Sri Lankan Minister of Ports, Shipping and Aviation Nimal Siripala de Silva has said the government will spend around USD132 million on port development projects.
These investments would be made through revenue generated from port operations, the minister said on Saturday night.
Speaking at an event in Colombo, the minister said the government has allocated over USD100 million for the Eastern Container Terminal and USD32 million for the Jaya Container Terminal.
Both terminals are fully owned subsidiaries of the state-owned Sri Lanka Ports Authority.
He added that apart from the above investments, they expect to develop the Trincomalee harbour for bulk cargo operations and the Galle harbour for tourism industry with a yacht service and facilitate the anchoring of large ships.
Sri Lanka expects to become a logistics and transport hub in the Indian Ocean.
From time to time Sri Lankan Ministers in charge of Agriculture and Livestock Development and their officials attempted to improve the breed of cattle by means of imported animals. A few decades ago, it was alleged that a stock of cattle imported from a foreign country was infected with various types of worm diseases deliberately done to ruin the country’s fledgling dairy industry. Milch cows imported and distributed among dairy farmers during Yahapalana regime brought utter disaster to dairy farmers who bought these cows. The then State Minister, now a stalwart of SJB in the NCP and his officials went scot-free from this scandal.
In the early 1860s the colonial government imported two bulls from India to improve the breed of cattle and the beasts were sent to Central Province. One died; the other could not induce to serve the purpose for which it was imported, according to the Administrative Report of the Government Agent of Central Province H. S.O. Russell. It should be noted that at that time the Central Province consisted of Kandy, Matale, Nuwara Eliya and Badulla districts.
Instead of making a self-assessment of their experiment” Russell blames the Kandyans. The Kandyans are entirely ignorant of any method of rearing cattle and they show no desire to improve the breed of their beasts.” This colonial administrator was ignorant of Sri Lanka’s ancient methods of curing cattle diseases and the vast number of ola books on cattle diseases available transferring that knowledge to future generations and that there was a veterinarian in every village.
He sees the traditional ways the Kandyans kept cattle as a drawback in cattle rearing in the country. From time immemorial the animals have roamed at will over the Patanas and through the forests of the country and as the strongest male drove weakly rivals from the herd breeding took place of the principle of natural selection”.
True, traditional pasturelands were Patanas and forests as Sri Lanka did not have vast grasslands as in the temperate zones.
Even now villagers in Laggala-Pallegama at the end of the ploughing season drive their herds of buffaloes into the mountains of Kalupahana and erect blockades. Pasturing in the cooler climes inside the jungles they become fat, well-nourished and healthy free of any diseases. Scenting the aroma of ripening rice, they dash back to the villages breaking the blockades. Then only mating begins. The main pastureland Pitawala Patana was abandoned due to the influx of local” tourists, lovers and boozers, after the invasion” of foreign-funded environmentalists and ecologists!
Russell cannot hide the devastation done by the Waste Lands Ordinance” and the subsequent land grab by the British speculators. He adds: I think the yearly more restricted area of their pasture grounds is the principal cause of degeneration in the Kandyan cattle of the present day, inasmuch as it is no longer possible for the beasts to live in herds. Moreover, the forests protected them from the heat of the sun and from the inclemency of the weather and always afforded them a plentiful supply of food and water. The case is very different with the animals which nowadays skulk over bleak Patanas or along the high road in search of such scanty nourishment as may be found there. It is certain that both jungle buffaloes and black cattle which have been allowed to relapse into a wild state are fine and healthy as compared with the domesticated beasts. I have little doubt that in the former times and under more favourable conditions of existence, the cattle of the Kandyan yeomanry and peasants were equally well conditioned”.
Here Russell contradicts himself. But he was very immoral enough to hide the root cause, the expropriation of land owned by the Kandyan peasantry by the colonialists depriving not only their chena lands, but also their traditional pasturelands.
At the same time, Russell loses sight to ignore a lot of emaciated local tavalam cattle used to transport coffee from the plantations up to the nearby cart roads, descending and ascending rugged, precipitous mountain paths, sometimes trekking more than 30-40 miles carrying a heavy load of 40-60 pounds of coffee. An example from my own area Dumbara was the Laggala tavalam road, starting from Kabaragala Gap the highest point on the Kelebokka cart road passing over Hulankanda wind gap winding and zigzagging down a precipice to Kalupahana group of estates and thence to Nitre Cave estates in Meemure. Once I trekked this path from the abandoned Brae Group tea estate to Kabaragala crawling in all fours.
The other devastation caused to cattle owned by the Kandyan villagers was impounding and shooting of cattle when they trespassed on coffee plantations. Russell admits this as he had received many complaints while he was on the circuit. Here Russell discloses something which did not receive the attention of our economic historians if there were such a breed. Tamil coolies drew cattle into the estates and tied them up and either extorted a large fine for the release of the impounded animals or slaughtered them for their flesh. This happened because the cattle were deprived of their traditional pasturelands as they were auctioned and sold for coffee cultivation.
This is a case of foreign indentured labour riding roughshod over the traditional inhabitants of the soil. No doubt, a law-abiding timid lot like them may have done that at the instigation of their masters and kanganis.
The new Grain Tax imposed by the colonial government in 1876 brought misery and caused loss of land, pauperisation, starvation, famine, abandonment of traditional homesteads and death. With the depletion of the bovine population in the villages, the first to be sold, the peasants had to sell ploughs and other agricultural implements and household goods to pay the obnoxious tax and arrears. The writer vividly portrayed the misery of Kandyan peasantry as a consequence of Grain Tax in his award-winning novel titled Madaran” (2020).
ඕස්ට්රේලියාවේ වසන මයිකල් රොබට්ස් විසින් ලංකාවෙබ් වෙබ් අඩවියට එවූ ලිපියක P ගේ විනාශය ගැන අළුත් යයි සිතන ආචාර්ය උපාධි මතයක් සඳහන් කර ඇත. ඒ අනුව P පැරදුනේ යුද හමුදාවේ බල පරාක්රමය නිසා නොව P ගේ ගොන්කම නිසාය. මෙවැනි බටහිර අය ලංකාවේ රණවිරුවන්ට නිසි අගයක් දීමට අකමැතිය (THE SRI LANKAN INSURGENCY: A REBALANCING OF THE ORTHODOX POSITION A thesis submitted for the degree of Doctor of Philosophy by Peter Stafford Roberts Department of Politics and History, Brunel University April 2016).
To secure the bailout, the government is having to pursue economic reforms and tighten purse strings when inflation and recession are already making lives difficultYet reforms are necessary to restore – and restore confidence in – the economy in the long term.
Sri Lanka remains in the throes of an economic crisis, but there are signs of a silver lining and a possibility the island-state may have put the worst behind it. Its Paris Club creditors have finally provided the financing assurances that bring Sri Lanka one step closer to obtaining funding approval from the executive board of the International Monetary Fund for a US$2.9 billion bailout.
This comes after India also provided financing assurances to the IMF last month, while the Export-Import Bank of China offered a 24-month moratorium on Sri Lanka’s debt and pledged to provide the Sri Lankan government with the support it needs to secure the bailout.
The situation seems a far cry from last April, when Sri Lanka defaulted on its foreign debt for the first time. What followed was uncertainty, as thousands took to the streets in political protests that resulted in a democratic and governance crisis. Through the protests, the scale of the mismanagement of state resources and questionable economic policymaking were laid bare.
Since then, Sri Lanka’s new government – led by President Ranil Wickremesinghe – has worked tirelessly to bring the country back from the precipice. It looks like it is succeeding.
Following the Sri Lankan government’s decision to suspend foreign debt payments, efforts have intensified to put in place a debt sustainability programme to support the economy. At the time of the default, the country’s debt was estimated to stand at US$101 billion.
Last September, Sri Lanka secured an IMF agreement for a four-year programme of financial help amounting to US$2.9 billion. The programme seeks to restore macroeconomic stability and debt sustainability in the country, and to implement structural reforms that will hopefully help unlock growth.
Members of state trade unions at a protest against new taxes in Colombo, Sri Lanka, on February 8. Photo: EPA-EFE
Funding from the IMF is contingent on actions and financing assurances from bilateral creditors, and in recent weeks there have been breakthroughs on that front.
President Wickremesinghe called 2023 a critical year” for Sri Lanka’s economy. He couldn’t have put it any better.
Restoring macroeconomic stability will be a long and arduous task – particularly as it needs to tighten its purse strings when more public spending is a necessity. Given the way things are in Sri Lanka, a tightening of government expenditure will make recovery more difficult in the short term.
