Sri Lanka asks China for help with trade, investment and tourism

(Reuters) – Sri Lanka has asked China to help with trade, investment and tourism to help it grow sustainably, Colombo’s envoy to Beijing said on Monday as it negotiates for an emergency $4 billion package to help it emerge from an economic meltdown.

The island nation of 22 million people is suffering its worst economic crisis since independence in 1948 after running out of foreign reserves. Protesters angry about the shortages of fuel, food and medicine toppled the Rajapaksa ruling family.

Ambassador Palitha Kohona’s emphasis on China as a key to Sri Lanka’s economic recovery reflects Beijing’s status as one of Sri Lanka’s two largest foreign creditors, along with Japan. China also holds some 10% of Sri Lanka’s external debt,

In an interview with Reuters at Sri Lanka’s Beijing embassy, Kohona said Colombo wants China to ask its companies to buy more Sri Lankan black tea, sapphire, spices and garments and to make Chinese import rules more transparent and easier to navigate.

He said Beijing could also help by pouring further investment into vast China-backed port projects in Colombo and Hambantota. Major Chinese investment plans had not materialised because of the COVID-19 pandemic, Kohona said.

In addition, Sri Lanka would like to see more Chinese tourists, whose numbers fell from 265,000 in 2018 to almost zero after the 2019 suicide attacks and the pandemic.

Kohona said new Sri Lankan President Ranil Wickremesinghe has plans to visit China to discuss cooperation on matters including trade, investment and tourism.

Wickremesinghe is no stranger to China. A photo of him shaking hands with Chinese President Xi Jinping when he visited Beijing in 2016 as prime minister hangs in the hallway of the embassy where Reuters interviews Kohona.

Kohona said he expects no fundamental change in the new government’s policy towards China.

He said he understands China is finding it hard to act quickly to help Sri Lanka now because as a major global creditor it is also financially exposed to many other countries in financial difficulty. “Maybe if it was only Sri Lanka, then the decision-making would’ve been much easier.”

For several months Sri Lanka had been in talks in China for a $4 billion aid package, consisting of a loan of $1 billion to repay a roughly equivalent amount of Chinese debt due this year.

It is also asking for a $1.5 billion credit line to pay for Chinese imports. Kohona said these imports are mainly inputs needed by his country’s lucrative garment industry such as buttons and zippers.

Sri Lanka also hopes to persuade China to activate a $1.5 billion bilateral currency swap.

Kohona said discussions on financial aid with China are still underway but no date for the next meeting has been set.

The Chinese foreign ministry said this month that Beijing is willing to work with other countries and international financial institutions to “play a positive role” to help Sri Lanka.

Beyond financial aid, Sri Lanka also hopes China can help it buy fuel, fertilizer and other urgently needed supplies.

China pledged 500 million yuan ($74.09 million) of emergency support for Sri Lanka in April and May. “We need a lot more,” Kohona said.

Source: Reuters

Posted in Uncategorized

Significance of July in recent Sri Lankan history By P.K.Balachandran

(Counterpoint): July has been a significant month in the recent history of Sri Lanka. Some of the major events which determined the trajectory of the island in recent times took place in July. The dramatic and ignominious end of the Gotabaya Rajapaksa Presidency took place in July this year. Gotabaya Rajapaksa would go down in history as the first Sri Lankan Head of State and government to flee from the country, that too, as a result of a public uprising. Adversity struck the winner of the war against the formidable LTTE when he was in the middle of his 5- year tenure. Mismanagement of the pandemic and the economy made a mockery of his claim of opening “vistas of prosperity” for his people.

It was also in July 2022, that, for the first time in the island’s history, the offices and residences of the President and the Prime Minister were stormed and occupied by agitators. Again, for the first time, the Prime Minister’s personal residence housing thousands of books and works of art, was burnt to ashes by an insensate rabble.

July 2022 witnessed the extraordinary spectacle of Ranil Wickremesinghe, a National List MP whose party did not win a single seat in parliament in the last general elections, being elected President of the country by the members of parliament, none of whom belonged to his party. Sri Lanka had not seen political pole vaulting of this magnitude before.

