LankaPropertyWeb Sri Lanka’s number one real estate platform celebrated its 15 year anniversary since inception on the 22nd of April 2022. The real estate company was founded in 2007 offering digital listings for the real estate market in Sri Lanka. Currently it is the largest real estate platform in the country providing a complete service in property buying, selling and investing.
The 15 year celebration marks a significant milestone in the company’s history as now the website has over 500,000 monthly visits from more than 70 countries including Sri Lanka. It has also become a pioneering platform in assisting property buyers and sellers to connect virtually without geographical restrictions.
Commenting on the growth of the company, Daham Gunaratna, Managing Director of LankaPropertyWeb (LPW) said, Since the inception in 2007 as a digital online property portal, we have expanded to many other areas throughout the last 15 years, to help the country’s property buyers and sellers. Now LPW is not only the No.1 property site, but also operates the No.2 site as well, through House.lk and also idealhome.lk, which helps homeowners and builders to find products and services. We plan to continue our expansion into the future years to bring more facilities, insights and assistance to the public to help them with their property needs.”
Besides offering a platform for digital listings, through its LankaPropertyWeb Research wing the company releases monthly data-based informative articles and content on the Sri Lankan real estate market. While LankaPropertyWeb Digital provides digital marketing solutions to the majority of the real estate agents and property developers in the country. Property buyers and investors are also connected with lawyers, valuers and other property related consultants through idealhome.lk and the Buyer and Seller Assistance service that was launched in 2018.
Since 2017, LankaPropertyWeb has also been organizing its annual property show, the Lanka Property Show. With the pandemic striking Sri Lanka, the initiative to launch the first virtual property show in the South Asian Region was taken up in 2020. The event had seen massive success and will be hosted alongside the physical event from here onwards. The property show is Sri Lanka’s largest real estate gathering and with the virtual property show it has now managed to successfully remove the geographical barriers related to the real estate purchase in Sri Lanka.
As a part of this year’s 15th anniversary LankaPropertyWeb will be launching a new and improved ad posting and management section, along with relaunching its app with upgrades to facilitate the purchase and sale of property easier.
While the new upgrades make it easier to post and manage ads from whichever devices you use, it’ll also include new features and technology that have become widely used by property seekers around the world since the pandemic, such as ability to shoot and upload property videos and 360 walkthroughs straight from a standard smartphone, without requiring any additional hardware or software, which facilitates remote viewings of properties.
The launch of the invest section in 2020 was another significant milestone of LPW in its 15 year journey. In Sri Lanka, the real estate sector contributes up to 6% of the GDP. While the typical rental yield from an apartment for rent in Colombo amounts to 6% and the return on investment is 8%. However, due to the lack of financial literacy, the number of investments taking place is low and those profiting off of these is less.
In the dynamic real estate sector of Sri Lanka being the No. 1 property portal of the country LPW is getting prime properties available for sale in Sri Lanka. Going a step further LPW research and strategy team evaluate these properties with a series of internal and external analytics and advise real estate investors to make viable investment decisions making their property search easy and fast. We have supported first time home buyers to multi billion projects like the Port City Colombo in making their decisions” commented Tharindu Jayaratna Head of Research & Strategy of LankaPropertyWeb.
LankaPropertyWeb also launched a complete Property Buying Guide earlier this year in all 3 languages Sinhala, Tamil and English, offering buyers, sellers and investors information on buying, selling and investing in property in Sri Lanka. The guide compiled along with industry experts and lawyers is aimed at bridging the gap in the lack of information in the real estate market in Sri Lanka.
Continuing on with the tradition this year as well LankaPropertyWeb will be hosting the Lanka Property Show 2022 virtually and physically on the 25th and 26th of June, while celebrating its 15th year anniversary. More details on the event will be released in the near future.
The right to vote and the right to be elected are two of the most fundamental rights that we cherish. We would never imagine that they could also be an obstacle to our country’s development. Most, despite their limited civic knowledge, would never consider exchanging this franchise for any other political system with lesser rights.
Any argument contrary to the preservation of these democratic rights would be anathema to a majority of the people even if there are political systems that have achieved better societal and developmental outcomes without these rights. Despite the frustrations that people feel about the current political environment and the dismal political and economic realities that are expected to unfold in the future, people would still want the status quo to continue.
Article 3 of the 1978 Constitution states that sovereignty includes franchise and it is in the people and is inalienable. So, the Constitution grants us the right to vote and participate in public administration and elect our representatives to Parliament. What is the significance of these rights? How have they served us?
Fundamentally, the right to vote gives us a sense of equality regardless of our wealth, income, gender, social status, race, religion, ethnicity, and political affiliations. Concerning politics, the right to vote allows us the freedom to choose a political party and candidate that validates our social and political identities; someone we think would bring prosperity to ourselves and the entire nation.
Moreover, we feel rewarded knowing the part our vote plays in influencing beneficial outcomes if the outcome is such. So, on the whole, the right to vote or active suffrage” is beneficial.
The right to be elected or hold public office which we call passive suffrage” is more nuanced and perhaps less fundamental than the right to vote. This right should come with a great deal of responsibility, accountability, and integrity. Furthermore, the person who has earned this right must possess the knowledge and competence to hold public office.
An elected official’s decision-making has a far-reaching and highly significant impact on the general population and the nation’s wellbeing. In a democratic system, we entrust this right to the elected persons hoping that they would do their utmost to represent and serve us and maximise the nation’s wellbeing. Increasingly it is evident that competent individuals with the above-mentioned traits are in the minority in all governing parties at all levels of the Sri Lankan Government.
Active suffrage and passive suffrage
The real problem here is that of ‘passive suffrage’ that gives anybody the right to participate in the administration of the country, regardless of competence. As such, a person not having passed the ordinary-level or the advanced-level examination nor having the necessary background and competence to command a Government portfolio can still become an elected official in the Parliament.
Naturally, with such individuals, the policy decision-making becomes inferior even when guided by policy advisors, who themselves are in their positions through affiliation with political power.
Why are political parties surrounded by such individuals and not by those possessing the necessary competence in the first place? One simple answer could be that these individuals possess the skills of bringing votes or providing necessary financial means solely for bringing the party to power.
What has happened over time is that all the significant parties have accommodated such individuals, leaving the voter no choice but to vote for these incompetent politicians. This is not a democratic ideal because the voter does not select these individual(s) based on any deserving criteria in the first place.
Although we have the right to change a candidate or a party at the elections, this franchise becomes purposeless if we continuously replace incompetence with incompetence. Furthermore, if elections are held every 4-5 years, substantial damage can be done by these individuals in the interim. Passive suffrage is problematic. It needs careful examination and revision if the country is to be put on a path toward long-term development.
It is highly improbable that laws requiring all parliamentarians to demonstrate competence can be implemented. Now that these individuals are the legislators in the Parliament, it is unlikely that they would want to change the laws that pose an existential threat to them. So, what can Sri Lanka do to emulate countries such as China, Singapore, Taiwan, South Korea, and Japan where successful development has been highly correlated with competent governance?
For a start, we need to educate the average voter about the shortcomings of passive suffrage and how the present politicians have taken advantage of the voter’s active suffrage. The voter must be made to understand why it is better to vote for a person with skills, competence, and aforementioned qualities rather than settle for dubious false promises they have been repeatedly given.
Furthermore, the voter needs to understand that their vote is worth a commitment by a politician who is willing to uphold accountability, integrity, and responsibility.
The legal fraternity should look into passive suffrage” and suggest ways for incorporating competence as a legal necessity for holding political office. The right to hold office alone should not be sufficient, but other necessary ingredients such as the level of education, skills, past performance in any political/other offices, demonstration of integrity, police history, etc. should be taken into consideration.
The citizen’s right to be governed by the most competent also needs to be addressed. It is time that these archaic suffrage ideas need reexamination. Some may oppose or be cautious about such changes as they may lead to elitist arrangements, but experience in countries such as Singapore and China show that it is a worthwhile endeavour. If constitutional changes are necessary, these are the quintessential changes that can bring the greatest value to the country.
Another alternative would be to encourage forming new political parties based on political meritocracy. Both Singapore and China have successfully incorporated meritocratic principles into their political systems. Today, their enormous success has been mainly attributed to this system of meritocracy where political leaders with above-average ability and virtue are selected by a mechanism designed to choose such leaders to manage their respective countries.
In China, this system is called selection plus election” which is rooted in Confucian political tradition. Here, competent leaders are selected based on merit, rigorous examinations, popular support, the vigorous process of screening, opinion surveys, internal evaluations, and various small-scale elections.
Recent surveys have shown that there is widespread support for this idea of political meritocracy in East Asian societies. It is true that meritocracy and liberal democracy are inconsistent. However, forming political parties based on meritocracy distinguishes those parties from the current ineffective and corrupt political parties.
Whatever the path Sri Lanka takes, it should eliminate the incompetence in political office. The political and economic woes of the last seven decades have shown that leaving the country’s governance to passive suffrage is a detrimental idea that requires a rethink.
(Given below is an excerpt of the Friday Sermon delivered by Hazrat Mirza Masroor Ahmad, Supreme Head of the world-wide Ahmadiyya Muslim Community in Islam, on 22nd April, 2022, at ‘Masjid Mubarak’, Islamabad, Tilford, U.K. gave a discourse on Essence of Taqwa (righteousness).
Ahmadiyya Head (Khalifa) His Holiness, Hazrat Mirza Masroor Ahmad (may Allah strengthen his hands) after reciting Tashahhud, Ta‘awwuz and Surah al-Fatihah, said that these days we are passing through the month of Ramadan and about 20 days have elapsed.
His Holiness may Allah strengthen his hands) said that by the grace of Allah, believers do their best to take full advantage of this blessed month. God has stated that the reason why fasting has been prescribed is so that we may become righteous. Thus, we can only truly benefit from Ramadan when we strive to increase in righteousness.
Fasting is a Shield
His Holiness may Allah strengthen his hands) said that fasting is a shield for us. Does this mean that it is enough for us to keep our fast in the morning and break it at night? No – instead we must reflect upon the true purpose of fasting, which is to establish righteousness. Thus, if we wish for our fasting to attain the pleasure of Allah and His nearness, then we must bring ourselves to that standard desired and outlined by God.
Ahmadiyya Khalifa (may Allah strengthen his hands) said that we claim to be Muslims and those who act upon the teachings of the Holy Prophet, peace and blessings of Allah be upon him, and have thereby accepted the latter day Messiah whose advent he foretold who manifested in the personage of Hazrat Mirza Ghulam Ahmad (Founder of Ahmadiyya Muslim Community in Islam and Promised Messiah), peace be on him, of Qadian. We have accepted that the victory of Islam will come through him. Thus, in order to inculcate the true spirit of Islam within ourselves, we must seek and obtain guidance from the Promised Messiah, peace be on him.
Attaining the Stages of Righteousness
His Holiness (may Allah strengthen his hands) said that the Promised Messih, peace be on him, has explained to us the true essence of Taqwa, righteousness. The Promised Messiah, peace be on him, said that the first stage of belief is establishing Taqwa. In order to establish Taqwa, we must abstain from all forms of evil. We must analyse ourselves to see whether we fulfil the rights of God and His creation. These things can only be achieved when we have knowledge of them, thus we must attain knowledge of what God has commanded and what He has forbidden. In order to attain knowledge, we must study the Holy Qur’an and note down those evils which God has forbidden.
Studying the Holy Qur’an with Due Diligence
Ahmadiyya Khalifa, (may Allah strengthen his hands) said that during the month of Ramadan we increase our focus on reciting the Holy Qur’an. Thus, we should read it while searching for those things which God has enjoined and the things which He has forbidden. We must search for, study and implement these things.
His Holiness (may Allah strengthen his hands) said that until a person adopts righteousness, their prayers cannot achieve acceptance, as God states:
Ahmadiyya Head (may Allah strengthen his hands) further explained in light of the Promised Messiah’s, (peace be on him), writings that when prayers are accepted, it refers to the blessings and results of prayer that have an impact upon the worshipper. If a person remains engulfed in wrongdoing and even despite offering prayer, then such prayers are merely physical actions.
