Our Fate is sealed if we sign the CEPA with India.
Posted on August 13th, 2012

By Garvin Karunaratne Former SLAS, Government Agent, Matara District

These days India is actively urging Sri Lanka to accept the CEPA the Comprehensive Economic Free TradeƒÆ’-¡ƒ”š‚  Agreement, the second leg of the Indo Lanka Free Trade Agreement.ƒÆ’-¡ƒ”š‚  The SAARC Chamber ChiefƒÆ’-¡ƒ”š‚  Vikramajit Singh urges that Sri Lanka should acceptƒÆ’-¡ƒ”š‚  the CEPA.ƒÆ’-¡ƒ”š‚  The Union Minister of Commerce,ƒÆ’-¡ƒ”š‚  wasƒÆ’-¡ƒ”š‚  in Sri Lanka withƒÆ’-¡ƒ”š‚  over a hundred business organizations to show Sri Lanka what it can gain. His aim is to increase the $ 5.4 billion present level of bilateral trade to $ 9 billion by 2017. He urges that Sri Lanka should sign the CEPA.

ƒÆ’-¡ƒ”š‚ What is important in this connection is in whose favour the bilateral trade will be. Will it boost our employment, will it enable more profits for our businessmen, or will have a negative impact on us.

ƒÆ’-¡ƒ”š‚ Let me speak about my experience of the Indo Lanka Free Trade Agreement. I was in Sri Lanka at that time . President Kumaranatunge went to India on a visit and the Indian authorities hosted her and persuaded her to sign the Free Trade Agreement. In fact I can remember the Minister of Trade stating that he was not even aware that such an Agreement was even considered. It was not on the books, but the President was talked into it. Sri Lanka was really taken for a ride. Thereafter Indian goods poured in. That was not all- Indians poured onto our streets hawking the Indian goodsƒÆ’-¡ƒ”š‚  house to house. I was a witness to this.ƒÆ’-¡ƒ”š‚  Can anyone imagine Sri Lankans going house to house selling our wares in India. I have traveled by car in India and can tell that no outsiders will ever be tolerated. Anyone that states that Sri Lanka can export to India is really talking nonsense. That person has not traveled in India and does not know how the Indian economy is run.

ƒÆ’-¡ƒ”š‚ IndiaƒÆ’‚¢ƒ¢-¡‚¬ƒ¢-¾‚¢s economy is held in a stranglehold. Import tariffs are very high making imports exhorbitant. But this does not effect the people because India produces every thing from the smallest consumer good toƒÆ’-¡ƒ”š‚  Nuclear Powered Submarines. The quality is good and even if under a Trade agreementƒÆ’-¡ƒ”š‚  no import levy is charged it will be impossible for any entrepreneur to match industrial goods with IndiaƒÆ’‚¢ƒ¢-¡‚¬ƒ¢-¾‚¢s..

ƒÆ’-¡ƒ”š‚ Let us look at some statistics:

ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚  Sri Lanka Imports and Exports to India

YearƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚  ImportsƒÆ’-¡ƒ”š‚  from IndiaƒÆ’-¡ƒ”š‚  ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚  ExportsƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚  $ millions

1999ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚  ƒÆ’-¡ƒ”š‚  510.0ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚  47.0

2000ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚  ƒÆ’-¡ƒ”š‚  56.0ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚  54.9

2005ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚  1,835.0ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚  ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚  ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚  566.0

2007ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚  2,610.0ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚  ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚  ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚ ƒÆ’-¡ƒ”š‚  515.0

ƒÆ’-¡ƒ”š‚ India is today far ahead of Sri lanka in everything- in small industry, in major industry, in agriculture and livestock. IndiaƒÆ’-¡ƒ”š‚  is not only self sufficient but also exports.ƒÆ’-¡ƒ”š‚  Indian manufacturers- both large multinationals as well as small industrialists are far ahead of Sri Lanka. With the best of management we cannot equal IndiaƒÆ’‚¢ƒ¢-¡‚¬ƒ¢-¾‚¢s achievements even in a decade

ƒÆ’-¡ƒ”š‚ There is absolutely no chanceƒÆ’-¡ƒ”š‚  for Sri Lanka to be able to produce anything and sell to India.ƒÆ’-¡ƒ”š‚  ƒÆ’-¡ƒ”š‚ 