Yet reforms are necessary to restore confidence in the economy and obtain external support in the short to medium term, as well as to draw foreign direct investments in the medium to long term.
In essence, most of the reforms are targeted at reducing state expenditure and increasing fiscal revenue to close the financing gap. As part of this process, the government has published a bill to increase revenue collection from taxes – this includes reducing the personal income tax exemption threshold and increasing the corporate tax rate, besides increasing the value-added tax.
IMF agrees to bail Sri Lanka out with US$2.9 billion conditional package
In its attempt to meet IMF requirements, the government also plans to relax labour laws and privatise public assets. It has raised power tariffs by 65 per cent in a bid to overcome the power cuts plaguing the economy in recent months, and is taking steps to reduce expenditure in the public sector with a hiring freeze and a cut in the retirement age for public servants.
Many of the government’s recent actions have been criticised in Sri Lanka by those who believe they will increase hardship and affect the economically vulnerable. On the flipside, there are many who argue that the government must implement such measures to stabilise the economy and for its future.
On its part, the government is looking to raise social spending and to improve the social safety net to support the most vulnerable. This is important as Sri Lanka’s economy is expected to have contracted by 8.8 per cent last year and high inflation continues to affect day-to-day life.
Sri Lankans starve as President Wickremesinghe tries to secure economic bailout
The Sri Lankan government is not in an enviable position. As it emerges from a deep political crisis and a period of severe economic mismanagement, there is an urgent need to stabilise the economy. To do this, the government is prioritising the safeguarding of financial stability, and an improvement in fiscal transparency.
The government also recognises the importance of attracting foreign direct investment, especially as it takes steps to reduce its dependence on borrowing from overseas.
For Sri Lanka to be considered an investment destination in the future, the government must take all steps possible to support regenerative economic activity. But in doing so, it must also not forget its commitment to its people or ignore the present.
There are no easy choices, but there is optimism for a brighter tomorrow.
Frank-Jürgen Richter is founder and chairman of Horasis: The Global Visions Community
Residents on social media have claimed there are not enough public toilets in the Redbridge area
Redbridge Council is funding £2 million into new and refurbished public toilets after a person was fined for excreting on an Ilford Road. The incident happened on Colombo Road last November when the culprit was caught in the act by a resident.
Council enforcement officers carried out an investigation and tracked the offender using their vehicle number plate. The offender was issued a £150 penalty notice as a result.
Councillor Khayer Chowdhury posted details of the incident on Facebook on Monday (February 13). On the post, he said: “Our enforcement officers were recently contacted by a resident who had witnessed someone taking a poo on their street.
“It was a disgusting act that nobody should have to witness especially when we have public toilets and many other toilets available in shops and other premises! Officers took a statement from the complainant and tracked the offender using their vehicle registration plate.
“Our officers were then able to issue a £150 fine to the offender which has now been paid.” Residents on social media have claimed there are not enough public toilets in the Redbridge area.
A Redbridge Council spokesperson said: This incident occurred in Colombo Road, Ilford, last November. The individual concerned was issued a Fixed Penalty Notice, which has been paid.
“The nearest toilets for public use are located in Ilford Town Centre, a short walk from Colombo Road. Redbridge Council is also investing £2m in new and refurbished public toilets.”
China’s lifting of travel restrictions has pushed many countries to attract Chinese travelers, one of them is Sri Lanka. The island country expects Chinese tourists to arrive in the new year, alongside strengthened cooperation with China. CGTN sat down with the consul general of Sri Lanka in Shanghai.
The ‘Janaraja Perahera’, organized to coincide with Sri Lanka’s 75th independence anniversary, kicked off this evening (Feb 19) under the aegis of President Ranil Wickremesinghe.
The historic Temple of the Tooth Relic in Kandy is hosting the ‘Janaraja Perahera’ following a gap of 34 years.
The procession commenced from the Magul Maduwa premises at 6.30 p.m. today and is parading Dalada Street, Yatinuwara Street, Kanda Street, and Raja Street before returning to the temple to mark the end of the event.
The procession comprises cultural performances, including dancing troops, and caparisoned elephants, similar to that of the annual Esala Perahara.
However, unlike the Kandy Esala Perahara, the ‘Dalada Karandwa’ (the casket containing the sacred relics) is not e carried on a tusker at the ‘Janaraja Perahera’. Instead, the national emblem of Sri Lanka will be carried.
The President’s Media Division (PMD) noted that the ‘Janaraja Perahera’ aims to promote the tourism industry.
The ‘Janaraja Perahera’ was first organized in 1875 to celebrate the arrival of the Duke of Wales, the son of Queen Victoria, to Ceylon. The procession was also held in 1954 when Queen Elizabeth II, the then-Head of State of Sri Lanka, visited the country. The Queen watched the ‘Janaraja Perahera’ from the Patthirippuwa. In 1981, a similar procession was held, and Queen Elizabeth II watched the procession from a special platform built in the Maha Maluwa, the main courtyard.
The Temple of the Tooth Relic only organizes special processions like the ‘Janaraja Perahera’ at the request of the government on significant occasions in the country. The last time the ‘Janaraja Perahera’ was held was in 1987 by the then Prime Minister Ranasinghe Premadasa.
Security in Kandy has been tightened while a special traffic arrangement is also in place from 5.00 p.m. until the end of ‘Janaraja Perahera’ to divert the traffic away from Dalada Street, Yatinuwara Street, Raja Street and Kanda Street.
President Ranil Wickremesinghe has met with a group of youth to discuss his policy statement and the government’s plans for the country’s future on February 16.
The group of young people expressed their views on the government’s policies in a newspaper article and the President had invited them over for a follow-up discussion along with the two young journalists, Anoushka Jayasuriya and Shannon Salgadoe who had written the article. During the discussion, they had expressed what they expect from the government, and discussed a range of issues with the President, the President’s Media Division (PMD) reported.
One of the major topics discussed was the shortcomings in the education sector, with the youth group highlighting the need for proper mental health education at the school level and a proper education mechanism for the inclusion of the differently abled. They asked, Will your government get some real mental health education in Sri Lanka, in schools especially?”
The President agreed that attention paid to mental health in schools was insufficient and acknowledged that much needs to be done with regard to those with mental health issues and those who are differently abled. He noted, however, that one of the main issues facing the country is the lack of trained personnel in this field, according to the PMD.
The youth group also brought up the issue of taxes, adding that while taxes are not a novel concept in many other countries, it is not so in Sri Lanka.
The President explained that the government budget can be examined by the Parliament to ensure they are adhering to it. He noted that there are many committees to examine the budget, such as the Committee on Public Enterprises, Committee on Public Accounts, and Public Finance Committee. He added that they are also bringing in the Parliamentary Budget Office Bill to strengthen the process further.
They questioned, Transparency is a big question with the new taxes. People are feeling it because suddenly they are forced to pay a huge portion of their salary.”
The transparency is there because in a big budget we have line items. If you read it, you can never say what it is. It’s in any budget, it’s the parliament that ensures the money is spent wisely, and it takes 2 to 3 years. So the parliament must exercise the powers now. Last time, I think the Opposition didn’t fill their quota of Chairman in the oversight committees. So all that went by board, even this time for selection, they hadn’t come to Parliament to the selection committee. But I think the remaining people just got some opposition names into it. So that is where the transparency comes in and nowhere else. You can ask them as to why you spend and all,” the President explained.
The President also discussed the country’s economic situation and the challenges the government faces, noting that Sri Lanka was in an abnormal economic situation and had to restructure debts to get out of it. He added that the government had to cut down on some expenditure and find money in other areas, such as raising the electricity tariff. The President acknowledged that it is not an easy job, but someone has to do it, it added.
Sri Lanka was in a very abnormal economic situation, and we had to get out of it. But to get out of it, we have to restructure debts. To restructure the debts we had to cut down our expenditure or find money for it. In some areas we have cut down, but for other areas, we have to find money. Like yesterday we had to raise the electricity tariff, but then there is a Rs. 230 billion loss. So if you don’t raise it, you won’t have power. We are all paying for the past sins. This is how we get out of it fast and this is what we have to do. I don’t think there’s any other way out.
It’s not a job, that anyone would like to do, but someone has to do it.”
The youth group also raised the issue of individual accountability and suggested that parliamentarians should have some degree of education. The President agreed but noted that it will take some time for this to happen. He explained that many younger people either have a degree or business experience and it is up to the voters to choose the type of member they want to elect, said the PMD.
