IMF ready to listen alternative views, but Sri Lanka is on “knife edged path”: Mission Head

The International Monetary Fund (IMF) is willing to listen to alternative views in Sri Lanka’s loan program implementation steps, but the island nation is on a knife edged path and it could slip to a vicious cycle, the global lender’s Mission Head for Sri Lanka said.

The economic reforms under the IMF program have burdened the Sri Lankans with higher taxes, resulting in low disposable income for the public.

With Sri Lanka going for presidential polls later this year, President Ranil Wickremesinghe’s government is likely to slow down the implementation of the IMF reforms, government officials have said.

An IMF mission was in Sri Lanka for the second review of its $3 billion, 4-year loan and met officials from the government, opposition, and civil society organizations.

Peter Breuer, the IMF Senior Mission Chief said they got many proposals during their discussions,

“With respect to the election, yes, we heard many different proposals,” Breuer told reporters in Colombo at the conclusion of the second review of the program.

“For us, what is absolutely key is that the program objectives are achieved. Because, with those, Sri Lanka has a chance of emerging from the crisis. That path is a knife edged path.”

Many political parties including the ruling Sri Lanka Podujana Peramuna (SLPP) want to reduce the tax burden faced by the people.

Higher taxes have made Wickremesinghe’s government unpopular among the voters.

The IMF mission met many groups this time including main opposition Samagi Jana Balawegaya (SJB) and Marxists Janatha Vimukthi Peremuna (JVP) who have promised to renegotiate Sri Lanka’s deal with the IMF.

“KNIFE EDGED”

Breuer, however, warned the country could go back to crisis again if the reforms are not sustained.

“We acknowledge in our press report that the green shoots we see for the economy that’s the beginning of the virtuous cycle and we have to keep it there,” he said.

“It’s knife edged and could easily go back to the vicious cycle and that’s what we want to prevent.”

He said alternative proposals should not deviate from the original goals of the programs including fiscal and economic reforms.

“We are willing to listen to alternative suggestions of how the program objectives can be reached and these must be realistic and achievable within the time frame of the program,” he said.

“The program is the result of robust discussions that we had in the summer of 2022 and since then at the periodic reviews we have been looking at progress under the program.”

“I would argue that it is quite well thought out but of course we are willing to take alternative views. The important part is that the hard won gains of the Sri Lankan people over the past two years are not unravelled.”

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PAFFREL concerned over proposal to amend electoral system, warns of election delay

The elections are likely to get postponed if the proposals put forward to amend the parliamentary electoral system are not properly implemented, the People’s Action for Free and Fair Elections (PAFFREL) has said, raising concerns about the Cabinet of Ministers green-lighting a proposal in this regard.

Acknowledging the need to revise the country’s electoral system, the executive director of the election watchdog Rohana Hettiarachchi, however, highlighted the importance of finalizing the delimitation process before any changes are to be made to the parliamentary electoral system.

“But if the delimitation process is not concluded even if the electoral system is revised by August, it is imperative that this draft bill incorporates an amendment that allows the Election Commission to conduct the polls pursuant to the existing electoral system,” he added.

Hettiarachchi also referred to the past instances where the local government and provincial council elections were compelled to be postponed as a result of the delays in finalizing the delimitation process.

As per a recent Cabinet decision, necessary laws are to be drafted to amend the electoral system to elect 160 MPs directly from the voters of the respective constituencies, also known as the First-Past-the-Post (FPTP) system, and for the remaining 65 MPs to be elected according to the proportional voting system at the national or provincial level.

The government said the need to revise the current electoral system was identified in order to meet the objectives of the Election Expenses Regulation Act No. 3 of 2023 and to achieve a fully democratic election.

Accordingly, a Cabinet sub-committee was appointed to ask the views of all party leaders and other relevant parties representing the Parliament and submit a report to the Cabinet with relevant recommendations.

Suggestions have been presented to the committee to elect 160 MPs directly from the voters of the respective constituencies and the remaining 65 MPs to be elected at the national or provincial level according to the proportional voting system and the agreement of the majority has been received for this, the government said further.

The proposal had been tabled by Minister of Justice, Prison Affairs and Constitutional Reform Wijeyadasa Rajapakshe.