ƒÆ’-¡ƒ”š‚ In my visit to India two years ago potatoes were being sold at a retail price of Rs. 5 a kilo. Consumer goods are cheap. They are all of Indian make, at times crude but cheap, wellƒÆ’-¡ƒ”š‚  within the reach of the ordinary person. Two years ago I had not taken my flask and had to find one.ƒÆ’-¡ƒ”š‚  I could have purchased an Indian makeƒÆ’-¡ƒ”š‚  but went searching for a foreign make. Finally I found a Thermos at a price. India and Bangladesh charged extremely high import tariffs on foreign imports almost to the level of forbidding imports. In other words the administration made it impossible to import. Then how can one explain the presence of imported products at a price. What happens is and I know this from my experience while living in Bangladesh- PeopleƒÆ’-¡ƒ”š‚  who come to Bangladesh and India bring in a radio or a flask and other consumer goods which they argue with customs officers as being brought for their own use and they actually sell this to traders who sell them at a price. At Dhaka, the New Market is full of imported items that are sold at a high price. In markets like Delhi too a few imported items are available at a price. What is important to realize is thatƒÆ’-¡ƒ”š‚  both India and Bangladesh have gained two fold, i.e. by not sacrificing local production by allowing imports as well as by getting in foreign goods to satisfy the palates of the rich, without incurring the countryƒÆ’‚¢ƒ¢-¡‚¬ƒ¢-¾‚¢s hard earned foreign exchange. In other words India and Bangladesh have mastered the art of obtaining foreign goods into the commerce of their countries without incurring their own foreign exchange.

Harking back, one is stunned when one realizes that Sri Lanka was once ahead of India. We can boast of our literacy rate of having schools in rural areas. We had developed our small industry and agriculture. Many are not aware that it was the Batalagoda Seed Research StationƒÆ’-¡ƒ”š‚  in Sri Lanka that first produced high yielding varieties of paddy. The IRRI of the Philippines came in far later.

In 1977 our Rupee had a higher value in international markets than the Indian Rupee. That was when we started following the IMFƒÆ’‚¢ƒ¢-¡‚¬ƒ¢-¾‚¢s Structural Adjustment Programme. Even in 1982 the Sri Lankan Rupee was leading in value.ƒÆ’-¡ƒ”š‚  Today one Indian Rupee is equal in value to 2.39 Sri Lankan Rupees and to 1.61 Bngladesh Taka.ƒÆ’-¡ƒ”š‚  India and Bangladesh are not steeped in international debt like Sri Lanka.

ƒÆ’-¡ƒ”š‚ What did happen to Sri Lanka in this period is important. Let us look at the process that brought production in Sri Lanka to its knees. That was due to the Structural Adjustment Programme(SAP) of the IMF in action. President Jayawardena who won the general election in 1977 embraced wholeheartedly the IMFƒÆ’‚¢ƒ¢-¡‚¬ƒ¢-¾‚¢s SAP in 1978. In my words:

ƒÆ’‚¢ƒ¢-¡‚¬ƒ…- Both India and Bangladesh did not accept the SAP with open arms. Sri Lanka totally embraced the SAP in 1977 while India and Bangladesh sidetracked the World Bank and the IMF, argued with them, followed a modicum of their provisions in order not to fall out with themƒÆ’‚¢ƒ¢-¡‚¬ƒ”š‚(From: How the IMF Ruined Sri Lanka(Godages)

ƒÆ’-¡ƒ”š‚ What is this SAP and how did its provisions destroy theƒÆ’-¡ƒ”š‚  economy of Sri Lanka?ƒÆ’-¡ƒ”š‚  A Study of the policies incorporated into the SAP will reveal how our economy was damaged.

