the high courts of Gampaha, Candy, Kurunegala, Puttalam, Nuwara Eliya, Batticaloa, Colombo and Kegalle are being heard by three-judge benches in terms of 25,753 charges.

There’s more: Assets, including property, buildings and vehicles worth Rs 365 million as well as gold worth Rs 168 million belong to the suicide bombers and relevant organizations have been confiscated so far. All relevant agencies have taken innumerable steps to investigate and press charges on all persons who have directly or indirectly supported extremism, regardless of who they are; politicians, public and private sector employees and officials make up this list.

Is RFCG interested? Of course not. He’s the judge, let us repeat, the jury and the prosecutor. He’s not concerned with the perpetrators or the ideology that spurred them on. Instead, he’s chasing a ghost, some mahamolakaru (mastermind) and his thesis is that the negligent were in fact masterminds. Speculation, speculation! Humbuggery, humbuggery!

Seriously, if conspiracy is the big-word here, RFCG is clearly the most vocal conspirator of them all! I wouldn’t go as far to say that the blood of the victims are on his hands, but RFCG’s hands are anything but clean.

KAMALIKA PIERIS

JR made radical changes to the economic policy of Sri Lanka .He brought in a free market economy, ending   years of socialist bungling. The economic liberalization of 1977 pioneered by JR made radical changes in the economic policy of the country, said economists.  The 1977 economic reforms saw an initial burst of healthy growth and the ‘take off’ of the economy, but it became sluggish thereafter.  It did not lead to any genuine economic advance.

JR’s ‘economic liberalization’ started the process that led the country into the economic disaster it is facing today in 2022. He said let the robber barons come. Who on earth in their right minds would say, Let the robber barons come asked a critic. He gave the wrong signal when he said let the robber barons come” said another.

JR   introduced Free Trade Zones to the country. The Greater Colombo Economic Commission Act (GCEC) was passed in March 1978 and Sri Lanka’s first Special Economic Zone was established. Upali Wijewardene was appointed the Head of the GCEC. He succeeded in inviting blue chip companies such as Motorola to set up shop here.

J.R. Jayewardene heralded the creation of Free Trade Zones as if they were something wonderful, said critics. GCEC brought some glamour, some jobs and a certain illusion of movement into an economy which had opened up after years of   socialist policy, certainly. They provided some jobs for unemployed youth, and put a little money in their pockets. This was very welcome after the stagnant Bandaranaike era, analysts said.

But JR’s Free Trade Zones were a failure.  They did not lead to the massive production economies that transformed countries such as Japan and South Korea. FTZs never helped to established industry in Sri Lanka. The foreign companies that came here used our cheap labor, our land, water and other resources and repatriated the profits. Then they left the county and went elsewhere. Sri Lanka got nothing in return.  FTZ did not create wealth for the country.

Sri Lanka did not have foreign debt till 1977. Up to 1977, Sri Lanka was able to manage its budget   and make all payments. 1976 and 1977 happened to be the last years when our country was run without a deficit.

Before 1977, we had two budgets. A local rupee budget for handling all work in the country, including major development tasks  and a separate foreign budget with the dollars we collected from imports.

We spent the dollars we had, first on essentials, and if we had anything left, we gave small allocations to import cars and electrical items. We never dispensed funds for foreign travel unless it was necessary for our country. Nor did we allocate any foreign funds for students to study abroad, said Garvin Karunaratne.

JR changed this. JR arranged for Sri Lanka to obtain foreign loans, which immediately meant foreign debt as well.  JR borrowed from the IMF.  This was, I believe, the first time Sri Lanka turned to the IMF for loans.

IMF readily provided dollar loans.  The IMF even provided grace periods where the loan installments and interest need not be paid-.  Then government could freely spend and leave the burden of repayment to their successors.

Sri Lanka started living on loans.    We sought foreign loans and even sold our assets to fund the budget itself .Sri Lanka was advised to engage in deficit budgeting which meant spending more than we earned.  Since 1977 we have been following this ridiculous concept, said analysts.

This tilt to IMF would have helped USA to increase its hold over Sri Lanka as well. The IMF was dominated by the US which was its biggest contributor and therefore had the largest voting bloc. This meant effective veto power.