Black July

It was in July 1983 that Colombo saw an unprecedented anti-Tamil pogrom, which, according to former President Chandrika Kumaratunga, claimed about 1000 lives, destroyed 18,000 properties, and forced the migration of 700,000 Tamils, though many Sinhalese and Muslims courageously sheltered Tamils against politically-backed hoodlums. On July 25, thirty-seven Tamil militants detained in the Welikade prison in Colombo were killed with knives and clubs by Sinhalese fellow prisoners.

The July 23-30 pogrom was triggered by the killing of 13 Sri Lankan soldiers by the Liberation Tigers of Tamil Eelam (LTTE) in Tirunelveli in Jaffna. The pogrom led to the intensification of Tamil militancy, which along with the muscular State response, devastated the country in the next 26 years.

Devanesan Nesiah, writing in Groundviews in 2013, said that the government had been preparing the ground for a crackdown on the Tamils before the riots. Steps taken included the Regulations of June 3 authorizing police officers of the rank of Assistant Superintendent of Police and above to dispose of dead bodies in the North without any inquest or other inquiries. Then there was the order of July 2 prohibiting the publication and sealing of the offices of Suthanthiran and Saturday Review (both Jaffna-based).

Nesiah recalled that President Jayewardene broadcast on State radio (and published in the London-based Daily Telegraph of July 12) saying: “I am not worried about the opinion of the Jaffna people now. Now we can’t think of them. Not about their lives or their opinion about us… on terrorist issues. We are going to deal with them ourselves, without any quarter being given”.

Nesiah pointed out that the regulation permitting the police to dispose of dead bodies without a judicial inquiry was extended island-wide with effect from July 18, a week before the commencement of the pogrom. On July 20, came total censorship of news about terrorism.

Truth Commission

In 2001, President Chandrika Kumaratunga appointed a Truth Commission under the chairmanship of former Chief Justice S Sharvananda. According to Kumaratunga, the commission found it hard to get data because of the time gap. Referring to the impact of the pogrom on Sri Lanka, she said that some of the best-qualified professionals of Sri Lanka had had to flee. The entire fabric of Sri Lankan society changed for the worse, she said. “Violence became a major tool of socio-political behavior in this country.”

First Suicide Bombing

Come July 1987, Sri Lanka saw the first suicide bombing. On July 5, 1987, Vallipuram Vasanthan alias Capt.Miller, an LTTE cadre drove a truck laden with explosives into a Sri Lankan army camp in Nelliady in Jaffna killing 40 soldiers. This day is observed as ‘Black Tiger Day’ by the LTTE and its supporters. After Nelliady, hundreds of suicide attacks took place. According to the LTTE, between 1987 and 2008, 356 suicide cadres, called ‘Black Tigers’, had laid down their lives, 254 of them in sea operations.

India-Sri Lanka Accord

The India-Sri Lanka Accord, signed by Lankan President J.R.Jayewardene and Indian Prime Minister Rajiv Gandhi on July 29, 1987, aimed at ending the fighting between the government forces and the LTTE and laying the foundation for the devolution of power to the provinces, principally to a united Tamil-speaking North Eastern province. Eventually, the Lankan parliament enacted the 13 th. constitutional Amendment to implement the Accord’s aims to the extent it could.

But the Accord got a violent public reception. A day after the Accord, Rajiv Gandhi was hit on the neck by a naval rating participating in the Guard of Honor at the Presidential palace. The opposition Sri Lanka Freedom Party (SLFP) led an agitation and the Janatha Vimukthi Peramuna (JVP) took to violence. Its military wing, Deshapremi Janatha Vyaparaya (DJV), attacked the Indian Peace Keeping Force (IPKF), which was stationed in the North and East.