ƒÆ’-¡ƒ”š‚ The IMF advised the Government to be liberal in the use ofƒÆ’-¡ƒ”š‚  foreign exchange. At that time foreign exchange was held in control by the Central Bank. The incoming foreign exchange was first used for essential imports, inessential goods were heavily tarrifed and foreign exchange was allowed for foreign travel on a strict basis.ƒÆ’-¡ƒ”š‚  In short Sri Lanka managed to attend to all its necessities, with the incoming foreign exchange without falling into debt. When the IMF advice to liberalize the use of foreign exchange is followed, there would be a shortage of foreign exchange. The IMF advised the Government to take loans to enable this liberal spending. The World Bank which had hitherto adopted a strict criteria on disbursing loans became very liberal.ƒÆ’-¡ƒ”š‚  The Government was also advised to privatize all paying assets and public undertakings and to use that money to enable the liberal use of foreign exchange.ƒÆ’-¡ƒ”š‚  This led to the indebtedness of Sri Lanka.ƒÆ’-¡ƒ”š‚  In 1977, Sri Lanka had a foreign debt of only $ 750 million. That was on project development where the utilization of the loan would have brought an additional income. In this process Sri Lanka became heavily indebted and by 1995 when the UNP was removed from office the foreign debt was at $ 9,999 million. It was so high a level compared to our incomes that to service the loan further loans had to be raised. In this connection what is important to realize is that the loans and the funds raised by privatization was spent on the rich people in Sri Lanka to provide them with imported luxury goods, for their foreign travel and for the education of the children in foreign countries.

ƒÆ’-¡ƒ”š‚ There are many other policies of the SAPƒÆ’-¡ƒ”š‚  that helped ruining our economy.

The IMF advised that we should devalue our currency and in 1978 in one year our Rupee was devaluedƒÆ’-¡ƒ”š‚  by 100% from RsƒÆ’-¡ƒ”š‚  15.50 toƒÆ’-¡ƒ”š‚  Rs. 31.64 to the Pound Sterling.ƒÆ’-¡ƒ”š‚  This started the process of devaluing our Rupee.

The IMF advocated that we should adoptƒÆ’-¡ƒ”š‚  a high interest rate and this meant that our entrepreneuirs had to obtain loans at a high interest- as high as 25%. This made our entrepreneurs close manufacturing establishments.

The IMF advised the country to reduce and almost abolish all import tariffs. This enabled the economy to be flooded with foreign produce. We thereby created a ƒÆ’‚¢ƒ¢-¡‚¬ƒ…-import and consumeƒÆ’‚¢ƒ¢-¡‚¬ƒ”š‚ typeƒÆ’-¡ƒ”š‚  of economy instead of the ƒÆ’‚¢ƒ¢-¡‚¬ƒ…-produce and consumeƒÆ’‚¢ƒ¢-¡‚¬ƒ”š‚ type of model that we had followed.

Subsidies were reduced or abolished. This led to the loss of production.

(For full details please refer my book: How the IMF Ruined Sri LankaƒÆ’‚¢ƒ¢-¡‚¬ƒ”š‚¦ (Godages)

ƒÆ’-¡ƒ”š‚ India and Bangladesh did not buy this model of ƒÆ’‚¢ƒ¢-¡‚¬ƒ…-developmentƒÆ’‚¢ƒ¢-¡‚¬ƒ”š‚ of the IMF and therein lies how they have managed to develop their production and also not to fall into overly foreign debt. In fact Ministry Secretaries and Ministers in Bangladesh laughed their sides out in discussing how Sri Lanka has been fooled by the IMF.ƒÆ’-¡ƒ”š‚  I worked as a Consultant in Bangladesh at that time.

ƒÆ’-¡ƒ”š‚ As has been pointed out earlier the Indo Lanka Foreign Trade Agreement saw to the demise of many of our industries and if the CEPA is agreed to it will lead to further demise. The CEPA includes provisions for us to open our service industry and banks for IndianƒÆ’-¡ƒ”š‚  entry.ƒÆ’-¡ƒ”š‚  That will be to the detriment of our workforce. In short Indians will come and get employment in Sri Lanka. Already we have a situation where thousands of Sri lankans have proceeded abroad in search of employment. This will aggravate this situation

ƒÆ’-¡ƒ”š‚ In short the CEPA will sound the death knell for our industry and agriculture. That could also be one step in the direction of Sri Lanka becoming an appendage of India.