The national interests of the United States are strongly supported by the International Monetary Fund, reported officials.  The IMF is a very good deal for us. Its programs cost us nothing yet it provides enormous benefits for our economy and our foreign policy.

When JR sought the help of the IMF in 1977, the IMF imposed condition for gratning a loan. These conditions included a demand to slash welfare assistance, to privatize state institutes, to impose tax concessions on rich and taxes on the poor, and  sell the resources of the country .

IMF insisted that funds would be given only if the country follows the Structural Adjustment Programme of the IMF.  This meant that Sri Lanka had to liberalize the spending of foreign exchange. Sri Lanka had to remove the restrictions over imports and permit free imports. . It had to allow those who could afford, (i.e. the rich,) to spend money as they wished.  The foreign funds loaned to us were, in this way, shunted back to the donors through purchases and services.

Garvin Karunaratne summarized it this way. Sri Lanka managed its foreign exchange effectively, till President Jayewardene was fooled by the IMF to follow the Structural Adjustment Programme,   which advised him to allow the rich to spend foreign exchange, as much as they wanted, for endless foreign travel to educate their children abroad, import all luxury items. IMF provided loans for this purpose and even provided grace periods when the service and interest charges were not to be paid,   leaving future leaders to bear the brunt of repayment, concluded Garvin.

The IMF also laid down that the public sector, (i.e. government) should not carry out   any   commercial activity.    The MEP government of 1956 had introduced industrialization at state level, and set up industries as government concerns, usually through corporations but also in government Departments. Thanks to IMF these were either closed down or privatized. The country felt this but could do nothing about it.

There was a slant to this privatizing. The intelligentsia observed that it was the corporations that made profits, and brought money to the Treasury, that were singled out and privatized for a song. These included Insurance Corporation and Distilleries Corporation .Both were making profit. Critics were indignant about this.

Hope Todd, Chairman of National Small Industries Corporation started Borwood Ltd, in the late 1960s. Borwood   made school furniture using rubber wood. Hope had worked with the Assistant Conservator of forests and an engineer to develop the techniques for this. The company had exported to China. Borwood had also been used in the new Parliament.  But JR got rid of the local industries, and Borwood also went,” said a critic.

The government textile manufacturing units, both handloom and power loom, also textile mills were privatized or abolished.  Out went the handlooms and the power looms and instead fabric was imported, said one critic. I myself, remember going to a sale of local silk   held by a government Department. That division was closing down.  I think   Pugoda and Thulhiriya Textile Mills were also affected.

Marketing Department had a Cannery that made Sri Lanka self sufficient in all fruit preparations.  This was closed down after the IMF came in.  Vegetable & Fruit Purchasing & Sales Scheme that assured high prices to producers and also made available goods at low prices to consumers was also abolished.

In the pre 1977 period we never imported a single rail carriage or bus or lorry. We imported the chassis and built them ourselves. Local Bus/Lorry Body building industry was started in the 1950s. Passenger coaches were locally built on imported chassis. Similarly, trucks (lorry bodies) were also locally built during the same period. Bus/Lorry Body building industry reached its peak in the mid 1960s to the late 70s.

CTB was well equipped with foundries and workshops: the Central Workshop at Werahera became the largest in South Asia, equipped with machine tools from India, Germany and the Eastern Bloc. In 1974 the assembly of bus chassis and prototypes of a locally manufactured bus and a car rolled out of Werahera. Preference was given to locally manufactured spare parts, and the automotive spare parts industry grew rapidly.

the industry declined after 1977 when the open economic policy of the  government came into play. Then in the mid 1980s the SLTB’s own local bus body building facilities were  abandoned and Indian imports in complete built form replaced the local manufacture,.

Local enterprises also closed down because the bank interest rate was jacked up to 25%, which made enterprises uneconomical to run.

JR’s Open Economy encouraged the excessive import of consumer goods. This country started to import all items killing the local industry, complained critics. The IMF policy killed    small and medium industries, catering to domestic needs, which had started to blossom in Sri Lanka. The replacements were not of better quality.

There was a pasta manufacturing company, Menik, which I patronized. This vanished and was replaced by an imported product, which takes the same length of time to cook. There was an excellent locally made cotton Ruflette tape, which I used for curtains. This was replaced by an imported tape, made of a   stiff synthetic material, difficult to sew or use.