“Absolute power corrupts” Receiving a huge mandate turned out to be a problem for us

Sri Lanka Podujana Peramuna (SLPP) stalwart Basil Rajapaksa, who recently returned to the country in time to face a possible election heat, in an interview with the Daily Mirror said that following the collapse of the Gotabaya Rajapaksa Government, he and his brother Gotabaya do not get into each other’s way. Basil also said that he had requested from President Ranil Wickremesinghe not to deal with SLPP members individually bypassing the party hierarchy.

Following are excerpts of the interview:

We also requested the President not to deal with our members individually bypassing the party hierarchy.

The mere fact that we received an overwhelming majority at the election turned out to be a curse at the end.

Whenever a government gets the absolute majority anywhere, it collapses sooner than expected.

The more members you have the greater the problems you get.

Now, there are even more draconian pieces of legislations being enacted. If we had brought such laws, all hell would have broken loose.

I did not get the book (the one penned by President Gotabaya Rajapaksa) even. I did not bother to find a copy and read.

What happened at the end was a concentration of too much power.

I did not get the book (the one penned by President Gotabaya Rajapaksa) even. I did not bother to find a copy and read.

There is no need for me to read his book now because the content has been communicated to me by journalists

I can give him (Namal) something if I have any. Otherwise, how can I offer? In history, King Sirisangabo gave away everything including his children. He could do so because he had everything. What can I give Namal? I don’t have anything in the party. Namal should earn it

I have informed (about my retirement) actually. Still, I am not allowed to quit politics. I don’t hold any responsibility in the government. Also, I don’t hold any post in the party. Still I am not allowed to stay away from politics

When I met Indian Prime Minister Narendra Modi once, we talked about palm oil cultivation. At that time, the Russia-Ukraine war had started. Ukraine was the key supplier of palm oil to India. Mr. Modi told me that Sri Lanka had been seen as one of the three best countries in the world for growing palm oil. He sought to cultivate palm oil under a buyback agreement for 35 years

In the run up to the 2020 election, even the Election’s Commissioner asked me whether my party was going to get two-thirds. I told him I would be happy to get 130-135 seats instead of 150. That is because absolute power can lead to various other problems. Too much concentration of power is not helpful

Q:President Ranil Wickremesinghe appeared to have declined to entertain your request for a snap General Election. Won’t this lead to a rift between your Sri Lanka Podujana Peramuna (SLPP) and the President?

I am yet to present this idea to the President formally. When I meet him today, I will do it. I have mooted this idea now. Otherwise everybody is of the opinion that the Presidential Election should be conducted first. However, we won’t leave any room for a rift between the SLPP and the President over this matter.

Q:Again, the Cabinet approved a proposal to draft legislation to change the parliamentary electoral system. Will your party extend support to it?

I cannot commit on it at the moment because we, as a party, are yet to see the proposal. I learnt about it from you only. Let’s see the proposal first and see to it.

Q:How can you say you are not aware of it when the Cabinet comprises some SLPP MPs?

The Cabinet does not comprise mostly of our members. Even our members have not notified us so far.

Q:How are you getting ready for the elections now?

We faced ups and downs. Despite upheavals at times, we re-emerged and managed to stay afloat. We will face the elections with vigor again.

Q: When you met the President last time, what did you actually discuss about the elections?

We did not discuss a single thing about the elections. However, we said that the SLPP, as a party only, should take a decision whether to support the President at future elections. Otherwise individual members of the party should not decide. We also requested the President not to deal with our members individually bypassing the party hierarchy.

Q:Some members who were elected on the SLPP ticket are in touch with the President. For example, the MPs such as Nimal Lanza and Prasanna Ranatunga deal with the President directly bypassing the party. Is that the reason for you to make such a request?

Yes, we cited it as a reason. However, the MPs such as Nimal Lanza have been directly in touch with the President for a long time. They openly supported the President at the parliamentary vote to elect him.
We only said it is always advisable to deal with parties, not their individual members.

Q:A number of reasons affected the collapse of the Gotabaya Rajapaksa Government. Some factors such as the pandemic are beyond your control. Yet, there are some other decisions that led to the downfall of the government. In your view, what was the biggest blunder?

