“I’ll try to bring investors to Sri Lanka” – Erik Solheim

Eric Solheim played a critical role in Sri Lanka as peace negotiator during the civil war. Solheim returned to Sri Lanka at the invitation of President Ranil Wickremesinghe. Solheim has been assigned a new task by President Wickremesinghe. He has been appointed as an advisor on climate change to President Wickremesinghe. Following are excerpts of a brief interview done with Solhiem.

Q How does it feel to be back in Sri Lanka?

Let me start by telling you how happy I am to be able to come back to Sri Lanka. This is the most beautiful island in the world with so many great people and I’m happy if I can make a small contribution to help Sri Lanka to find a way out of the economic crisis, but a green way out of the economic crisis. Because there are so many jobs to be had if you move into renewable energy, electric mobility, tree planting and green agriculture. You can get out of the crisis economically providing jobs, but also being much kinder to modern earth.

Q The last time you were here was in 2006. What sort of changes do you see in the country since then?

I see a lot of positive changes. Of course I have this time only been to Colombo. There’s a completely new motor road from the airport to town. If you go around in Colombo you see a well-organised city. There are very few potholes and lots of skyscrapers and new and nice buildings have come up. So, I see a lot of development. Of course, I know that many Sri Lankans are suffering from power cuts, some people in the countryside may have difficulties getting enough meals a day, inflation is hitting a lot of people hard, so I know that many people are suffering. But I also want to celebrate the enormous progress in Sri Lanka since I was here last time.

Q So your last role in Sri Lanka was as a peace negotiator and now you are advisor on climate change. What do you expect to achieve in this new role?

All the main decisions will be made by the President and by the Parliament of Sri Lanka. I can only advise. I think I can bring the best practice from other parts of the world. Interestingly enough the two main developing countries, China and India, are now global leaders of environment putting out into practice green policies. I can bring the best knowledge from other parts of the world. I can help bring expertise and maybe I can also help bringing investors from Europe, China, India. Which can invest in solar energy and green hydrogen, in all the technologies which Sri Lanka will need to provide jobs for future generations of Sri Lanka.

Q Ranil Wickremesinghe seems to have taken a special liking towards you. You were peace negotiator when he was Prime Minister. Then he met you when you were the UN Executive Director for the Environment Program and he sought your assistance even then. Now he has sought your assistance again. This is coming at a time when there are other politicians in Sri Lanka who don’t really like you. So what does Ranil Wickremesinghe see in you that others don’t?

Well first of all, of course, I developed a very close relationship with Ranil Wickremesinghe through many years of peace talks. But I would add that contrary to what many people believe I have a good relationship with so many other Sri Lankan politicians. I met with Mahinda Rajapaksa and we gave each other a big hug. I of course know so many Tamil leaders like Mr. Sampanthan and Sumanthiran. So, my love is not for one particular politician, but for the nation of Sri Lanka and for the most beautiful island on planet earth. I’ve been asked by the President if I can help. Me and President Nasheed of the Maldives. This is to see if we can mobilise International expertise, knowledge and potential investment for the greening of not just Sri Lanka, but also for the greening of the entire region, Maldives, Seychelles, South Asian and the Indian Ocean.

Q So, Sri Lanka is trying to take a lead role in promoting a green economy in the region?

Absolutely. Of course the President is very dedicated to green development. I think he will make a very strong speech in the climate talks in Egypt next month where he will set out the need to place a much bigger emphasis globally on the environment, but will also try to put Sri Lanka in the lead role on this and that will happen when you invest heavily in renewables in Sri Lanka in the Greening of the land in tree planting, green agriculture, ecotourism. Tourism creates numerous jobs. I will do my utmost and appeal to every tourist to go back to this fantastic land. Of course tourists will also be doing better if people can come with good consciousness seeing this as a green tourist destination.

Q Climate change is something that Sri Lanka has not really taken very seriously in the past. What do you think Sri Lanka needs to do to face the impact of climate change?

First of all to see going green as an enormous opportunity. The Chinese President XI says green is gold. What does it mean? By going green they can create enormous prosperity, getting jobs and bringing all Chinese up to the middle class. India is also exactly the same. Prime Minister Modi is starting up new solar programs in India every day and there is so much happening in this space. He has launched a green hydrogen mission for India and all this is with the double purpose of going green and providing jobs and getting people out of poverty. So, I think Sri Lanka should take this lesson from both India and China to see how it’s an enormous opportunity for Sri Lanka to get out of the economic crisis, get everything into the middle class, but doing it by renewable energies and all the green technologies which are now available. Solar energy by the way is much cheaper than coal, so by going solar you do much better and you also save money and create more jobs.

