Power crisis continue in Sri Lanka with five-hour cuts scheduled for March 27

The Public Utilities Commission of Sri Lanka (PUCSL) has approved power cuts of five hours and for parts of the island and four hours for other areas in two blocks for Monday (28). Sri Lanka is facing daily scheduled power outages as a result of an ongoing forex shortage and depleting reservoirs used for hydro power generation. According to the PUCSL-approved power cut schedule for Monday, areas P, Q, R, S, T, U, V, and W will lose power for two hours and 15 minutes from 8.30am to 5.30pm and for one hour and 40 minutes from 5.30pm to 11.00pm. Areas A, B, C, D, E, F, G, H, I, J, K, L will have power cuts of three hours and 20 minutes from 8am to 6pm and one hour and 40 minutes from 6pm to 11pm, Monday.

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Cabinet approves maritime security pact with India

A number of proposals, which have received Cabinet’s nod of approval for goods and services on grant from India before Finance Minister Basil Rajapaksa left for New Delhi to secure a US$1bn credit line, contain conditions, the Sunday Times learns.

These proposals needed to get Cabinet approval for Sri Lanka to secure the Indian loan. This was after agreements were also signed for the Trincomalee oil tanks, a renewable energy project in Sampur and an energy project off Mannar previously. They also come on the eve of Indian External Affairs Minister S. Jaishankar’s visit to Sri Lanka scheduled for the coming week. Sri Lankan Defence analysts have warned that some of these proposals hastily rushed through the Cabinet require deeper study in the national interest. For instance, according to a Cabinet paper for the supply of DO-228 Dornier Reconnaissance Aircrafts from India to Sri Lanka, New Delhi has agreed to grant one plane for free. As it will take two years to manufacture, it will loan an active Dornier (INDO) from the Indian naval fleet for search-and-rescue operations in the interim. But full deal is contingent on Sri Lanka then buying a third Donier through an Indian credit line.

The twin-engine Doniers will be used in the Sri Lanka Navy’s maritime surveillance activities and search and rescue (SAR) in and off Sri Lanka, especially to conduct reconnaissance within the Exclusive Economic Zone (EEZ) of Sri Lanka, the Cabinet paper says. It adds that Sri Lanka has sought India’s assistance in this regard.

While the Donier is on loan, a team comprising a maximum of five Indian technical officers will stay in Sri Lanka to train the Sri Lankan Air Force and Navy personnel on maintenance and handling. “This agreement ties us to buying a third aircraft, whereas I’m sure Japan, the US or another county will also give us a plane for free,” a maritime defence analyst said.

“Another issue with the Donier that is to be loaned is that the operational plan is not very clear, whether patrols will be done jointly with the Indians,” he continued. “Reading in between the lines, it is also implied that we are barred from sharing any information gathered with anyone but them.”

The relevant section of the Letter of Exchange reads: “Information gathered during the conduct of operation by the INDO shall be the property of GoSL [Government of Sri Lanka]. No classified information under this Letter of Exchange shall be disclosed to any third party by GoI [Government of India] unless authorised in writing by the GoSL. GoI shall treat such authorised classified information with the same level of classification as GoSL.”

“Whatever said and done, we have claimed neutrality and this is an Indian asset on Sri Lanka, operating out of Sri Lanka,” the analyst pointed out. “This is the way they creep into our system, or naval reconnaissance, the Defence Ministry and Air Force facilities. It compromises our basic security in terms of independence of the country.”

Sri Lanka has also agreed to a grant of 3bn Indian rupees (11.4bn LKR) to introduce a digital personal identification system for its citizens based on the Indian Aadhaar system. The Memorandum of Understanding precludes third country involvement in the project even for the elements of it that are not funded by the Indian Government.

“GoSL shall select Indian firms as exclusive contractor(s) for executing elements of the project carried out with the Grant in accordance with the requisite tendering procedures of GoSL,” it states. “Any third country involvement in the project shall be based on mutual consent. The elements of the ‘Project’ not funded through the Indian Grant shall not be executed by a 3rd country entity during the period this MoU remains in force. In this regard, the issuance of a Confirmation of No Objection by the JPMC [Joint Project Monitoring Committee] shall be an essential qualifying criterion for any entity being considered for such award of an element of the ‘Project’ not funded through the Indian Grant.”

It has been agreed to set up a joint Maritime Rescue Coordination Centre (MRCC) to strengthen Sri Lanka’s search and rescue region (SRR) on a US$ 6mn grant from the Indian Government. The agreement for this is between Sri Lanka’s Defence Ministry and India’s M/s Bharat Electronic Ltd (BEL) for the supply, installation and commissioning of the MRCC.