After reluctantly accepting the Accord, the LTTE began a war against the IPKF in October 1987 and kept fighting till the Indian troops left the island in 1990 at the request of President R.Premadasa, who had made a deal with the LTTE. The IPKF’s casualties in its 32-month operation was 1165 dead and 3009 wounded.

Jump to 1996. The Mullaitivu army base was overrun by the LTTE on July 18, 1996. Around 1,400 Sri Lankan troops were killed and large amounts of military equipment were captured by the LTTE. Around 330 LTTE cadres were also killed. This was a major blow to the Lankan army which had wrested Jaffna from the LTTE only a year earlier. A few days later, on July 24, 1996, bombs placed by the LTTE in railway carriages in Dehiwela, south of Colombo, killed 64 and injured 400 civilians.

Airport Attack

The next major LTTE strike was at the Bandaranaike International Airport cum air force base near Colombo. On July 24, 2001, fourteen LTTE Black Tiger cadres, armed with RPGs, anti-tank weapons and assault rifles, infiltrated the airport in the night, cut off the power supply, and destroyed or damaged 26 military aircraft including jet fighters and choppers. Parked Airbus civilian aircraft were also damaged causing a loss of US$ 350 million. Tourism caved in and the GDP growth became negative as a result of the attack on the country’s only international airport.

Hambantota Port

On July 29, 2017, a very controversial agreement was signed by Sri Lanka and China leasing out Hambantota port, built with China money, for 99 years to a Chinese State-owned company for US$ 1.1 billion. Sri Lanka said that the money was needed to pay off foreign debts and the Chinese agreed not to use the port for military purposes.

While locals protested against the deal which involved giving 15,000 acres in the hinterland, for a Chinese-managed industrial zone, opposition parties said that it was a sellout, and India and the West had apprehensions about China’s using the port as a naval base and pulling Sri Lanka into a debt trap.

Sri Lanka faces risk of airlines pulling out as jet fuel issue worsens

With no credible solution in sight to resolve the jet fuel shortage and the fund repatriation issues faced by the country’s aviation industry, several airlines are contemplating on suspending their operations to Sri Lanka threatening tourism industry’s recovery, which depends on air connectivity.

The Cabinet of Ministers last month approved a joint proposal to allow the importation, supply and sale of Jet A-1 aviation fuel by bunker holders registered with the Sri Lanka Ports Authority (SLPA) in order to sustain aviation services after Ceylon Petroleum Corporation (CPC), which holds the fuel supply monopoly, failed to import the required jet fuel due to the foreign exchange crisis.

However, bunker fuel license holders are yet to act on the proposal due to several issues, a leading bunker fuel licence holder told Mirror Business. He said jet fuel (jet A1) trade involves a different supply chain, which requires finding new suppliers, who are willing to provide jet fuel on a minimum 30-day credit basis.

“It’s very difficult. One solution is that four or more bunker fuel license holders should form a consortium and move ahead with imports. In addition, they also need to secure a line of credit from suppliers for a minimum 30-day period. So, they can refuel aircraft, collect payments in US$ and pay up the suppliers. Otherwise, I don’t believe that anyone is in a position to make upfront payments in US$,” he elaborated.

However, he suggested that the government should instead focus on bringing another player into the jet fuel trade or a third player into overall fuel business by setting up a mechanism, which would ensure an uninterrupted supply of jet fuel to aircraft.

BIA officials said currently there are no moves to bring in jet fuel either via CPC or any other alternative method.
“There are potential mechanisms and models, but nothing has been done yet. Airlines are diverting their flights to other airports. As of now, some airlines have already pulled out and some airlines are talking about pulling out. Once they pull out, it would be quite hard to get them back,” a BIA official said.

The situation has been exacerbated with local airline representatives failing to remit about US$ 200 million worth funds collected via ticket sales owed to their principles through banking channels over the past 6-7 months. As a result, Sri Lanka and Pakistan have been moved to IATA’s ‘blocked funds’ list from the ‘watchlist’ recently.
“There is no mechanism to remit these funds. So, obviously, airlines are increasing airfares in order to mitigate foreign exchange losses. Airfares have doubled compared to 2-3 months ago, it’s a direct result of these issues, “a local airline representative said.