Prior to open economic policies introduced in late 1970s, the quantity of milk imported was low and there were no adverse effects to the dairy industry of Sri Lanka. However, with the liberal economic policies, milk powder importation has increased rapidly and trading in milk powder became a highly profitable venture In addition, the multinational companies spent a staggering sum on milk powder commercials and  changed the attitudes towards milk powder consumption. This resulted in the preference for imported powdered milk.

In 1978, the tariff rate for powdered milk was five percent whereas for the liquid milk it was 60 percent. Moreover, policymakers announced milk as an essential food in 2007 and all taxes and levies on milk powder were removed to safeguard consumers. Experts said that it was not advisable to put milk powder into tea, better drink it neat, but this was ignored.

The liberalization of the economy was a success story, said Daya de Siva. Now we can buy a TV, a washing machine and pressure cooker. Now Colombo pavements are piled up high with Australian apples, Jaffa oranges, and Hong Kong wrist watches. Thanks to JR we can eat good ice cream now. We can eat Cadbury Chocolates and Danish cookies again. I really enjoy shopping at supermarkets, Daya said.

The Open Economy delighted the rich, because luxury goods came in. For those with a sweet tooth, imported chocolates and imported ice cream in plenty. Recently I bought a packet of ‘Himalayan rock salt’, imported from Pakistan and packed in Sri Lanka. I bought it because I had never even heard of Himalayan rock salt and wanted to see what it was like.  But even as I purchased the item, I thought that it was not an essential item for Sri Lanka and need not be imported.  (Continued)

Courtesy NewsIn.Asia

Colombo, April 14 (Hindustan Times/newsin.asia): Sri Lanka has sought India’s assistance in garnering international support to secure bridge financing as it enters negotiations with the International Monetary Fund (IMF) for a bailout programme to cope with the island nation’s worst economic crisis in decades, according to a statement from the Sri Lankan high commission.

On Tuesday, Sri Lanka declared it would default on its external debt pending a bailout from IMF. The move was attributed to the country’s critically low foreign exchange reserves. This was the first time Sri Lanka has announced a debt default since its independence in 1948.

In addition to reviewing bilateral economic cooperation, Moragoda and Sitharaman discussed how India can assist Sri Lanka in getting international support to secure bridge financing and the IMF economic adjustment programme itself, through both bilateral and multilateral partners, said the statement from the Sri Lankan high commission.

They also explored the possibility of enhancing and restructuring some of the assistance already provided by India in the form of credits for essential commodities and fuel, as well as balance of payment support.

Moragoda and Sitharaman observed that the assistance provided by India so far could form part of the bridging finance required by Sri Lanka until the economic adjustment programme with the IMF would be negotiated”, the statement said.

It was also observed that India was the first country to support Sri Lanka in this manner to secure bridging finance until that programme would be in place,” the statement added.

Sitharaman expressed her concern over the humanitarian cost of the economic crisis and said India would stand by Sri Lanka to overcome its challenges”. Moragoda thanked her for her personal interest in supporting Sri Lanka at this difficult time.

The process of negotiating a bailout with the Washington-based IMF is expected to take at least six months, if not more. In the interim, the Sri Lankan government will have to work out a bridge financing arrangement to take care of its immediate needs.

Moragoda and Sitharaman noted that Sri Lanka’s finance minister Ali Sabry and his delegation will meet the ministerial delegation from India in Washington next week on the margins of the IMF spring meetings.

The envoy also thanked Sitharaman for the assistance that India is extending to Sri Lanka in the form of credits for essential commodities and fuel, and for balance of payment support.

India has so far provided Sri Lanka financial aid worth almost $2.5 billion, including a $500-million line of credit in February for fuel purchases and another $1-billion line of credit in March for buying food, medicines and other essential items. India has provided a currency swap of $400 million under the Saarc facility and deferred the payment of $515 million to the Asian Clearing Union.

On Tuesday, 11,000 tonne rice supplied by India under the line of credit reached Colombo.

Moragoda briefed Sitharaman on the debt standstill” announced by the Sri Lankan government and told her that Sri Lankan authorities are seeking a consensual agreement on debt restructuring”.