The MRCC will be at the Naval Headquarters in Colombo, the Maritime Rescue Sub Centre (MRSC) will be at Hambantota, and the Sub-Units at Galle, Arugambay, Batticaloa, Trincomalee, Kallarawa, Point Pedro and Mullikulam.

“Why must they be in the Navy headquarters or in the most crucial naval camps around the country?” the analyst questioned. “We must ensure that no foreign forces have access to any of those places. Even at the headquarters, they must not have access to naval operation which will happen if they place the MRCC in the naval ops center. Security should not be compromised by MRCC. It must be in a separate location but run by the Navy.”

Sri Lanka will also accept a gift of a US$ 19.81mn, 4000-ton floating dock (FD) from the Government of India for the Navy. It will be built by Goa Shipyard Ltd and “primarily be stationed in Trincomalee, Sri Lanka”, according to the agreement.

“The Floating Dock may be moved except to the port of Hambantota at the discretion of the GoSL, with prior notification to GoI, when the need arises to move it to any other location within Sri Lanka considering the safety, economic factors and efficient & effective utilisation of the FD,” it states.

The agreement shall remain in force for an initial period of five years. The dock was originally proposed to Sri Lanka by Pakistan. “It is not clear why the paperwork dictates to us where we should put the dock–in Trincomalee, not Hambantota,” the analyst commented. “If they are giving us something for free, we should have complete control of the asset.”

Govt decides to hold parliament debate on IMF report

The government has decided to hold a debate on the IMF report when Parliament meets in the first week of April, says Chief Government Whip Minister Johnston Fernando.

Former Prime Minister and Leader of the United National Party (UNP), Ranil Wickremesinghe, had called for an immediate debate in Parliament on the IMF report on Sri Lanka.

“As the Government has agreed to engage the IMF for financial assistance, the Parliament must be briefed on their plan of action,” he had said.

Chief Opposition Whip Lakshman Kiriella had also written to Speaker Mahinda Yapa Abeywardena requesting him to immediately call for a party leaders’ meeting in order to decide on a date for the debate on the IMF report, when parliament convenes between April 05 and 08.

The International Monetary Fund (IMF) on Friday released its Article IV consultation report on Sri Lanka which highlights that the island nation faces “solvency” issues because of risks stemming from unsustainable debt levels that jeopardize the country’s economy.

“Based on staff analysis, the fiscal consolidation necessary to bring debt down to safe levels would require excessive adjustment over the coming years, pointing to a clear solvency problem,” the IMF said.

The full report provides further analysis of Sri Lanka’s debt and finances. A summary of the report released earlier in the month said Sri Lanka faced unsustainable debt levels and needed a “credible and coherent” strategy to restore stability.

IMF’s limitations in rescuing Sri Lanka – Dr .Ameer Ali

With $ 7 billion debt to be serviced this year and another $ 25 billion between 2023 and 2026, the Government has formally written to IMF for assistance, ending thereby an era of two-year self-isolation from the West. “Subsequent to my discussion with the IMF, I have decided to work with them after examining the advantages and disadvantages,” said President GR when he addressed the nation.

He must have obviously found the advantages weightier than disadvantages, and, without saying so, had tacitly admitted the ignominious failure of his so-called ‘alternate path’ and homegrown solution.

In the meantime, the Minister of Finance had succeeded in signing a deal with India for a $ 1 billion credit facility with “no strings attached”, according to him. But, Ven. Elle Gunawansa Thero in a letter to GR has demanded full details of the deal be published. India’s total development portfolio till the end of 2021 amounted to $ 3.5 billion, of which $ 500 million was for grant projects. China is also reported to be considering extending a $ 1 billion financing facility with another $ 1.5 billion buyers’ credit. This is on top of an estimated $ 3.38 billion lent already to Sri Lanka.

These help from the two regional rivals are short-term palliatives and may temporarily enable the impoverished Rajapaksa regime to import certain desperately needed consumer items and replenish at least partially the empty shelves of local retail stores. It may help to calm down the raging public anger over chronic shortages, especially when the Sinhala-Tamil New Year festivities are fast approaching.

Ironically, and in the midst all economic difficulties endured daily by the masses, including deaths caused by standing for hours in queues to buy fuel, the UN-sponsored World Happiness Report found Sri Lanka advancing from a previously 129th position to 127th among a total of 146 countries, as a land of happiness to live in! One wonders whether there is something strange about the UN’s definition of happiness or in its methodology of computation. However, this finding may give some relief to a beleaguered Rajapaksa Government, which could probably trumpet this index as one of its grand achievements.