His Holiness (may Allah strengthen his hands) said that if we do not remain mindful of these things, then our fasting cannot be considered a shield for us. We may have begun the fast in the morning, broken it at sundown, remained hungry all day, but we will not have achieved the true essence of doing so.
Allah Fulfils the Needs of the Righteous
Ahmadiyya Khalifa (may Allah strengthen his hands) said that true Taqwa is when a person becomes purified to the degree that angels embrace them. A thief steals to fulfil their needs, but had they remained patient then it could have been that God fulfilled this need for them. Hence, there is a saying of the Holy Prophet(sa) in which he stated that when a person steals it is when they are in a state of disbelief. In other words, they forget that Allah is watching and become disbelievers in that moment. This is not only stealing things but even being dishonest in business dealings. On the other hand, if a person establishes Taqwa then God removes all such things from their path which leads them towards disbelief and fulfils their needs.
The Difference Between the Success of a Believer and a Disbeliever
His Holiness (may Allah strengthen his hands) said that there is a verse in the Holy Qur’an which states:
‘As for those who say, Our Lord is Allah,” and then remain steadfast, the angels descend on them, saying: Fear ye not, nor grieve; and rejoice in the Garden that you were promised.”’ (The Holy Qur’an, 41:31)
This means that once a person has believed in God, they should remain steadfast in this belief and not let their faith become weak over the smallest of matters. By remaining steadfast in faith, a person is given the glad tidings of Paradise and the help of God in this world and the hereafter.
The Khalifa (may Allah strengthen his hands) said that there is a difference between the success of a believer and a disbeliever. The Promised Messiah, peace be on him, explained that upon receiving any success or blessings, a believer is humbled, because they realise that whatever they have been granted or whatever they have achieved is not due to their own abilities or skills etc., but instead realise that whatever they have attained is solely due to God. On the other hand, disbelievers take sole credit for anything they attain which leads them down a path of darkness.
His Holiness(may Allah strengthen his hands) further quoted the Promised Messiah(as) who said that one who gives priority to God will be given priority by God. Thus, a person who adopts Taqwa begins reaping its rewards in this very life. Hence, if our efforts are drawing us towards a closer connection with God and are encouraging us to do more good deeds, then this is the best way of knowing whether our efforts are finding acceptance in the court of God.
Taqwa Requires the Proper Use of Our Faculties
Ahmadiyya Khalifa (may Allah strengthen his hands) continued quoting the Promised Messiah, peace be on him, who explained that adopting Taqwa includes the proper use of that which we have been bestowed by God Almighty. We must use our eyes in the proper manner and abstain from seeing bad things. We must use our ears in the right manner and abstain from listening to foul things. We must use our heart in the right manner and root our evil thoughts by reciting Istighfar (prayer for seeking forgiveness). Furthermore, adopting Taqwa entails fulfilling the rights of God’s creation and serving them even in the minutest of ways, whilst also keeping in mind to continue fulfilling the rights of God. Hence, Taqwa has been likened to a garment, which indicates that true spiritual beauty can only be achieved when one strives to tread upon the finest paths of Taqwa.
Ahmadi Muslims Must Remain Firm in their Faith
Ahmadiyya Supreme Head (may Allah strengthen his hands) further quoted the Promised Messiah, peace be on him, who said that Taqwa entails staying away from all kinds of innovations. The Promised Messiah, peace on him, said that true piety has left the earth. His Holiness (may Allah strengthen his hands) narrated an incident from his time in Ghana when a minister mentioned that most of the people in jail were Muslim. He was told however that if he investigated, he would find that none of them were Ahmadi Muslims. Upon investigation this proved to be true. Thus, true believers are those who tread with the fear of God at every step and adopt purity and piety in everything they do.
His Holiness (may Allah strengthen his hands) said that while our society continues to fall to new depths, Ahmadis must remain resolute in their faith because Ahmadiyyat has the true answer of bringing society back from this state. In the end, the promises made to the Promised Messiah, peace be on him, will be fulfilled; it would be our misfortune if our actions render us outside the pale of his teachings.
His Holiness (may Allah strengthen his hands) said that the Promised Messiah, peace be on him, explained that there are those who are bestowed bounties by God but try to hide them, however this is also a form of ungratefulness. Thus, if God has bestowed blessings upon someone then they should benefit from those bounties in thanks to God. At the same time, it is necessary to treat one’s family at home in a virtuous manner, rather than committing injustices at home with one’s wife and children. As the Holy Qur’an states, one must consort with them in kindness. Thus, it is necessary to adopt Taqwa in society and within one’s home. When a person establishes Tawwa, they become enlightened; their actions, words and thoughts become naturally inclined towards virtue.
To Truly Love God Requires a Sacrifice
His Holiness (may Allah strengthen his hands) explained that all of these things require true recognition of God. True fear of God can only be established when a person truly recognises God. It is then that Taqwa is achieved. Similarly, one cannot truly love God until they are ready to offer sacrifices for His sake. In fact, the very word ‘Islam’ means to sacrifice one’s self. Similarly, one cannot love God until one truly recognises God.
Ahmadiyya Khalifa (may Allah strengthen his hands) said that these are the standards of Taqwa expected of us by God, the Holy Prophet (PBUH) and the Promised Messiah, peace on him, It is in order to attain Taqwa that God has instituted fasting. His Holiness (may Allah strengthen his hands) said that we should pray for the ability to complete the rest of our fasts with the intention of attaining Taqwa and may the fasts already kept have been towards achieving the same purpose.
God Looks Not to One’s Status, But to their Righteousness
Ahmadiyya Khalifa (may Allah strengthen his hands) said that once a person went to the Promised Messiah, peace be on him, and asked how he could pledge allegiance to him when he was not from the Syed caste. These days, some Arabs also raise the same allegation that the Messiah should have been from among the Arabs. However, the Promised Messiah, peace be on him, replied to the man saying that God is not merely pleased with one’s status or the people he belongs to, rather God looks to a person’s righteousness and bestows ranks accordingly. Even the Holy Prophet (PBUH) told Hazrat Fatimah(ra) that she should not be proud merely on account of being a prophet’s daughter, as God does not look to a person’s rank. In fact, God is the one Who bestows rank, which He does by looking to a person’s Taqwa. The Promised Messiah, peace be on him, said that God Almighty states in the Holy Qur’an:
‘And he who fears Allah — He will make for him a way out. And will provide for him from where he expects not.’ (The Holy Qur’an, 65:3-4)
The Promised Messiah, peace on him, asked whether this promise was made to those who are Syed or those who have adopted Taqwa? Thus it is of paramount importance to inculcate and establish Taqwa.
His Holiness (may Allah strengthen his hands) said that righteous people are not merely those who others consider to be righteous, rather they are those who are righteous in the sight of God. Such who may lose everything but remain true to their faith and belief in God. Thus, simply having some good qualities are not enough to encompass Taqwa, rather one must adhere to all aspects of Taqwa, which entails fulfilling both the rights of God and His creation to the highest degree. Thus, the people referred to by God as having adopted Taqwa are those who did their best and strove their hardest to achieve Taqwa in all its aspects.
His Holiness (may Allah strengthen his hands) said that the Promised Messiah, peace be on him, responded to those who labelled him as a disbeliever by saying that the signs foretold for the advent of the latter day Messiah have all been fulfilled, so how can those who reject the Messiah be considered to have Taqwa? The Holy Qur’an states that Jesus, peace be on him, passed away yet they consider him to be alive; how then can this be considered Taqwa? True Taqwa cannot be in contradiction to the Holy Qur’an, rather true Taqwa can be understood through the Holy Qur’an which teaches the finer paths of righteousness.
Ahmadiyya Khalifa (may Allah strengthen his hands) said that he presented various quotations so that we may understand the true meaning and essence of Taqwa so that we may implement them as well. His Holiness Khalifa (may Allah strengthen his hands) said that we should spend the rest of Ramadan understanding the true essence of Ramadan and strive to become those who fulfil the rights of God and His creation. Ahmadiyya Supreme Head (may Allah strengthen his hands) prayed that may Allah grant us the ability to do so.
7. විදේශසංචිතහිඟයපියවාගැනීමටමාර්ගදෙකක්යෝජනාවේ. a) ජාත්යන්තරමූල්යඅරමුදලේකොන්දේසිවලටයටත්වණයගැනීම, b) අභ්යන්තරක්රියාමාර්ගහරහාදීර්ඝකාලීනවසංචිතවැඩිකරගැනීම. ආණ්ඩුවදෙවැනිමාර්ගයතෝරාගනී.
The World Bank has agreed to provide USD 600 million in financial assistance to address the current economic crisis in Sri Lanka, the President’s Media Division (PMD) says.
The World Bank Country Manager Chiyo Kanda, has stated that USD 400 million will be released shortly, as the first tranche.
Ms. Chiyo Kanda’s remarks came during a meeting between World Bank representatives and President Gotabaya Rajapaksa at the President’s House in Colombo, today (26).
This financial assistance will be provided to meet medicinal drugs and health needs, social security, agricultural and food security and gas needs. The World Bank representatives also stated that they will continue to provide assistance to Sri Lanka in overcoming the current economic crisis.
Adviser of the World Bank in Sri Lanka Husam Abudagga, Practice Leader for Human Development Rene Solano, Finance Minister Ali Sabry, Trade & Samurdhi Development Minister Shehan Semasinghe, Secretary to the President Gamini Senarath, Finance Ministry Secretary K.M.M. Siriwardena, Labour Ministry Secretary Mapa Pathirana, Deputy Secretary to the Treasury R.M.P. Rathnayake and the Director-General of National Planning Department R.H.W.A. Kumarasiri were also present at the meeting.
The government has decided to implement a new methodology to issue long-term residence visa for foreigners in Sri Lanka.
The approval of the Cabinet of Ministers was given to the following proposals tabled by the President in his capacity as the Defence Minister:
• Issuing long-term residence visa from 5 to 10 years for foreigners and directors, their spouses and their dependents of foreign companies who invest at least USD 75,000 or more in condominium properties. This will depend on the amount of US dollars invested.
• Implementing ‘Golden Paradise Visa Program’ that enables issuance of residence visa for 10 years for foreigners who deposit at least USD 100,000 in a commercial bank recognized by the Central Bank of Sri Lanka.
The Cabinet of Ministers has given the approval to amend the Petroleum Products Act to allow specific sectors of the economy to individually import and use the fuel they require.
The proposal was presented by Minister of Energy Kanchana Wijesekara.
As fuel is essential for all economic activities in the country, it has been identified that it is appropriate to issue licenses to selected specific sectors of the economy to import and use the fuel they require individually, the Government Information Department said in a statement.
Thereby, the legal draftsman will be advised to draft a bill to amend the Petroleum Products (Special Provisions) Act, No. 33 of 2002, in order to make provisions to issue licence to properly identified parties.
Sri Lanka must tighten monetary policy, raise tax and adopt flexible exchange rates to address its debt crisis, a senior International Monetary Fund (IMF) official said on Tuesday.
The country of 22 million people has requested loans from the IMF as it struggles to pay for imports amid crushing debt and a sharp drop in foreign exchange reserves that has fueled soaring inflation.
We’ve had very good, fruitful, technical discussions on preparations for the negotiations with authorities over the past weekend and couple of days before,” said Anne-Marie Gulde-Wolf, acting director of the IMF’s Asia and Pacific Department, speaking at an online news conference.
Sri Lankan Finance Minister Ali Sabry was in Washington last week to talk to the IMF, the World Bank, India and others about financing help for his country, which has suspended payments on portions of its $51 billion in external debt.
The requirement for fund lending will be progress toward debt sustainability,” Gulde-Wolf said, calling on Sri Lanka for measures to increase tax revenues to address critical spending needs.
Monetary policy has to be tightened to keep inflation in check,” she said. We see a need for flexible exchange rates.”
Gulde-Wolf did not reply to a question on the total value for any IMF package, nor the estimated timing of a conclusion to the negotiations with Sri Lanka.
