Ranil’s Latest Decoy: 13A By Vishwamithra

“If the ruler wants to play the game by himself and follow secret policies, he must present a decoy to the masses. He cannot escape the mass; but he can draw between himself and that mass an invisible curtain, a screen, on which the mass will see projected the mirage of some politics, while the real politics are being made behind it.” ~Jacques Ellul

The stirring of the leaves in the woods and their dancing to the melodious breeze would vanish in a little while. A rainstorm is imminent. What it takes away with the branches and trees could be anyone’s guess. Yet the fragrance of fresh raindrops on earth would continue to linger on for discerning men and women to relish. The aftermath of heavy and mighty rainfall has its own intrinsic merits; it’s a harbinger of even better things to come; with the dawn of the sun next morning, the dew that shields the plain green grass will evaporate in a flash. Yet another day begins. That is precisely how the cycle of human endurance spins.

In that ceaseless spinning cycle, Sri Lanka is wedged right in the middle, willy nilly consuming itself like a greedy python trying swallowing an oversized chicken as its day’s supper. Demand for restructuring of our debts is the focus of discussion. International Monetary Fund (IMF) has its own demands and the pressure buildup is seemingly intense. Belt-tightening is becoming functional without finding its articulation by the government’s politicians. Daily shopper carries many a testament to painstaking and frugal living. Politics as usual has adopted its own lewd stance; it has occupied its own exclusive space and those who do not wish to be disturbed by the vagaries of this unkind enterprise are involuntarily heaved into its deepest bottom.

Sri Lanka today has become the most visible and shameless panhandler of Asia. With a promising future in the early nineteen fifties, Ceylon’s economy ranked second only to that of Japan. Now, even Bangladesh and Nepal are ahead of us. Her rich and flashy coastlines have become the roaming grounds for day-to-day tourists who are in the lowest layer of these wandering men and women from the West. They are looking for the cheapest hotels, cheapest food and cheapest entertainment.

Marauding thugs who also happened to be politicians embarrass the country as well as themselves when they come across beautiful white-complexioned women on the roadside and an incident which saw one of our southern politicians ran after such a pretty visitor with a handgun is still in our memories. The cultural decay was manifestly tearing apart the drapery of our society; socially what was considered first-class and affluent have been exposed beyond recognition and alleged killings of mega players in the business world has shocked an otherwise dispirited wealthy class. At various MacDonald’s restaurants, one can see the gulf glaring in your face. While in a designated area reserved by a wealthy parent the kids of those wealthy parents dance to the tunes of modern day Rap music; outside, hanging on to the window, children of a hapless parent look on, every inch of their being burning with envy and hatred with an unanswered question: why can’t we have the same fun?

Then the economic collapse arrived. Like an old wound oozing its corrupt mixture of puss and blood, the economy first began the bleeding until it reached the unenviable stage of bankruptcy. A national tragedy of massive proportion occurred and yet the politicians would not care a damn. They were still wandering in the wilderness of ill-gotten wealth and comforts.

Ranil Wickremesinghe understood the underlying dynamics of this crisis. He became the president of the country, virtually has no one to account to. He was not elected as a result he is not answerable to the electorate. He has two more years to govern by virtue of the powers of a parliamentary selection. However, he can only go on exercising those powers as long as the Pohottuwa group of parliamentarians wishes.

Into this mixture of political chaos only fell the local government election. Ranil saw a way out of this mix and emerge as a winner. In the 1956 General Elections, the United National Party (UNP) was led by Sir John Kotelawala. He was second only to Ranil Wickremesinghe as the leader of the UNP. SWRD Bandaranaike floated his election campaign purely on cultural grounds. A ‘place in the sun’ for the ‘Common Man’, Sinhala to be made the official language in 24 hours and great emphasis on Buddha Jayanthi Celebrations were the leading banners during the campaign. Buddhist Monks led the campaign and SWRD was victorious. The polarization along ethno-language lines so created by SWRD and his Buddhist Monk was so deep and inerasable, it exists even today, especially after the 30 year old war and irrevocable division between Northern Tamils and Sinhalese living south of Vavuniya. No economic issue was even highlighted during the campaign.