Among the three sources of assistance, while India and China are more interested in advancing their own interests at the expense of Sri Lanka, only the IMF at least has a theoretical duty to introduce measures that could inject financial discipline to a country that has been living beyond its means for decades. Sri Lanka joined the global neo-liberal economic order in 1977. In that order, the art of prudent economic and financial management is an essential criterion for a country’s successful competition and economic growth.

In Sri Lanka, almost all governments since independence have been noted for their indiscipline in budgeting. The idea of living within one’s means or balancing one’s budget seems to have disappeared from the dictionaries of governments. Today’s public debt is the cumulative effect of a series of deficit budgets. The magnitude of that deficit increased phenomenally since 2005.

The IMF’s first target therefore would be to help the country achieve macroeconomic stability in the medium to long-term. To do that it has to adopt a carrot and stick approach. IMF’s loans are usually cheaper than those from other sources, and the terms of repayment are also flexible. While extending a larger and longer-term loan, the IMF can also assist in restructuring Sri Lanka’s existing debt with the respective parties. In return for certain concessions, IMF’s interference would provide an official guarantee to lenders against any default by the borrower. That in turn would send a positive signal to foreign investors and credit rating agencies. In short, an IMF entry would help to raise international market confidence in Sri Lanka’s economy.

Against those carrots are the sticks. Tightening the country’s monetary policy to check inflation, raising taxes and reducing expenditure to improve public revenue, reducing excess burden on public sector employment, reforming public enterprises to turn them into profit making agencies and preferably privatising them, ending corruption and removing the power of the market mafia are some of the conditions IMF would expect the Government to fulfill. While insisting on these, the IMF would be prepared to work out a safety net for the poorer sections of the community who would inevitably suffer from the short-term consequences of these measures.

It is reported that the Government is preparing to hire an international legal firm to help negotiate with the IMF. What a shame! Is the country so bankrupt of legal talent? Even then, there are limitations to what the IMF could do. The toughest hurdles to cross are corruption and structural reforms. If corruption could be eradicated, that would automatically kill the power of influence by the mafia, and if structural reforms could be accomplished and public enterprises start earning profit, that would reduce the burden of taxes levied on the public. But it is in tolerating corruption and subsidising loss-making parastatals the regime could expect to remain in power. They are the pillars on which the reigning political structure is built. This crony capitalism would therefore limit the success of IMF reforms.

In addition to these hurdles there is also another: Sinhala-Buddhist ethnonationalism. This poison like malignant cancer saps not only the vitality of the economy but also the entire polity. No amount of IMF engineered macroeconomic stability could remove this. Its eradication has to come from the political arena. But given the shocking silence of all political parties in tackling this issue and their preparedness to play politics with it, the long-term prospects of an economically stable Sri Lanka remain bleak. Thus, abolishing crony capitalism, eradicating corruption and influence of mafia, and eliminating ethnonationalism set the limitations of IMF reforms.

(The writer is attached to the School of Business and Governance, Murdoch University, Western Australia.)

Japan supports humanitarian demining activities in Kilinochchi and Mullaitivu Districts

The Government of Japan has provided a total sum of US$ 604,412 (approx. Rs. 120 million) to Skavita Humanitarian Assistance and Relief Project (SHARP) for humanitarian demining activities in Northern Sri Lanka.

The grant contract was signed on 25th March 2022 at the Ambassador’s Residence in Colombo, between Ambassador of Japan Hideaki Mizukoshi, and Major Gen. (retd) Sumathi Ranjan Balasuriya, Director / Field Reporting Officer of SHARP.

SHARP has cleared more than 1.9 km2 of mine-contaminated land through funds disbursed from Japan’s Grassroots Human Security Project (GGP).

This FY’s project is expected to contribute to the Government’s efforts of ensuring that mine-contaminated areas are safe, enabling resettlement of more than 2,000 displaced people and enhancing their livelihoods directly or indirectly in Kilinochchi, Mullaitivu districts.

Since the beginning of Sri Lanka Mine Action program, the Government of Japan has been continuously supporting mine clearance activities and the total amount of assistance exceeds US$ 41.4 million.

This year, Japan and Sri Lanka mark the 70th Anniversary of the Establishment of Diplomatic Relations. Development of the conflict-affected regions is one of the priority areas in Japan’s official development assistance policy to Sri Lanka. The Government of Japan will continue to support the effort for the Government’s goal of achieving a ”Mine-Impact Free Sri Lanka”.

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Sri Lanka’s China-backed tax free zone conflicts with minimum global tax: IMF

Sri Lanka’s China-backed Colombo Port City special economic zone, which has is giving long term tax holiday is likely to face pressure as the international community which is moving for a minimum 15 percent global tax, an International Monetary Fund report has warned.

The Organization for Economic Co-operation and Development has set up a minimum of 15 percent income tax.