Every time Sri Lanka mentions the words Sinhalese, Buddhists or Buddhism the whole world appears to get agitated & they take pains to showcase why there should be no reference to Sinhala Buddhists or the Buddhist ethos that governs this island nation. In short, there is a well-funded & well-campaigned effort to remove the Sinhala Buddhist heritage except to place it as a coffee table book or adorn a mantlepiece. These demands are conveyed through various international organizations, foreign governments, local NGOs funded from overseas & by hired local mouthpieces. These demands are even included as conditions for loans, for trade etc. Are Sinhala Buddhists & Buddhism this much of a threat to their agenda that they are using every trick in the book to erase or dilute its prominence & presence in Sri Lanka?
US & the Church
God is mentioned in the US Declaration of Independence, Pledge of Allegiance & on US Currency.
The state constitutions of Colorado, Iowa, Hawaii & Washington. Supreme Being / Supreme Ruler of the Universe is mentioned. In fact there is mention of God 116 times in all of the State constitutions. These state constitutions also mention creator” providence” divine” Lord” almighty” while the US Constitution refers to the year of our Lord” & 7 mentions of the word Christian”.
The US Congress is majority Christian and identify themselves as Christian (2019 Pew Research)
All the US Presidents have been Christian & have used the Bible for swearing in ceremony so help me God”.
The 13 colonies under the British Empire held the Church as supreme & the 13 colonies became outposts of a Christian nation.
It is only in word that the first amendment says the US has no official religion, as Christianity continues to hold a prominent role. A 2014 Pew Research survey declared 53% Americans would be ‘less likely to support a presidential candidate who does not believe in God”. Religion is being politicized in politics too.
US has a history of just 245 years
UK & the Church
In the House of Commons an MP has to officially speak on behalf of the Church of England. The Speaker of Parliament appoints a Church of England chaplain who has to do a prayer every day in the House of Commons. Laws passed by the General Synod have to be approved by House of Commons & House of Lords to come into effect.
The United Kingdom of Great Britain & Northern Ireland has 2 established (formal relationship between Church & the State) churches – the Anglican Church of English & the Presbyterian Church of Scotland. The Queen is Supreme Governor” of the Church of England & she is member of the Church of Scotland. The PM advises the Queen on church appointments. Church of England has statutory representation in the House of Lords.
MP and former cabinet minister, David Davis stood up in the House of Commons recently and told Prime Minister Boris Johnson to resign.
You have sat too long here for any good you have been doing. In the name of God, go”
UK’s national anthem says God Save the Queen”.
The Sovereign holds the title ‘Defender of the Faith and Supreme Governor of the Church of England’. The Queen’s relationship with the Church of England was symbolised at the Coronation in 1953 when Her Majesty was anointed by the Archbishop of Canterbury and took an oath to maintain and preserve inviolably the settlement of the Church of England, and the doctrine worship, discipline, and government thereof, as by law established in England”.
. – so what is wrong with Article 9 giving Buddhism foremost place in the constitution?
The United Kingdom is just 315 years -The Acts of Union from 1st May 1707
Canada & the Church
Supremacy of God is in the preamble of the Canadian Charter of Rights and Freedoms Whereas Canada is founded upon principles that recognize the supremacy of God and the rule of law.”
The origins of the supremacy of God traces back to 1960 Canadian Bill of Rights. The inclusion of the supremacy of God in the preamble of the Charter came about at the time of the patriation of the Canadian Constitution by the Liberal government of Prime Minister Pierre Elliott Trudeau in 1982
Canada’s heritage as a nation under God is plainly carved on the walls of our Parliamentary buildings including Memorial chamber inside Parliament. There are various biblical passages found inscribed on the Peace Tower and other Parliamentary buildings in Ottawa to remind the Christian heritage of our nation.
Canada’s legal system was not meant to replace the judgment of God, it was meant to uphold the law of God, and whatever judgment is given by the courts, Christ will still administer the final judgment.
Why was reference to God included in a legal document of a supposed to be secular and supposed to be multicultural state?
Islam originated in the 7th century and is followed by 1.5billion Muslims. Over 50 majority Muslim countries ensure their constitutions contain clauses with Islamic features. The constitutions of Pakistan, Afghanistan, Egypt, Iran & Iraq specifically state that any legislation against Islam is forbidden.
Some Muslims also insist that the head of state or government must be a Muslim. Invariably in all Muslim majority countries the head of state is a Muslim. No one seems to have a problem with this.
Tunisia who had the first constitution in the Muslim world became the first Muslim country that incorporated a form of Western constitution in 1861 by referring to God. Primarily because of pressures from British & French envoys.
Muslims view secularism as unacceptable – so why do countries who themselves give pride of place to Christianity, demand other countries become secular?
Why is there no objections to the unwillingness of over 50 Muslim states to remove strict versions of Shariah which directly violates the UN human rights and freedom charters.
Sri Lanka’s Buddhist history
Sri Lanka’s documented history dates to over 3000 years with human inhabitants as far back as 125,000 years ago. Buddhism became the state religion since 3rd century BC. All kings that ruled Sri Lanka followed the tenets of Buddhism incorporated in the Dasa Raja Dhamma. Not a single division or ethnic issue was recorded inspite of Buddhism being the state religion.
The 3 western invaders that arrived saw Buddhism as a threat to their key objective of converting the islanders to their faith & since 1505 to present their agenda of subjugating Buddhism continues with every effort and funding going towards distancing Buddhists from Buddhism, smearing Buddhism. Luring Buddhists to commit anti-Buddhist follies to use these to tarnish image of Buddhism. The current scenario of anti-Buddhist placards and social media outbursts prove the hateful vengeance that is at play.
Buddhism has been a core pillar in the civilizational existence of Sri Lanka inherent and identified in both its faith & culture. Countries like Canada, US, Australia, New Zealand are all created Christian countries with less than 350 years of history. If they can proudly declare their Christian heritage and give prominence to that, why shouldn’t Sri Lanka with over 3000 years history & heritage?
Why should Sri Lanka’s Buddhist history not be enshrined in its constitution just like all the other countries who claim to be ‘secular’ in word only. Why should Sri Lanka’s Buddhist heritage be removed from the country’s constitution which is a foreign-imposed piece of legislature whereas the Dasa Raja Dhamma is far older & more unique & inclusive as well. The premise that by removing the foremost place to Buddhism given in Sri Lanka’s constitution places on in equal and solves problems necessitates to ask what countries in the world are without conflict simply because their constitutions are secular?
Billions is given by Christian countries to promote different denominations of Christianity at government & NGO levels. Billions are given by Muslim majority countries to propagate Islam. In such a scenario, Sri Lanka has just the State to protect the foremost place of Buddhism that cannot be allowed to be erased & given cosmetic value.
How did the Yahapalanaya booby trap the Rajapaksa Govt so that the R Bros would be trapped for Yahapalanaya’s sins?
In 2014 the external debt was $42,262,755,067. By 2019 during the time the Yahapalanaya was in power, the external debt had gone up to $56,095,468,647, How did this happen?
* The Yahapalanaya Govt introduced “Neo-Liberal” policies when they came into power. This enabled the Western countries to export their goods to Sri Lanka. Many local industries which were producing goods went under since the imported items were better and cheaper.
* In addition, Yahapalanaya kept getting debt in the form of Sovereign Bonds which became due at the time of the Rajapaksa Govt. The Yahapalanaya Govt took an additional $1.15 Billion from the IMF.
* The Yahapalanaya Govt leased out the Hambantota harbor for 99 yrs which Mahinda Rajapakse got built with great efforts, to the Chinese for $1.12 Billion.
* They had two massive Bond scams which cost the country around Rs. 80 Billion.
What was done with all this money? They spent it on consumer goods and imported luxury cars which people were allowed to sell and make money for their ministers. No development work was done during that time. They canceled the Sampur power plant that Mahinda had started which would have supplied the power during the drought period. They also canceled the Port City and then went back to it after two years on worse terms than Mahinda had got for Sri Lanka. The Yahapalanaya had a wonderful chance to pay down the debt and do some development since crude oil prices were low and we were getting tourists, and good prices for tea, etc. They threw the chance away and wasted the money on the import of cars and other luxury goods.
The external debt today is around $51 Billion. This means in spite of the Covid 19, the lack of tourists, lack of earnings from employees abroad, low tea prices, and high crude oil prices, the Rajapaksas have managed to lower the debt by $5 Billion.
What is happening today is the same as what happened in 2015. In 2015 when people were using social media, and a large number of unbelievable stories (R Bros as owners of fleets of Ferraris and golden horses, etc !!) were spread about the Rajapaksas which were believed by some of our stupid people resulting in Mahinda Rajapaksa going back to his ancestral home in Medamulana. He seemed to be happy to go back home and take it easy after the war with LTTE and various foreign powers which were trying to destabilize the country. He did not even bother to fight the misinformation that was put out to get rid of him. Next, after the Yahapalanaya came in, people realized that they had been duped and went in busloads to Medamulana and begged Mahinda to come back. Thereafter, Mahinda formed the SLPP which won a resounding victory in 2019.
In 2015, Sirisena was elected as the President due to all the lies that were spread about the Rajapakasas. It was a Presidential election and yet as soon as he was elected, he appointed Ranil as the Prime Minister which was illegal since there was already a Prime Minister and Cabinet. Ranil knew he could never contest and win the election on his own. When Sirisena was asked why he did that against all the laws of the country, he replied that the “West wanted him to appoint Ranil”. Sirisena also announced in August 2015 a few days before the general election, that he will not appoint Mahinda as Prime Minister even if he wins.
Ranil, as soon as he became Prime Minister appointed Paskaralingam who was Premadasa’s secretary to the Ministry of Housing, as Treasury Secretary, and then appointed Arjun Mahendran who was a Singaporean as the Governor of the Central Bank, thus breaking the law. We all know that it resulted in two bond scams that cost the country around Rs.80 Billion.
Mangala Samaraweera made a statement in Parliament that MR had $18 Billion in a Dubai bank. The Yahapalanaya Govt appointed a team called the Financial Crimes Investigation Dept (FCID) and investigated the Rajapaksas thoroughly and found nothing against them. They sent a crack police team to Dubai to investigate Mangala’s claim in Parliament and found nothing. In spite of it, they jailed Namal and tried to jail Mrs. Rajapaksa too. The entire SLFP group was relegated to the backbenches and the TNA which had only 16 seats, was appointed as the main Opposition party in the Parliament. That is how Democracy operated from 2015 to 2019.
Only a few years ago when the LTTE was killing our soldiers, numerous able leaders from all political parties and ordinary people with suicide bombers and explosions in trains and buses, who came to the rescue of the country to save it? The Opposition only wanted to appease their Western masters and they followed the advice of the Norwegian peace negotiators who were appointed by CBK and told the Govt that the LTTE was too strong to defeat militarily. It was the Rajapaksa family with Mahinda as the President and GR as the Defence Secretary who saved the country and all the people, including ordinary Tamil folk and their children from the terror of the LTTE.
President GR knew how to battle since he had been a soldier who was decorated for bravery. He had got injured in the field and nearly lost his life when the LTTE threw a bomb at him. The military under President Mahinda did everything to save the 300,000 plus Tamil civilians who were kidnapped by the LTTE to form a ‘human shield’ to protect the LTTE, resulting in the death of more soldiers. Was the LTTE ever accused by the UNHRC of war criminals in Sri Lanka for nearly 30 yrs ?. No ! instead the UNHRC brought a Resolution against the brave soldiers who saved the country and this was co-sponsored by the Yahapalanaya Govt which was trying to appease various foreign interests.
Today, the situation that developed in the country was beyond anyone’s control. We had two years of Covid just as the Rajapaksas took power in 2020. We lost the entire tourist business, the migrant workers, and the economy itself was affected by the lockdown. We should not forget that Gotabaya Rajapaksa won the Presidential election with a very large majority.
When the Covid happened, Prez GR took charge immediately and controlled the situation so well that we had only 22 deaths initially since the country was put into lockdown quickly. Later the numbers increased since the Opposition fought the lockdown. In comparison to the USA, Europe, India, etc, where hundreds of thousands died, the Sri Lanka govt did well. Imagine if the Opposition were in power during these times! Do you think there is any other leader other than President GR who could have taken quick, strong decisions ?. Only a battle-wise veteran like Colonel Gotabaya Rajapaksa assisted by General Shavendra Silva could have saved the country from the LTTE and Covid.