I don’t know. In running a government, there are mistakes being done. Those mistakes lead to adverse results.

Q:I am asking about those reasons. What are they?

There are many. There are economic, political and social reasons. The mere fact that we received an overwhelming majority at the election turned out to be a curse at the end. That is also a reason for our downfall. Absolute power corrupts.

Q:You got a two-thirds majority. When you have such power, you can even change the Constitution. You can do wonders. It is ironic to say that such a majority was harmful to you. Isn’t it?

Whenever a government gets the absolute majority anywhere, it collapses sooner than expected.

Q: How did it happen in Sri Lanka? Did you lose grip on such a large group?

In world history, you find empires that wielded enormous power and authority. Such empires collapsed sooner than expected.

Q: In the current local context, it is convenient for you to pass laws when an absolute majority is there. Isn’t it?

The more members you have the greater the problems you get.

Q:At that time, you bulldozed your way and managed to get the 20th Amendment incorporated into the Constitution. Some people criticise you for it and cite it as the beginning of the end of the government. What is your view?

It is interpreted in different ways by various people. It may be the reason. Or it may not be the reason. Now, there are even more draconian pieces of legislations being enacted. If we had brought such laws, all hell would have broken loose. What would have been the reaction had laws such as Online Safety Act been brought by us? What would have been the scenario had we introduced privatization? What would have been the reaction had we increased VAT (Value Added Tax), electricity tariff and all?

Q:Are you opposed to the Online Safety Act and other laws introduced?

It is not a criticism driven against them. I can only say people would have reacted differently had we introduced them.

Q:Why did you fail to manage public opinion as a party that polled as many as 6.9 million votes?

Actually, our 6.9 million votes got reduced to 6.8 million at the 2020 General Election.

Q:Still, it was large enough to give your party a two-thirds majority in the House?

Such an overwhelming majority only turned out to be a problem for us. In the run up to the 2020 election, even the Election’s Commissioner asked me whether my party was going to get two-thirds. I told him I would be happy to get 130-135 seats instead of 150. That is because absolute power can lead to various other problems. Too much concentration of power is not helpful.

Q:You said that you didn’t read the book authored by former President Gotabaya Rajapaksa, who is your elder brother. I know you are a politician who reads a lot. Why didn’t you read this book?

I did not get the book (the one penned by President Gotabaya Rajapaksa) even. I did not bother to find a copy and read. There is no need for me to read his book now because the content has been communicated to me by journalists.

Q:You didn’t get a copy of the book because you lost touch with your brother, right?

We don’t get in each other’s way

Q:What is the role for him in politics now?

He (Gotabaya) is prepared to lead a quiet life devoid of politics. Even I want to live such a life. But I am not left to myself. Now I am an old person.

Q:Are you speaking out your heart?

I am speaking fully with my heart.

Q:You can easily announce it to the party and step down. Why don’t you do it?

I have informed (about my retirement) actually. Still, I am not allowed to quit politics. I don’t hold any responsibility in the government. Also, I don’t hold any post in the party. Still I am not allowed to stay away from politics.

Q: Yet, I noticed even today that some ministers came to meet you. Why do they come to see you if you are a nonentity?

That is the thing. I don’t know.

Q:These days, we see MP Namal Rajapaksa, who is your nephew, travelling across the country meeting people and community leaders. He seems to be preparing for the party leadership. He is clad exactly like his father, former President Mahinda Rajapaksa. Are you trying to quit making way for him to take over?

There is nothing for me to offer him (Namal). The party will decide at the right time. I don’t hold any position in the party.

Q:It means the SLPP leadership position is cleared for him now?

I can give him (Namal) something if I have any. Otherwise, how can I offer? In history, King Sirisangabo gave away everything including his children. He could do so because he had everything. What can I give Namal? I don’t have anything in the party. Namal should earn it.

Q:How challenging is it for you to sustain the legacy of Mahinda Rajapaksa in his absence one day?