Today it’s the total opposite. What’s utmost in the minds of the Lankan voter is the economy. It is warfare for the parents to feed the children; it’s a battle for the car owners to pump petrol or diesel for their vehicles; it’s a struggle for the small boutique owners to sustain their businesses at the exorbitant costs of their supplies.

Coming back to the local government elections scheduled for March 9, the most obvious difference between the ‘56 elections and this LG election is, while the ’56 election was exclusively on a sociocultural platform, this one is basically on an econopolitical one. More than six months have elapsed since Ranil assumed Presidency. To date these six months have hardly produced any tangible advantages to the majority of the population- middleclass and the lower middleclass and poor class.

Ranil being a shrewd and cunning politician, being the nephew of old JRJ, has decided to resort to whatever means available for him to distract the voting majority from the economic crisis. He wanted any other polarizing subject to dominate the national conversation. What other subject is there other than the Sinhala-Tamil division.

By declaring interest in the full implementation of the 13th Amendment, Ranil introduced another pivotal subject into the voter’s mindset. Away from the current economic hardships, a socioculturally volatile and politically susceptible people would always seek refuge in a fake patriotism. It is not only leaders, followers too tend to go along this treacherously devious path in order to satisfy themselves that they committed no wrong at the eleventh hour if their patriotism is called into question.

Ranil very cleverly found that secret weapon; his aim is not to serve the people; he simply has no concept of service of man, on the contrary, what he has is service of self. Blinded by and utterly delusional in self-serving visions, our current President is one master in deception, depravity and decadence.

13th Amendment to our Constitution is quite a controversial matter. Discussion of its contents would bore the average non-Tamil/Muslim politician But its contents and non-implementation to the fullest extent possible by the Executive branch of our Government is much a provocative subject for out Tamil leaders. Devolving Land and Police powers to the provinces other than the North and the East would not be a bone of contention for our Sinhalese political leaders. But they seem to be dreading when these same powers are devolved to the North and the East. These are the after-effects of the ’56 revolution. SWRD’s destruction process of our body-politic is still continuing at alarming pace.

Nevertheless, during the recent Aragalaya period, that Sinhalese nationalism seemed to have gone into a coma. Ranil’s attempt to implement the 13A to the fullest is to reawaken a sleeping giant. That sleeping giant is Sinhalese nationalism. Unleashed to the most ruthless limit during the various racial breakouts in the fifties, sixties and seventies, Sinhalese nationalism bared open the oozing wounds in the Sinhala psyche. It had to reach a climax with a 30-year war, and being victorious seemed to be the answer. But we do not seem to have any empathy for our Tamil brethren. Racial détente along solid principles and a stable architecture seems far away from our Sinhala mindset.

However, Ranil Wickremesinghe playing the 13A card on the eve of a crucial local government election is another crudity of our kind of politics, exclusively to Sri Lanka. Only the National People’s Power (NPP) seems to be in favor of or neutral on the 13A. Samagi Jana Balavegaya (SJB), Maithripala Sirisena-led factions and Pohottuwa groups are totally against the full implementation of the 13A. Blasting rhetorical nonsense such as sovereignty of the nation, national security and territorial integrity would not resolve this issue. Nor would Ranil Wickremasinghe’s underhand political gimmicks offer any solution. We have come back to where we started.

*The writer can be contacted at vishwamithra1984@gmail.com

Central Bank rejects money printing claims

The Central Bank rebuffed the claims of money printing in recent times to settle government bills or even for the payment of interest payments of previous borrowings and pointed at the mostly successful bill auctions in which it managed to raise the full amount offered from the market itself.