In spite of the unprecedented problems faced by the Govt due to situations in the world, the Rajapaksa Govt has faced every issue and is also doing a lot of development work that will bear good results in the future.
*They just opened one of the biggest Cement factories in Hambantota,
*A 1000MW solar power plant agreement was signed with India, and Gota has given instructions for 5000MW of renewable power just in the last two months to address climate change and to increase the electricity supply.
*There is also a big effort to clean up the food supply of Sri Lanka which was causing CKDU in massive numbers, killing people in the rice-growing areas.
It is unfortunate that the Govt is short of foreign exchange due to the Covid and the past war with the LTTE, and the world economic situation.
Sri Lanka lost simultaneously tourism and migrant workers remittances in 2020, 2021. Instead of standing together with the Govt that has looked after the people so well, the Opposition is trying to take advantage of the present difficult times to bring down the Govt so that they can come into power.
Some of the people who were living on commissions from imports are not happy with the current Govt. Nor are the drug lords who were making a lot of money during the Yahapalanaya Govt. During that time the drug distributors were openly selling drugs near schools. All that was stopped by GR and MR. They saved and are saving ALL the children of Sri Lanka, then and now.
I am also wondering who is funding the protest meetings on Galle Face green. Is it LTTE diaspora money or is it the foreign funding as happened in 2015? There are some powerful countries trying to use the Tamil diaspora to divide the country, possibly with the bigger prize of India in mind. We must be aware that India does not want to be re-colonized. They will not tolerate such moves coming through Sri Lanka. Please be aware of all the enemies of our poor little island that has been trying to take over the island for over 2500 years. There are also other vested interests who have always tried to create trouble for the Rajapaksas such as middlemen dealing in various commodities, drug lords, etc.
Some advice to the people of Sri Lanka: At this dark hour stand strong with proven loyal leaders who have shown ability and are moving the country forward, in spite of all the world issues. We can all see that there are some difficulties to balance forces at play, and instead of trying to use it as an opportunity to topple the Govt and take over as was done in 2015, please be patient and let them carry on for their term and solve Sri Lanka’s
problems with safety and honor for all. If we keep changing Govts each time there is a global situation, the country will only go more and more backward. We have to realize that we are a very small country and need to balance ourselves against some of the major powers who dominate the world. It takes great diplomacy to balance on the knife-edge to keep the major powers from taking over or re-colonizing our country, which India and the SE Asian region will oppose with all their strength. Work together with all proven Life Supportive groups from anywhere in the world and we can all win through.
I would suggest that the youth who are demonstrating should sit down with MR and GR and suggest that they continue their term till 2024 and request them to change the method of election and governance to a different one where the party system is removed and replaced by something along the lines of what several people have suggested in the Lankaweb. .
What we need :
** We in Sri Lanka need an OATH OF ALLEGIANCE from one and all !!
** We in Sri Lanka do NOT need political parties. The best in the land can be ELECTED by the People to Govern the country.
The current party system based on politics does not seem to work in Sri Lanka or anywhere else. When parties come into power they are busy collecting money to fight for the next election in 4 years’ time. Even in the USA where they are proud of their democratic system, it does not work. Currently, they have two parties in the USA that are both funded mostly by Corporations. As a result, the policies for both parties are created mostly by the Corporate lobbyists. Most of the countries in Europe are following mostly Socialist policies (as per the Founder of Capitalism, Adam Smith. Read his book Wealth of Nations”).
India appears to be willing to give $2 Billion as a loan so is the World Bank and the IMF is also considering giving $3-4 Billion. China has said they are doing its utmost to help Sri Lanka. If the country sinks into anarchy due to the sudden removal of GR and MR then this help may not be forthcoming.
I urge the youth who are demonstrating asking for GR and MR to leave to consider very carefully their actions. All the world leaders appear to have a lot of respect for the Rajapaksas for the way they have handled all the issues since they first came into power in 2005. We have one chance to get it right and get the country straightened out. If we lose it then it will sink into chaos and there are certain powers who may actually wish that to happen so that it can be broken up. Therefore, please consider your actions very carefully as they will impact many generations to come and all of Lanka will suffer, one way or the other.
There are many who claim that the only solution to Sri Lanka’s economic problem is to privatize public assets. These are promoted by western monetary bodies & local corporates take advantage of the corruptions that exist in the bureaucracy. In essence, what needs to be accepted is that it is not only the politicians who are corrupt but the Secretaries, the corporate bigwigs in Sri Lanka as well as the foreign investors. Privatization of Lanka Marine Service to JKH.
Minister of Economic Reform, Science & Technology – Milinda Moragoda
Secretary to Economic Reform Ministry – P B Jayasundera
Finance Minister – K N Choksy
Minister of Justice Constitutional Affairs – G L Pieris
Head of Ceylon Petroleum Corporation – Karu Jayasuriya
JKH Head – Susantha Ratnayake
UNP ruled from 2001 to 2004
UNP promoted neo-liberal economic policy & as such privatizing state-owned enterprises was a fiscal condition imposed upon UNP by World Bank/ADB and IMF.
The Supreme Court of Sri Lanka reversed both share sales & denounced the corruptions that took place.
On 21 July 2008 – the Supreme Court of Sri Lanka reversed the privatization of Lanka Marine Services which was a wholly-owned subsidiary of the Ceylon Petroleum Corporation.
On 4th June 2009, the Supreme Court of Sri Lanka reversed the privatization of the Sri Lanka Insurance Company (SLIC) after determining that the company’s sale had been improperly concluded.
Lanka Marine Services privatized to JKH
In August 2002, Ranil-led UNP through the Treasury & PERC (under Moragoda) sold a majority stake in Lanka Marine Services (subsidiary of Ceylon Petroleum Corporation) and was on a 8.5 acre plot in the Colombo Harbor
Supreme Court on LMS Privatization
The Supreme Court decisions showed how corruption & fraud favored private interests vis a vis sale of state owned enterprises (a policy promoted by IMF/WB and ADB)
The fraudulent privatization that benefitted JKH was reversed by the SC. The SC reversed 2 major privatization transactions effected in 2002 by former Minister of Economic Reform- Milinda Moragoda, Science & Technology. PERC was under Moragoda.
The SC claimed the privatization subverted public interest in both judgements. This sale also highlighted corrupt senior public officers. The Courts jurisdiction could not charge the Minister or his deputy P B Jayasundera. Both Moragoda & PBJ were alleged to have fraudulently divested the State of its revenue producing assets. PBJ resigned in September 2008 after the 1st SC decision that implicated him in financial misconduct.
People demand resignation of Moragoda
The People demanded Moragoda’s resignation as Minister & demand for investigation was filed with the IGP and the CID only with AG’s approval. The Ranil Wickremasinghe government however made Moragoda the Minister of Justice & Judicial Reforms under whom the AG was governed.
The judges described the LMS transaction as done without lawful authority” to benefit a private holding company (JKH)
Moragoda crossed over to Mahinda Rajapakse govt in 2007 and became Minister of Tourism & thereafter Minister of Justice & Law Reform the same period that Vasudeva filed the FR case pertaining to the LMS fraudulent privatisation.
Supreme Court on P B Jayasundera
The Court found P B Jayasundera (Chairman Public Enterprise Reform Commission) who reported to Minister Moragoda had worked in collusion with the buy John Keells Holdings to secure illegal advantage for JKH.
JKH is a UN Global Company Company, publicly & rhetorically committed to combating corruption (Nihal S. Amarasekera)
After artificially undervaluing LMS, a clause was granted giving JKH monopoly on the services it was to provide. After the sale, the then President awarded LMS a substantial property in land for which JKH did not compensate the government. LMS was also awarded tax-free status which it was ineligible.
PERC was established in 1996 to promote a reform agenda in the public sector. The Court held that the objectives of PERC should be to benefit the people of Sri Lanka & provide financial support to the public sector.
LMS as a subsidiary of CPC was providing marine fuel to ships in Colombo Port or offshore (bunkering) which offered foreign exchange revenue. LMS operated 12 tanks & a network of interconnecting pipes linked to shipping berths & a jetty in the port (Common User Facility)
PBJ is accused of granting a private company holding majority shares in LMS monopoly on limited bunkering services through existing CUF. PBJ amended the CUF Agreement at the behest of JKH. Moragoda & Jayasundera allowed JKH to monopolize supply of bunkers post-privatization in violation of the stated intentions given by the Cabinet. (Nihal Sri Amarasekera) The Cabinet Memorandum declared that approval was given to increase volume of bunkering & increase the foreign exchange revenue to the State, however what happened was the transforming of a public monopoly into a private one resulting in complete loss of tax revenue due to a fraudulent exemption.
PBJ did not use Government’s Chief Valuer but a private bank to value LMS public enterprise. When banks auditors informed about LMSL monopoly on the bunkering services LMSL was revalued & its worth was double to what was earlier submitted.
PBJ had then Treasury Secretary appoint a Technical Evaluation Committee to assess the viability of the incoming bids. JKH was chosen as winning bidder. JKH then fraudulently applies to the BOI for tax-exemption which was granted (Nihal Sri Amarasekera).
The Supreme Court held this as a ‘tailor made’ special gazette notification by Minister G L Pieiris former Minister of Justice for Constitutional Affairs.
Role of K N Choksy / WB / IMF
K N Choksy, President’s Counsel & former Minister of Finance had also been Governor of the World Bank & IMF for Sri Lanka in 2003.
K N Choksy was appointed Finance Minister in 2001 despite his role in the Hilton Hotel Colombo’ case which caused the treasury enormous financial losses & deemed fraudulent by a Special Presidential Commission.
Faiz Mohideen former Deputy Secretary to the Treasury had been the Alternate Governor of the IMF & World Bank for Sri Lanka in 2000 & was counterpart for Sri Lanka on the World Bank’s Economic Reform & Technical Assistance Project which set out the privatization goals in 2002.
Who else are pro-IMF/WB in the Central Bank of Sri Lanka presently?
How were these privatizations done?
By first artificially undervaluing these public assets which lost the govt tax-paying revenue but transferred public wealth to private hands.
The privatization was justified by promoting notion that only privatizing Sri Lanka could promote efficiency & economic growth
In SC (FR) Application No. 158/2007 Justice N.G. Amaratunga, with then Chief Justice Sarath N. Silva and Justice K. Sripavan agreeing, reiterated as follows:
The ruler’s trusteeship of the resources of the State which belong to the people is a part of the legal heritage of Sri Lanka dating back at least to the third century BC as pointed out by Justice Weeramantry in his separate opinion in the International Court of Justice in the Danube Case,by quoting the sermon of Arahath Mahinda to King Devanampiya Tissa as recorded in the Great Chronicle – Mahawansa. (See Bulankulama case – 2000 (3) SLR 243 at 254-255.) This concept of the public trust which curtailed the absolute power of the monarch is in perfect harmony with the doctrine of public trust developed by the Supreme Court on the basis of the sovereignty of the people set out in Articles 3 and 4 of the Constitution, Article 12(1) and the principle of the Rule of Law, which is the basis of our Constitution. The Rule of Law is the principle which keeps all organs of the State within the limits of the law and the public trust doctrine operates as a check to ensure that the powers delegated to the organs of the government are held in trust and properly exercised to the benefit of the people and not to their detriment. When the Executive which is the custodian of the People’s Executive Power act ultra vires and in derogation of the law and procedures that are intended to safeguard the resources of the State, it is in the public interest to implead such action before Court.”
How can corporates accuse politicians of corruption, when they themselves have engaged in underhand transactions. How can we trust the public sector, when senior officials are not acting straight.
How do we deal with such a scenario of corruption embedded into society.
Colombo, April 25: Fed up with the lack of progress in talks with Sri Lanka on a Free Trade Agreement (FTA) since 2015, Chinese Premier Li Keqiang told his Sri Lankan counterpart Mahinda Rajapaksa on April 22, that while China has empathy for Sri Lanka’s economic plight and is keen on helping it, there ought to be an early start of the negotiation and signing of the Free Trade Agreement, so as to enhance mutually beneficial cooperation.”