According to industry officials, airlines have cut seat capacity to Sri Lanka by 53 percent over the past couple of months.

“The usual legacy carriers continue to operate, but with less frequencies. However, it’s mostly SriLankan Airlines that makes tech stops in South Indian airports incurring additional costs. Most other carriers fly to Colombo with a full tank and go back. This limits the payload of each flight, which means they can’t carry intended passenger and cargo capacities. Even for a narrow-body aircraft coming from northern India, it needs to be refueled here” he noted.

According to Aviation Worldwide Limited’s airline frequency and capacity trend statistics report, air seat capacity to Sri Lanka declined by 27.6 percent year-on-year in both June and July to-date.

Sri Lanka police defend attack on peaceful protestors as Ranil under global fire

Sri Lanka’s police said the forcible eviction of protestors from the Presidential Secretariat was because authorities could not take their word that the building would be vacated the next day as promised as President Ranil Wickremesinghe has come under international fire.

“They said on different occasions giving us different dates saying they will vacate the place,” Police spokesman Nihal Thalduwa told reporters.

“But we were at a place where we couldn’t trust them anymore. That is why the Tri-forces and the STF removed these members of an illegal gathering from the place. This is government property. They do not have the permission to force themselves in and stay there.”

“And a new President was sworn in. For him to take on his duties and carry out his duties, he doesn’t have a place yet. He gave the oath in Parliament because the president’s palace, Prime Minister’s office and the temple trees all cannot resume duties yet.

“It is an office for public benefit. Therefore, it is our duty to vacate the place.”

Protestors had said they told Fort Police that would move out. The day before the eviction, protestors were seen removing banners and other materials from the building.

Protestors had also moved out of the Presidential Palace and Temple Trees as publicly declared earlier.

At least nine persons were admitted to the hospital after the pre-dawn raid.

The attack had brought international condemnation while comparisons were made with the actions of the previous president. Senior monk Omalpe Sobitha said such an event had not even happened under ousted President Gotabaya Rajapaksa.

“We are alarmed by the unnecessary use of force reportedly employed by Sri Lanka’s security forces to break up a protest camp near presidential offices in Colombo – only hours before the protesters indicated that it was due to be dismantled,” UN Human Rights Office spokesperson Jeremy Laurence said.

“We condemn the reports of beatings of protesters, journalists and lawyers.”

The European Union and Western nations added their voices.

“The EU underlines the need of upholding freedom of opinion and expression and individual rights of Sri Lankan citizens in the process of a democratic, peaceful and orderly transition,” the European Union said in twitter.com messages after the show of force.

“Freedom of expression proved essential to Sri Lanka’s current transition. Hard to see how restricting it severely can help in finding solutions to the current political and economic crises.

The tweets were in sharp contrast to a day earlier.

“Sri Lanka President Ranil Wickremesinghe was sworn in today. EU hopes this will lead to an inclusive government with solutions to current political and economic crises. Sri Lanka needs swift economic reform + safeguard individual freedoms and reconciliation efforts. Sri Lanka people can count on EU support.”

US ambassador Julie Chung personally met Wickremesinghe.

“Just met President Wickremesinghe to express my grave concern over the unnecessary & deeply troubling escalation of violence against protesters overnight,” she said. “The President & cabinet have an opportunity and an obligation to respond to the calls of Sri Lankans for a better future.”

Some protestors had earlier torched Wickremesinghe’s private residence soon after police beat a group or reporters and cameramen covering a protest by the house.

Wickremesinghe had said ‘fascists’ were among the protestors.

Canadian PM remembers Black July when Sri Lankan Tamils were killed

Canadian Prime Minister, Justin Trudeau, commemorated the 39th anniversary of Black July, when hundreds of Tamils in Sri Lanka were killed and their homes were destroyed.

Full statement:

“Today, we remember those who lost their lives or were displaced during the horrific and violent events of Black July.