When the individual accountability is concerned, the members of Parliament, well you have a system where you can give a preference. If you don’t want any of them, you vote for the party and you can choose whom you want. However, it’s a very expensive procedure. So I want to appoint Committee to look into how we can have a better system of elections without spending all the money that we spend. In a parliamentary election, the bulk of the money is spent by the individual candidates, not by the parties.”
The youth also asked the President Why does everyone shout in parliament? Do you think they shout to avoid responding to questions posed to them?”
In response, the President said that it is done to get media attention and is not appropriate. He noted that he has seen similar behaviour in other countries and that it is not unique to Sri Lanka.
That is bad. Now it’s done to get media attention. There are people when they argue, may shout at each other. But, not like this, they just keep shouting. Now, it’s bad and setting a bad example to the country. There is a price. When we look at the UK, it is not so. There are times when people cheer but this is just being done. I think we have to bring some control over it,” he added.
Overall, the meeting was an opportunity for the President to hear the views of the youth and discuss the government’s plans for the future. The youth group expressed their concerns and ideas, and the President listened and responded to their questions and comments, the PMD said.
President Ranil Wickremesinghe said that he has given his consent to several requests made by the Maha Nayaka Theras of the Malwatu and Asgiri Chapters, during a discussion held today (19) between the Sanga Committee members and the President at the President’s House in Kandy.
The President stated that he will urgently work to appoint a competent authority to the Pali and Buddhist University and to turn it into an International Centre of Buddhist Studies”. This proposal made by the Sangha Committee members is essential and will definitely be implemented to raise the quality of Piriven education.
During the discussion, the President also accepted the invitation by the Maha Nayaka Theras of the Malwatu and Asgiri Chapters to hold the 2023 Vesak festival under the government’s sponsorship in a way that would bring about Buddhist revival in the country. The President also mentioned that all possible solutions would be provided for the issues of the Buddhist monks and the temples, which were discussed at length during the meeting.
The President emphasized his commitment to creating economic stability in the country within the next year and a half. He stated that he will build an economy in the country that can provide relief to the people before the end of this year.
President Ranil Wickremesinghe further said;
In 2019, the government’s tax revenue, which was 15 per cent of the Gross Domestic Product, had decreased to 9 per cent. Therefore, the economy of this country was in a bad state. The International Monetary Fund informed us that our income has been lost. The International Monetary Fund also noted that if we expect other countries to give us money earned by taxing their people, we should also ensure that our country’s income is also increased.
When I took office as President, the country’s inflation was rising and the rupee had collapsed. But at the beginning, we negotiated with the International Monetary Fund to find a solution. As a result, many of the problems that people faced back then have now been resolved.
I requested to go to the International Monetary Fund even during Mr. Gotabaya Rajapaksa’s regime. And I also intervened in that regard.
Unfortunately, the negotiations with the International Monetary Fund were called off due to the incident of May 9th. Following that, President Gotabhaya Rajapaksa invited Mr. Sajith Premadasa to become Prime Minister and he had also invited other members of the opposition to attend.
Only the United National Party and the Tamil National Alliance attended Mr. Gotabaya Rajapaksa’s call for discussions to go to the International Monetary Fund by establishing political stability. Others did not participate in these discussions and did not accept the position of Prime Minister because they were aware of the country’s situation.
Nevertheless, despite the people’s accusations, I accepted President Gotabhaya Rajapaksa’s request because I had a strong belief that the country’s economy could be improved.
As a result, I’m working hard to get the country’s economy back on track within the next year and a half. After that, we’ll get into politics. However, everyone must contribute to this nation-building effort. We intend to prepare an economy that will be able to provide relief to the people by the months of May, June, and July of this year. Despite the difficulties, Sri Lanka has the potential to become an economically strong country with everyone’s help during this difficult period.
Meanwhile, Senior Adviser to the President on National Security and Chief of Staff to the President, Mr. Sagala Ratnayake stated, At a glance that we are attempting to forcefully implement an International Monetary Fund-imposed tax policy. However, what has actually occurred is a realignment of state revenue streams that were not completed at the appropriate time.
People are suffering today as a result of having to implement all these at once. We would not be in this situation today if previous governments had implemented these policies. This is, in fact, a program that will kick-start massive economic development in Sri Lanka. It is not a difficult task to bring about the country’s economic development if the program is carried out properly.”
Most Ven. Anamaduwe Dhammadassi Anunayake Thera Anunayaka of the Asgiri Chapter, Dimbulkumbure Sri Wimaladhamma Thera, Anunayake of the Malwatu Chapter, Venerable Dr. Niyangoda Vijithasiri Thera, Anunayaka Thera of the Malwatu Chapter, Secretary of Supreme Sangha Council Asgiri Maha Viharaya Venerable Medagama Dhammananda Thera, Registrar of the Malwathu Chapter Most Venerable Pahamune Sri Sumangala Thera and Most Venerable Sanghas of the Committee, Minister of Cultural Affairs Vidura Wickramanayake President’s Senior Adviser on National Security and Chief of Presidential Staff Sagala Ratnayake, President’s Secretary Saman Ekanayake, and other officials attended this discussion.
The economic proxy war between the rising and fading Superpowers is escalating and expanding. This was apparent in an (un)diplomatic exchange between Chinese and United States officials over the International Monetary Fund’s (IMF) debt restructuring delays in Sri Lanka which was the venue of the recent CARAT/MAREX war games. These happened in the run up to the country’s February 4 commemoration of 75 years of ‘Lost Independence, Democracy and economic sovereignty’ as a commentator put it.
Before the MAREX US war games India’s Foreign Minister, Dr. Jaishankar paid a flying visit to the island which sits front and center of some of the busiest energy, trade and Submarine or Undersea Data Cable Routes in the world. India, being a good neighbor, had bailed out Sri Lanka to the tune of $4 billion ex-post its first ever sovereign Default in April last year.
The strategic island is a test case for 54 other Global South countries caught in post-Covid 19 Eurobond debt traps given an international development and financial architecture that no longer seems fit for purpose. The end game of the current IMF Debt restructuring operation appears to be quite illogically enabling a country that had accumulated Odious Debt to the point of Default, to return to borrowing again from the same private capital markets that were the main source of the economic crisis. These bond traders charge predatory interest rates. Thus, it is increasingly apparent that long-term solutions and alternatives to the Washington Twins and the Colonial Club de Paris ‘Bailout Business” are needed for Sri Lanka to extricate herself from the clutches of Eurobond money lenders.
Civil society groups meanwhile have been discussing options including constitutional amendments to ban official borrowing from private capital markets by corrupt politicians and their Central Bank appointees who conveniently pass odious ISB debt to impoverished citizens, regardless of the outcome of IMF negotiations. Simultaneously, there have been efforts to muddy the waters and miss-diagnose the causes of the crisis by various experts who call for structural adjustments, reforms and trade liberalization. They attribute the country’s first ever Sovereign Debt Default in April last year to its once envied Welfare State and a culture of government ‘hand-outs.’
Envy of the Developing World: Ceylon’s Welfare State
Dr. Amartya Sen, renowned economist and Nobel Laureate often cited Ceylon as a model of and for Third World development in the sixties and seventies. He explained that Sri Lanka (like India’s Kerala State), was a ‘outlier in World development’ as the island had excellent social and human development indicators, on par with many advanced industrial countries despite low per capital GDP and growth. The country had high literacy rates, excellent healthcare, and later near gender parity in education for many decades of independence. It was hence too that the Prime Minister of Singapore, Lee Kwan Yew, had said that Singapore sought to emulate Sri Lanka at the time.
Dr. Sen throughout his long and distinguished career has consistently challenged neo-liberal growth Fetishism and advocated ‘capabilities approach’ in development. Sri Lanka’s developmental Welfare State with a mixed-economy held the country in relatively good stead during 30 long years of often debilitating externally networked, Cold War linked, internal armed conflict, and enabled a quick bounce back once war with the Liberation Tigers (LTTE), ended in 2009.
Thus in 2019 the World Bank listed Sri Lanka as South Asia’s only Upper Middle Income Country (MIC), with the best human and social indicators. However, that same MIC listing by the Washington Twin disabled the country’s access to concessionary borrowing, that was needed after the mysterious Islamic State (IS) claimed Easter Sunday attacks on its tourism-dependent economy. Being listed as an MIC forced the country to borrow at predatory interest rates from private market bond traders (ISB), which begs the question: was the strategic island pumped and dumped into a US dollar debt trap enabling Washington to make inroads, and if so, why now?