Li was warning that further dilly dallying on the FTA will affect the flow of Chinese aid. Mahinda Rajapaksa caught on to this and said: Sri Lanka is ready to strengthen cooperation with China in finance, economy, trade and tourism and advance the negotiation of the bilateral free trade agreement.”ADVERTISEMENT
Mahinda Rajapaksa has thus made an important commitment to China. And it will not be easy to fulfill, given the stiff resistance to the FTA in the Sri Lankan establishment and the larger political community. In response to a query about the FTA, President Gotabaya Rajapaksa had said: the Chinese are asking for too much”.
Be that as it may, given the current economic and political crisis, Prime Minister Mahinda Rajapaksa had no option but to tell his Chinese counterpart that Lanka will move on the FTA.
Earlier, Qi Zhenhong, the Chinese Ambassador to Sri Lanka, had discussed the FTA with Foreign Minister G L Peiris. The Sri Lankan statement on the meeting said: Ambassador Qi, while stating that China had signed over 26 FTAs, expressed that finalizing the proposed FTA between Sri Lanka and China would immensely benefit the Sri Lankan local market and products. He also urged the Sri Lankan authorities to resume the 7th round of FTA negotiations at the earliest.” In reply, Minister Peiris said that the 7th round of FTA negotiations will soon commence with the support of the respective line agencies in Sri Lanka.
China has invested billions of dollars in Sri Lanka, building ports, airports, roads and power stations since 2013, as part of its Belt and Road Initiative (BRI). Its loans account for 10.5% of Sri Lanka’s foreign debt. But the Chinese feel that there is no appreciation of this in the governmental and political domain. Envoy Qi Zhenhong said so when a delegation of the 11-party opposition group in parliament met him.
According to a top diplomat, Colombo has been unresponsive on two proposals the Chinese had been making: First, the formation of a grouping of Island States with Sri Lanka in the lead, and Second, the formation of a dispute-settling mechanism outside the current system. The diplomat said that Sri Lanka may have reasons to be reticent for geopolitical reasons but it could have at least opened negotiations going into the pros and cons.
It appears to China that the Gotabaya Rajapaksa government has moved closer to India, especially during the current economic crisis, when India rushed financial and material aid totally worth US$ 3.4 billion (according to The Morning). But China cannot fault Sri Lanka for leaning towards India now: China has been dragging its feet on aid when Sri Lanka is sinking. In January, Foreign Minister Wang Yi rejected President Gotabaya Rajapaksa’s plea for a rescheduling of the repayment of Chinese loans. More recently, China had announced a loan and buyer’s credit totaling US$ 2.5 billion but it has failed to deliver. Last Thursday, fearing that Sri Lanka will go away to the Western and Indian camp, China announced emergency aid of around US$ 31 million. It includes 5,000 tonnes of rice, pharmaceuticals, production materials and other essentials. But this is a pittance given Sri Lanka’s pressing needs.
However, as a top Sri Lankan put it, Sri Lanka cannot abandon China and go the whole hog with India and the West. It is China which has the deep pocket and its record in the delivery of projects remains unbeaten. The Indians are short of money and their execution of projects is comparatively slow. The Americans come with a bagful of advice but no money.
Since the Chinese are determined to enter into an FTA, Sri Lanka has to work on it seriously. When the talks broke down in 2017, the issue apparently was Beijing’s rejecting Colombo’s demand for a review of the FTA after 10 years. But according to EconomyNext, the real issue was opposition from the entrenched local monopolists who feared foreign competition. China wanted zero tariffs on 90% of the goods sold to each other as soon as the FTA was signed while Sri Lanka wanted it to start with zero tariffs on only half of the products concerned and expand gradually over 20 years. In January 2022, the visiting Chinese Foreign Minister Wang Yi, signaled China’s desire to resume the stalled FTA talks. But it fell on deaf ears here in Colombo.
As the EconomyNext put it: Free trade benefits the poor and makes the country export efficient, but can hurt the profits and revenues of companies run by the so-called import substation oligarchs and other firms which overcharge the public under tariff protection.”
The website points out that Sri Lanka has seen import tariffs go up over the last 15 or so years with protectionist oligarchs” gaining more political clout.
In 2020, China exported US$ 4.01 billion to Sri Lanka. The main products were light rubberized knitted fabric ( US$241 million), broadcasting rquipment (US$ 225 millon), and refined petroleum (US$127 million). In the same year, Sri Lanka exported US$ 266 million worth of goods to China. The main products were tea (US$ 60.4 million), coconut and other vegetable fibers (US$ 24.2 million) and knit T-shirts (US$ 18.5 million).
China proceeds cautiously on FTAs, says a report by the Institute of Policy Studies (IPS-2015). It gives priority to trade in goods and then moves on to trade in services and investments. China is committed to eliminating duties on over 95% of tariff lines.
The IPS study points out that in 2015, Sri Lanka had a comparative advantage vis-à-vis the world, in 566 products, out of which, the island nation exported 243 items to China. There were an additional 299 products with trading potential vis-à-vis China. Sri Lanka can push for a place in the Chinese market for vegetable products, rubber and plastics.
However, being a smaller and weaker economy, Sri Lanka should negotiate for softer Rules of Origin (ROO). It would be better to go for product-wise ROO than a comprehensive ROO applying across the board. Since developed countries get over the disabilities emanating from FTAs by putting up Non-Tariff Barriers (NTB), Sri Lanka should get a firm commitment that such barriers will not be put up.
The IPS study warns that the Chinese in general go for agreements based on reciprocity. As such, Sri Lanka should deftly negotiate for an asymmetric deal given the asymmetry between the two economies.
Sri Lankan businessmen should be given information on trade opportunities in China by a government institution. Presently, businessmen are largely on their own. Cultural differences and institutional practices could also lead to misunderstandings and miscalculations. Government and trade bodies should supply the necessary inputs in these matters, the IPS study recommends.
Be that as it may, the Sri Lankan official machinery and its political set up are so deeply involved in managing the on-going economic crisis, that it is highly unlikely that they will start talks with China or any other country on a controversial subject like FTA. The Chinese have no option but to take this preoccupation into account if they are to remain a factor in Sri Lanka.
Sri Lanka’s ongoing negotiations with the IMF will unavoidably impact its discussions with China for securing US $ 2.5 billion, China’s Ambassador Qi Zhenhong said.
In an interactive dialogue with a team of journalists, he said China was closely monitoring the negotiations to know the terms and conditions .
He said debt restructuring would be a key component of the IMF as he could fathom from experience.
He also said that China’s support to Sri Lanka will not be based on a particular party or Government. No matter who is in power China’s support is for the People of Sri Lanka.(Kelum Bandara)
COLOMBO (AFP) – Crisis-hit Sri Lanka’s stock exchange halted again yesterday after a nearly 13 per cent plunge, derailing the bourse’s tentative re-opening after a two-week break aimed at forestalling a market collapse.
The island nation is grappling with its worst economic downturn since independence in 1948, with months of regular blackouts and acute shortages of food and fuel.
Equities have shed nearly 40 per cent of their value since January, with the local currency falling by a similar amount against the greenback in the past month.
Yesterday was the first morning of trade on the Colombo bourse since a weeklong Sri Lankan New Year holiday and a subsequent five-day trading halt after the government hiked interest rates and defaulted on its USD51 billion foreign debt.
The local S&P index fell seven per cent in the opening minute of trade, more than the five per cent needed to trigger an automatic half-hour halt.
Shares continued their rapid slide after a brief resumption, prompting the market to declare a halt to trading for the rest of the day.
Sri Lankan officials were in Washington last week to negotiate with the International Monetary Fund for a bailout, but official sources said there was no immediate prospect of emergency funding from the lender.
Colombo is now banking on further bilateral help from India, China and Japan to help keep the country afloat, a Finance Ministry source told AFP.
Sri Lanka is undergoing a severe economic crisis and is at the risk of devolving into a failed state. The country’s foreign reserves are fast depleting, falling from $5 billion in 2019 to 1.8 billion in 2021, despite high inflation and a debt-to-GDP ratio of 110 per cent. From health to defence, the nation is attempting to reorganise its affairs. Meanwhile, other speculations about the origins of the crisis have evolved, ranging from Covid to debt-trap diplomacy. The debt trap of China and Covid is marketed as the source of the crisis. They are, however, only a catalyst; the debt trap sponsored the cause, and Covid was the spark that ignited the fire. The root cause of the crisis lies at the heart of the country. The country’s people were persuaded to offer legitimacy and authority to an aristocratic political system Using the identity crisis and insecurity. This mechanism triggered the Butterfly and Domino effect.
The root cause of Sri Lanka’s economic crisis and all of the other problems that the nation has been dealing with for decades is the country’s identity crisis and sense of insecurity. There are two dominating factions in the country: the Sinhala Buddhists and the Tamil Nationalists. Non-ethnic differences separate the two groups; they are also split along religious and linguistic grounds. The majority of Sinhala nationalists feel unhappy with sharing their territory with Tamil nationalists, who are ethnically, religiously, and linguistically distinct from them. Similarly, the Tamil Nationalist minority feel insecure about sharing their territory with the majority. This sense of vulnerability ultimately resulted in the civil war that lasted for decades and ravaged the nation. The same uneasiness that led to the present economic catastrophe also convinced the nation’s people to provide legitimacy and authority to an aristocratic political system, as the insecurity of the majority had done before. The country’s populace was convinced to provide legitimacy and power to an aristocratic governmental structure to preserve their interests.
This autocratic political system is reflected via the Sri Lanka podujana peramuna and the New Democratic Front, both endorsed by the Sinhala majority in the country’s political institutions. As a result of this unavoidable support, the nation’s political structure was transformed from democracy to aristocracy. Sri Lanka was classified as a flawed democracy” by the Economist Intelligence Unit in 2019. In the aftermath, the nation was plagued by corruption, widespread exploitation, and repression of minorities, among other things.
Sri Lanka’s troubled political structure and its geographic location on the Indian Ocean exposed it to foreign threats. The most serious of these threats came from financial reserves, particularly from China. China has poured a large quantity of money into Sri Lanka to aid the country’s growth and development. However, the political system of Sri Lanka, which was plagued by corruption, was unable to translate the flood of riches into productive assets. Consequently, the nation found itself in a financial trap with a dual deficit. As is customary in the west, China is being held responsible for the present economic crisis to prevent the expansion of the Chinese financial arm.
A Hypothetical scenario to demystify the conspiracy of the Debt Trap diplomacy. The board of directors of an infrastructure development firm, a public limited company, successfully raised funds for a highway building project. Rather than constructing the highway, they diverted the funds to personal spending and investments. Initially, the firm paid the bank interest using funds from its shareholders-funded reserves. However, after the covid, the shareholders were handicapped making them impotent to replenish their reserves. Consequently, the reserves dwindled, and the firm was unable to pay the interest due to the corporation’s inability to generate income from the funds, interest and principal accumulated. Naturally, the bank will need the collateral that was pledged.
Who is to blame in this case: the bank, the company’s directors, or the shareholders who disregarded checks and balances to satisfy their personal interest . China is the bank in this scenario, the Sri Lankan government serves as the board of directors, and the Sri Lankan people serve as shareholders. Thus, the Sri Lankan people failed to establish checks and balances on their representatives due to their drugged condition of insecurity, forcing the country or firm into bankruptcy and forcing it to sell its assets to banks and other foreign investors. Furthermore, According to Reuters, China is responsible for just 10.8% of the country’s debt; 47% of the country’s debt is financed by market borrowing, particularly international sovereign bonds (ISB).This capital-market borrowing is unconditional, with interest rates that are quite high and payback periods that are much shorter.
The coronavirus served as the ignition source for the fire. Sri Lanka was heavily reliant on its tourist sector, which accounted for 10% of its GDP. Following the corona, international travel limitations wiped off the industry. To add fuel to this fire, the Sri Lankan government made efforts to promote organic farming by prohibiting the use of chemical fertilisers; this measure, implemented during a period of economic and social distress, had a detrimental effect on domestic food production and limited the export of cash crops, mainly tea. Sri Lanka was the second biggest exporter of tea, and Ceylon tea is often regarded as the most sought-after brand globally. Organic farming practices lowered tea and other cash crop yields, limiting export capacity and revenue. On the other hand, the decline in food output necessitates the importation of food crops, putting further strain on the country’s currency reserves, which are already reduced due to interest payments. Finally, massive tax cuts, a campaign commitment, and a failed effort to revive the economy brought the nation’s economy to a standstill.