Responding to a question on the subject, Central Bank Governor Dr. Nandalal Weerasinghe said he doesn’t see any signs of increase in reserve money expansion, the term used in economics for money printing.

Meanwhile, he also shrugged off concerns raised by certain sections for providing liquidity to the interbank market via term repos, which are aimed only at addressing short-term liquidity requirements of banks and thereby preventing upward pressure on the rates.

“In terms of the amount of reserve money expansion – which is the proper term for money printing – it in fact has shown a deceleration,” he told the media at the post monetary policy meeting press conference a fortnight ago.

He also said as the direct contributions to bill auctions became needless in the first few weeks of the year due to the auctions getting fully subscribed, reserve money expansion had also been curtailed.

During last two weeks the bill auctions went under-subscribed.

The reserve money increased by Rs.59, 020.14 million in the week ended on February 2, 2023 mainly due to the increase in deposits held by commercial banks with the Central Bank.

Certain sections interpret the increase in Central Bank’s total bill holdings as similar to printed money, but the Central Bank says there remains a difference between the two as increase in all such holdings doesn’t result in actual cash which comes into circulation.

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China leaves crisis-ridden Sri Lanka in the lurch to fend for itself

The economic and financial condition of Sri Lanka is very precarious at the moment. It has been facing the worst economic crisis since its independence in 1948. The Sri Lankan economy is going through a high rate of inflation, a shortage of essential commodities including fuel and medicines, and a depleted foreign exchange reserve insufficient for import cover of even a few weeks.

In FY 2022, its economy shrank and registered an economic growth of -11 per cent, i.e. the economy declined by 11 per cent. In this fiscal year, the economy is expected to further shrink by 3.5 to 4 percentage points, registering around -3.5 per cent to -4 per cent economic growth.

A number of factors are responsible for creating such a mess including poor policy decisions (such as tax cuts and banning the usage of chemical fertilizers), COVID-19 impact affecting the tourist footfalls and thus the forex reserves, a global slowdown adversely affecting Sri Lanka’s exports, amongst others. Compounded by the political mismanagement, cronyism and nepotism of the previous Rajapaksa rule, the crisis further worsened.

Currently, Sri Lanka is trying to reach a preliminary deal with the International Monetary Fund (IMF) for a sum of USD 2.9 billion to tide over the deteriorating economic condition. However, to avail of IMF facility assurances from its major creditors, namely China, Japan and India, is the precondition if Sri Lanka wants to obtain bridging finance from the market and other financial institutions like the Asian Development Bank and the World Bank.

In this regard, the International Monetary Fund (IMF) and the Paris Club have recommended that Sri Lanka’s debt restructuring should be carried over 15 years.

Following this recommendation in earnest, India decided to fully support the IMF’s debt sustainability analysis of Sri Lanka. India has extended a 10-year debt moratorium to Sri\ Lanka, with a debt restructuring period of 15 years.

While hailing India’s support, Sri Lanka was expecting a similar measure from one of its largest lenders which is China. However, what it has received is a mere damp squib as China has left Sri Lanka to fend for itself in this crisis period. This attitude of a country which claims to be a friendly nation to Sri Lanka is not only unbecoming of its economic prowess but is also reflective of its wily nature as China is highly complicit in bringing Sri Lanka to such a situation.

Contrary to IMF’s recommendation and regardless of India’s measures pertaining to Sri Lanka’s debt restructuring, China’s EXIM bank has offered Sri Lanka a mere 2-year debt moratorium instead of 10-year moratorium. This puts the IMF package of USD 2.9 billion to Sri Lanka in jeopardy due to Chinese debt moratorium conditions.

Between 2005 and 2015, China emerged as Sri Lanka’s leading source of FDI and development assistance. China saw the opportunity in investing in multiple mega infrastructure projects in Sri Lanka in order to gain a strategic advantage in the Indian Ocean region and to counter India’s heft in the South Asia region. On the other hand, Sri Lanka readily sought Chinese assistance given the quick disbursement of loans as well as indifference to Sri Lanka’s human rights record and domestic issues.