After all, Sri Lanka is a lush and fertile country with a geostrategic resource boon, though some call it a geostrategic resource curse. It is wealthy by most metrics-whether nature’s largess, resources, or in terms of human and social capital, but now suffers from a US dollar debt trap. As such, it is clear that the island’s first ever Default was directly related to factors in recent global and local economic history: 1) increased private market borrowing from predatory hedge funds since 2015 by succeeding governments, and, 2) a series of exogenous economic Shocks that were administered in the past four years including mysterious ISIS claimed terror attacks in 2019, and Covid-19 Lockdown (on which more shortly).
However, various economic experts and IMF ‘advisors’ have attempted to muddy the waters and causes for the current economic crisis and project way back into the past to blame the developmental Welfare State for the current Debt Default. They claim that a purported lack of neoliberal ‘economic reforms’, trade liberalization and structural adjustments caused the default while referencing a no doubt increasingly bloated and corrupt state bureaucracy.
But to suggest that the solution to the problem of a bloated and corrupt state bureaucracy in some sectors is to de-structure and privatize the Welfare State and related infrastructure and services, which for decades made Ceylon / Sri Lanka the envy of the developing world is to throw the baby out with the bathwater! However, this is precisely what the opposition Samagi Janabalaya (SJB) economic dream team, that include, Dr. Harsha de Silva, Kabir Hashim and Eran WIckramaratne, propose quoting IMF advisors, Dr. Sharmini Cooray and Shanta Devaraja.
Economic reforms’, trade liberalization and structural adjustments have become code words for IMF austerity measures that shrink the economy of countries in debt traps, forcing privatization of the Welfare State and related services. The proposed IMF Firesale of State owned enterprises and related services including transport, energy, telecom infrastructure and the Ceylon Electricity Board to assuage ISBs, while using the Green Energy climate catastrophe narrative would certainly jeopardize national energy security among other things.
These same advisors repeat the mantra about the private sector being the ‘engine of growth’ and captains of industry, although it has been quite lacking in innovation and leveraging the island’s valuable minerals and marine, particularly, fisheries resources in the past five decades to diversify exports and markets through transfer of technology and value addition. In fact, the private sector has part of the problem of the illicit outflow of capital through transfer pricing and trade mis-invoicing over the past 15 years, and there is no guarantee that privatization would reduce corruption!
In fact, the dichotomy between State and private sector–led growth is in the final analysis a red herring as both are enablers or disablers of industrialization and leveraging of valuable resources. Both state and private sector corruption were at the root of Sri Lanka’s Debt Default. In China the State leads, in the West Corporations lead development and innovation.
Role of the IMF and Development Models
The recent exchange between Chinese and United States officials over the International Monetary Fund’s (IMF), debt restructuring operations revealed the geopolitical standoff behind Sri Lanka’s first ever sovereign debt Default that was triggered by Eurobond lenders. High ranking US officials called out China for Sri Lanka’s economic woes in the run up to the strategic Indian Ocean island ’s February 4th celebration of 75 years of ‘Lost Independence, Economic Sovereignty and Democracy’ –as one commentator put it.
Victoria Nuland, Under Secretary of State for Political Affairs, who was in Colombo on February 1 blamed China for the IMF’s Sri Lanka debt restructuring delay claiming, What China has offered so far is not enough ….. We need to see credible and specific assurances that China will meet the IMF standard of debt relief”. In response, the Chinese Foreign Ministry Spokesperson, Ms. Nao Ning was equally blunt: rather than point fingers at China’s close cooperation with Sri Lanka, the US might as well show some sincerity and actually do something to help Sri Lanka weather through the current difficulties” she said.
Nuland’s comment did not conceal the fact that the IMF is essentially Washington’s proxy in its on-going Economic War on China and the Belt and Road Initiative (BRI), for global connectivity. China, meanwhile has signaled that it will not bend to the increasingly obsolete Bretton Woods twins’ rules and debt restructuring standards in the Asian 21st Century”. Rather China affirmed that it would pursue bi-lateral engagement on debt restructuring with Sri Lanka while providing immediate relief with a moratorium on payments for two years. The Chinese authorities had separately sent a letter of support to the IMF.
The China-US stand-off distracted from big questions about Sri Lanka’s debt Data, which has become a numbers game, regarding the quantum of external and internal, dollar and non-dollar denominated debt to be restructured. Although debt restructuring in a small county like Sri Lanka, should be a fairly straight forward calculation, it has been turned into veritable ‘rocket science’ with a black hole of infinite regress: The IMF’s ISB ‘Bailout Business’ is unduly complex, technical, and jargon filled, conceals more than it reveals to mask the opaque and un-transparent nature of private market International bond transactions (ISB), and vested interests in the OECD’s informal colonial Club de Paris and Washington Consensus with their gravy train of legal and accounting firms like Lazard, Clifford and Chance and various ‘advisors’ on board.
Amidst the geopolitical tensions, Debt Data gaming, and talk of ‘intercreditor compatibility treatment”, key information like the identities of the bond holders the quantum of funds held, how they were spent, as well as, the external causes and substantive solutions to Sri Lanka’s (and indeed the debt crisis affecting 54 other Global South countries), have been obscured. Parts of the IMF’s Debt Sustainability Analysis (DSA), that are available are also contested given clearly unrealistic assumptions and projections.
Statement of 182 Academics: It’s Geopolitics, Stupid!
Amid the propaganda and blame game between the US and China over the strategic Indian Ocean island’s first ever Sovereign Default last year, a statement signed by 182 international economists and academics provides some objectivity in support of citizens caught in debt traps Not of their making; ”Instead of geopolitical manoeuvring, all of Sri Lanka’s creditors must ensure debt cancellation sufficient to provide a way out of the current crisis” they state.
The statement by a constellation of distinguished intellectuals from across the ideological spectrum, include Jawahalal Nehru University’s Jayati Ghosh, Harvard’s Dani Rodick, former Greek Finance Minister, Yanis Varoufakis, Thomas Picketty the author of Capital, and points out that private market or Eurobond traders who are represented by the Paris Club own almost 40 percent of the island’s total dollar debt stock. Interest payments to these amount to more than 50 percent since they lend at predatory rates in Global South countries claiming high risk. Since these bond trading hedge funds make high rewards, once the risk matures should not these predatory hedge funds take their losses in so-called frontier markets” rather than expecting the lender of last resorts to bail them out?
While China which is Sri Lanka’s largest bi-lateral creditor, holds about 15 percent of Sri Lanka’s total debt, the country’s first ever default was triggered and staged due to Eurobond debt in April last year (2022). The Hamilton Reserve Bank, a shadowy off-shore banking outfit in St. Kitts and Nevis had filed a case against Sri Lanka in the New York courts. BlackRock which got huge US government Covid-19 Bailout funds to asset strip around the world (during unnecessary World Health Organization Covid-19 lockdowns in 2020-21), partners with India’s troubled Adani corporation, and is Sri Lanka’s biggest ISB debt holder.
Alternatives to the IMF and its Shock Treatment
In the context China appears to be hedging its bets, playing for time and working with the BRICS while seeking reform of the highly inequitable, un-transparent and conflict-of-interest-ridden International Financial Architecture. Alternatives to return to borrowing from capital markets include de-dollarization, currency swaps and trading in a basket of currencies, joining the new regional development finance architecture and borrowing from the New Development Bank (NDB), or the Asia Infrastructure Investment Bank (AIIB), given an increasingly weaponized US dollar with high interest rates and US-EU sanctions on Russia, Iran, Venezuela etc.
Sourcing oil and gas, which is Sri Lanka’s biggest import expense from Russia at discount rates like India and paying with Rupee-Ruble exchanges or bartering Sri Lanka’s Green Gold (tea) for Russia’s Black Gold (oil), would certainly help get the island beyond the US dollar Eurobond debt trap once the data on Sri Lanka’s export –import expenditure data is clarified.
Simultaneously, diversifying export products and markets while leveraging Sri Lanka’s valuable rare earth minerals and extensive living and non-living marine resources though the transfer of technology and industrialization would enable growing the economy to escape the USD debt trap. Fisheries in the island’s rich and extensive maritime Exclusive Economic Zone is a low hanging fruit.
In the final analysis the solution to the Eurobond debt trap is elementary dear Watson; simple and elegant to boot; definitely not rocket science! But we need to get beyond mind numbing data, numbers games, and jargon about ‘extended fund facilities’, ‘intercreditor agreements’, etc. and above all not panic about Famine, or Covid, or any other disaster narrative, but rather, keep our cool. We would then see solutions that are under our noses! Familiarity with Naomi Klein’s book; The Shock Doctrine: The Rise of Disaster Capitalism’ may help).