It is an issue for me. In the world, it has always been challenging to fill the vacuum left behind by the absence of a leader with towering personality. We find examples in our own history. It had been challenging for the successors to fill the vacuums created after great kings Dutugemunu and Parakramabahu.
Once a school principal with great, outstanding caliber retires, it is challenging for his successor to live up to expectations. In cricket, once legendary openers retire from the field, others find it difficult to fit in. People always compare newcomers with their predecessors.
I have done politics for more than 50 years. I have never ever faced such a challenging situation. This is the first time I am facing such an uncertain situation. The same goes for the country too.

Q: Earlier you said the absolute majority you got turned out to be a curse at the end. But, public perception is that too much involvement of the family members triggered the downfall. What is your response?

People only elected a number of Rajapaksa family members to Parliament representing districts such as Matara, Hambantota, Moneragala, Kurunegala and all. When you get unlimited power, it becomes a problem.

Q:You mean to say that the involvement of too many Rajapaksa family members also contributed to the failure at the end?

What happened at the end was a concentration of too much power. That is not good.

Q:You cannot put the blame on people for the election defeats of Rajapaksa members. You are the one who gave nominations to all these family members, didn’t you?

We gave nominations to many others too. But, the people have elected whom they wanted.

Q:Who advised Mr. Gotabaya Rajapaksa to ban chemical farming at a time when there was a looming food crisis?

I don’t know about it. A leader may consult others before making a decision. Once a decision is made, he should take the responsibility.

Q:You are familiar with rural economy and agriculture economy. Didn’t you as a responsible member of the government realise the gravity of such a decision?

When I met Indian Prime Minister Narendra Modi once, we talked about palm oil cultivation. At that time, the Russia-Ukraine war had started. Ukraine was the key supplier of palm oil to India. Mr. Modi told me that Sri Lanka had been seen as one of the three best countries in the world for growing palm oil. He sought to cultivate palm oil under a buyback agreement for 35 years.
I humbly refused it saying Sri Lanka stopped such cultivation over environmental reasons. Mr. Modi did not counter it. Instead, he changed the topic to sunflower cultivation.
Before making a decision, I can advise the leadership. If the decision is eventually taken, then the leader should take full responsibility.

No-confidence motion against Speaker defeated in Parliament

The vote on the no-confidence motion against Speaker of the Parliament Mahinda Yapa Abeywardena, was defeated in the Parliament today (March 21), following a three-day debate.

The Speaker survived the no-confidence motion, moved by the Samagi Jana Balawegaya (SJB), by a majority of 42 votes.

A total of 117 lawmakers had voted against the motion while 75 voted in favour.

Accordingly, Mahinda Yapa Abeywardena will continue to function as the Speaker of the Parliament of Sri Lanka.

The third day of the parliamentary debate on the no-confidence motion against the Speaker commenced at 09.30 a.m. this morning.

The parliamentary debate on the no-confidence motion tabled by the Samagi Jana Balawegaya (SJB) was initially slated to be held for two days, however the Committee on Parliamentary Business later decided for it to be debated for three consecutive days.

The debate commenced in the Parliament on Tuesday (March 19).

The motion brought forth by the opposition against the Speaker was officially handed over to the Deputy General Secretary of Parliament on March 05.

It had been signed by 44 parliamentarians including Opposition Leader Sajith Premadasa, Chief Opposition Whip Lakshman Kiriella and MPs Prof. G.L. Peiris, Rohini Kumari Wijeratne, Hesha Vithanage, Mano Ganesan, Rishad Bathiudeen, M.A. Sumanthiran, S.M. Marikkar, Ranjith Madduma Bandara, Thalatha Atukorale, Vijitha Herath and Chandima Weerakkody.

The no-confidence motion alleges that the Speaker had ignored the Supreme Court’s recommendations pertaining to Sections 13, 17, 20, 33 (6), 34 (1), 35 (1), 21, 22 and 33 of the Online Safety Bill.

The Speaker is also accused of allowing the third Reading of the Online Safety Bill to be passed without a vote and disregarding the Chief Opposition Whip’s call for a division at the Committee Stage.