Finally, to determine what steps the nation should take to exit the situation. Sri Lanka’s debt must be restructured quickly and a debt management programme implemented. Both with the IMF’s financial and technical assistance and the austerity measures. Due to the IMF’s massive involvement, Sri Lanka has evaded the IMF’s intervention for a lengthy period, including the people and government. However, if the nation is to survive, this intervention is necessary, and it is the best course of action. Additionally, Sri Lanka needs professional engagement from the IMF to turn its debts and new investment into profitable and developmental assets. The International Monetary Fund (IMF) has helped several countries, including India, get back on their feet after a similar predicament. Under the International Monetary Fund (IMF) guidance and support, India launched the 1991 LPG reforms, which resulted in the country’s economic turnaround.
*Haridass Sankar is a professional with M.A. in International Relations, established software engineer and an aspiring political analyst.
Uditha Jayasinghe, 2022,Sri Lanka on the edge as debt burden mounts, Reuters(https://www.reuters.com/markets/rates-bonds/sri-lanka-edge-debt-burden-mounts-2022-01-17/)
(Bloomberg) — Sri Lanka’s cabinet approved a plan to abolish constitutional amendments that gave President Gotabaya Rajapaksa wide-ranging executive powers, acceding to one of the key demands from citizens protesting his economic policies as the ruling family tries to stay in office.
A proposal by Prime Minister Mahinda Rajapaksa — the president’s brother — to return to the 19th amendment of the constitution with necessary changes” has been approved, government spokesman Rohan Welivita said in a statement Monday. He didn’t specify the changes.
The decision follows an announcement from officials of the main opposition party earlier Monday that they have garnered enough support for a no-confidence vote against the government. Demonstrators angry about Asia’s fastest inflation and shortages of food and fuel have been demanding the administration repeal the so-called 20th amendment that amassed extraordinary powers for the president, while also calling for the Rajapaksas to step down.
Sri Lanka Opposition Gets Enough Support for No-Confidence Vote
The political developments come as Sri Lanka races to secure funding from creditors including India, China and the International Monetary Fund. On Monday, Sri Lanka’s blue-chip index sank 12.6%, exceeding the 10% drop that resulted in an all-day suspension as investors fretted over the economic crisis.
The financial departments and institutes of China and Sri Lanka are still working closely on the new financial requests raised by Sri Lanka, in the backdrop of the island nation’s temporary suspension of debt payment and the talks of debt restructuring with IMF, says the Chinese Ambassador to Colombo.
Ambassador Qi Zhenhong stated this during a free and open dialogue with a group of local journalists held today (25), on a wide range of topics including China’s aid to Sri Lanka, financial and economic cooperation to overcome current crisis, people-to-people exchanges.
He stated that China is engaged in all-out efforts including from local governments, social groups, companies, schools etc., to support Sri Lanka to overcome the current difficulties.
Western developed countries, especially those who colonized Sri Lanka in history, should also come and help,” he said.
The Ambassador pointed out that within the past two years, China has extended assistance to Sri Lanka in many forms including 26 million doses of COVID vaccine, numerous PPEs and medical equipment, USD 2.8 billion in financial support as well as creating around 11,000 jobs for Sri Lankans in Chinese projects.
Financial departments and institutes of both China and Sri Lanka are still working closely on the new financial requests – including for loans and buyer’s credit – raised by Sri Lanka, in the backdrop of Sri Lanka’s temporary suspension of debt payment and the talks of debt restructuring with IMF, he said.
Responding to questions from the journalists, Ambassador Zhenhong said the economic crisis and debt burden of Sri Lanka has its historical reason, and could not be solved overnight.
He stated that China is not the only lender and neither is it the biggest lender of Sri Lanka. Most of the Chinese loans are concessional and going to infrastructure and eco-social development,” the envoy emphasized.
He said that among the hundreds of China-Sri Lanka joint projects, most have generated economic or social benefits to Sri Lanka and her people, such as the Katunayake Expressway, the Southern Expressway, the Norochcholai Power Plant, the Colombo International Container Terminals (CICT) and many water projects.
He also said it is unrealistic to have all projects or loans flawless.
The Chinese Ambassador was also questioned about the allegations of China’s debt trap diplomacy.
Debt Trap is only a myth, created and hyped by some foreign media and politicians intentionally,” he said.
He stated that in 2017, Sri Lanka decided to raise dollars by leasing out the Hambantota Port to China and used the cash infusion to pay back due International Sovereign Bonds, but not to Chinese banks.
The Cabinet of Ministers has approved a proposal to introduce the 21st Amendment to the Constitution, based on the positive features of the 19th and 20th amendments.
Meanwhile a sub-committee has been appointed to carry out further action with regard to the proposed 21st constitutional amendment.
Earlier today, the committee report on constitutional reforms had been handed over to President Gotabaya Rajapaksa.
Secretary to the President, Gamini Senarath said the Report of the Committee on Constitutional Reform has been received and that the contents of the Report will be considered in depth by the Government with a view to determining further measures to be taken.
A nine-member experts’ committee headed by President’s Counsel Romesh de Silva was appointed by the Cabinet of Ministers in September 2020 to draft a new constitution.
Meanwhile in a letter sent to the Chief Prelates of the Three Buddhist Chapters, President Rajapaksa had said that he would support the repealing of the 20th Amendment to the Constitution.
He added that if any action is taken in Parliament in this regard and that such an amendment should be made jointly by the President and the Parliament.
President Gotabaya Rajapaksa has replied to the letter sent by the Chief Prelates of the Three Buddhist Chapters dated on 20.04.2022 addressing the President, the Prime Minister, the Leader of the Opposition and all party leaders in Parliament regarding the current situation in the country.
The President’s Media Division has released excerpts of the letter to the media today (25).
The President acknowledged that he has by no means ignored the contents of the set of proposals which the Venerable Theras had previously sent to him.
He said they have already taken a number of immediate steps to address the economic crisis in the country, as the Theras have pointed out.
I am aware of the dire living conditions the people are facing,” President Rajapaksa said, while also informing that he is working with the Cabinet with expert assistance, based on daily statistics and data.
Excerpts;
Most Venerable Mahanayake Theras,
This is with regard to the set of proposals put forwarded by the Most Ven. Mahanayake Theras of the Three Chapters to immediately resolve the current social, economic and political crises in the country.
This is in connection with the letter sent by the Venerable Theras to myself, the Prime Minister, the Leader of the Opposition and all Leaders of political parties representing the Parliament, and dated on 20.04.2022 to resolve the current social, economic and political crises in the country.
Foremost, I respectfully and kindly acknowledge that I have by no means ignored the contents of the set of proposals which the Venerable Theras have previously sent to me on the 4th of April, 2022.
We have already taken a number of immediate steps to address the economic crisis in the country, as the Theras have pointed out. I am aware of the dire living conditions the people are facing. I beg to inform you that I am working with the Cabinet with expert assistance, based on daily statistics and data.
Accordingly, plans for the supply of essential food, medicine, LP gas and various types of fuel to the public are already being implemented under close supervision.
Accordingly, the new Finance Minister, the new Central Bank Governor and the new Secretary to the Treasury, under the guidance of the international financial experts appointed by me, are already taking the necessary steps in consultation with the relevant international financial institutions and friendly countries.
As a result, the International Monetary Fund and the Government of India have already responded positively, and I firmly believe that a temporary solution to the current economic crisis can be achieved within the next few weeks until a lasting solution is found to the current economic crisis.
As soon as I became the President, a committee of legal experts was appointed to draft a new Constitution. The members of the committee are:
President’s Counsel Romesh De Silva – Chairman
Retired Professor G.H. Peiris
Judge A. W. A. Salam
President’s Counsel Manohara De Silva
President’s Counsel Sanjeewa Jayawardena
President’s Counsel Samantha Ratwatte
Professor A. Sarveswaran
Professor W. Seneviratne
President’s Counsel Navin Marapana
Mrs. Kaushalya Molligoda – Secretary
The committee has been holding lengthy consultations with various political parties, various groups and experts over a period of about two years and is preparing a draft for a new Constitution. The Committee has also informed me that the draft is being finalized. I respectfully inform you that the draft prepared in this manner will be submitted to the Cabinet of Ministers as soon as it is received and then will be presented to Parliament upon approval. I would also like to inform you that a copy of that draft will be sent to you Venerable Theras as well.
As the President of the country, I am committed to stabilizing democracy in the country. I would like to mention that I would support the repealing of the 20th Amendment to the Constitution, which you have mentioned, if any action is taken in Parliament in this regard and would like to kindly remind you that such an amendment should be made jointly by the President and Parliament.
It is also regrettable that so far there has been no positive response to the invitation extended to all political parties seeking their contribution to the All-Party Conference to find lasting solution to the present situation in the country, and to the sincere request for assistance in liberating the country from its current position by accepting Ministerial portfolios. Nevertheless, I would like to inform you that my invitation remains the same for all political parties.
No matter what we do, all processes must be constitutional and the aspirations of the people must be realized within the current constitution. Therefore, I stress that neither I nor our Government will at any time disregard your proposals or the aspirations of the people.
Without a Cabinet, the administration of a country cannot be function. Also, the absence of a cabinet is not practical. Accordingly, I had to appoint a Cabinet of Ministers consisting of a majority of young Members, with the assistance of Senior Ministers. I respectfully note that these appointments were made for a short period of time to find a quick solution to the burning issues of the people.
During the two and a half years of my tenure so far, I would like to recall that our Government has not used batons or tear gas or done any act to suppress such protests in general at any of the protests, demonstrations, roadblocks which disrupt public life, etc. organized by various political parties as well as various ethnic groups, university students and social activists. I respectfully remind you that no protest or demonstration in front of my office was repressed by the police or armed forces.
I am deeply saddened by the incident that took place during the public protest on 19.04.2022 and has instructed several teams to conduct a formal inquiry into it. I hope to inform you the results of the inquiry as soon as those investigations are completed.
As you have said, all governments that have ruled the country are responsible for the current economic crisis, and we urge you to give us some time to reap the benefits of a formal approach to provide temporary and sustainable solutions for the prevailing issues. I respectfully look forward to your advice and guidance in the future as well.
I respectfully recall that if you propose to take a certain arrangement to overcome the current political crisis with the assistance of all political parties as well as to provide solutions for the current economic crisis, I will extend my fullest support in this regard.
Yours sincerely,
Sasanasthithikami, Gotabaya Rajapaksa April, 21, 2022”
In Cherry Blossom lined Washington DC in the glare of global media last week Sri Lanka became the poster child of the International Monetary Fund’s (IMF), Spring Meetings. The strategic Indian Ocean island’s pathetic plight featured on major media and television channels that craft the global narrative, with images of people in queues amid food, fuel, and medicine shortages due to its crashing currency, soaring cost of living and ‘Arab Spring’ style protests.
One of the wealthier nations in the South Asia region and listed as a lower Middle Income County (MIC), Sri Lanka with a population of 22 billion people had just defaulted on her debt payments– for the first time in the country’s history. Global media imaging of the scenic island nation’s financial crisis served to affirm the relevance of the Washington Consensus and the Fund albeit as the lender of last resorts.
The timing of the Sri Lanka rupee’s crash against the exorbitantly privileged” US dollar was as miraculous as the Easter Sunday hybrid war attacks in the tourism-dependent island that targeted Chinese-owned Shangri La and other luxury hotels, which were mysteriously claimed by Islamic State (ISIS) in 2019.
Meanwhile, Oxfam released the Inequality Kills” Report and called on the IMF to abandon demands for austerity as a cost-of-living crisis drives up hunger and poverty worldwide”. Its spokesperson noted that 87 percent of the International Monetary Fund’s (IMF) COVID-19 loans require developing countries facing some of the world’s worst humanitarian crises to adopt tough, new austerity measures that will further exacerbate poverty and inequality.