The discussions also focused on how India can play an expanded role in promoting accelerated growth and development in Sri Lanka in the medium term. Moragoda and Sitharaman expressed satisfaction at ongoing official discussions between the two countries to establish a cooperation framework and to monitor progress of bilateral economic cooperation in the current context.

Sri Lanka’s presidential advisory group on multilateral engagement and debt sustainability, the governor of the Central Bank and the secretary to the treasury are engaged in these discussions, while India is represented by the chief economic advisor and the secretary (economic affairs) in the finance ministry. The high commissions of the two countries are also participating in the discussions.

The economic crisis in the country of 22 million people has resulted in regular blackouts and shortages of food and fuel. The government has banned the import of non-essential items to conserve foreign currency reserves. The economic crisis has also triggered public demonstrations, with protestors demanding the resignation of President Gotabaya Rajapaksa.

Sri Lankan Version

Sri Lanka’s High Commission in India, said in its press release that High Commissioner Moragoda thanked the Indian Finance Minister for the assistance that India is extending to Sri Lanka in the form of credits for essential commodities and fuel, and also for balance of payment support extended at these challenging times.

The Indian Minister and the High Commissioner observed that this assistance could form part of the bridging finance required by Sri Lanka until the economic adjustment programme with the IMF would be negotiated. It was also observed that India was the first country to support Sri Lanka in this manner to secure bridging finance until that programme would be in place.

In this context, High Commissioner Moragoda and Minister Sitharaman discussed how India could assist Sri Lanka in garnering international support to secure bridging finance and for the economic adjustment programme itself, through both bilateral and multilateral partners.

The High Commissioner briefed the Minister on the debt standstill announced by the Government of Sri Lanka. He informed her that the Sri Lankan authorities are seeking a consensual agreement on debt restructuring.

They explored the possibility of enhancing and restructuring some of the assistance already provided by India in the form of credits for essential commodities and fuel as well as balance of payment support.       

The discussion was also focused on how India could play an expanded role in promoting accelerated growth and development in Sri Lanka in the medium term.

High Commissioner Moragoda and Minister Sitharaman reviewed and expressed satisfaction over the ongoing official-level discussions between Sri Lanka and India to establish a cooperation framework and to monitor the progress of economic cooperation between the two countries in the present context. The Presidential Advisory Group on Multilateral Engagement and Debt Sustainability, Governor of the Central Bank and the Secretary to the Treasury are engaged in these discussions representing Sri Lanka while India is represented by the Chief Economic Advisor of the Government and the Secretary (Economic Affairs) of the Ministry of Finance. The High Commissions of the two countries in each other’s capitals are also participating in these discussions.

During the meeting, the Finance Minister of India expressed her concern over the humanitarian cost of the economic crisis and said that India would stand by Sri Lanka to overcome its challenges. In response, High Commissioner Moragoda thanked Minister Sitharaman for the personal interest that she has taken in supporting Sri Lanka at this difficult time.

They also noted that Finance Minister of Sri Lanka Ali Sabry and his delegation would be meeting the Ministerial delegation from India next week in Washington D.C. on the wings of the IMF spring meetings.

ANI News

Amid Sri Lankan economic crisis, apparel orders from island nation diverting to India
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https://www.aninews.in/news/business/business/amid-sri-lankan-economic-crisis-apparel-orders-from-island-nation-diverting-to-india20220415195455/

SOUMYA BHOWMICK courtesy orfonline

As Sri Lanka descends into economic despair, only two options are open to it: Either seek further assistance from the IMF or seek loans from individual countries.

Lately, India’s immediate neighbourhood is in doldrums. From the mass protests, killings, and use of arms over the military coup in Myanmar about a year back to the recent political and economic conundrum unfolding in Pakistan; from the fresh rise of COVID-19 cases in Chinese cities like Shanghai and Shenzhen to the epicentre of the region’s much talked about economic crisis emerging from Sri Lanka—India has its hands full in dealing with the new foreign policy dynamics and economic diplomacy in all directions.