Organizations such as the International Community of Investigative Journalists are targeting tax free jurisdictions with leaked documents involving money earned through questionable means. But investment by legally earned money are also channeled through such areas.

“The creation of a low-tax jurisdiction is likely to draw attention from the international community given a renewed focus on such matters, including in the context of the recently agreed OECD-led Inclusive Framework,” an IMF report on Sri Lanka said.

“It would therefore be important to adhere to international tax and regulatory standards and information exchange agreements established with foreign counterparts, including those guided by the OECD’s Common Reporting Standard.

US led pressure is forcing countries with turnover tax based regimes such in the Gulf Co-operation Council, and the Maldives that import labour to go into income tax.

Income tax kills investible capital and jobs by giving it to politicians to fritter away on the public sector expansion and vote buying gimmicks.

However Port City is also free from most turnover taxes.

Sri Lanka has seen state spending rise from around 17 percent of GDP in 2014 to 20.6 percent under so-called ‘revenue based fiscal consolidation’ that pooh-poohed spending cuts including on a bloated public service and state enterprise financing.

The entire burden of adjustment was shifted to the private citizens, under revenue based fiscal consolidation, and without spending based consolidation, and politicians were free to raise public sector salaries, raise pensions, and expand recruitment.

The IMF warned that businesses that invest in the Port City could potentially try to avoid taxes and they should file a tax return even if nothing was paid.

“Effective revenue administration is critical for mitigating risks from tax planning between offshore entities and their onshore affiliates and can be supported by significantly scaling back the list of taxes eligible for exemptions to reduce administrative hurdles,” the IMF said.

” IRD’s capacity and expertise should be leveraged to safeguard transparency and accountability, by requiring all SEZ companies (regardless of their tax-exempt status) to file tax returns.

“Besides, a tax expenditure review covering the SEZ should be part of the annual budgetary process and subject to periodical evaluation. ”

The Port City would be dollarized and would be free from currency depreciation and hardships created by the soft-pegged central bank of Sri Lanka.

Currency peg collapse due to aggressive liquidity injections by the domestic operations department of a central bank to keep interest rates down.

“Meanwhile, offshore institutions should be prohibited from providing financial services to residents or accessing the central bank’s liquidity window and deposit insurance in Sri Lanka,” the IMF report said.

“Any direct or indirect financial linkages between the onshore and offshore financial sectors (including through cross-ownership) should be closely monitored to assess and mitigate potential spillover risks.”

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Sri Lanka is facing ‘clear solvency problem’: IMF Report

Sri Lanka faces “solvency” issues because of risks stemming from unsustainable debt levels that jeopardize the nation’s economy, according to International Monetary Fund staff.

“Based on staff analysis, the fiscal consolidation necessary to bring debt down to safe levels would require excessive adjustment over the coming years, pointing to a clear solvency problem,” the IMF said in its Article IV consultation report, released Friday in Washington.

The full report provides further analysis of the South Asian island nation’s debt and finances. A summary of the report released earlier in the month said Sri Lanka faced unsustainable debt levels and needed a “credible and coherent” strategy to restore stability.

The country’s “debt overhang,” along with persistent fiscal and balance-of-payments shortfalls, “will constrain growth and jeopardize macroeconomic stability in both the near and medium term,” the report said.

“Rollover risk is very high,” the IMF said. “FX debt service needs of $7 billion each year will require access to very large amounts of external financing at concessional rates and long maturities, sustained over many years.”

Since the IMF board considered the staff report in late February, a surge in oil prices and the loss of tourists because of the attack on Ukraine exacerbated its foreign exchange crisis, forcing the government of President Gotabaya Rajapaksa to seek IMF aid. Negotiations on a possible aid package are expected to start in April, when Finance Minister Basil Rajapaksa, a brother of the president, travels to Washington.

The spiraling crisis has also led the country to raise interest rates, devalue the local currency and curb non-essential imports.

Sri Lanka has about $2 billion of reserves against $3.9 billion of foreign-currency debt due for the remainder of 2022, according to Bloomberg calculations based on central bank data. This includes $1 billion of sovereign bonds maturing in July.

The Central Bank of Sri Lanka stands ready for closer engagement with the IMF, working jointly with the government, “in order to ensure that the benefits of such an engagement outweigh any costs associated with the same, from the perspective of the general public, and the business and investor community,” the monetary authority said in a statement Saturday.

Source: Gulf News

US $ 1Bn loan from China to settle previous loans

The proposed US $ 1 billion loan to be obtained from China will be utilised to settle the previous loans from the Chinese banks, Daily Mirror learns.

Sri Lanka’s current loans from China also amount to nearly US $ 1 billion, a top source said. The latest method will be adopted since China does not have the concept of rescheduling debts.