Q Is Sri Lanka going too slowly in its attempts to reduce the dependency on coal power? Should Sri Lanka expedite the process to switch to renewable energy?

Absolutely, they need to do that, but not just Sri Lanka the entire world. Last year President XI of China promised that China will stop all overseas cold investments. That was the most significant decision for the environment done anywhere in the world that year. In India when Prime Minister Modi has launched the solar mission, green hydrogen mission, electric mobility mission. And the big players of the industry in India are reacting immediately and going very fast to green. So if we look into the next five years China will be the number one solar and renewable power in the world, India will most certainly be the second. But Sri Lanka can benefit from the examples by these two major nations. Of course Sri Lanka can also do better than them in certain areas.

Q You spoke earlier about the development that you see in the country. Since the end of the war Sri Lanka went through rapid development. We saw new highways coming up, bridges and other infrastructure. This seems to have been done at the expense of the environment. In places like Hambantota we saw highways being built, a new airport, etc. But at the same time forests were destroyed as a result. How do you see this?

I do not know what happened in all these cases in Sri Lanka, but that is the old development model. True in the 20th Century if we wanted to develop we couldn’t do it without a substantial degradation of a nature. If you really wanted to get rich you needed to destroy nature and they needed to build the development on fossil fuels and particularly on coal. But in the 21st Century solar is much cheaper than coal, so you save money, create more jobs and do better financially if you go into the solar industries. The Indian state of Telangana, which is one of the most modern, most fast developing states of India, has increased the tree cover by three percent over the last decade. Indonesia, which is also a very fast developing country, had zero deforestation last year which is such an achievement. Why? Because the government had put in place their drive policies and because all the big players of the industry understand that they can make the moment, they can have palm oil, they can have timber, but they can do all that without destroying nature.

That’s what’s new in the 21st Century. We have win-win policies. It’s good for nature, good for people and the economy at the same time. But this is also what happened basically everywhere in the world. Now in most nations, business is far ahead of political leaders when it comes to understanding the need to protect mother earth.

Q The economic crisis in Sri Lanka has gone from bad to worse. Are you considering getting involved in a big way there as well to help Sri Lanka?

I’m very happy to help Sri Lanka in modest ways; like helping to bring more tourists to Sri Lanka and helping to bring more green investment to Sri Lanka. But of course the negotiations with the International Monetary Fund and the big decisions on the economic development of Sri Lanka will always be made by Sri Lanka. No foreigner can help. But we need to understand our role and the decisions will have to be made by the President and by the Parliament.

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US Assistant Secretary for South & Central Asia arrives

US Assistant Secretary of State for South and Central Asian Affairs Donald Lu arrived in Sri Lanka on Wednesday (19) to discuss U.S.-Sri Lanka relations and Sri Lanka’s economic situation.

US Ambassador to Sri Lanka Julie Chung tweeted that she welcomed US Assistant Secretary of State for South and Central Asian Affairs Donald Lu/

Assistant Secretary Lu will meet with senior Sri Lankan officials to discuss ways in which the United States and Sri Lanka can promote economic stability, regional security, human rights, and responsive, transparent, and inclusive governance.

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Sri Lankan mission secures long-term credit from Russia

The Embassy of Sri Lanka in Moscow secured a long-term Credit Line from the Government of the Russian Federation

The Embassy of Sri Lanka in Moscow announced that on the 17th October 2022, a productive discussion was held with the Russian Government on the possibility of obtaining a long term credit line in order to procure fuel to Sri Lanka.

Ambassador of Sri Lanka to the Russian Federation, Prof. Janitha A. Liyanage attended this discussion representing Sri Lanka and emphasised the significance of such a credit line to Sri Lanka to procure fuel, especially at this trying time.

The mechanism of the said credit line and the modality to procure fuel from the Russian Federation were discussed at length with the Ministry of Finance of the Russian Federation.

From the Russian Government, Maksimov Timur, the Deputy Minister of Finance of the Russian Federation and Levan Jagaryan, Ambassador of the Russian Federation to Iran and a few officials representing the Ministry of Finance and the Ministry of Foreign Affairs were also present at the discussion.

The Embassy is of the view that this credit line facility will play an important role to make adequate fuel supplies available to Sri Lanka at a competitive price in the months to come

Sri Lanka firms could be hit from import ban, rising costs, rates: Fitch

About 50 percent of the companies could rated by Fitch could see their credit pressured if economic conditions worsens in the next 12 to 18 months, the rating agency said as Sri Lanka grapples with the worst currency crisis in the history of its central bank.

Sri Lanka printed money for two years to keep rates down on top of a tax cut for ‘stimulus’ which led to steady depletion of foreign reserves especially at the economy recovered from a Covid lockdown.