ƒÆ’-¡ƒ”š‚ President Jayawardena was fooled by the IMF to accept the SAP. Little did President JayawardenaƒÆ’-¡ƒ”š‚  know that following the IMF would ruin our economy. Our country was taken for a ride to disaster. India is now trying the same tactic to take us to total subjugation. Rajiv Gandhi failed in his attempt to subjugate us totally He could only foist the 13 th Amendment on to our Constitution. It is unfortunate that our leaders yet fail to understand that the 13 th Amendment is nothing but introducing a separate state with full police and land powers.ƒÆ’-¡ƒ”š‚  President Kumaranatunge also tried to cater to a separate state mechanism through her proposal at a Devolution Package. Her true colours emerged in her PTOMS(Post Tsunami Operational Management Structure) package which gave the terrorist LTTE more powers than to the Government. Fortunately we now have a President who did save Sri Lanka from terror of the LTTE. But India will not be undone. They will come with their googly bowls and we have to guard against being bowled out.

ƒÆ’-¡ƒ”š‚ Adopting the CEPA willƒÆ’-¡ƒ”š‚  take us further on the path of subjugation to India. We should have the strength to stand on our own feet and we do have the ability to kiss good bye to both the CEPA and the 13 th Amendment. The Provincial Councils foisted on our country is the cause of our ruination, unnecessary expenditure and making our country ungovernable. .\

ƒÆ’-¡ƒ”š‚ Instead of signing upƒÆ’-¡ƒ”š‚  with the CEPA we should closely follow the mechanisms by which India saved its currency from devaluation,ƒÆ’-¡ƒ”š‚  by which India avoided being overly indebted, by which India developed its agriculture, livestock and industry. India now professes that the CEPA will help us. Never.ƒÆ’-¡ƒ”š‚  Let us not forget that no foreigner ever stepsƒÆ’-¡ƒ”š‚  in to help us. They come in to take profits away- profits that will help our entrepreneurs, help to provide high wages for our workers. Or they come in to subjugate us. The 13 th Amendment has done us enough damage.

ƒÆ’-¡ƒ”š‚ Woe be unto us if we believe India. Let us not forget that it wasƒÆ’-¡ƒ”š‚  India that trained Prabhakaran and his LTTE cadres and equipped them with sophisticated weaponry and sent them back to destablize our country.

ƒÆ’-¡ƒ”š‚ Garvin Karunaratne

Former SLAS, Government Agent, Matara District

12 th August 2012

26 Responses to “Our Fate is sealed if we sign the CEPA with India.”

  1. Susantha Wijesinghe Says:


    Under Shenali’s article captioned ” Why Sri Lanka does not trust India ” dated 10th August 2012, I said the same thing.


    I do hope that the Mahanayakes will see this ploy, and advice His Excellency to stop it in its tracks. The Legislators, it appears are all DUMB AND DUMBERS. They care a jot for Sri Lanka.

    Woe be unto the IDIOTS who will say “AYE”

  2. mjaya Says:

    Well said! Our politicians should realize that their survival depends on the people of Sri Lanka, not the dirty Indians. Down with CEPA!! Down with Indian junk!!! IOC just get out!!!

  3. Sunil Vijayapala Says:

    I sincerely hope our fools in governemnt from top to bottom take notice of the content of this ‘eye openning’ article. Our fools will succumbed to anyone who advise them wearing a tie and a jacket with fluent, overpowering English. Except Gotta, others easily get caught to this stunt. Now the case has turned on to ‘vetti’ advise. Probably the biggest problem in Sri Lanka now is the issue of the Think Tank who advise Mahinda. Some of us know these people personally and find them academically brilliant but fail miserably on the crux of issue of giving RIGHT( SAMMAA) advise to the leader who apparently needs that very badly, as he is jumping from one issue to another failing to take the right decision, on emotional (development compromising natural resources) and political grounds (vote catching). We invented the saying ‘ Sinhalaya modaya kavun kanta yodaya’; fair enough, as we should laugh at ourselves and thats an attribute of a great race. But we should be able take right decisions as our theoritical education (not practical at all) is one of the best in the region, at least few decades ago (the people now in decision making process in the island was blessed with that education standard) I remember an article published in a Sri Lanka journal few decades ago – an expert in wild life wrote – to capture all wild elephants in the country as there will be none left in 25 years. We have come 30 years and still our island is blessed with full of wild elephants. I sincerely hope our fools will not go ahead with a Nuclear plant in the island as it would be a disaster if an accident occurs as the whole island will be unlivable, already the southern Indian plant is a threat to Sri Lanka. Uneducated, ill informed, enter politics in Sri Lanka and unscientific minded (mostly Law and Arts graduates) have to re-educate themselves on science and technical literature. The tumbling and turning with foreigners have been going on for decades and wonder when we will see an end to this, especially with the ‘vetti’ Indians.