The authorities of the two countries are currently negotiating terms and conditions of the new financial facility to be extended.

Besides, there will be another US $ 1.5 billion buyer’s credit from China to import materials from China.

Sri Lanka Economy Has ‘Hit Rock Bottom,’ Putting Pressure on President

Just lentils, rice and tea without milk. Meals are increasingly meager for Sandamali Purnima, a Sri Lankan salon employee, her taxi-driver husband and their four young children. With cooking gas hard to find and the electricity cut, she cooks this basic fare outdoors over wood-fed flames.

A staircase in their suburban home leads to an unfinished second floor, concrete prices too high to continue.

“Building a house is hard,” Ms. Purnima said. “But eating is even harder.”

An economic crisis is disrupting life across Sri Lanka, an island nation off India’s southern coast that only recently had been outperforming its neighbors.

In less than a decade, Sri Lanka recovered from the ravages of a civil war that ended in 2009, soaring to the status of an upper-middle-income nation. It built a tourism-based economy that brought billions of dollars, many jobs and middle class comforts: high-end eateries and cafes, imported Jeeps and Audis, and upscale malls.

Now, Sri Lankans just want the lights to stay on.

The country’s enormous debt load, the pandemic and, most recently, the war in Europe have brought it to its knees.

The central bank is printing rupees and hoarding dollars, sending inflation to a record high of 17.5 percent in February. The finance minister is begging neighbors for credit lines to buy diesel fuel and milk powder. In a barter arrangement, the central bank is paying for Iranian oil with tea leaves.

For months, the government of President Gotabaya Rajapaksa has rationed power. Sections of the capital, Colombo, go dark suddenly, city streets becoming as inky black as the Indian Ocean beside them.

“We’ve really hit rock bottom,” said Paikiasothy Saravanamuttu, the founder and executive director of the Colombo-based Center for Policy Alternatives.

Then he paused, and conceded that many believe the situation could get even worse. “The question on everyone’s mind is: When is this going to absolutely crash?”

When Mr. Rajapaksa won elections in 2019, just months after Easter Sunday terrorist attacks that killed more than 250 people on the island, he had campaigned on a platform of restoring security to the nation, relying in part on his reputation as a brutal defense secretary who had helped bring Sri Lanka’s long civil war to a close.
NYT (Source)

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TPA Seeks Non-Territorial Council for Hill Country Tamils By D.B.S. Jeyaraj

The total population of Tamils – both Sri Lankan and Indian -is 3,113, 247. Of these 1,611,036 Tamils are living in the Northern and Eastern Provinces. Another 1,502,211 Tamils live outside the Northern and Eastern Provinces

TPA leader Mano Ganesan who is the driving force behind the initiative told this Column that a letter of appeal along with the aspirational document was to be sent to President Gotabaya Rajapaksa, Indian Prime Minister Narendra Modi and British premier Boris Johnson

The Tamil Progressive Alliance (TPA) has taken the initiative in seeking a new representative body for the pre-dominantly Tamil people of recent Indian origin or Indian Origin Tamils(IOT). In recent times the community has become known as the “Malaiyahath Thamizhar” (Hill Country Tamils/Up Country Tamils). Although called Hill Country Tamils because they are mainly concentrated in the Uva,Sabaragamuwa and Central provinces,the “Malaiyahath Thamizhar” community is widely dispersed in all parts of the Island. What the TPA envisages is the creation of a new entity – Non -Territorial Community Council- to represent the interests and aspirations of the hill country Tamils scattered throughout the country. The laudable objective is to facilitate and expedite the comprehensive integration of the community into the mainstream as full-fledged citizens of Sri Lnka while retaining their ethnic identity.

According to the 2012 census, the Indian origin Tamils numbering 839,504 (4.12%) are the fourth-largest ethnicity in Sri Lanka. However this is not entirely accurate as a very large number of the Indian Origin Tamil citizens have been categorized as Sri Lankan Tamils in the official census. This is blatantly visible in the Northern and Eastern districts as well as in Colombo and Gampaha. Even in the Up Country districts the census enumerators have a tendency to classify those living in estate regions as Indian Tamils and those residing in urban areas as Sri Lankan Tamils. The total population of Tamils – both Sri Lankan and Indian -is 3,113, 247. Of these 1,611,036 Tamils are living in the Northern and Eastern Provinces. Another 1,502,211 Tamils live outside the Northern and Eastern Provinces. The harsh reality is that the Tamils living in the seven Sinhala majority provinces have been deprived of equitable political representation over the years. The majority of these people are those of Indian origin known as Hill Country Tamils. Moreover the community notably the plantation workers are economically under-privileged.