Further, the opposition MPs claim that the Speaker had ‘unconstitutionally and unlawfully’ used his decisive vote to affirm the appointment of IGP Deshabandu Tennakoon when the other members of the Constitutional Council were divided on a tie on the matter. It was reported that four members had voted in favour of the appointment while 2 voted against and 2 others abstained. However, considering the 2 abstentions as votes cast against, the Speaker had used his vote as the deciding vote to go ahead with the appointment, they allege.

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NPP Leader Anura Kumara Dissanayake Heads to Canada to Engage with Diaspora

National People’s Power (NPP) leader, Anura Kumara Dissanayake, is set to depart for Canada today, as confirmed by party sources.

His visit aims to engage with the Sri Lankan diaspora residing in Canada. Dissanayake’s itinerary includes addressing two meetings organized by the NPP Canada Committee on March 23 and 24, along with meetings with the Sri Lankan Muslim and Tamil diaspora communities in Canada.

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Sri Lankan Authorities Detain Hindu Worshippers -HRW

Eight Tamil Hindu worshippers arrested by Sri Lankan police while engaging in festival rituals last week were detained for more than 10 days and allegedly abused. A magistrate released them on March 19.

In recent years, Sri Lankan government authorities and nationalist Sinhala Buddhist monks have been targeting Hindu as well as Muslim religious sites in the country’s north and east in violation of the right to freedom of religion and belief, among other basic rights.

The eight were arrested at the Veddukkunaari temple near Vavuniya, a Hindu shrine that Buddhist monks, backed by the government’s Department of Archaeology, say is an ancient Buddhist site. It is one of numerous temple sites in northeastern Sri Lanka claimed by nationalist Buddhist monks, frequently with the support of government agencies and the security forces.

The Vavuniya magistrates court had earlier ruled that the rituals for the festival of Shivaratri, the principal festival day of the god Shiva, could go ahead at Veddukkunaari. However, on the evening of March 8, police arrived and assaulted worshippers, including an opposition member of parliament. Rights activists told Human Rights Watch the detainees said they were beaten in custody, for which the court requested a medical report, and their families denied access to them for the first three days. On March 19, the authorities’ allegations were dismissed at their third court appearance.

Hindu worshippers consider the Veddukkunaari site to be an ancient Hindu shrine. The Archaeology Department had claimed that the worshippers damaged antiquities, while the police contended that arrests were made because small ritual fires posed a hazard. Similar Hindu rituals have been conducted at Veddukkunaari for many years.

Buddhist monks, accompanied by soldiers, had gone to the site in February and said that a shivalingam, a typically stone cylindrical symbol worshiped by Hindus as a representation of Shiva, had recently been installed. Hindu symbols and idols there were damaged and destroyed in 2023, while the military and archaeological officials have been attempting to block Hindu worshipers from the site since at least 2018.

The Sri Lankan government should publicly direct the Department of Archaeology to end its discriminatory interference in Hindu sites and order the police and other security forces to uphold the rights of Hindus and other minority communities.

Sri Lanka Allows Foreign Ships To Restock At Its Ports After China Protest

Sri Lanka has said it will allow foreign offshore research ships for replenishments at its ports despite a one-year ban on such vessels, a senior official has said after China protested to Colombo for allowing a German survey ship but turning down Beijing’s similar request.

This is the first time Sri Lanka has officially admitted that foreign research vessels will be allowed for replenishments since President Ranil Wickremesinghe’s government imposed a one-year ban on offshore research vessels in December last year after strong security concerns raised by India and the US following the visit of two Chinese high-tech research vessels in 14 months.

“The ban on foreign ships is for research purposes, not on replenishment,” the Economy Next portal quoted Niluka Kadurugamuwa, Sri Lanka’s Foreign Ministry Spokesman, as saying.

Sri Lanka Allows Foreign Ships To Restock At Its Ports After China Protest
Chinese research ship Shi Yan 6 arrived in Sri Lanka in October 2023.

Colombo: Sri Lanka has said it will allow foreign offshore research ships for replenishments at its ports despite a one-year ban on such vessels, a senior official has said after China protested to Colombo for allowing a German survey ship but turning down Beijing’s similar request.

This is the first time Sri Lanka has officially admitted that foreign research vessels will be allowed for replenishments since President Ranil Wickremesinghe’s government imposed a one-year ban on offshore research vessels in December last year after strong security concerns raised by India and the US following the visit of two Chinese high-tech research vessels in 14 months.