John Joseph Mearsheimer is an American political scientist and international relations scholar, who belongs to the realist school of thought. He is the R. Wendell Harrison Distinguished Service Professor at the University of Chicago. He has been described as the most influential realist of his generation. Mearsheimer was born in December 1947 in Brooklyn, New York City. When he was eight, he moved with his family to Croton-on-Hudson, a suburb in Westchester County. When he was 17, Mearsheimer enlisted in the US Army. After one year as an enlisted member, he obtained an appointment to the US Military Academy at West Point, which he attended from 1966 to 1970. After graduation, he served for five years as an officer in the US Air Force. In 1974, while he was in the Air Force, Mearsheimer earned a master’s degree in international relations from the University of Southern California. He entered Cornell University and in 1980 earned a Ph.D. in government, specifically in international relations. From 1978 to 1979, he was a research fellow at the Brookings Institution in Washington, DC. From 1980 to 1982, he was a postdoctoral fellow at Harvard University’s Center for International Affairs. During the 1998–1999 academic year, he was the Whitney H. Shepardson Fellow at the Council on Foreign Relations in New York. Since 1982, Mearsheimer has been a member of the faculty of the Department of Political Science Faculty at the University of Chicago. He became an associate professor in 1984 and a full professor in 1987 and was appointed the R. Wendell Harrison Distinguished Service Professor in 1996. From 1989 to 1992, he served as chairman of the department. He also holds a position as a faculty member in the Committee on International Relations graduate program, and he is a co-director of the Program on International Security Policy. Mearsheimer’s books include Conventional Deterrence (1983), which won the Edgar S. Furniss Jr. Book Award; Nuclear Deterrence: Ethics and Strategy (co-editor, 1985); Liddell Hart and the Weight of History (1988); The Tragedy of Great Power Politics (2001), which won the Lepgold Book Prize; The Israel Lobby and U.S. Foreign Policy (2007); and Why Leaders Lie: The Truth About Lying in International Politics (2011). His articles have appeared in academic journals like International Security and popular magazines like the London Review of Books. He has written op-ed pieces for The New York Times, the Los Angeles Times, and the Chicago Tribune. Mearsheimer has won several teaching awards. He received the Clark Award for Distinguished Teaching when he was a graduate student at Cornell in 1977, and he won the Quantrell Award for Excellence in Undergraduate Teaching at the University of Chicago in 1985. In addition, he was selected as a Phi Beta Kappa Visiting Scholar for the 1993–1994 academic year. In that capacity, he gave a series of talks at eight colleges and universities. In 2003, he was elected to the American Academy of Arts and Sciences. He is the recipient of the American Political Science Association’s 2020 James Madison Award, which is presented every three years to an American political scientist who has made distinguished scholarly contributions. The Award Committee noted that Mearsheimer is “one of the most cited International Relations scholars in the discipline, but his works are read well beyond the academy as well.” Mearsheimer’s works are widely read and debated[according to whom?] by 21st-century students of international relations. A 2017 survey of US international relations faculty ranks him third among “scholars whose work has had the greatest influence on the field of IR in the past 20 years.”
By Engr. Kanthar BalanathanDipEE (UK), GradCert (RelEng-Monash), DipBus&Adm (Finance-Massey), C.Eng., MIEE, Former Director of Power Engineering Solutions Pty Ltd, Consulting Electrical Engineers
The recent bluff by the old snake gourd/bitter gourd Nedumaran is keeping the media on their toes busy. Every media unheard of is trying to depict everything about LTTE and Prabakaran which cannot be true in the sense of rightness and honesty. However, one or two reasons may be true in the correct sense. (A) China’s influence on Sri Lanka could be one reason to intimidate SL by (i) India (ii) USA and (iii) Other European nations by creating a story that Prabakaran is alive. Also, by bringing Dwaraka into the picture. (B) To engage in a terrorist war on SL, by resurrecting the LTTE via Nedumaran and to placate the people in sympathy for donations from both in SL and overseas. This option (B) is not possible in SL at this stage. Another version by another media is that an investigation has been initiated by the Indian intelligence in the name of Dwaraka”. This is absolute foolishness. The intelligence always allocates different unknown code words for investigations. Will not bring Dwaraka’s name. These are simple mistakes that can upset the entire investigation. The other story is that an organisation is to be formed with Dwaraka as a leader, like TGTE or TGTE to fight for Thamil Eelam (TE) politically and or with armed guerrilla warfare.
The uprising by the Buddhist clergy on the 13th amendment may have upset the regional power. Could this and other elements of assumptions led to initiating a cold war between SL and the regional powers? The Tamils and the Sinhalese patriotic people in SL must realise that the guerrilla war started in 1970 with Kuttimani attacking and robbing rural banks. Subsequently, the LTTE was responsible and destroyed multi-million dollars’ worth of assets on the island. The cement factory ceased to function in 1991. Production loss is estimated at approximately 275,000 tons of cement per year. Readers can work out the loss in money each year. Several 132kV electricity towers were destroyed. Central Bank building was bombed. Several assets were bombed /destroyed. Thousands of Tamils and Sinhalese were killed. If another cold war or guerrilla war starts people should value, the destruction and their future. Just to satisfy the cold war initiating owners, Sri Lankans should not sacrifice their lives and comforts. Already people are suffering because of the bribery and corruption by the Rajapaksa/Sirisena regime. It is up to the Tamils and Sinhalese people to think and act carefully. The Buddhist clergy should not interfere in politics. They should address the goods of Buddhism and propagate it.
Addressing the TGTE with Dwaraka, is this another form of scooping money and wealth for the organisers? This is never ever possible, and another form of ethnic annihilation will upsurge again. The enmity between the Sinhalese and Tamils will escalate and widen with atrocities committed against Tamils as the Sinhalese are the majority. Tamils are already suffering with Tamils taking boats.
If India wants to help the Tamils, then they should decide to take over the North & East and make it another state (Tamil Eelam State) of India leaving the rest to the Sinhalese. India’s cunning mode acts may cause several obliterations as India is trying to throw stones from a glass house. Sinhalese also must think and act like humans. Buddhist clergy should have nothing to do with politics or racism. That’s not what Buddha preached. Why is it that some Sinhalas from Tangalle, Kurunagala, Kegalle etc are xenophobic against Tamils?
As far as the writer is concerned Prabakaran died in Nandikkadal in 2009, and Dwaraka and Mathivathani are not fit to lead politics or another guerrilla war. TGTE will disband very soon. The world may turn against the Tamils very soon if not careful. Canada will initiate the kick-off of Tamils followed by other European countries.
Sri Lankans should be careful in their acts and finances. Their attitude since 1948 brought the country down to a level of bankruptcy.
‘Crisis & Struggle’ is the title of an art exhibition that was recently held at the Lionel Wendt Art Gallery. Sujith Rathnayake, the artist, calls it a visual art attack. Nice line. It is presented by, so the poster claims, ‘Art Gallery of the Galle Face Protest Site.’
Sujith Rathnayake’s stature as an artist got considerably enhanced during the ‘Aragalaya.’ Put another way, his stature as a conscious objector to perceived tyrannies or rather tyrannies perceived was elevated during those months.
Now we do know that the Aragalaya spawned a lot of unsavoury characters or rather brought them to the fore. Among them were ‘artists’ and some of them were funded directly or indirectly by the US State Department, especially through NED (National Endowment for Democracy), the successor to the CIA in overseas operations designed to destabilise nations considered ‘unfriendly’ or bring them under Uncle Sam’s sway. It is unlikely that Sujith Rathnayake had membership in that particularly distasteful club of con-artists.
The artistic worth of Sujith’s work will have to be evaluated by art critics. Political fellow travelers will no doubt celebrate a comrade, but perhaps the full significance of one particular exhibit might be lost on them — the installation piece where a prison door and a mirror compels ‘viewer’ to consider his/her incarceration(s), aptly captioned with a Vicent van Gogh quote, ‘conscience is a man’s compass.’
It is pertinent that the quote is an extract from a letter Vicent wrote to his brother Theo (in December 1882) who supported the artist financially and emotionally. The entire letter makes fascinating reading, but let’s limit this to the paragraph that contains the quote, as translated by Theo’s wife Johanna van Gogh-Bonger:
‘One must go on working silently, leaving the result to the future. If one prospect is closed, perhaps another will open itself – there must be some prospect, and a future too, even if we do not know its geography. Conscience is a man’s compass, and though the needle sometimes deviates, though one often perceives irregularities when directing one’s course by it, one must still try to follow its direction.’