Sri Lanka faces its worst economic crisis since its independence from British colonial rule in 1948—with visuals of prolonged power cuts, high inflation, and lack of essential commodities. The 26-year long civil war that ended in 2009 had a major strain on Sri Lanka’s budget deficits and consequently, the global financial crisis of 2008 drained the country’s forex reserves hampering a large number of economic parameters crucial for the Lankan economy. Economic mismanagement by the successive Sri Lankan governments caused a twin deficit characterised by a budget shortfall along with current account deficits. Firstly, as an election promise, there were deep tax cuts enacted months before COVID-19 pandemic. This led to a sharp decrease in the number of registered taxpayers between 2019 and 2020. Secondly, the government banned all fertiliser imports in 2021. Since most of these products were imported, the country had to switch to organic farming overnight which decreased food production and food imports went up.

Economic mismanagement by the successive Sri Lankan governments caused a twin deficit characterised by a budget shortfall along with current account deficits.

The last two decades saw a series of loans from the International Monetary Fund (IMF). In 2009, IMF extended a loan with the condition that budget deficits will be reduced to 5 percent of the GDP by 2011. With no improvement in growth or export, the country again went to the IMF in 2016 for another round of debt which stood at US $1.5 billion with some new clauses. The IMF package harmed the economy’s health, with a fall in growth rate from 5 percent in 2015 to 2.9 percent in 2019. During the same period, the government revenue also contracted from 14.1 percent to 12.6 percent of GDP.

There is no denying that IMF debts come with a set of conditions which are often quite restrictive for the debtor nations. Despite Sri Lanka’s severe Balance of Payment (BOP) crisis, the country has been adamant in not seeking assistance from the IMF given their previous track record of faltering economic recovery. The alternate strategy was to seek assistance from the global rivals in the neighbourhood—China and India.

China: No longer the saviour

The COVID-19 pandemic has undoubtedly hurt the global economy in a multitude of ways, especially for smaller developing nations like Sri Lanka. In this context, it becomes particularly important for the regional economies to maintain a fine balance between their overall external debt and debt to China, especially for the BRI (Belt and Road Initiative) countries such as Sri Lanka. A few years back, the Chinese initiative drew much criticism when China Merchants Port Holding (CMPort) took over Sri Lanka’s Hambantota Port on a 99-year lease when Colombo wasn’t able to pay back a funding capital debt of about US$ 1.12 billion to China.

Many global players see Sri Lanka as a victim to China’s ‘debt-trap diplomacy’—which is quite a valid argument. Although China accounts for about only 6 percent of Sri Lanka’s outstanding external debt, China’s liquidation techniques and hidden debts in various projects reflect the problematic outcomes of Beijing’s economic imperialism. The ongoing economic crisis in Sri Lanka had caused Colombo to request for a moratorium on debt repayments to the visiting Chinese Foreign Minister in February 2022—stirring up the issue of ‘problematic Chinese debts’ once again in the global economic arena. The island nation also sought a new loan of approximately US$ 2.5 billion in March 2022.

The Chinese initiative drew much criticism when China Merchants Port Holding (CMPort) took over Sri Lanka’s Hambantota Port on a 99-year lease when Colombo wasn’t able to pay back a funding capital debt of about US$ 1.12 billion to China.

India: The new friend

In the last couple of years, Sri Lanka and India have been able to substantially strengthen their economic ties and remain amongst the largest trade partners for each other within the ambit of South Asian Association for Regional Cooperation (SAARC). Some major highlights of India’s financial package to Sri Lanka include—US$ 400 million worth of SAARC currency swap; deferral of Asian Clearing Union Settlement of US$ 515.2 million by two months and US$ 500 million for fuel procurement in Sri Lanka. In a groundbreaking move, New Delhi also extended a Line of Credit worth US$ 1 billion to Colombo to aid the procurement of food, medicines, and other essential commodities.

Unfortunately, but quite expectedly, there is no lack of competitive tones to the aid provided by India versus China at the cost of the Sri Lankan crisis. In fact, there are actual concerns regarding Beijing’s pressure on Colombo for a Free Trade Agreement (FTA) during such trying times. Former Prime Minister of Sri Lanka Ranil Wickremesinghe agreed that India has extended ‘maximum’ support to Sri Lanka and added we will have to see the outcome of the support of India while New Delhi is still helping in non-financial ways”.

According to the Finance Ministry, about US$ 3 million worth of external assistance will be required over the next six months to restore supplies of essential goods and catalyse the recovery path for the economy.