“In July 1983, anti-Tamil pogroms erupted in Colombo, following decades of unrest and rising tensions across the country. Known as Black July, these deadly events triggered an armed conflict that lasted 26 years, cost tens of thousands of lives, destroyed homes and businesses owned by Tamils, and sent hundreds of thousands into exile.

“In the months that followed the events of Black July, the Government of Canada implemented a Special Measures program to respond to the violence in Sri Lanka, which helped more than 1,800 Tamils resettle in Canada. I have had the privilege of meeting many Tamil Canadian survivors of Black July and have been moved by their harrowing experiences of loss, displacement, and resilience. Canada is now home to one of the largest Tamil diasporas in the world, and we thank Tamil Canadians for contributing so greatly to making Canada the strong, vibrant, and inclusive place it is today.

“Today, we acknowledge the people of Sri Lanka, who are suffering during this current economic and political crisis. Following the recent election of the new president, Ranil Wickremesinghe, by the Sri Lankan parliament, Canada strongly encourages Sri Lanka’s government to promote democracy and human rights and maintain the rule of law as it works to address this crisis, and undertake the necessary reforms for a peaceful, prosperous, and reconciled Sri Lanka. Canada also reiterates the need to ensure that the rights to protest and a free press are protected during these difficult times.

“On this day, our thoughts are with all those who suffered and lost family, friends, and neighbours during Black July and the conflict that followed. We are committed to working together to help build a better future for everyone.”

Posted in Uncategorized

Parliament to debate attack on protesters

The parliamentary debate regarding the incident of attacking protesters and removing them from the protest grounds is scheduled to be held the day after tomorrow (July 27).

The Chief Opposition Whip, MP Lakshman Kiriella, had requested Prime Minister Dinesh Gunawardena for a parliamentary debate on the incident.

Although a request had been made to hold the debate today (25), due to the impact of the fuel crisis in convening parliament today and calling MPs, the government has decided to hold the debate on the date of the next parliamentary session.

Posted in Uncategorized

Rights group seeks arrest of Gotabaya Rajapaksa in Singapore

A rights group documenting alleged abuses in Sri Lanka has filed a criminal complaint with Singapore’s attorney general, seeking the arrest of former President Gotabaya Rajapaksa for his role in the South Asian nation’s decades-long civil war.

The International Truth and Justice Project (ITJP) said Rajapaksa committed grave breaches of the Geneva Conventions during the civil war in 2009 when he was country’s defence chief, according to a copy of the complaint seen by Reuters.

“The criminal complaint that has been filed is (based on) verifiable information on both the crimes that have been committed, but also on evidence really linking the individual in question, who is now in Singapore,” Alexandra Lily Kather, one of the lawyers that drafted the complaint, told Reuters by telephone from Berlin.

“Singapore really has a unique opportunity with this complaint, with its own law and with its own policy, to speak truth to power.”

Rajapaksa could not be reached for comment through Sri Lanka’s High Commission in Singapore. He has previously strenuously denied allegations he was responsible for rights abuses during the war.

In response to questions from Reuters, a spokesperson for the Attorney-General’s Chambers said it had received a letter from the ITJP on July 23.

“We are not able to comment further on this matter,” the spokesperson said.

The country’s foreign ministry has said Rajapaksa entered the Southeast Asian city-state on a private visit and had not sought or been granted asylum.

Shubhankar Dam, a professor at the University of Portsmouth School of Law in Britain, who has taught in Singapore, said while its courts were able to try alleged war crimes, genocide, and torture, it has repeatedly stated that such jurisdiction should only be invoked as a last resort.

“While neutrality is not officially enshrined in Singapore’s foreign policy, it has long cultivated a form of even-handedness,” Dam said.

“Any decision to prosecute a former foreign head of state has to be balanced against its foreign policy objectives.”

Sri Lanka ended a 25-year civil war between separatist insurgents from the ethnic Tamil minority and government forces in 2009. Rights groups accused both sides of abuses during the war.