Tamil Progressive Alliance

The Tamil Progressive Alliance founded on June 3rd 2015 is the premier political configuration of the Hill Country Tamils as far as Parliamentary representation is concerned.The TPA obtained six seats at the 2015 Parliament poll. The party got three seats in Nuwara- Eliya and one each in Colombo, Badulla and Kandy districts. The TPA repeated its success in 2020 by winning six seats in the exact manner as it did earlier in 2015. Three other Hill Country Tamil MP’s were elected from the Ceylon Workers Congress(CWC) in Nuwara -Eliya and Samagi Jana Balavegaya(SJB) in Badulla. However the TPA’s Badulla district MP violated party discipline by voting for the 20th Constitutional amendment and was expelled.The TPA contested the 2015 election under the UNP’s elephant symbol and the 2020 poll under the SJB telephone symbol.

The TPA comprises the Democratic Peoples Front (DPF) National Union of Workers (NUW) and Up Country Peoples Front (UCPF) led by Mano Ganesan, Palanyi Thigambaram and Velusamy Radhakrishnan respectively. While the three constituent parties continue to retain their status as separate parties, the TPA was officially recognized as an Independent political party by the Elections Commission last year and allocated the torchlight as election symbol.

“Tamil Mutpoakku Kootani”

Mano Ganesan is the Tamil Political Alliance leader while Palani Thigambram and V Radhakrishnan are the joint deputy -leaders. Chandra Schafter is the General Secretary. The TPA has a Presidium of 6 Members and a 14 member Politbureau. The TPA’s name in Tamil is “Tamil Mutpoakku Kootani”.

The current TPA proposal to form a Non – Territorial Community Council(NTCC) is an integral and vital component of a politically important document formulated by the TPA a few weeks ago. It is titled “Aspirations of Tamil People of Recent Indian Origin Towards Integration with Dignity and Mainstreaming as full Citizens in Sri Lankan Polity and India Sri Lanka Accords”.

Initially the TPA held public discussions on the need for such a document and thereafter called for related submissions from intellectuals, scholars and professionals in the community. A committee was formed to draft the document referred to in brief as the “Aspirational Document”. The final draft was approved and authorized for public dissemination by the TPA politbureau and presidioum. A key element of the aspirational document is the proposal to establish Non -Territorial Community Councils for “Minority Communities of Special Interest (MCoSI) living in dispersed form in the country”.

Mano Ganesan

TPA leader Mano Ganesan who is the driving force behind the initiative told this Column that a letter of appeal along with the aspirational document was to be sent to President Gotabaya Rajapaksa, Indian Prime Minister Narendra Modi and British premier Boris Johnson. The rationale being that of all three countries bearing a responsibility and duty towards the community. India due to the “umbilical cord relationship”, Britain for having re-located the bulk of Indian Tamils to the Island as estate workers and Sri Lanka being of course being their own country and homeland now. Ganesan said that an appointment was sought with President Rajapaksa to present the documents and discuss related issues with him but a date had not been given so far. An appointment with the British envoy would be sought after meeting with the President. However a TPA delegation led by Ganesan met with Indian High Commissioner Gopal Baglay and formally handed over the letter to PM Modi early this week. The TPA leader said a fruitful discussion into the proposals outlined in the letter/document ensued and further talks may be held if and when Indian Foreign Miniser Dr. S. Jaishankar visits Colombo.

Copies of the appeal letter and aspirational document will also be given to diplomatic missions in Colombo. Mano Ganesan also said that the TPA would be meeting the leaders of political parties in Sri Lanka to forge a supportive consensus for the NTCC. Responding to a Question, Ganesan said that discussions would be held and a mutual understanding arrived at with the Ceylon Workers Congress (CWC) soon.

Missive to Indian PM Narendra Modi

The following is the text of the letter/appeal sent to Indian Prime Minister Shree Narendra Modi-
Your Excellency

This is an appeal from the Tamil community of recent Indian Origin in Sri Lanka also known as Malaiyaha Tamils or Hill-country Tamils (hereafter called as Malaiyaha Tamils). This flows from our continued appeals to the successive Sri Lankan governments for recognition and equal treatment as a distinct and integral people of Sri Lanka. This echoes on our community’s struggles for an identity as a constituent people of Sri Lanka in par with Sinhalese, Sri Lankan Tamils and Muslims. They build on representations in previous constitutional reform processes established and recognized by the different governments since the 1980s.