Sujith’s invitation is one for self-examination, a consideration of possible complicity. The image of the artist, self-incarcerated and self-framed by a reference to the conscience, is certainly powerful. It cries out, ‘I shall begin with myself.’ Maybe Sujith will, accordingly, express in art or in other form what he contended with in this journey. He hasn’t yet, that much is clear from the rest of the exhibition.
It is a call nevertheless and since the entire exercise is Aragalaya-toned, so to speak, one cannot be faulted for wondering whether the comrades-at-arms were spurred to engage in the self-reflection prescribed.
The target of the ‘attack by art’ is the status quo, the state, the government then in power, the rulers of that time. The installations and the paintings state the artist’s discontent and indeed livid objection to all that. Perhaps in the calculation of ‘musts’ and ‘perhaps later’ Sujith decided not to question himself, his comrades, fellow-aragalists, relevant paarshava of the Aragalaya with regard to the choice of slogans, the tone of protests, arson, robbery, murder and other despicable acts which, ironically were important issues ranted and raved about by the agitators. Perhaps it was not the time to question, for example, the petikiriya of fellow-aragalists or unwrap the contradictions that were so apparent at Galle Face or, as they called it, GGG (Gotagogama).
Sujith Rathnayake is an artist. He is an activist. He stands up for what he believes. It is not unfair to ask him to subject himself to the tests he has prescribed for others. Time has passed. A lot of time. Things have happened. One could ask, ‘what kind of reflection has the artist done in the time that has passed?’
Sujith will, I am sure, respond as he will. When he feels it is appropriate. For now, what’s most important, for me at least, is the invitation he has so eloquently ‘worded’ with mirror and frame, incarceration forced, willing submission submitted to imprisonment of one kind or another.
No struggle is perfect. No struggle is smooth. All struggles are marked by setbacks, confusion, betrayal etc. Sometimes, the worst betrayals are those perpetrated on account of ignorance and arrogance or, indeed, those which resolutely refuse self-criticism.
Sujith Rathnayake has put many things in perspective. Sujith Rathnayake has turned a searchlight inwards. The light has also fallen on the agitators and the agitation, whether or not this was intended. It is an important and necessary intervention by an accomplished artist and a man for whom conscience is a compass for it could result in the realization that conscience too can be subjected to incarceration. Self-incarceration.
[‘The Morning Inspection’ is the title of a column I wrote for the Daily News from 2009 to 2011, one article a day, Monday through Saturday. This is a new series. Links to previous articles in this new series are given below]
The wartime Japanese Prime Minister Hideki Tojo was clearly in the forefront of that fight. His fault was that his side lost. But that should not de-legitimize the worldwide struggle to end Western colonial domination and rule in Asia and Africa which was finally achieved at huge cost mostly to the Japanese people. The demonization of the Japanese soldiers as ‘savages’ , cannibals, and ‘barbarians’ in a non ending propaganda war against Japan now sprouting on the social media sponsored by mostly Anglo – American academics and historians in the most shameful way, must stop.
The people of Asia and Africa must confront the historical truth at some point in time sooner than later that if WW2 did not take place the entire world would have become a Western ‘ white’ colony. Whatever ‘mischievous’ intention is attributed to Japan by its detractors the plain simple truth is that Japan is the only non – white country during the last 500 years that fought effectively and as well as the white imperial countries that stunned the western world. Not only that when the Japanese armies marched into Singapore, Jakarta, Saigon, Kuala Lumpur in 1942 the first thing they did was to dismantle ‘ whites only’ apartheid clubs. What was continuing in South Africa until Nelson Mandela stopped it in 1994 was already happening in the Dutch East Indies (Indonesia) in 1942. The natives (local Indonesians) were not allowed to walk on the same side of the Road as the Dutch. There are eye witness accounts to this day.
Nobody likes to be second class citizens in one’s own country. That is why people of Asia supported the catch cry invented by Japan ‘ Asia for Asians’ . It was valid then and it is even valid today.
The pivot that brought the liberation of the black man, brown man and yellow man was the second world war. In 1939 there was not even an empty promise to give freedom to the subjugated people in European colonies. The end of WW2 in 1945 saw an array of countries being granted independence. Thanks to Japan and the freedom fighters of India, Indonesia, Burma, Vietnam, Malaya, etc. who achieved in the mid 20th century what was thought impossible at the beginning of the 20th century.
In Sri Lanka we are told to forget colonial history because it is the darkest chapter in the country’s history which is both morally and even legally indefensible. Colonialism under the Portuguese, Dutch and British was in essence a strict form of religious despotism though differing in degrees of ferocity with each other. The Catholic Inquisition was introduced to Ceylon by the Portuguese after Father Francis Xavier brought it to Goa. The objective of European colonial rule overall was not only to convert the locals to their religion i.e. Christianity, but also to suppress other religions especially Buddhism and de- legitimize Buddhist ways of thinking and the right of the Buddhist Sinhalese to assert their culture. This was most profound in the Portuguese era (1505 – 1658). In missionary Schools the notional wisdom that was planted in school children in their impressive age was that European civilization was the only true and authentic civilization and all others were primitive and / or Satanic. The Portuguese and the Dutch saw Buddhism as ‘ Devil worship’ and, for example, promulgated Dutch ‘Placaats’ to prohibit the practice of Buddhism. The most insidious injury was the creation of a mindset of ‘coloniality ‘ in the locals from the time of school to grave. It is this state of mind that underpinned and drove European colonialism in Sri Lanka. .
Sri Lanka’s independence in 1948 was helped greatly by external factors
Justice has nothing to do with victor nations and vanquished nations, but must be a moral standard that all the world’s peoples can agree to. To seek this and to achieve it – that is true civilization -Hideki Tojo (1894-1948)
Colombo, February 19: Sri Lankan President Ranil Wickremesinghe firmly believes that no elections should be held in the island nation before the Presidential election in 2024 on the grounds that the country cannot afford elections in the midst of an unprecedented economic crisis,
Sources in his United National Party (UNP) say that the economic crisis, marked by shortages and sky-rocketing prices, calls for the maintenance of discipline and national unity without frittering away precious time and energy on politicking.
Wickremesinghe himself has said this in parliament and outside.
UNP insiders also say that Wickremesinghe is likely to be the Presidential candidate of the UNP in 2024 in alliance with the Sri Lanka Podujana Peramuna (SLPP), the party headed by the Rajapaksas. Wickremesinghe believes that his chances will be bright in a Presidential election if he gets adequate time to set the economic house in order, untrammelled by elections to the local bodies and Provincial Councils. These polls could throw up unnecessary issues and controversies and derail the economic recovery.
Devious Ways
Since Wickremesinghe is unable to admit this plan openly, he has chosen devious (though legal) ways to postpone the Local Bodies elections due on March 9.
Although it has been officially announced that the elections will be held on March 9, the prospect of their being held is getting dimmer by the day due to various factors. The latest is that the Elections Commission’s plans to file a special motion before the Supreme Court citing difficulties in getting adequate funds to hold the polls on March 9. A local daily quoted the Chairman of the Elections Commission (EC) as saying that the EC has no money to print ballot papers and make provisions for transport.
Earlier, in January, a retired army Colonel, W.M.R.Wijesundara, had filed a case in the Supreme Court against holding the local elections. The case is to be heard again on February 23. The petitioner questioned the benefit to the public and the country from holding an election at this juncture when Sri Lanka is in the midst of an economic crisis. He noted that the EC had informed him in writing that LKR 10 billion would be required to hold the polls. He cited the current income of the country, the onerous conditions imposed by the IMF, the ratings given to Sri Lanka by international credit rating agencies, and the Government’s income and expenditure over three years to argue his case for postponement.
The petitioner also pointed out that the government is engaged in electoral reform, formulating laws for controlling election expenditure, and for the representation of youth and women in elected bodies. It would be wasteful to hold the local elections before the completion of the work on hand, he argued. He also cited the struggle of the common man in making ends meet. Interestingly, the Treasury Secretary, Mahinda Siriwardena, told the court that funding for the election is a challenge” given the financial situation of the government.
Meanwhile, the Opposition parties had sought a Supreme Court order to the EC to hold the polls as scheduled. The Court said in reply that the EC has already informed the court that it is prepared to hold the elections on March 9.