The ITJP assisted in two civil lawsuits against Rajapaksa, proceedings for one of which were served in a California parking lot in 2019. Rajapaksa was a U.S. citizen at the time.

Both cases were withdrawn after Rajapaksa was granted diplomatic immunity upon becoming president later that year.

Schools in South to reopen from 25th

It has been decided to conduct academic activities at all schools belonging to the Southern Provincial Council from tomorrow (25) until 29th of July, on all five days of the week.

The decision has been reached during a meeting held with the participation of the Southern Province education authorities.

However, if principals, teachers and non-academic staff members are unable to attend due to transportation difficulties, prior approval must be obtained.

The Department of Education of the Southern Province stated that special holidays will be given for such approved days so that personal holidays of teachers will not be affected.

22nd Amendment to the Constitution will be presented in Parliament on the 27th

Minister of Justice, Prison Affairs and Constitutional Reforms said that the 22nd constitutional amendment bill, which was prepared by repealing the 20th amendment and incorporating the positive clauses of the 19th amendment, will be submitted to the parliament on the 27th, Wednesday.

Thus, according to parliamentary standing orders, the bill can be debated one week after the first reading if it is not challenged before the Supreme Court.

The cabinet has approved the 22nd constitutional amendment bill. After that, the bill was published in a gazette on 24th June.

The ability of a person holding dual citizenship to be involved in governance activities has been blocked by this constitutional amendment bill. The amendment also states that a Sri Lankan citizen who is a citizen of another country should not be elected to the Parliament by popular vote.

It also states that if the Prime Minister resigns by sending a letter to the President with his own signature or if he is no longer a Member of Parliament, he is not eligible to hold his office.

The 22nd Amendment bill states that the Prime Minister will hold his position as long as the Cabinet remains active.

It also states that if the President is of the opinion that Parliament has lost confidence in the Prime Minister during the period starting from the effective date of this Act and when the Parliament is to be dissolved, the Prime Minister can be removed from office.

The 22nd Amendment states that the President should not make any appointment or assign or change subjects and tasks without consulting the Prime Minister.

It is stated that a minister can be removed by a letter sent under the signature of the President on the advice of the Prime Minister and any minister can resign from office by a letter with his signature sent to the President.

Chief Organizer of the ruling party, Minister Prasanna Ranatunga, has said that President Ranil Wickramasinghe has instructed to submit the 22nd constitutional amendment to Parliament.

Accordingly, he said that the draft bill will be included in the parliamentary agenda.

Posted in Uncategorized

Kurundumale archaeological site: Court reverses decision; conservation to continue

The Archaeology Department is continuing its work at the temple ruins in Kurundumale in Mullaitivu following a reversal of a Court decision issued last week, The Sunday Morning learns.

“The Judge reversed his judgement as he saw that we were only doing conservation activities and nothing more. He came with us to the site and observed that there were no new construction activities. He understood that we were only doing preservation work,” Archaeological Department Director General Anura Manatunga told The Sunday Morning.

Earlier last week the Mullaitivu Magistrate’s Court ordered the suspension of any new construction activities at the Kurundumale ancient holy site. The location holds remnants of a Buddhist shrine as well as those of a Hindu kovil.

The conservation work at the site has drawn criticism from local residents and activists, who claim that Hindu devotees have been restricted from entering the site.

Meanwhile, Tamil National Alliance (TNA) MP M.A. Sumanthiran told The Sunday Morning that he had filed a Fundamental Rights (FR) petition at the Supreme Court over the prevention of Tamil devotees worshipping at the location as well as the damage being done to the Hindu kovil.

“The Hindu worshippers had a trident, which has been broken and thrown away somewhere. In addition, the Hindu worshippers have been prevented from going there. I’m handling this FR case and it is to be taken up next week. Now the worshippers have been allowed in after the case was filed, but we may request that the trident be replaced as well,” Sumanthiran said.

Several civil society groups raised concerns about a social media video released by a young Buddhist monk last week critiquing the Court’s decision to halt construction activities on the controversial site.