  4. Dilrook Says:

    CEPA will totally ruin the nation.

    Indians, Indian goods and Indian investments must not be allowed freely.

    It is beneficial to have a trade liberalization agreement with China or USA instead.

    The surplus we earn from trading with USA and Saudi Arabia is robbed by India. CEPA is a grand plan to robb our foreign exchange as well.

    I fully support the tourism industry despite its bad byproducts but we need to take a hard look at the tourism industry. the cost of immoral activites that comes with it and the cost of Indians should be reduced.

    Indian tourists are a net loss to the economy as they earn money from Sri Lanka and take it with them. Most of them don’t spend anything but earn from their 3 monthly stay which must be prevented.

    Hopefully the decision makers will take account of these and not fall into the Indian trap.

  5. Dilrook Says:

    What mjaya says is very true. Particularly the Sinhala people.

    It can be statistically shown that this government’s survival solely (emphasised) depends on how well it treats the Sinhalese and Muslims. Others don’t count.

    These are hard statistics based on multiple regression analysis over past elections. Nothing can prove them wrong. Come the next election, same traits will play to determine the outcome.

    If the Sinhala vote reduces by a small percentage, it will have a devastating (emphasised) impact on the government and the Rajapaksha clan. Weakness and treason of the UNP cannot be relaied upon forever as people are going to forgive them at come point as in 2001.

  6. Dilrook Says:

    Rajapkshas are increasingly becoming a national liability. In their attempts to avoid war crimes, they sell out the country.

    They agree to everything India and USA says to avoid a war crimes investigation and other pressure tactics. They agree to everything LLRC report says without public approval and Tamil Diaspora demands made through India.

    To retain power and diplomatic immunity, they allow unrestricted corruption to politicians so that they will remain in UPFA and maintain the parliamentary majority.

    At some point they will have to face war crimes investigations anyway. It is better to face them and avoid appeasement to Tamils/Indians. Otherwise the Sinhalese voters will be ruthless on the ruling clan.

    It is the duty of the people to vote against UPFA at the September election to teach them a lesson early. By 2015 it will be far too late to learn a lesson.

  7. nandimitra Says:

    Lets be honest India has already infiltrated the country secretly manipulating the gullible politicians who cannot see anything beyond their personal interests. Energy sector IOC plays a major role selling fuel, Who knows whether the frequent corruption and scandals in the sri lanka petroleum corp has a indian hand in it so that it will also be privatised, inferior drug imports, forcible acquisition for oil drilling, Suggested imports of electricity from india, Employment of indians specially doctors and in investments, monopolising forcibly investments beyond vavuniya etc Sri lanka is caught in the web. CEPA will be the icing on the cake. it is time the ordinary people fight this menace , stop buying indian, make life hell for them in SL.

  8. Lorenzo Says:

    This time we should give weapons and training to “LTTE” and restart the war ON OUR TERMS before India does.

    The new LTTE will be fighting for the SAME demands but within our control. They will be bombing “Tamil traitors” including Sambandan, TNA, Tamil Diaspora visitors, Ghandhis visiting SL, Indians and RAW. This is the ONLY way we can kill RAW (through new LTTE).

    We have to sacrifice a few innocents to make it look real. At the election, they can DISRUPT elections in the north giving an easy win to EPDP instead of TNA. They will not be attacking the economy and will operate only in Tamil majority areas in the north and east and Colombo.