Sri Lankans are therefore waiting with bated breath for the Supreme Court’s hearing on the army colonel’s petition on February 23. Even if the court rules in favor of postponement, Wickremesinghe will be the butt of severe criticism from the opposition parties and civil society, which will expose the tactics used by him to create the conditions for postponement.
When the talk of holding Local Bodies elections was in the air, Wickremesinghe said that his government plans to reduce the total number of local body members from 8,000 to 4,000. And although a Parliamentary Select Committee had submitted a report on electoral reforms in June 2022, the government proposed to set up another committee in November. A Private Member’s bill was presented by SLPP member Premnath Dolawatte seeking 25% representation of youth in the Local Bodies. Though these measures have their merit, mooting them just before the Local Bodies elections smacked of an ulterior motive.
Meanwhile, it was reported that Elections Commissioners S.B.Diwaratne, K.P.P.Pathirana and M.M.Mohamed had received death threats demanding their resignation. Another EC member P.S.M.Charles had resigned and the President accepted her resignation. Both the death threats and the reasons for P.S.M.Charles’ resignation remain a mystery.
Good News On IMF Bailout
Even as the chances of the Local elections being postponed are high, Wickremesinghe is getting good news about the possibility of getting the US$ 2,9 billion IMF bailout. International media have reported that Sri Lanka could get the bailout without waiting for China to fall in line on the issue of giving the necessary financial assurance”. It is reported that it will be enough if the Paris Club of lenders plus India give the necessary financial assurances. And these entities have expressed readiness. China, on the other hand, has been dragging its feet although it is the single largest bilateral lender to Sri Lanka. China’s offer of a two-year moratorium on the payment of principal and interest on loans taken from its EXIM Bank is not considered enough.
But China does not want to be left out of the international effort to shore up Sri Lanka’s finances. It has geopolitical stakes in Sri Lanka. There are reports of China sending a large delegation to Colombo to discuss Sino-Lankan economic ties.
Wickremesinghe has said that the IMF will make its decision known in March and that the decision will be in Sri Lanka’s favor. However, the IMF has set certain stringent financial conditions or goals which Sri Lanka will have to reach within a given time frame. For Wickremesinghe the challenge will be to meet these requirements which call for grit and determination to face and overcome the opposition of politicians and trade unions and the apathy of the bureaucracy.
Geopolitical Challenges
Then there are international pressures to comply with certain geopolitical demands from Lanka’s creditors. The Western nations and India have geopolitical expectations from the Wickremesinghe government. The US would like Sri Lanka to be a key partner in its anti-China Indo-Pacific Maritime Security system. India would like Sri Lanka to be part of its maritime security schemes and keep China at bay. Both the US and India would like Sri Lanka to marginalize China economically and strategically. Germany would like Sri Lanka to lift curbs on imports and Japan would like Sri Lanka to adhere to signed agreements and not renege. China would like Sri Lanka to accommodate its military vessels, give it infrastructure projects and sign a free trade agreement.
Therefore, for Wickremesinghe going is not going to be easy. But if he is able to meet some of the IMF’s conditions and deftly manage the diverse geopolitical pressures, he would be on a good wicket when he faces the Presidential election in 2024.
President Ranil Wickremesinghe today pledged to prioritize the country’s economic recovery while ensuring that law and order is maintained to prevent anarchy.
He made a commitment to restore the country’s economy and establish a functioning democratic society before the end of this year.
Speaking at the ‘Imagine’ 32nd Rotary District Conference in Colombo this morning (Feb 18), the President emphasized the importance of economic recovery and improving citizens’ quality of life. He affirmed that all government decisions would be based on these priorities.
In his address, President Wickremesinghe stated that democracy depends on the maintenance of public order which requires law and order. He underscored that without these essential components, democracy would be replaced by anarchy. He assured the audience that he would do his utmost to prevent such a scenario from occurring.
The President lauded the Rotary District 3220 for its invaluable assistance during past crises, such as the anti-polio campaign, tsunami, and medicine shortages.
He also stated that following the country’s economic recovery, next year it would be in a position to decide on the future it wants, with the use of the ballot.
Several distinguished figures were in attendance at the ‘Imagine’ 32nd Rotary District Conference, including the Conference Chairman and Past President Anisha Dharmadasa, the District Governor of Sri Lanka and Maldives Pubudu de Zoysa, and the District Advisor on Public Image and Past President Pradeep Amirthanayagam.
All of these individuals provided their valuable perspectives on the conference’s theme and emphasized the importance of community service.
Additionally, the event was graced by the presence of Ms. Valarie Wafer, who represented Rotary International President Jennifer Jones.
Lanka Coal Company (LCC) says payments have been settled for 13 shipments of coal imported to Sri Lanka.
According to the company’s general manager Namal Hewage, the 12th shipment is currently being unloaded while the unloading of the 13th shipment is expected to begin tomorrow (Feb 18).
Meanwhile, plans are afoot to bring down a total of 36 coal shipments to the country this year, Hewage said further.
Lanka Coal Company is in possession of adequate stocks to ensure an uninterrupted electricity supply until this September, he added.
Meanwhile, Minister of Power & Energy Kanchana Wijesekera says that banks have agreed to provide additional financing to the Ceylon Electricity Board (CEB) based on the revenue that it will generate from the approved new cost-reflective tariff.
As directed by the President, CEB will ensure an uninterrupted power supply with the additional bank financing & new tariff,” Wijesekera said further taking to his official Twitter account.
Sri Lanka has been experiencing daily power interruptions since last February.
The Election Commission has decided to file a special motion before the Supreme Court detailing the difficulties it is facing during the preparations for the 2023 Local Government Election on March 09.
Chairman of the election body, Attorney-at-Law Nimal G. Punchihewa says inadequate funds, inadequate supply of fuel for transportation, the delays in ballot paper printing by the Government Printer and several other issues stand in the way of LG election preparations.
Punchihewa also noted that adequate security measures are not in place for the Department of Government Printing to ensure that ballot paper printing work is carried out smoothly.
The Election Commission, recalling the recent undertaking it gave before the Supreme Court to hold the Local Government Election on March 09 as scheduled, said it expects to brief the top court about not being able to uphold its pledge.
On Friday (Feb 17), Punchihewa disclosed that the Treasury Secretary has informed the Election Commission that funding the Local Government Election at the moment is challenging.
Meanwhile, Government Printer Gangani Liyanage mentioned that the printing work for the Local Government Election continues to face hindrances without adequate security measures.
Against this backdrop, the Election Commission was compelled to indefinitely postpone the postal voting of the Local Government Election, which was scheduled to be held on February 22, 23, 24 and 28.
Several protests were also staged in many parts of the country against the government’s attempts to defer the election.
The supply of electricity and all related services, the supply and distribution of petroleum products and fuel and health services have been declared essential services once again.
This was announced in a special gazette notification, issued by Presidential Secretary Saman Ekanayake under the directives of President Ranil Wickremesinghe on Friday (Feb 17).
It was published in accordance with the powers vested in the President under Section 2 of the Essential Public Services Act No. 61 of 1979.
Previously, four announcements dated August 03, 2022, September 03, 2022, October 04, 2022, and January 03, 2023, were issued by President Wickremesinghe, declaring that these services as essential.
A special delegation from Israel visiting Sri Lanka has assured the Minister of Labour and Foreign Employment Manusha Nanayakkara, that their country will offer 2000 job opportunities for female caregivers from Sri Lanka, this year. The delegation comprising Shiely Raisin Sason, director of Israel’s Population and Migration Institute and members Zindani Mary, Yaccow Kabilau, Margarita Gaorodnitsky among others met Minister Manusha Nanayakkara today. The minister during the meeting requested from the delegation to provide more job opportunities to caregivers from Sri Lanka and in response the delegation assured the Minister that their country will recruit 2000 female caregivers from Sri Lanka this year. The delegation pointed out that according to the existing culture in Israel, women have more opportunities for patient care, and the number of opportunities for male caregivers is very limited, and accordingly, the delegation also requested the Minister to give priority to females when providing training in the caregiver sector in the future. The delegation also pointed out the importance of accelerating the recruitment process for caregiver jobs. Accordingly, the Minister assured the delegation that only those who meet the relevant qualifications will be recruited for training. Here, the Israeli delegation informed the minister that Sri Lankan workers with English language proficiency, who have received professional training, will always get the opportunity for Israeli employment opportunities. The delegation said their country is ready to give opportunities up to 8000 qualified workers on an annual basis. Both parties pointed out the importance of recruiting workers through a transparent process. The minister pointed out that some private recruiters are acting like a mafia in the process of recruiting caregivers to work in Israel. The minister also clarified the facts about the allegations against some Sri Lankans in Israel regarding the recruitment process. The Minister also mentioned that there are allegations that some people are taking money for providing Israeli jobs. The Minister also presented to the Israeli representatives the requests to open up the opportunities to hire caregivers for jobs in Israel by the private sector as well. Responding the delegation said that the process of recruiting caregivers should be carried out only with the intervention of the Foreign Employment Bureau. The delegation from the Population and Migration Institution of Israel requested that any information regarding people who are taking money to provide caregiver jobs in Israel should be given to them to take necessary action. They also assured that the security and confidentiality of the persons giving such information will be fully protected. The delegation also assured that maximum action will be taken according to Israeli law against people who take money through the recruitment process. The minister also mentioned that the safety of workers who leave for work abroad is always a high priority and added that there have been no allegations of harassment of workers who have left for work in Israel. The minister expressed his thanks to Israel in that regard.