“The ban on foreign ships is for research purposes, not on replenishment,” the Economy Next portal quoted Niluka Kadurugamuwa, Sri Lanka’s Foreign Ministry Spokesman, as saying.

“There was a German research vessel recently for replenishment and Sri Lanka allowed it,” he said.

Chinese Embassy in Colombo has raised strong protest against the move to allow a German research vessel to dock at a port early this month after Sri Lankan authorities turned down a request from Beijing for a research vessel in February.

Diplomats have told the Economy Next that the strong Chinese protest was also because Sri Lanka’s ban was implemented after Indian pressure.

When the ban was announced, the government failed to specifically reveal its stance on requests for replenishment or crew change for foreign research vessels.

Sri Lanka is in the process of introducing an SOP (Standard Operation Procedure) for handling foreign research vessels.

Two Chinese spy ships were allowed to dock in Sri Lanka ports within 14 months through November 2023, with one called for replenishment and the other for research.

Chinese research ship Shi Yan 6 arrived in Sri Lanka in October 2023 and docked at Colombo port, for what Beijing cited as “geophysical scientific research” in collaboration with the island nation’s National Aquatic Resources Research and Development Agency (NARA).

In August 2022, Chinese navy vessel Yuan Wang 5 docked at Hambantota in southern Sri Lanka for replenishment.

Both drew strong protests from India citing security concerns in the Indian Ocean. There were apprehensions in New Delhi about the possibility of the Chinese vessel’s tracking systems attempting to snoop on Indian defence installations.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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Sri Lanka to sign “sister district” deal with China’s Chongqing for investments

All Sri Lankan districts including in the island nation’s North and East will sign a “sister district” deal with China’s Chongqing province for investments and improve production capacity, State Minister of Social Empowerment Anupa Pasqual, said.

Sovereign debt defaulted Sri Lanka has been looking to attract investments into grass root level across the country and the island nation has been in discussion for “sister district” concept with China’s Chongqing, which has around 33 million population.

Minister Pasqual said Prime Minister Dinesh Gunawardena during his Chinese visit last year has already entered into an agreement to link one of the Chongqing’s district with the island nation’s Western coastal district of Kalutara as a “model project”.

“There are 40 districts in Chongqing province. As a trial, we have signed agreement with one of the districts and Kalutara district. When the project goes on, Sri Lanka’s other 24 districts also will enter into agreements with other districts of Chongqing and become sister districts,” Pasqual told reporters at a media briefing in Colombo on Wednesday (20)

“We are doing one by one. It is not practical to do all simultaneously. We have chosen Kalutara as a model district.”

Sri Lanka’s effort to link with Chinese provinces in the past has not succeeded in a significant way, political analysts say.

Pasqual said Prime Minister Gunawardena will discuss on the sister district concept when he visits to China later this month on an official visit.

“The aim is to strengthen the production capacity and attract more investment,” he said.

“We expect investments and vocational training from China.”

According to government officials, China has been keen to start projects in many sectors including agriculture, fisheries, and small and medium industries at grassroot level.

“We are doing some special projects with China’s Chongqing region. Under the One Belt, One Road, Prime Minister last year had discussions for revival of villages,” the Minister said.

“We had three agreements between our ministry and Chongqing province. We had agreements with 33 vocational training institutes. Also we signed an agreement with Three Gorges institute.”

“We have already signed agreement for 100,000 Sri Lankans to undergo vocational training. According the agreement we signed with Three Gorges, it will establish a new branch in Sri Lanka next month to provide vocational training for 100,000 people.”

What Gota did not tell -FT.LK

Sri Lanka is grappling to balance between the reforms required to extricate the country out of its economic collapse whilst ensuring minimum disruption to households, but the data does not reflect the same. Seven million people are in poverty as per research by LIRNEasia.

According to the Department of Census and Statistics, 53% of children’s education is disrupted with 44% of them struggling to buy their stationary, whilst 108,330 micro and small enterprises have shut down. It is also reported that 544,488 households have not paid their electricity bills resulting in the supply being disconnected, resulting in a challenging situation at grassroot level.