The organization noted that the wealth of the world’s 10 richest men doubled since the pandemic began while the incomes of 99% of humanity are worse off because of COVID-19”. 263 million people could be pushed into extreme poverty in 2022, due to the combined impact of COVID-19, inequality and food and energy price inflation – accelerated by the war in Ukraine.”
Sri Lanka’s total debt is USD 51 billion and the country must pay USD 7 billion this year to International Sovereign Bond (ISB) traders based in New York as noted by Senior Economist and Head of the Institute for Policy Studies (IPS), Dr. Dushni Weerakoon.
For a comparative perspective, Elon Musk offered to buy Twitter for USD 43 billion, in the same week! The greatest transfer of wealth in human history transpired over the past two years while much of the world was in Covid-19 lockdowns and global trade disrupted, also resulting in speculation in commodities futures, which were partly responsible for the spike in global food and fuel prices as noted by Economist Jayati Ghosh. Is the exorbitantly privileged Greenback weaponized against sanctions hit Russia being used on other strategic ‘emerging economies’ as a hybrid Cold War envelops the world? Should the US dollar and its supporting financial architecture be dumped?
Staged Dollar Shortage, down-grades and Arab Spring Protests
Back on Colombo’s Galle Face seafront, Arab Spring Playbook-style protests by youth enjoying their freedom after 2 years of Covid lockdowns unfolded as part of the push to propel the Colombo regime’s pivot to Washington DC.
Usually anti-government protests happen at the iconic Independence Square, but the current protests were staged close to South Asia’s busiest sea port – the Colombo Harbour and notably near the Chinese built Colombo Port city.
While the protestors, anonymously organized via Social Media, called on the Sri Lankan President Gotabaya Rajapakse to go home they did Not say Gota Go Home to AMERICA”. The President after all was a US citizen until 2019. Nor was Debt Cancellation or a debt jubilee on the agenda of the Protestors, some of whom held posters calling on the government to go to the IMF in the hope of better financial management. The IMF had been painted as a savior by various economists and local think tanks as the drum beat to default intensified!
But the Protestors had other creative solutions to the island’s crisis of corruption and economic miss-management: A Buy Local Products Campaign’ to encourage citizens to support local manufacture and industry and stop consuming expensive imported luxury goods, for instance.
Some suggested a permanent halt of the practice of providing Duty Free car permits to politicians, doctors, university lecturers and the privileged ‘professional’ class, as well as abolishing various special health Insurance schemes.
Other protestors wanted to reverse the privatization of the national Health care and Education system and the sale of Yugadhanavi power plant to a dubious American company called New Fortress. The latter had compromised Sri Lanka’s Energy Security.
Several protestors suggested marching to the US embassy and call on the US Government to return all the assets of the dual US citizen and Minister for Economic Disaster, Basil Rajapakese in Los Angeles to pay down the National Debt. Others called for accountability for those responsible for the Central Bank Bond Scams. Long term suggestions to grow the economy and develop the country were setting up Research and Development working groups on Energy Security, Ocean and Mineral resources.
Some academics supporting the protests suggested Debt Cancellation and cited the Debt Jubilee project that had earlier called on the IMF and World Bank to offer an immediate cancellation of all principal, interest and charges due to the deadly economic toll of the World Health Organization ‘s (WHO) Covid-19 lockdowns in poor countries.
The Jubilee project had also recommended that the G20 support moves by any country to stop making payments on debt to private external lenders and that new IMF and World Bank finance should be in the form of grants not loans, and require other lenders to reprofile the debt where sustainability is uncertain, or restructure their debt where it is unsustainable,[1] to help ensure money is used to support public policy priorities in response to the COVID-19 crisis, rather than to repay other lenders.
Sovereign Bond Debt Trap
Like Lebanon, once known as the Paris of the Middle east, Sri Lanka is a relatively wealthy country in South Asia and listed as a lower Middle Income Country (MIC). The strategic island is ahead of India, Pakistan, Bangladesh, Nepal and Afghanistan on the SAARC regional poverty count.
The country has always paid down its debt and had no previous history of default. Likewise, its debt to GDP ratio, another metric to determine the solvency of a county, at 110 percent was not off the map although this is cited as one of the reasons for rating agency downgrades, leading to difficulty borrowing to sustain debt servicing and default. But this too may be kept in perspective. The top ten countries with the highest debt to GDP ratio according to the World population review are: [i]
While China has often been identified as the source of Sri Lanka’s Debt trap it is Euro-American based International Sovereign Bond (ISB) traders, whose names are kept secret that are mainly responsible for the default at this time.
The above map’s colour coding may be miss-leading since it is the green coded International Sovereign Bonds (ISB)s and Other Financial Markets that are the cause of Sri Lanka’s debt default at this time.
While the names and proportions of the national debt owned by various bi-lateral donors and multi-lateral agencies, such as the ADB, World Bank, Japan, China, each with around 10 percent and India around 4 percent, were known, the names of the US and EU based ISBs that own over 55 percent of the island’s debt and which are part of the shadowy international financial system where black money is parked in off shore accounts, which are primarily responsible for the ‘debt trap’ and down grades are never disclosed.
In the final analysis such downgrades are based on Subjective considerations of CONFIDENCE” as stated by Dr. Nishan De Mel in the ability of the county to sustain debt repayments by Rating Agencies and the IMF. When the IMF determines that a country’s debt is not sustainable, the country needs to take steps to restore debt sustainability prior to IMF lending” the Fund’s country director Masahiro Nozaki said recently in a statement regarding Sri Lanka. The IMF does not differentiate between illiquidity and insolvency!
From a longer and wider perspective, the question arises: was Sri Lanka pumped and dumped” by the Washington Consensus which up-graded it to a lower Middle Income Country (MIC), thus making it ineligible for low interest development aid which compelled borrowing on Capital markets– like other countries that are placed in the ‘Middle Income Country Trap?
Rating Agencies and Sovereign Bond traders work in concert with the Washington Consensus and the OECD Paris Club of Western aid donors, and do not recognize the difference between illiquidity and insolvency. It is increasingly evident that the island’s debt crisis has many external dimensions and is not entirely internally driven.
Arguably, under most metrics Sri Lanka should not have been down-graded to the point of default by Rating Agencies like Moodys and Fitch at this time. The downgrades were principally due to the USD 7 billion payments due to US-based Bond traders like Goldman Saks, Black Rock and Vanguard.
Asset managers BlackRock Inc. and Ashmore Group Plc. are said to be among the creditors organizing in a group ahead of the talks, and have hired law firm White & Case for advice. Ayres Investment Management LLP, DecisionBoundaries LLC and Perella Weinberg LP are among firms seeking to provide financial advice to Sri Lanka’s creditors, sources said, as the country heads towards a revamp of its $12 billion of external debt. Recent filings show major asset managers such as Fidelity, T Rowe Price and TIAA also hold some of the country’s outstanding dollar bonds.
Disregarding the difference between illiquidity and insolvency, the drum beat and narrative of and for Sri Lanka’s Default was in the air for some time- at least since the rejections of the Millennium Challenge Corporation (MCC) compact: As Professor Howard Nicholas, of the Institute of Social Studies (ISS) recently suggested in a lecture organized by the Economic Students Association of the University of Colombo, alluding to Geopolitics and the recent visit by US Secretary for South and Southeast Asia, Victoria Nuland to Colombo, the island’s Default seemed to followed a systematic, deliberate and planned route to deliver Sri Lanka into IMF’s and Washington’s clutches.
Default would effectively enable the IMF’s and foreign ‘legal advisors’ to effectively takeover this strategic island nation’s economic policy process, and Sri Lanka would lose Economic and Social Policy Autonomy and Sovereignty. Simultaneously, the IMF’s aid conditionalities would enable Washington to stave off a perceived China Threat and likely make it impossible for Sri Lanka to source its oil, gas and other Energy requirements which are at the root of the current crisis at discount rates from sanctions-hit Russia. Has, Sri Lanka become, like Ukraine, a theater of US proxy war this time in the Indian Ocean Region as the New Cold War escalates?
However, from a different perspective, this island at the center of Indian Ocean Sea Lanes of Communication (SLOC), seems to suffer from a Paradox of Plenty’ or perhaps a geostrategic ‘Resource Curse”.
An Unsinkable Aircraft carrier? Asset stripping a strategic island
Former US Under Secretary for South and Central Asia, Alice G. Well, a few years ago called Sri Lanka a valuable piece of real estate’ in the Indian Ocean, and the country not long ago turned down a Millennium Challenge Corporation (MCC) Compact and a Status of Forces Agreement (SOFA).
Others have termed Sri Lanka an unsinkable aircraft carrier” in the Indian Ocean – more strategic than the Chagos Islands whose citizens were forcibly evicted by US marines in the early sixties in order to set up the Diego Garcia military base and CIA Black site, which was recently Green washed by the occupying British Government as a Marine Protected Areas (MPA). In February 2019 the International Court of Justice in the Hague had ruled that the British and hence US occupation of Chagos Islands is illegal under international law as the Island belongs to the government and people of Mauritius.
In the context, it is noteworthy that the Sri Lanka Business Times of April 17, 2022 announced that the Government heading into IMF negotiations is hoping to raise US$8 billion from the lease or sale of valuable public assets to bolster its rapidly dwindling foreign reserves, based on a report of a newly-appointed economic advisory committee.
Among the main items for sale or long lease were the Katunayake International Airport for $2 billion, Mattala Airport for $300 million and Ratmalana Airport for $400 million. The Colombo North Port Development Project was to be handed over for an investment of $600 million while Colombo Port City lands would be leased out at a total of $4 billion.
Shares of Sri Lanka Telecom will be sold at a price of $500 million and Sri Lanka Insurance Corporation shares for $300 million. The strategic island’s telecom frequencies important for cyber-security, 5G technology had been previously targeted, like the island’s land, transport and energy sectors, by the MCC.
Divestment of non-strategic state-owned assets, such as lands owned by Sri Lanka Railways and Sri Lankan Airlines has been suggested as a part of the government’s multi-pronged plan in the short-term to improve their operational and financial efficiency while increasing the country’s reserves position.
There is a difference between illiquidity and insolvency that has been ignored in the rush to monetize strategic transport, energy, land and cyber security assets in this island at the center of the Indian Ocean SLOC. Moreover, divesting strategic assets because of cultivated corruption in the targeted public institutions is tantamount to throwing the baby out with the bathwater!
Questions arise as to who made the above valuations of Sri Lanka’s strategic assets? When and on What basis? In the context of the island being deemed ‘valuable real estate in the Indian Ocean SLOC with extensive ocean and mineral resources, including Rare Earth Elements the island may actually suffer from a geostrategic resource curse, that made it a donor darling in the past and the subject of various Colonization projects in the name of ‘Development Aid’.
Selling off strategic assets of the island that had been previously ear-marked by MCC seems to be a pre-condition for the ‘lender of last resorts!” It is increasingly evident that the island’s debt crisis has many external dimensions and is not entirely internally driven. The strategic island has long been in the cross-hairs of big power rivalry.
Geopolitics of Sri Lanka’s permanent crisis: A Staged Default and the Dollar Weaponized:
The IMF was gracious in Washington and commended Sri Lanka’s brand new Finance Minister, Ali Sabry, who was previously Minister for Lawfare, for his dash to Washington for a bailout” and for the steps it has taken to stabilize the economy. Sri Lanka was urged to apply for Rapid Financing Instrument (RFI) having delayed debt restructuring for two years. Meanwhile, Indian Finance Minister Nirmala Sitharaman who was also in DC for the Spring Meetings, made representations on behalf of her dear debt-trapped southern neighbor. India is a US Quadrilateral Group (QUAD), partner in America’s confrontation with China in the Free and Open Indo Pacific”.
The country was advised to find financial and legal advisers in 15 to 20 days to chart the restructuring and payments of debts: That’s accompanied by fiscal reforms and other points, to meet the requirements of traditional multilateral lenders like the IMF and WB. Sri Lanka needs $4 billion this year to help ease shortages of food, fuel and medicines as its foreign reserves dry up and it heads for a default.
Notably, absent at the IMF meetings was the President’s brother, dual US citizenand ex-Minister of Economic Disaster who had staged and led Sri Lanka’s Default into Washington’s arms.