Background to our appeal for recognition as equal citizens

The demands articulated by the political leadership of Malaiyaha Tamils since independence has been for recognition as full-fledged citizens on par with the rights enjoyed by the other communities. The demands have been for equality, non-discrimination, security and for political and administrative arrangements that safeguards the interests and identity of the community. These demands were made so that the community will have the requisite political voice and power to live with dignity, self-respect, peace and security and manage affairs of its people who live in a concentrated manner in Nuwara Eliya and in a dispersed manner in several parts of Sri Lanka.

The Malaiyaha Tamil community were brought to Sri Lanka, then Ceylon, from India since early 1800s by the companies under the British crown. This community was the second largest ethnic group at the dawn of independence. But they were controversially deprived of citizenship immediately after independence, over-riding the protection for minorities found in article 29(2) of the then constitution of Sri Lanka. Thereafter many were subjected to arbitrary and involuntary repatriation to India. These greatly diminished the political status and socio-economic wellbeing of this community.

Prolonged periods of statelessness, disenfranchisement and declining of the population that followed continue to cast a long shadow to date and have shaped the contours of our demands. The subsequent cycles of structured violence that visited us, the resultant internal and external displacements, discriminatory and unfair treatment and continued marginalization suffered by this community have added greater credence to our appeal.

We recognize India’s sustained interest on the status and welfare of Malaiyaha Tamils
India has played an active role on the citizenship matter as well as on a wide range of development issues including employment, education and housing assistance. This interest was necessitated due to historic ties, international norms and geographic and humanitarian reasons. These have manifested in a number of bilateral deliberations and agreements signed over the years that dealt with the citizenship rights and corresponding legal obligations of signatories. The weakening of political status and socio-economic wellbeing of the Malaiyaha community that ensued from these agreements have also cast a moral obligation on India.

The last major agreement signed between the heads of states of Sri Lanka and India was in 1987. But India had signed three major pacts with the Sri Lankan government before that consisting of mutual obligations regarding citizenship of our community and its subsequent well- being: Nehru-Kotelawala Pact (1954), Sirima-Shasthri Pact (1964) and Sirima-Indira Pact (1974). In addition, Indian Government’s good offices were instrumental in resolving the long lasting citizenship issues of the community through a series of legislative measures spanning 1986 – 2009 enacted under the administrations of Presidents J.R.Jayawardena, R.Premadasa, Chandrika Kumaranatunge and Mahinda Rajapakse. The Indo-Lanka accord of 1987 was instrumental in bringing both 13th amendment establishing the Provincial Councils as well as the 16th amendment on language use to the constitution of Sri Lanka.

The Provincial Councils brought about a measure of power devolution currently enjoyed by all the people of all nine provinces of Sri Lanka and provided another forum to exercise representative political voice of Malaiyaha Tamil community. The trilingual policy enshrined in the constitution has brought recognition to the Tamil language as one of the official and national languages along with Sinhala and established English as the link language in Sri Lanka.

The current status and our appeal

The current status of the Malaiyaha Tamil Community of recent Indian origin considered to be over 1.5 million strong, has been a result of past history of imposed statelessness, uncertainty around citizenship and lack of franchise. This has also impacted on the community’s socio-economic wellbeing. The most affected segment has been those living and working in the plantation estates. They have become the most marginalized group in the country registering lower measures on almost all human development indices compared to every other community in the country. For them this has impaired their transition from workers – tied to and dependent on their plantation employers – to full-fledged citizens of Sri Lanka with equal rights as others.

In general, the basic premise of the agreements from 1954 – 1974 and the related bilateral deliberations had been the assurance by the Sri Lankan Government that all those it recognized as its citizens would enjoy full citizenship rights on all aspects including voting rights, land rights, public employment and access to government services. This was the spirit in which the leaders of the two countries engaged with the issues. While progress on voting rights in par with other citizens has been ensured, measures on other areas have been slow, limited or stalled. The health indicators show generational lag compared to national averages, health facilities are yet to be mainstreamed, our presence in public sector employment and tertiary education woefully inadequate and access to administrative services remain unequal.

These matters have been and continue to be part of our community’s negotiations with the various Sri Lankan governments. In the present instance we are also apprehensive about the electoral reforms and constitutional reforms processes underway which we fear may roll-back some of the existing arrangement and guarantees which helped overcome certain policy and institutional obstacles and discriminations.