Back to the IMF?

As thousands of Sri Lankans protest the current government for bringing this catastrophe to the nation, the big question that looms large is whether Colombo is inching closer towards engaging with the IMF once again? Experts speculate that the Sri Lankan President removed his brother and Finance Minister Basil Rajapaksa as he was planning to visit the US to hold negotiations with the IMF—he was replaced by Ali Sabry, the former Justice Minister of Sri Lanka. On 12 April, the country declared that it was defaulting on its external debts to the tune of US$ 51 billion, pending an IMF bailout. According to the Finance Ministry, about US$ 3 million worth of external assistance will be required over the next six months to restore supplies of essential goods and catalyse the recovery path for the economy. The Minister intends to find this assistance through bridge financing, in the run up to the talks with the IMF which is scheduled later this month. The IMF too had started its ‘technical-level engagement’ with the Finance Ministry.

Given Sri Lanka’s situation, there is no way out of this crisis than seeking substantial support from the IMF, which may entail some conditions related to budgetary cuts and trade openness amongst others. The other options of seeking huge loans from individual nations will always be inclusive of an agenda suitable to the creditor nations. Although such IMF directives may seem valid at this stage of the economy—it is for time to tell whether Sri Lanka’s engagement with the IMF will only be an antidote in the short-run or will it provide guidelines for a sustainable and inclusive recovery in Sri Lanka.

Courtesy Outlook

Sri Lanka is currently experiencing its worst economic crisis in history. With long lines for fuel, cooking gas, essentials in short supply and long hours of power cuts, the public has been suffering for months.

Sri Lanka has started a process to import cooking gas through a credit line arrangement with India, the chair of the country’s state-run gas company Litro Gas said on Friday as he resigned from his post alleging that a gas mafia was engaged in corruption amidst the country’s worst economic crisis.

Sri Lanka is currently experiencing its worst economic crisis in history. With long lines for fuel, cooking gas, essentials in short supply and long hours of power cuts, the public has been suffering for months.

Theshara Jayasinghe, the Chairman and CEO of Litro Gas, the country’s largest importer and supplier of cooking gas, said in his resignation letter to President Gotabaya Rajapaksa: I had initiated a process through the Indian High Commission to obtain an Indian credit line to import gas. This could be easily implemented”.

Jayasinghe said he was resigning as he did not receive the fullest cooperation from the government and had come under pressure from what he called a gas mafia operating against him.

There is massive corruption in the gas business,” Jayasinghe said.

Cooking gas shortage is just one of the scarcities that the public had to face in the island nation’s worst economic crisis since independence.

People are forced to spend time in long queues for fuel while most essentials, including medicine, are in short supply.

Massive anti-government protests are being held throughout the country with a major demonstration happening outside the Rajapaksa secretariat in central Colombo.

The protest, which entered its seventh day on Friday, was bolstered by the appearance of celebrities.

We tell the President, please resign, you have proved a failure,” film director Udayakantha Warnasuriya said.

A policeman who joined protesters while still in uniform on Thursday was released on bail on Friday.

The sergeant blessed the protesters while on duty and said the corrupt system and those responsible for it must quit.

The protesters expressed anger over the latest decision to ration fuel at retail stations.

They must be sent home immediately, we cannot run hires with just 1,500 rupees worth of petrol,” an auto rickshaw driver Samantha told reporters.

With the economic crisis and the shortage of forex, an Indian credit line of USD 500 million for fuel imports provided a lifeline to the island nation.

India recently announced to extend a USD 1 billion line of credit to Sri Lanka as part of its financial assistance to the country to deal with the economic crisis following a previous USD 500 billion line of credit in February to help it purchase petroleum products.

President Rajapaksa has defended his government’s actions, saying the foreign exchange crisis was not his making and the economic downturn was largely pandemic driven with the island nation’s tourism revenue and inward remittances waning.

Meera Srinivasan Courtesy The Hindu

Ali Sabry  heading to U.S. for talks.

COLOMBO

Sri Lanka’s economic recovery will depend on reforms undertaken with the IMF’s support, but the government will not ignore the country’s poor, Finance Minister Ali Sabry said.