    Foolish Tamil Diaspora will give them money which will go to the government. New LTTE can be used to liquidate anti-SLs. LTTE FIRST killed all its friends so that is a good cover up! Anyone who agrees to a political solution will be eliminated! All those who support 13A (to which LTTE opposed) will be eliminated.

    REAL investments from China, etc. will be flowing anyway. REAL investors didn’t desert us in times of war. Only OPPORTUNISTS left us and NOW COME BACK! So restarting war will chase away the opportunists.

    If we are to beat India, we have to think outside the box.

    We have to give credit to LTTE for beating India.

  9. Son of Lanka Says:

    It was extremely disheartening to read in some mainstream newspapers yesterday that a few stalwarts of Mawbima Lanka, who have always projected a strong ‘Pro-Sri Lanka, Anti-India ‘ stance in their business philosophies, have now turned 180 degrees and have declared their intention to enter into Joint Ventures with Indian Companies. This is bound to have a cascading effect on other like-minded SL Businesspersons. More importantly, this move will make it much easier for India to impose CEPA on us.
    As much as I hate to think so, I am beginning to wonder whether these Businesspersons were deliberately offered very ‘sweet deals’ by their Indian counterparts in a bid to change their perceptions regarding Indian businesses in Sri Lanka as part of some Master Indian Strategic Business Plan. After all, the promise of massive profits can dull the love and concern for the future of one’s Mawbima.

  10. mjaya Says:

    This is the article Son of Lanka mentioned,

    I don’t know much about Sam*** but M*nch** is a company that better not exist in the first place for the sake of all Sri Lankans. They add all the bad food additives, such as MSG and preservatives. Ever noticed how their “rolls” never get spoiled? The result – people get diabetes and cancer.

  11. Fran Diaz Says:

    Cultural connections with India is one thing, but to be swamped by India on the Economy would be to virtually become another state of India.

    In addition, here an article from ColomboPage of Aug 14th. At this rate, India will have too much say in Sri Lanka’s internal affairs.

    Govt. perturbed over UN review team
    TUESDAY, 14 AUGUST 2012 06:39
    India, Spain and Benin have been assigned by United Nations Human Rights Chief Navaneetham Pillay to assess the human rights situation in Sri Lanka at the November Universal Periodic Review (UPR).

    The government is reportedly perturbed over Ms. Pillay’s decision because these countries were among those which voted in favour of the US-sponsored resolution on Sri Lanka in March this year.

    The resolution called for the implementation of the recommendations by the Lessons Learnt and Reconciliation Commission (LLRC) and urged the Sri Lankan government to address accountability issues during the last stages of the war.

    The United Nations Human Rights Council (UNHRC) is expected to submit its report to Ms. Pillay during its sessions in March next year with regard to the progress made by Sri Lanka in addressing matters mentioned in the resolution.

    Sri Lanka’s HR situation will be assessed at the 14th UPR to be held between October 22 and November 25. The UPR is a mechanism set up by the United Nations to review human rights practices in member countries once every four years. It is a voluntary process, and therefore, decisions taken are not referred for action by any UN body.

    The External Affairs Minister, the Human Rights Commission of Sri Lanka and NGOs have submitted three separate reports to be considered at the UPR.
    Sri Lanka’s Human Rights Commission Chief Pratiba Mahanama said Sri Lanka had made headway in promoting human rights and addressing humanitarian issues. He said 52 aspects were highlighted at the previous UPR on Sri Lanka and 25 of them were accepted by Sri Lanka’s Human Rights Commission.

    “The presidential secretary said most of the LLRC recommendations had been addressed. There is time till March, next year to look into other areas where there is concern,” he told Daily Mirror and added that the appointment of these three countries including India to assess the country’s human rights record during the UPR was a matter of concern since they voted against Sri Lanka.

    When asked for a comment on the UPR, External Affairs Minister G.L. Peiris said no decision had been made on the composition of the government’s delegation to participate in the UPR. (Kelum Bandara)

  12. lingamAndy Says:

    Lorenzo ,Lorenzo ….. atlast We have to give credit to LTTE for beating India !!!
    My chinhala machang, in a saying in Tamil ,even you can trust stomach ech but you can not trust indian at all !!!!
    We Tamil trusted (India that trained all Tamil groups) indian at the end We have paid for it !!
    only one person never trust Indian , you know who is he???