An extension of an import ban beyond the next six months, a further rise in interest rates, prolonged high inflation leading to difficulties in raising selling prices could hurt firms.

In April 2022 Sri Lanka defaulted on its foreign debt and has also tightened domestic payments.

“..[D]elays in receipts from government counterparties could lead to a rapid deterioration in some companies’ liquidity positions while leverage and interest coverage could weaken beyond our negative rating sensitivities,” Fitch said.

Many companies rated by Fitch had shown good results up to June 2022.

“Most rated corporates posted strong revenue growth and expanding margins in their June 2022 quarterly results due to inflation-led price hikes and sale of lower-cost inventory purchased prior to the sharp devaluation in the local currency in March 2022,” the rating agency said.

“However, the cost of new inventory has risen sharply since then, while high inflation and falling affordability will make it challenging to raise selling prices further.

“There is also a significant increase in operating costs, which will be reflected more acutely in the next few quarters, and it is likely to pressure cash flow.”

Sri Lanka has since raised energy prices and also taxes.

Govt under pressure to enact 22A

The ruling party is now under pressure to proceed with the enactment of the 22nd Amendment to the Constitution , particularly after Foreign Affairs Minister Ali Sabry briefed that the International Monetary Fund (IMF), the World Bank and the creditor nations are watchful on measures to improve democratic governance.

Minister Sabry is reported to have briefed the parliamentary group of the government on Monday evening in this regard.

He said that the western powers wield more power over these multilateral agencies and they are keen to see Sri Lanka enacting this piece of legislation.

He stressed the need for the government to enact the 22nd Amendment as part of reforms to qualify for any financial arrangement with the IMF. He said creditor nations such as India are also keen in this regard.

Justice Minister Wijeyadasa Rajapakshe also emphasized the importance of incorporating this piece of legislation into the Constitution.

Gampaha district MP Nimal Lansa also spoke in favour of the bill.

The ruling party MPs who are loyal to its National Organizer Basil Rajapaksa have expressed reservations about the bill. The bill will be taken up for debate in Parliament this week. It seeks to empower Parliament on the appointment of members to Parliament. Also, the bill seeks to bar dual citizens from holding parliamentary seats.

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Sri Lanka budget 2023 makes top allocations for defence, pensions, debt service

Sri Lanka is to present an Appropriation Bill to parliament detailing allocations for ministries and departments as the first step to presenting a budget for 2023 next month.

The Appropriation Bill which is to be tabled in parliament has allocated 613 billion rupees to the Finance Ministry which includes debt service costs.

The Ministry of Defence has been allocated 410 billion rupees, with the army getting 209 billion rupees, Navy 75 billion rupees and Air Force 66 billion rupees and a multi-task force started by President Gotabaya Rajapaksa getting 9.8 billion rupees.

The Ministry of Public Security has been allocated 129 billion rupees with 116 billion going to the Police. The police and military have received 539 billion rupees.

The Ministry of Health has been allocated 322 billion rupees.

The Ministry of Education has been allocated 232 billion rupees.

It is not clear whether the funds include money for provincial education and health.

The Ministry of Public Administration has been allocated 856 billion rupees of which 353 billion went to pensions.

The Ministry also runs provincial councils.

The transport ministry has been given 372 billion rupees.

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Supreme Court rules Chinese law firm is not entitled to engage in legal professional work in Sri Lanka

The Supreme Court today held that Baqian Law Group Lanka Pvt. Ltd, a Chinese law firm is not entitled in law to engage in any legal professional work within Sri Lanka.

Attorney at Law Nayantha Wijesundara had filed this Fundamental Rights petition challenging the decision of the Registrar General of Companies to incorporate a limited liability company which purports to provide legal services in Sri Lanka.

The Supreme Court further held that hold that the Registrar General of Companies has acted in violation of the law of the country when he had incorporated Baqian Law Group as a limited liability company under the Companies Act No. 07 of 2007 as itsprimary objective is illegal.

First reading of 2023 Appropriation Bill today (18)

First Reading of the Appropriation Bill for the year 2023 is scheduled to be presented on Tuesday (18).

This was decided at the Committee on Parliamentary Business held previously (07) under the chairmanship of Mahinda Yapa Abeywardana, Speaker of Parliament.

From 18th to 21st time is allotted from 9.30 am to 10.30 for Questions for Oral Answers.

It was decided to hold the debate on the Second Reading of the Petroleum Products (Special Provisions) (Amendment) Bill from 10.30 am to 5.00 pm on the 18th of October.

Thereafter, time has been allotted from 5.00 pm to 5.30 pm for the Motion at the Adjournment Time brought in by the Government, the Secretary General said.