Sri Lanka owes more than USD 7 billion debt to China which includes loans from the Chinese Development Bank. If the private debt is included in this figure, the total debt will skyrocket even further. Moreover, these debts were given at unsustainably high-interest rates, owing to misgovernance and malfeasance by the Rajapaksa government.

Although several experts cautioned Sri Lanka against China’s salami-slicing strategy to entrap countries in a debt trap and gain territorial rights (for example, Sri Lanka had to lease its Hambantota port to China for 99 years after it became unable to service the USD 1.4 billion debt from Beijing it used to build it), however, Sri Lanka went ahead and led China to invest in several unsustainable projects. China preyed on Sri Lanka’s economic vulnerabilities, loopholes, and corrupt practices for its political and economic calculations.

When the debts became unserviceable on Sri Lanka’s part with its economic downfall, China shifted the blame to Sri Lanka for the depletion of its foreign exchange reserves and long-term economic mismanagement vis-à-vis unsustainable project proposals and borrowings.

Such a stance by China is not only unhelpful but smacks of its opportunistic behaviour. It is going to give further economic pain to the island nation which is already reeling under distress. Effectively, after using Sri Lanka for its own strategic gains, China has left Sri Lanka to fend for itself. This is a lesson to countries like Nepal, Bangladesh, Maldives and Myanmar to be wary of the repercussions before landing at China’s doorsteps for infrastructure and development funding.

Source: Colombo Gazette

German MP Dr. Peter Ramsauer visits Sri Lanka

German Member of Parliament Dr. Peter Ramsauer is scheduled to pay an official visit to Sri Lanka from 14 to 18 February.

The visit is of particular importance to the German-Sri Lankan bilateral relations since Dr. Ramsauer is Rapporteur for Sri Lanka and the Maldives in the Foreign Affairs Committee of the German Bundestag (Parliament).

Furthermore, this special visit falls in line with the 70th anniversary of diplomatic relations between Sri Lanka and Germany established in 1953.

Dr. Peter Ramsauer together with German Ambassador Holger Seubert will hold several high-level meetings in Colombo with senior members from the Government as well as with opposition representatives, civil society representatives, members of the press and other stakeholders.

To reflect on the long-standing partnership with Sri Lanka, Dr. Ramsauer will visit one of the most successful projects of German cooperation, the Ceylon German Technical Training Institute in Moratuwa. More commonly known as ‘German Tech’, the renowned institute was established back in 1959.

During the visit, Dr. Ramsauer is also set to travel to Galle to visit development projects funded by the German Government. He will be accompanied by his wife, the German Ambassador Holger Seubert and Deputy Head of Mission Olaf Malchow.

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Intimidation alleged in election-related printing work

Tactics of intimidation are allegedly being employed to delay election-related printing in order to postpone the local government polls, according to sources at the Government Printing Department.

Ballot papers are yet to be printed although they were to be dispatched to the districts today (14) in time for three-days of posting voting from February 22.

According to certain media, the government printer is coming under pressure to delay the printing, while a strike is being planned to disrupt the activity.

Unlike previous occasions, no police protection has so far been given for the printing process either.

However, senior official of the Department denied attempts were being made to delay the printing work.

Govt. blocks funding – Patali

Meanwhile, MP Patali Champika Ranawaka charged the government is now plotting to block funding for the election after failing in all its attempts to put it off for the 21st time.

Addressing a rally in Panadura, he said that unable to postpone the LG polls through parliament or the judiciary, the cabinet has now decided to halt funding to the Election Commission.

There are rumours that the commission was not getting the money to hold the election, he said.

No printing on credit, EC told

Meanwhile, the government printer informed the Election Commission yesterday afternoon that printing work cannot be done on credit.

The EC has estimated a Rs. 461 million cost for the printing purposes of the LG polls.