  13. Marco Says:

    Interestingly the author missed out on the “China debt syndrome” and how the Injuns are positioning itself to take advantage of the “soft loans” from China and “bail out” factor when the debt repayments kicks in, when the next generations are going to pay for the short comings of the current regime.

    I guess the only winners are current lot of politicians (lining their pockets) and Colombians.

    He is right “Let us not forget that no foreigner ever steps in to help us.”

  14. Marco Says:

    Dilrooks comment
    “Rajapkshas (sic) are increasingly becoming a national liability. In their attempts to avoid war crimes, they sell out the country.” -and line their pockets quickly and efficiently.

    “They agree to everything India and USA says to avoid a war crimes investigation and other pressure tactics. They agree to everything LLRC report says without public approval and Tamil Diaspora demands made through India.”

    USA/India/UN (as i have stated in the past) have enough evidence to bring war crimes charges against the regime instead use this as a bargaining tool in subtle ways using the Tamil Diaspora as scapegoats.

    “To retain power and diplomatic immunity, they allow unrestricted corruption to politicians so that they will remain in UPFA and maintain the parliamentary majority.”
    No choice, hence you see Mervyn Silvas, Duminda, Wimal and the yellow robe mafias. Law and order is a joke!

    “At some point they will have to face war crimes investigations anyway.”- Unlikely from an international point of view. UN would prefer to see a “home grown” name and shame naturally instigated by the IC.

    “It is the duty of the people to vote against UPFA at the September election to teach them a lesson early.”
    No chance with ballot rigging.

    Sri Lankans have very short memories remember!

  15. Lorenzo Says:

    Lingam LTTE,

    The correct translation of the Tamil proverb is,

    You can trust diarrhoea but you cannot trust an Indian (even to clean it).

  16. Nalliah Thayabharan Says:

    China’s emergence as a regional great power is creating significant new uncertainties for Japan that includes concerns about Japan’s place and leadership role in the Asia-Pacific region. At the same time,
    China is challenging Japan’s position as the largest economic power in Asia and the biggest trading partner for several Asia-Pacific states including Australia & Sri Lanka. China, by virtue of geography and economy, dominates any Asian country. This worries many regional government officials andhas encouraged them to reach out to Australia, New Zealand, and India in an attempt to balance this giant. Regionalization in Asia has been a new trial for Japan to re-define its position in the region. There is a need to manage globalization and the emergence of China and India as economic powerhouses. The economic rise of China is forcing ASEAN to become more competitive in terms of production, exports, and attracting foreign direct investment. The shifting landscape is forcing the smaller regional economies to undergo major structural adjustments. China is the second largest economy in East Asia after Japan. India’s very credible economic performance has, to a degree, been
    elliptical to the Chinese success story. Japan’s Center for Economic Research forecasts that the size of the Chinese economy will surpass that of the United States during the 2020-2040 period and will be almost seven times that of the Japanese economy by 2050. Already in 2009, China has displaced the United States as the largest overall buyer of Japanese goods and it now accounts for nearly 20% of Japan’s exports by value. Being more closely tied to fast-growing China is a welcome development for Japan’s export-reliant economy, which has shrunk back to 2004 levels during the recent economic downturn. In the shadow of an increasingly competitive China, Japan has been revamping its regional trade strategies as well as devising new economic security and regional integration strategies. Japan has sought to build closer ties with states who it shares common political and strategic interests as a means of a counterbalance to China. The structural changes in Asia and movements towards a new regional architecture provides stimulus for Japan to seek-out better relations with Australia. Much of this scurrying about by Japanese leaders signing trade deals is a way that may help Japan counter China’s growing influence in the region. The Japanese are now working closely with Prime Minister Manmohan Singh of India to complete the negotiations begunin 2007.This is the first time in history when there have been three powerful countries in Asia, all at the same time: China, India, and Japan. And one must not ever consider that the USA is no longer exercising its power
    and influence in the Asia-Pacific region.Japan has announced plans to organize an Asian free trade zone. The 16-nation proposal would include China and India, the world’s two fastest growing economies, along with the ten-member ASEAN alliance plus Australia, Japan, New Zealand, and South Korea. This would include at least one-third of the world’s population and rival the 27-member EU market and the NAFTA market consisting of Canada, Mexico, and the United States. The combined economic output would be $9.1 trillion, one-quarter of the world figure, based on 2004 data. As a concession to China, the Japanese plan does not include Taiwan. Of course, both Taiwan and China are members of the WTO and Taiwan, although moving closer to the mainland in the conduct of business and trade, as well as politically, still remains independent of the People’s Republic of China. Recent talks between China and Taiwan over a planned “EconomicCooperation Framework Agreement,” could bind Taiwan to its giant neighbor to an unprecedented degree. Indeed, this bilateral trade pact was put in place in 2010.
    Taiwan is Japan’s fourth largest trading partner and Japan is Taiwan’s second largest trading partner. Taiwan, one of the four Newly Industrialized States together with South Korea, Singapore and Hong Kong, is now one of the leading trade dynamos in Asia. How in the future Taiwan will fit into the spaghetti- bowl of expanding regional trade agreements is an important geopolitical issue that will require careful consideration.
    Concern about China is now a central feature of Japanese politics and policy. Since the concern is only likely to grow as China’s strength and regional interests grow, too, more and more of Japanese policy will be shaped by China. It certainly explains Japan’s eagerness to involve India in regional affairs. Further, China will no doubt be one of the spurs that will keep the Japanese on their toes seeking ways to bolster economic growth, introduce more productivity reforms, and encourage Japanese industry to maintain a clear technological lead