The recently appointed Minister spoke to The Hindu ahead of his departure to Washington DC, where he will lead the Sri Lankan delegation in negotiations with the International Monetary Fund. We have seen huge cuts to the country’s revenue and are trying to recover from the current economic crisis. Reforms are going to be crucial,” he said.

Mr. Sabry, who served as Justice Minister in the former Cabinet, stepped down with his Cabinet colleagues early in April, amid mounting pressure from citizens demanding that the President, Prime Minister and their relatives in office step down for mismanaging” the crisis. President Gotabaya Rajapaksa soon appointed him as Finance Minister in a new”, four-member cabinet. Mr. Sabry resigned again, but it was not accepted by the President.ALSO READ

New Year dawns at protest site for many Sri Lankans

With Sri Lanka deciding to default on its foreign debt totalling about $ 50 billion dollars, Colombo is counting on an IMF programme for improved chances of borrowing in the international market. Sri Lanka has received IMF support at least 16 times in the past.  

On what Sri Lanka would put forth to the international financial institution, expected to extend support based on tough conditions, Mr. Sabry said: We believe there is a need for a poverty alleviation programme. We definitely need a safety net for the poor. We cannot ignore the poor,” he said. According to a recent World Bank report on Sri Lanka, the pandemic years saw at least 5 lakh more people fall below the poverty line, owing to severe job and income losses.

It remains to be seen how the government, which was earlier reluctant to seek IMF assistance, might now reconcile the Fund’s likely conditionalities of fiscal discipline and prudent state spending, with growing public resentment.ALSO READ

Sri Lanka seeks India’s help for funds

That the government is feeling the heat was evident in Prime Minister Mahinda Rajapaksa’s recent address to the nation, asking demonstrators to be patient”. Further, in the government’s first public acknowledgement that the President’s abrupt policy switch to organic farming had backfired, Mr. Mahinda said: No matter how honourable the notion of organic fertilizer is, it is not the time for it to be implemented. As such, we will be reinstating the fertilizer subsidy,” signalling a full policy reversal. It would also mean that Sri Lanka will have to set aside about $ 400 million annually for chemical fertilizer imports.

However, indicating that the government was prepared to take bold decisions at this time, Mr. Sabry said: We cannot think about party politics now when the country needs urgent attention. We must put our country’s future before everything else, even if that means taking political risks.”

‘India’s lifeline’

During his time in Washington DC next week, Mr. Sabry is also scheduled to meet his Indian counterpart Finance Minister Nirmala Sitharaman on the sidelines of Spring meetings of the Fund, and the World Bank Group, beginning on April 18. He is also to discuss further possible assistance” from India, as Sri Lanka grapples with a grave economic downturn, leading to record inflation, severe food shortages and a massive uprising of angry citizens. India has extended $ 2.4 billion assistance this year, and Colombo has sought further help from New Delhi, including an additional $ 500 million credit line for fuel imports and assistance in securing bridge finance” to cope with the import bill this year.  

We will need about four billion dollars to manage our reserves through the rest of the year. We are hoping to get support from the IMF, World Bank, bilateral partners such as India and China. India has been extending a lifeline to us and I look forward to discussions with Ms. Sitharaman on further possible support from India, our regional leader,” Mr. Sabry said.

China recently said it is studying” a fresh request from Sri Lanka for $ 2.5 billion assistance, apart from the $ 2.8 billion assistance Beijing has extended since the outbreak of the pandemic. Asked about the status of the request, the Minister said negotiations were going on”.

Courtesy Adaderana

Theshara Jayasinghe has stepped down from his position as the chairman of Litro Gas Lanka Limited, the primary liquefied petroleum gas supplier in Sri Lanka.

Conveying the decision to President Gotabaya Rajapaksa in his letter of resignation, Jayasinghe said he resigned with effect from 14 April (Thursday).

Jayasinghe says, since the day of his appointment on July 06, 2021, he had not received enough support from then-Finance Minister Basil Rajapaksa.

He explained that he cannot solve the ongoing LP gas crisis by himself, noting that it needs the contribution of all economic experts in the country.

Jayasinghe added that steps have been taken to import LP gas from India under credit, in order to maintain the supplies in the market for a period of time. He went on to urge the President to intervene and ensure that it happens accordingly.