In this backdrop, we see the book launched by former President Gotabaya Rajapaksa titled ‘The Conspiracy’, which goes into an ideology on why he believed he was ejected out of the hot seat. However, the book fails to capture the analysis on the bad decisions made during his tenure that led to the economic crisis and what Sri Lanka and the world can learn. I also did not see any key insights as to why such decisions were made that can be amazing learning points for future leaders to be cognisant of.

Supreme Court ruling

For perspective, let’s revisit the most neutral analysis done on the economic crisis and the verdict given. In a landmark decision by the Supreme Court of Sri Lanka, a ruling was given by a five-bench eminent panel stating that former President Gotabaya Rajapaksa, the then Finance Minister, two Central Bank Governors, the President’s Secretary, and Monetary Board Members at that time had violated the public trust and breached Article 12(1) of the Constitution in their governance of financial matters, leading to the economic crisis in the country.

The key observations highlighted by esteemed Supreme Court judges, as reported in the media, emphasise that the respondents significantly contributed to the circumstances that led to the situation. They were expected to be aware of these issues and take proactive steps to address them, rather than exacerbating the adverse effects on the economy.

Public officials are entrusted with the duty to fulfil their obligations in the public’s best interest. The Respondents, entrusted with significant authority to maintain public trust, are obligated to execute their duties in accordance with constitutional directives. They cannot evade responsibility by simply categorising their decisions as policy choices. The Respondents were aware of the prevailing circumstances and had a duty to avert potential disasters. Regrettably, they failed to take appropriate actions in the public interest to rectify the situation. Ultimately, their inaction contributed to the economic crisis.

The 119-page judgement was conclusive, but the main question asked by many was what action can be taken from the Respondents today, as there are seven million in poverty, 73% of the population have only two meals a day, and 108,380 companies have shut down. A point to note is that we hail the five people from civil society who decided to fight the system and bring to book the people who were responsible for the economic collapse in Sri Lanka. I guess a few good men still exist that are willing to fight for a righteous society.

The conspiracy ideology

In this backdrop we have a totally new perspective that has been given by the former President Gotabaya Rajapaksa announcing the publication authored by him titled ‘The Conspiracy to oust me from the Presidency’. This presents an alternative viewpoint regarding the events leading up to Sri Lanka’s current dire economic situation, and highlights that despite the nation’s experience during the 30-year war with the LTTE, the current economic crisis stands as one of the most severe challenges ever faced by the country.

Gotabaya Rajapaksa stated in his book that Sri Lanka faced significant foreign intervention following his victory in the war against the Liberation Tigers of Tamil Eelam in 2009. He further asserts that since his election as President in November 2019, both foreign and local entities had intentions to remove him from power.

He goes on to say, “The entirety of my two-and-a-half-year tenure in power was spent combating the COVID-19 pandemic that swept through Sri Lanka and the whole world shortly after I took office. Thereafter, conspiratorial forces commenced the political campaign to oust me from the Presidency at the end of March 2022. This occurred at a time when the pandemic had been brought under control, the vaccination campaign concluded and the economy starting to show signs of recovery.”

The statement also highlighted that foreign intervention and the manipulation of internal politics have become prevalent in Sri Lanka in a manner unprecedented during the first 60 years of independence. “The political campaign aimed at removing me from office introduced a new dynamic into Sri Lankan politics, which, since independence, had only witnessed peaceful transfers of power following elections. Therefore, the events of 2022 carry significant implications for the future of the country.”

What the book explains was the first-hand experience of an internationally sponsored regime change operation, prompting a closer examination of what was left unsaid in “What Gota did not tell.”

What Gota did not tell

There is no reference to the Supreme Court’s decision that came after a careful deliberation of the five-bench Supreme Court panel on who was responsible for the economic collapse in Sri Lanka.

The 119-page deliberation is directed to three reasons why the economic crisis happened: the tax break that cost the Treasury Rs. 681 billion, the decision on the payment of the $ 500 million ISB, and the delay in going to the IMF led to Sri Lanka having to declare bankruptcy.