  17. Dham Says:

    No. We should never follow zionist tactics. Why kill innocent peoplo ?

    Zionist have already bought MahaRaja. He has been ordered to sell Lanka to India.
    Otherwise which fool would sign agreement to buy 4 and sell 1 ?

  18. Dham Says:

    Please comment on CPEA.

  19. lingamAndy Says:

    Lorenzo lanka Puth !
    Thank you for you correct translation , I real admire your knowlege about All three languages !
    I hope& pray , one day you change your Chinhala rasict mendality ( forget & forgive) to teacher your sakothara(m) to other Two languges to achive your dream of unitary SL !!!

    Until , Unit in diversity no short cut ( Lorenzo – I Know I am a thick Para Demila (:-( )

  20. Lorenzo Says:


    You are the (Tamil) racist not me!

    Stop using racist derogatory words. You are not the only Tamil here. Stop insulting good Tamils.


  21. lingamAndy Says:

    I’am not dening that ,Yes I am Tamil racist !

    UNITARY OR DEATH- You may be thinking ( in your own self made definition) You are not Shinhala racist but you statement UNITARY OR DEATH is clear that you are a sinhala racist Lorenzo.

    I am talking about my self & you to only !
    Yes fully agreed their are many true (i)Lanka(i)n putha(lvarkal) in this froum !!!

  22. Marco Says:

    Yes NT please do comment on CEPA.

    It may indeed convince “citizens” to take a class action against the CEPA

  23. Lorenzo Says:


    “lingamAndy Says:

    August 15th, 2012 at 4:34 am
    I’am not dening that ,Yes I am Tamil racist !”


    Self admission is the best evidence of ANYTHING.

    Get ready for the Nanthikadal punishment.


    No compromise.

  24. Lorenzo Says:


    “lingamAndy Says:

    August 15th, 2012 at 4:34 am
    I’am not dening that ,Yes I am Tamil racist !”


    Self admission is the best evidence of ANYTHING.

    Get ready for the Nanthikadal punishment.


    No compromise.

  25. Lorenzo Says:

    Looks like Micro is panicking when class action is mentioned.

    That is a good sign.

  26. lingamAndy Says:

    No compromise.- Tamilukku Amuthenru Oru peyar,, Antha Tamil Enthan uyirukku Meel !!
    Lorenzo Please translate for me (no hard feeling) !

    UNITARY FOR SL OR DEATH TO YOU! – We Tamil take Death !!!

    Unit in diversity , no short cut !!!

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