Back in 2020 during Covid-19 lockdowns the law of the land was changed to enable Basil Rajapakse, s high-school dropout, known as Mr. 10 percent for seeking commissions and corrupt deals, to enter parliament and head the Covid-19 Task Force that directed 2 years of militarized Covid Lockdowns and excessive purchases of Pfizer injections. Basil was supposed to lead the GoSL delegation to the IMF, but had become a liability as questions are asked about the external actors behind Sri Lanka’s STAGED DEFALUT>
Questions had been raised about foreign interests and hands behind Sri Lanka’s crisis following Pakistan Prime Ministers allegation of regime change operations in his country: Was the long-planned and anticipated plunge of the Sri Lankan rupee against the ‘exorbitantly privileged’ US dollar that came to pass just in time for the IMF’s Spring meetings partly to preempt a rescue from China which has invested heavily in Sri Lanka?
In the final analysis, questions arise if Sri Lanka, ruled by a hybrid Rajapakse family comprise of dual American citizens being targeted for hybrid economic warfare? With the USD increasingly weaponized also against sanction-hit Russia and other emerging economies this is not just a theoretical question. Is the debt crisis staged by local and global networks of financial corruption at play in this strategic island in order to deliver Sri Lanka on a platter to Washington and its Consensus? After all we live in a post-Covid 19 world where conspiracy theories increasingly seem to come true.
There are many who claim that the only solution to Sri Lanka’s economic problem is to privatize public assets. These are promoted by western monetary bodies & local corporates take advantage of the corruptions that exist in the bureaucracy. In essence, what needs to be accepted is that it is not only the politicians who are corrupt but the Secretaries, the corporate bigwigs in Sri Lanka as well as the foreign investors. Privatization of Lanka Marine Service to JKH.
Minister of Economic Reform, Science & Technology – Milinda Moragoda
Secretary to Economic Reform Ministry – P B Jayasundera
Finance Minister – K N Choksy
Minister of Justice Constitutional Affairs – G L Pieris
UNP ruled from 2001 to 2004
UNP promoted neo-liberal economic policy & as such privatizing state-owned enterprises was a fiscal condition imposed upon UNP by World Bank/ADB and IMF.
The Supreme Court of Sri Lanka reversed both share sales & denounced the corruptions that took place.
On 21 July 2008 – the Supreme Court of Sri Lanka reversed the privatization of Lanka Marine Services which was a wholly-owned subsidiary of the Ceylon Petroleum Corporation.
On 4th June 2009, the Supreme Court of Sri Lanka reversed the privatization of the Sri Lanka Insurance Company (SLIC) after determining that the company’s sale had been improperly concluded.
Lanka Marine Services privatized to JKH
In August 2002, Ranil-led UNP through the Treasury & PERC (under Moragoda) sold a majority stake in Lanka Marine Services (subsidiary of Ceylon Petroleum Corporation)
Supreme Court on LMS Privatization
The Supreme Court decisions showed how corruption & fraud favored private interests vis a vis sale of state owned enterprises (a policy promoted by IMF/WB and ADB)
The fraudulent privatization that benefitted JKH was reversed by the SC. The SC reversed 2 major privatization transactions effected in 2002 by former Minister of Economic Reform- Milinda Moragoda, Science & Technology. PERC was under Moragoda.
The SC claimed the privatization subverted public interest in both judgements. This sale also highlighted corrupt senior public officers. The Courts jurisdiction could not charge the Minister or his deputy P B Jayasundera. Both Moragoda & PBJ were alleged to have fraudulently divested the State of its revenue producing assets. PBJ resigned in September 2008 after the 1st SC decision that implicated him in financial misconduct.
People demand resignation of Moragoda
The People demanded Moragoda’s resignation as Minister & demand for investigation was filed with the IGP and the CID only with AG’s approval. The Ranil Wickremasinghe government however made Moragoda the Minister of Justice & Judicial Reforms under whom the AG was governed.
The judges described the LMS transaction as done without lawful authority” to benefit a private holding company (JKH)
Supreme Court on P B Jayasundera
The Court found P B Jayasundera (Chairman Public Enterprise Reform Commission) who reported to Minister Moragoda had worked in collusion with the buy John Keells Holdings to secure illegal advantage for JKH.
JKH is a UN Global Company Company, publicly & rhetorically committed to combating corruption (Nihal S. Amarasekera)
After artificially undervaluing LMS, a clause was granted giving JKH monopoly on the services it was to provide. After the sale, the then President awarded LMS a substantial property in land for which JKH did not compensate the government. LMS was also awarded tax-free status which it was ineligible.
PERC was established in 1996 to promote a reform agenda in the public sector. The Court held that the objectives of PERC should be to benefit the people of Sri Lanka & provide financial support to the public sector.
LMS as a subsidiary of CPC was providing marine fuel to ships in Colombo Port or offshore (bunkering) which offered foreign exchange revenue. LMS operated 12 tanks & a network of interconnecting pipes linked to shipping berths & a jetty in the port (Common User Facility)
PBJ is accused of granting a private company holding majority shares in LMS monopoly on limited bunkering services through existing CUF. PBJ amended the CUF Agreement at the behest of JKH. Moragoda & Jayasundera allowed JKH to monopolize supply of bunkers post-privatization in violation of the stated intentions given by the Cabinet. (Nihal Sri Amarasekera) The Cabinet Memorandum declared that approval was given to increase volume of bunkering & increase the foreign exchange revenue to the State, however what happened was the transforming of a public monopoly into a private one resulting in complete loss of tax revenue due to a fraudulent exemption.
PBJ did not use Government’s Chief Valuer but a private bank to value LMS public enterprise. When banks auditors informed about LMSL monopoly on the bunkering services LMSL was revalued & its worth was double to what was earlier submitted.
PBJ had then Treasury Secretary appoint a Technical Evaluation Committee to assess the viability of the incoming bids. JKH was chosen as winning bidder. JKH then fraudulently applies to the BOI for tax-exemption which was granted (Nihal Sri Amarasekera).
The Supreme Court held this as a ‘tailor made’ special gazette notification by Minister G L Pieiris former Minister of Justice for Constitutional Affairs.
Role of K N Choksy / WB / IMF
K N Choksy, President’s Counsel & former Minister of Finance had also been Governor of the World Bank & IMF for Sri Lanka in 2003.
K N Choksy was appointed Finance Minister in 2001 despite his role in the Hilton Hotel Colombo’ case which caused the treasury enormous financial losses & deemed fraudulent by a Special Presidential Commission.
Faiz Mohideen former Deputy Secretary to the Treasury had been the Alternate Governor of the IMF & World Bank for Sri Lanka in 2000 & was counterpart for Sri Lanka on the World Bank’s Economic Reform & Technical Assistance Project which set out the privatization goals in 2002.
Who else are pro-IMF/WB in the Central Bank of Sri Lanka presently?
How were these privatizations done?
· By first artificially undervaluing these public assets which lost the govt tax-paying revenue but transferred public wealth to private hands.
· The privatization was justified by promoting notion that only privatizing Sri Lanka could promote efficiency & economic growth
In SC (FR) Application No. 158/2007 Justice N.G. Amaratunga, with then Chief Justice Sarath N. Silva and Justice K. Sripavan agreeing, reiterated as follows:
The ruler’s trusteeship of the resources of the State which belong to the people is a part of the legal heritage of Sri Lanka dating back at least to the third century BC as pointed out by Justice Weeramantry in his separate opinion in the International Court of Justice in the Danube Case,by quoting the sermon of Arahath Mahinda to King Devanampiya Tissa as recorded in the Great Chronicle – Mahawansa. (See Bulankulama case – 2000 (3) SLR 243 at 254-255.) This concept of the public trust which curtailed the absolute power of the monarch is in perfect harmony with the doctrine of public trust developed by the Supreme Court on the basis of the sovereignty of the people set out in Articles 3 and 4 of the Constitution, Article 12(1) and the principle of the Rule of Law, which is the basis of our Constitution. The Rule of Law is the principle which keeps all organs of the State within the limits of the law and the public trust doctrine operates as a check to ensure that the powers delegated to the organs of the government are held in trust and properly exercised to the benefit of the people and not to their detriment. When the Executive which is the custodian of the People’s Executive Power “act ultra vires and in derogation of the law and procedures that are intended to safeguard the resources of the State, it is in the public interest to implead such action before Court.”
How can corporates accuse politicians of corruption, when they themselves have engaged in underhand transactions. How can we trust the public sector, when senior officials are not acting straight.
How do we deal with such a scenario of corruption embedded into society.
It is sad that even today when we have to live with power cuts, we yet do not realize the wind power that Mother Nature has provided for us. We have been toying with the sea breeze in Hambantota and Mannar, merely a plan by our Coal and Oil Lobby to prove that wind power will not turn the wind turbines- they plan and fix wind turbines where the wind has the least force- only a sea breeze!
I enclose a quote from ee.com which comments on my Paper: Buying Power from Multinationals.
It is hoped that the tears and tribulations that our people today suffer from the lack of electricty will urge out leaders to think twice about producing electricty from the wind that abounds in our hills. Full details of how wind power is the real solution to our power requirements is proved in my book: Wind Power for Sri Lanka’s Energy Requirements, Godages, 2019.
Garvin Karunaratne recalls his experience of 18 years working in stations like Hambantota as well as in the hilly Districts of Kandy and Nuwara Eliya. He chides the authorities for erecting wind turbines on the coast. He believes that the authorities seem to be working to prove that wind turbines are not suitable for Sri Lanka.
Karunaratne then mentions his vast travel experience and states that the US, Spain Portugal and many more countries have put up wind turbines never at their coastal areas but in their hills. Further he highlights authorities that have noted the vast resources of wind power in Sri Lanka. He urges Sri Lanka to use its wind resources and he actually has requested the State Engineering Corporation engineers who did make long concrete poles to hold the canopy for the Avukana Buddha statue to be enlisted to make the wind turbines. He emphasizes that Sri Lanka can become self sufficient in all its power requirements if only a few hundred wind turbines are constructed and he states that this can be done within a year.
Karunaratne speaks with the broad experience of having worked designing and establishing the Youth Self Employment Programme of Bangladesh in two years, a programme that has created employment for millions of youths, something which even the ILO had failed earlier. He urges and provides many facts showing that wind power holds the magical solution for Sri Lanka.
It is an axiom that the three organs or pillars of any government are the executive, legislature, and the judiciary. For effective governance in a country all three organs must stand firm and support each other. In Sri Lanka the two organs of the executive and the legislature are in an existential crisis. It is not understood how the other organ has not shown any interest in this unprecedented crisis and the estrangement of the Executive and the legislature with the people.
In our neighbor India, the Indian Judiciary has developed a jurisprudence of the accountability of the state for constitutional and legal violations adversely affecting the interest of the public. Indian courts have used Fundamental Rights and Directive Principles of State Policy in the Indian Constitution to provide a framework for regulating relations between the state and its citizens. Under this framework Indian Courts have given decisions in cases pertaining to different kinds of entitlements and protections such as the availability of food, access to clean air, safe working conditions, political representation, affirmative action, anti-discrimination measures. In India, Courts have intervened when a power vacuum is created in the governance system due to the inaction and incompetence of any one organ of the government, which may cause disaster to the democratic set up of the country.
It is very relevant to the current crisis in Sri Lanka, that Indian Courts recognize the right of the people to live with human dignity and all that goes along with it,” including”the right to the basic necessities of life and also the right to carry on such functions and activities as constitute the bare minimum expression of the human self.”
Even in Sri Lanka when the State has acted against the good of the country our Courts have intervened to rectify the errors committed by the State as in the cases of the Eppawala Phosphate mining, case, Waters Edge, privatization of Sri Lanka Insurance Corporation, Lanka Marine Service. The most important was the de-merging of North and East Provincial Councils.
So far the Parliament has not been able to seek a workable and an acceptable solution. At the same time the mayhem of demonstrations against the government continues. This will seriously affect the economy and particularly tourism.
It is the fervent hope of responsible citizens that the Supreme Court will suo motu intervene to settles this crisis before it ends up in a blood bath.