In this discussion, the minister also asked the Israeli delegation that since there are many trained professionals in the country for jobs in the agricultural sector, it would be better if they were given an opportunity for that as well. Here, the Israeli delegation stated that they are not able to open jobs in the agricultural sector at this time, and that necessary steps will be taken in the future.
By Engr. Kanthar BalanathanDipEE (UK), GradCert (RelEng-Monash), DipBus&Adm (Finance-Massey), C.Eng., MIEE, Former Director of Power Engineering Solutions Pty Ltd, Consulting Electrical Engineers
With due respect to the Chief Minister, Mr MK Stalin, the son of a great writer/politician in India, Mr M. Karunanithi, I would like to point out that some people who are not in politics, or any other discipline in TN are involved in fashioning stories to disturb the peace in India and Sri Lanka and the Tamils overall. The purpose of creating these stories is not clear to the common mass.
Mr Pala Nedumaran, of Madurai, was speculating that Prabakaran was alive after the war in 2009, and repeatedly in the years, 2010, 2012 and so on. No one knows the reason for this act by Nedumaran.
It can now be construed that he is acting on the instruction of those who are opposed to the growth of India, TN, and Sri Lanka. It is not my intention to speculate who they are. However, there is a time that a citizen of a country should be patriotic and abide by the laws of the country.
Tamils as they historically have no vision and mission, engaged in forming associations, congresses, Forums etc to collect the money have reached the end of their act. Some of the forums have been closed and become inactive. Some Tamils reached India in Tamil Nadu (Thamizhaham) for safe heaven and are enjoying their life while Tamils in Sri Lanka are economically suffering. Most Tamils who are crooks in nature have collected money and acquired more wealth and they have shut their vocals and acts.
In, Sri Lanka, some of the politicians like the Rajapaksas have swept more wealth and now thinking of leaving politics.
Sir, addressing the act of Mr Nedumaran: What is the objective of such a new story that Prabakaran is alive? Mr Kasi Ananthan is by the side of Nedumaran supporting this story. People like Seeman are trying to attain political popularity through the Sri Lankan Tamil question.
Is Nedumaran trying to pose a threat to the Sri Lankan administration by stating that Prabakaran is alive?
Or is he trying to help the Tamil crooks (diaspora) to collect money to acquire more wealth and distribute it among themselves?
Or Intimidate the Sri Lankan military? This act is foolish because the entire balance system will be disturbed, and the peace will be disturbed.
Or is he helping the diaspora forums?
The GTF, Father Emanuel should confine himself to promoting religious beliefs and not terrorism.
Sir, at this stage, it is a belief that Nedumaran is trying to upset the balance, and progressive development of India, and some countries may be behind this act. India is coming up in her abreast of technological advancement along with IT. People like Nedumaran, Kasi Ananthan, Seeman, and Vaiko are not capable of understanding this technology and its effect on society. They only understand power, wealth, and popularity.
Sir, you are being the Chief Minister who is responsible for the security and peace of TN, are kindly requested to order the Q” branch to pay a visit and interrogate Nedumaran and Co.
People in Sri Lanka are suffering from a lack of money, medicine, food transport etc, and you are aware of this because you have helped SL. Tamils constitute only 11.1% of the total population and please understand whether the 11.1% should be the cause for the suffering of the balance 88.9% percentage of the people in SL.
It is kindly requested from the CM put an end to this false propagation of Prabakaran is alive”.
Prabakaran in 2008 was inactive suffering from a complex of serious health disorders according to the media. He was suffering from BP, Sugar, Bi-Polar disorder etc. As people say, Prabakaran was not intellectual and intelligent. He can only shoot to kill people.
It is a school of thought that Nedumaran & Co are trying to disturb the balance and development of India as a country. This is not the time to play dirty politics.
(Bloomberg) – The International Monetary Fund is considering approving Sri Lanka’s bailout even without the formal assurance of debt-restructuring support from China, the nation’s biggest bilateral creditor, according to people familiar with the discussions.
Under a rarely used policy on lending into official arrears, the IMF may consider approving Sri Lanka’s loan because China’s assurance is the only prerequisite missing, according to the people who declined to be identified because the information isn’t public.
This provision is aimed at preventing a creditor from blocking assistance to a country in dire need of financing and has shown commitment to meet loan conditions.
An IMF spokesperson said that it’s premature to discuss the precise IMF policies that could be applied to lending to Sri Lanka, and that the nation’s authorities continue to seek financing assurances so that the fund’s executive board can consider their request for a loan. IMF staff also continue to engage with the Sri Lankan authorities who are working on completing upfront policy measures, the spokesperson said.
IMF Policy
The IMF can use the policy on lending into official arrears if it deems prompt financial support is essential and sees the country pursuing appropriate policies and making good-faith efforts to reach an agreement with creditors, according to an explanation on the fund’s website.
Moving forward with loan approval would be a shift from its position earlier this month, when it said the approval of Sri Lanka’s $2.9 billion Extended Fund Facility will depend on whether the nation can secure assurances from all bilateral creditors.
The development comes as World Bank President David Malpass said Thursday that long extensions of debt are among the options that G-20 nations and others are considering to help ease the burden for poor countries.
The IMF, World Bank and Group of 20 nations chair India separately held virtual discussions Friday on global sovereign debt ahead of the finance ministers and central bank governors’ meeting in Bangalore next week.
Sri Lanka and Pakistan count on IMF loans to provide immediate relief by shoring up their foreign-currency reserves and unlocking more funding.
Pending China’s creditor assurance, Sri Lanka is trying to meet other reform conditions set by the IMF, including increasing electricity tariffs and clearing a new monetary law for parliament approval. The government may also loosen its grip on a currency band to meet the fund’s requirements.
The Paris Club — an informal group of rich, mostly western creditors — and India have provided formal support to Sri Lanka’s loan recast, leaving China as a holdout.
China, which accounts for about 52% of the bankrupt nation’s bilateral debt, has instead offered term extensions via the state-owned Export-Import Bank.
Debt negotiations have dragged since Sri Lanka defaulted in May, causing severe supply shortage, depleting its foreign-currency reserves, sending inflation and borrowing costs soaring and pushing the economy into a recession.
While the nation has repurposed some funds to ease the shortage and damp price pressures, it would need IMF’s bailout and other funding to turn the situation around.
Treasury Secretary Mahinda Siriwardana has informed the National Election Commission of the difficulties in funding the 2023 Local Government polls.
The election body says that the Treasury Secretary has cited the current adverse financial situation and the administrative decision taken by the government to allocate funds only for essential services as the reasons for the inability to release the funds required for the election.
The Treasury Secretary conveyed this to the election body’s chairman, Nimal G. Punchihewa during a meeting held today (Feb 17) between the Election Commission and Finance Ministry officials on funding the upcoming LG polls.
Earlier this month, President Ranil Wickremesinghe, in his capacity as the Minister of Finance, Economic Stabilization and National Policy, instructed the Treasury Secretary to provide funds only for essential public services.
Accordingly, the list of expenditures to be funded includes salaries, debt servicing, pensions, medical supplies for hospitals, subsidies for low-income groups, scholarships, farmers’ pensions, school nutrition programs, payments for war heroes and disabled soldiers, utility payments, food supplies for hospitals and prisons, and others. The government stated that this move is expected to have a significant impact on the economy, as it will prioritize the most important needs of the people while also preventing the misuse of funds.
Finance Ministry officials, during today’s meeting, have pointed out that the permission of President Wickremesinghe, needs to be obtained in order to release funds to public institutions that are not listed under the ‘essential services’ category.