In this background, as constitutional reforms are being contemplated by the Sri Lankan Government we appeal to Your Excellency to urge the Government of Sri Lanka to ensure
full implementation of the Thirteenth Amendment and the holding of the Provincial Council elections without any further delay,
full implementation of the Sixteenth Amendment to the Constitution which introduced parity of status for Tamil and the Sinhala, Tamil, English tri-lingual policy
mainstreaming and structural integration of Malaiyaha Tamil community into national polity, recognition as a constituent people of Sri Lanka with a distinct identity and enabling them to enjoy full and equal citizenship rights as assured through.

a. Establishment of non-territorial community council, as deliberated under previous all-party conference established by President Mahinda Rajapakse, with a mandate on selected affairs of the community that is living in a geographically concentrated basis in Nuwera Eliya and in a dispersed manner in other parts of the country.

b. Measures of power sharing and real devolution at central, provincial and local government tiers and,

c. Equitable and inclusive electoral representation at all levels through proportional representation electoral system and a fair electoral and administrative delimitation process, that give a meaningful role in governance at all tiers of governance.

d. Administrative measures, including affirmative action to catch up lost ground, on land, housing rights, employment, education and health.

e. Demarcation of GN divisions and DS divisions in the plantation areas in par with other rural areas so as to ensure equitable access to decentralized governance institutions and government services at village, district and divisional levels.

Non- Territorial Community Council(NTCC)

The following is the text of the Constitutionl proposal to establish a Non-Territorial Community Council(NTCC) for the Malayaha/Indian Origin Tamil community in Sri Lanka.
Non-Territorial Community Councils (NTCC) shall be established to represent the interests and aspirations of the Minority Communities of Special Interest (MCoSI) living in dispersed form in the country.
NTCC shall be enshrined in the constitution by law.
There shall be a NTCC established for the Tamil Srilankan community of recent Indian origin living in dispersed form in the country
Legislators elected/nominated to parliament, provincial councils and to the offices of chairpersons to the local government bodies belonging to the particular Minority Community shall be ex-officio members of the NTTC.
A senior Sri Lanka Administrative Services (SLAS) officer, equal to the rank/status of Secretary of a central ministry, shall be the secretary of the NTTC who will head the secretariat the NTCC.
There shall be number of officers drawn from SLAS/Provincial Cadre shall function in the secretariat of NTTC under the Secretary.
A Assembly secretary and a deputy secretary shall be nominated to conduct the business of the council assembly.
All NTCC secretariats shall be established in the national capitol territory, Colombo.
All bills and regulations submitted to the national Parliament and nine PCs shall be refereed to NTTC for its scrutiny.
NTTC shall monitor, scrutinize, propose amendments to the laws and regulations to such submitted to the national Parliament and PCs which are in relevance to the cultural, social, political, economic lives of the relevant MCoSI for which it is established.
The level of authority of NTTC to intervene in the discussions and passing of bills of Parliament and PCs, relevant MCoSI for the NTTC is established, shall be a matter left to Constitutional/Supreme court.
NTTC shall and may exercise monitoring, intervening, engage in development activities on following subjects where the Minority Communities of Special Interest (MCoSI) which the NTTC represents:
a. Primary and Higher Education & Technical Training

b. Primary Heath & Nutrition

c. Sports

d. Culture, Religion and Linguistic subjects

e. Infrastructure Development

f. Housing

g. Livelihood

h. Any other

The patterns of performances and functions NTTC shall be similar to the performances and functions PCs including the use of official and link languages and their respective simultaneous translations.
A Chairperson and a Vice Chairperson shall be elected from the members of Parliament who are ex-officio-members of the NTTC.
There shall be an advisory board of eminent persons nominated by the NTTC which will function as the advisory arm of the NTTC.
A full house meeting of the NTTC shall be the meeting participated by the members of NTTC and members of advisory board together chaired by the chairperson.
NTTC shall meet as per the fixed agenda decided by the Business Committee of NTTC.
Chairperson shall chair the house meetings and subject committee meetings of the NTTC. In the absence of Chairperson, the Vice Chairperson shall chair.
All recurrent and development funds of the institutions of NTCC shall be obtained from national budgetary allocations by the minister of finance.
Presidential secretariat, Parliament of Sri Lanka, Central and PC ministries, PC administrations, Local Government councils, All the government machinery arms including district secretariats, divisional secretariats and department of Police shall recognise NTCC.
NTTC if necessary, may obtain/receive foreign and local grants and assistances for the purpose of the development and welfare of the communities it represents. All such foreign funds shall be channeled through External Resource Division (ERD) of the central Ministry of Finance.
An internal budget of accounts related to national budgetary allocations, local and foreign grants shall be forwarded to the assembly for approval.
All financial activities related to national budgetary allocations, local and foreign grants shall be subjected to the department of auditor general.

TPA Proposal a Novel Idea

The TPA proposal to establish a Non Territorial Community Council (NTCC)for the Indian Origin Tamils is a novel idea worth pursuing. It is hoped that the NTCC would become a reality after further discussions and possible modification. The setting up of a NTCC and its ramifications would be delved into in greater detail in a future article.

D.B.S.Jeyaraj can be reached at dbsjeyaraj@yhoo.com