Sadly, the book titled, “The Conspiracy to oust me from the Presidency” does not give us any insights to the logic of these decisions that the landmark judgement pointed to. Whilst it’s interesting to hear the former President’s side of the story, it is an ‘internal’ point of view that is academic in nature without the support of facts. The book does not give the logic for the three questionable decisions that led to the economic collapse. What Sri Lanka requires is depth of analysis and not just rhetoric. For instance, we talk of a system change that the current president highlights post his appointment but we don’t take actions that support this rhetoric.

Sri Lanka yet to learn

Let’s do a deep dive on the Budget 2023 implementation progress. As per the study done by Verite, 68% of the projects in the Budget 2023 that was passed in Parliament has no data to demonstrate a movement forward whilst 48% of the projects had zero data to show progress.

A deeper analysis revealed that of 25 key projects that had an allocation of over Rs. 49.3 billion, there was no data on the impact. There was an accountability issue and responsibility which is very sad for a country trying to grow out of the economic crisis. Going into the specifics of the report if I may take one such budget proposal ‘Developing export processing zones’. This has been in successive budgets way back as 2014, but has not been implemented for years. Though we talk of system change, how is it that such proposals were included in the 2023 Budget and not acted upon when the IMF very clearly says that Sri Lanka needs to come out of the economic collapse by driving exports via a manufacturing approach. But what we see is just rhetoric to this challenge rather than a much talked about ‘reform agenda’.

Verite Research goes on to state that in the organisation’s history of reviewing budget proposals since 2017, the worst performing year has been 2023 which does not augur well for a country fighting to recover. But sadly, we have not captured why such badly implemented Government action plans have not happened, and what are the lessons for 2024.

Pragmatic reform

Another classic case in point where pragmatic reforms were not seen and only rhetoric we see in the media was where it was reported that the Ceylon Electricity Board had made a Rs. 61.2 billion profit in 2023. As a group, a profit of Rs. 75.7 billion was made with the other investments as per the unaudited interim financial statements for the year ended 31 December.

The question that everyone is asking is how the CEB was allowed to make profits as a state-owned entity that exists to serve the people of Sri Lanka where almost 800,000 people’s electricity connections were disconnected due to the non-payment of bills.

The private sector was crying out that their businesses were not viable financially due to the escalating cost of electricity that was said to be highest in South Asia. Some companies were relocating their businesses to other parts of South East Asia especially in the sectors like Apparel. How could the policy makers not understand the reality and not take action to readjust the electricity prices? Is this the policy reform that the President advocates to build the economy that was the talking point at a ‘business conference’ last week?

Conclusion

Whilst it’s interesting to read the many books that authors release in Sri Lanka on a weekly basis, the only lingering thought regarding the book by the former President is ‘What Gota did not tell’. Perhaps the second edition will address this aspect.

Tense situation in Parliament due to protest by Tamil MPs

Tamil lawmakers launched an impromptu protest during a parliamentary session in Colombo earlier today, calling on the Speaker to summon the Inspector General of Police and seek redress over the arrest of eight Tamil devotees who were attempting to pray at Vedukkunaari earlier this month.

The parliamentarians brought out placards as proceedings came to a standstill. MP Charles Nirmalanathan said “police have filed fabricated charges against these individuals”.

“We want all eight of them released,” he demanded

The leader of the Opposition Sajith Premadasa also joined the Tamil lawmakers and raised his concerns over the illegal arrests.

“We are raising a serious matter,” shouted Premadasa. “Representatives of the North are here to make a statement. The right to religion is a fundamental right. The freedom to practice the religion is the same be it for the South or the North.”

SLPP MP Prasanna Ranatunga retorted by stating that “the opposition leader is coming here to put on a show”. Premadasa is a staunch Sinhala Buddhist nationalism, who has previously vowed there would be “no room for separatism” and pledged to boost Sri Lanka’s defence spending. His party has seen a raft of senior military officials, including those accused of war crimes, joining in recent months.

Amidst the commotion, the speaker responded to the MPs by telling them he would take relevant action.

The Speaker responded, “I’ve already given a response, that we will look into the matter. What more can I say? I cannot help it if you could hear what I said. A lot of people are here to put on a show.”