Its chairman Nimal Punchihewa said the matter would be raised at a meeting with party secretaries today.

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Local Government polls to be postponed?

In what seems to be an indication that the local government election may be postponed, the Election Commission Chairman Nimal Punchihewa has informed Party General Secretaries that it will not be possible to distribute postal vote ballot papers from tomorrow (February 15).

Samagi Jana Balawegaya (SJB) General Secretary Ranjit Madduma Bandara told Daily Mirror that the Polls Chief confirmed that the distribution of postal vote ballot papers scheduled to be distributed tomorrow had been halted.

“We told him not to go back on his word given to the Supreme Court. He assured the Supreme Court that the local government election will be held as planned and we told him to keep his word,” Madduma Bandara said.

“The polls chief also told us that he is not getting sufficient support from the Attorney General and indicated that he would refer the matter to the Supreme Court once again,” Madduma Bandara added.

UNP General Secretary Palitha Range Bandara said the polls chief has indicated that the election will not be held as scheduled.

“The Polls Chief confirmed that the government printers have informed him that ballot papers will not be printed until due payments are made,” he said.

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NO funds for ballot papers? Political groups say ‘Unacceptable’

Political Parties have said that it is unacceptable for authorities to claim they have no funds to print the ballot papers required for the upcoming Local Government Election.

The National Election Commission said on Monday (13) that the Government Printer has stated that if funds are not provided ballot papers will not be printed, posing a fresh hurdle to the upcoming Local Government Elections scheduled to be held on the 9th of March.

Opposition Leader Sajith Premadasa on Monday (13) tweeted that the government’s attempts to delay elections & subvert democracy are a blatant attack on all Sri Lankans’ rights & our nation’s integrity.

He said that democracy is not a privilege; it is a fundamental right.

“We will not stand idly by while the government undermines the people’s will and threatens our country’s future. We demand immediate action to ensure free and fair elections and the protection of our democracy,” he added.

General Secretary of the United People’s Freedom Alliance Thilanga Sumathipala said that failure to provide funds for an election that has already been announced is a violation of the country’s constitution.

He said that legal action can be instituted against state officials over the matter.

General Secretary of the Sri Lanka Freedom Party Dayasiri Jayasekera told News 1st that immediate legal action must be taken over such attempts.

S&P downgrades SriLankan Airlines bond to ‘D’

S&P Global Ratings has downgraded the SriLankan Airlines government guaranteed bond to ‘D’ from ‘CC’ after it failed to pay a coupon.

“The government of Sri Lanka, as guarantor, has also failed to make the coupon payment, upon the expiry of the 30-day grace period beginning Dec. 25, 2022,” S&P said.

“We lowered the issue ratings on the SLA 2024 bond to ‘D’ from ‘CC’ because both the issuer and government of Sri Lanka, as guarantor, missed a coupon payment of about US$6.1 million,” S&P said.

“This payment was originally due December 2022, and the grace period expired in January 2023.

“The bond, along with other international sovereign bonds (ISBs) that the government issued, will remain at ‘D’, pending the conclusion of current debt negotiations.

“Negotiations for the SLA bond may be separate from those on the government’s other ISBs. Our rating on all of these is ‘D’.”

Government asserts no money to hold election

The Government today asserted that it has no money to hold the Local Government (LG) election.

Cabinet Spokesman Bandula Gunawardena told reporters today that he had consulted the State Minister of Finance Ranjith Siyambalapitiya on the availability of funds to hold the elections.

Gunawardena said that Siyambalapitiya had informed him that the Government did not have sufficient funds at this moment to hold an election.

He said that the Supreme Court has also been informed about the situation.

The Election Commission had said yesterday that the Government Printer has not been paid the required funds to print ballot papers for the election.

The Government Printer has informed the Election Commission that it will not be able to print the ballot papers without receiving the funds.

The Local Government elections are scheduled to take place on 9th March.

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