The Committee also decided to take into debate 6 Bills presented by the Ministry of Justice on October 19th from 10.30 am to 5.00 pm. Accordingly, Poisons, Opium and Dangerous Drugs’ (Amendment) Bill, Notaries Ordinance (Amendment) Bill, Powers of Attorney Ordinance (Amendment) Bill, Wills Ordinance (Amendment) Bill, Registration of Documents (Amendment) Bill, Prevention of Frauds Ordinance (Amendment) bill are scheduled to be taken up for debate.

From 5.00 pm to 5.30 pm time has been set aside for Questions at the Adjournment Time.

On October 20th and 21st from 10.30 am to 5.00 pm, the Second Reading debate on the Twenty- Second Amendment to the Constitution Bill is scheduled to be held. Thereafter, time has been allotted from 5.00 pm to 5.30 pm for the Motion at the Adjournment Time brought in by the Opposition.

Furthermore, a vote is scheduled to be held at the end of the debate on the Second Reading on the Twenty-Second Amendment to the Constitution Bill, which will be held on the 21st until 5:30 p.m.

Madras court observes Tamils from Sri Lanka can obtain Indian citizenship

The Madurai bench of the Madras High Court has observed that the principles of the 2019 Citizenship (Amendment) Act could be applied to Hindu Tamils who were forced to abandon Sri Lanka.

The single-judge bench of Justice GR Swaminathan held that although Sri Lanka is not covered under CAA, the Hindu Tamils in the Island country could obtain Indian citizenship under the Act as they were the “primary victim of racial strife.”

Notably, the humanitarian law brought in by the Modi government seeks to expedite the citizenship process for religiously persecuted minorities from Pakistan, Bangladesh, and Afghanistan who arrived in India as refugees before December 31, 2014. Though the persecuted Hindus of Sri Lanka currently do not fall under its ambit, the Madras High Court has asked the central government to decide on the matter within 16 weeks.

“Though Sri Lanka does not fall within the said amendment, the very same principle is equally applicable,” he said. “One can take judicial notice of the fact that the Hindu Tamils of Sri Lanka were the primary victims of the racial strife,” Justice Swaminathan noted.

The court was hearing a petition filed by S Abirami, a 29-year-old girl from Sri Lanka who moved to India due to ethnic victimisation. Abirami applied for Indian citizenship.

Abirami was born in a Trichy nursing home on December 14, 1993. She went to school in India, received an Aadhar Card, and has lived there for the past 29 years. Her efforts to get citizenship, however, were futile, so she filed the current petition.

The petitioner requested that the District Magistrate/District Collectors grant her permission to send her application for citizenship to the Central Government. She further requested that the Central Government issue orders within six weeks of receiving her application. Abirami’s plea stated that the Central Government should take note of the unique situation in which she is placed.

The single-judge panel noted that Abirami is the daughter of migrant parents and was born in India. The court went on to say that because she has never been a Sri Lankan citizen, the issue of renunciation does not arise. The court stated that if her motion is denied, she will become “stateless.”

Finally, the court asked the Assistant Solicitor General and the Additional Government Pleader to forward Abirami’s appeal to the Central Government for consideration and gave the latter 6 weeks to respond.

Notably, last year, the Centre for Democracy, Pluralism, and Human Rights (CDPHR), an organisation that advocates for equality, justice, and human rights, released a report on India’s seven neighbouring countries last year, emphasising major human rights crimes against minorities, particularly Hindus. According to the research, Sri Lanka is one of India’s seven neighbouring countries where Hindus have been persecuted for years.

The Center for Democracy Pluralism and Human Rights report has also raised concerns over the status of human rights and religious minorities in Sri Lanka. Talking about the civil war, the report suggested that at least 100,000 people lost their lives and 20,000 Tamils ​​disappeared in the 26-year-long civil war.

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Chinese model that Rajapaksas got wrong By RangaJayasuriya

China’s President Xi Jinping would be anointed for an unprecedented third term at the end of the 20th National People’s Congress that began in Beijing on Sunday.

In all substance, that move would take China’s political structure and its governing principles right into the reign of Chairman Mao Tse Dong, a period characterized by absolute leadership and cult worship of Great Helmsman, man-made famine and needless chaos of the Cultural revolution.

Xi borrowed from Mao’s textbook. He purged the party and military through the much-vaunted anti-corruption drive – through no research explains whether it resulted in a decline in high-level corruption in China

At the end of Mao Tse Dong’s death in 1976 – after 27 years at the helm of the party and the state, China descended into anarchy and jockeying for power by the party stalwarts until Deng Xiaoping, was brought back from ‘rehabilitation’ and appointed as the general secretary, and was later elevated as the paramount leader.
Deng who said ‘Mao was 70% right, 30% wrong’ – nonetheless took lessons from Mao’s mayhem and set up guardrails that would avoid the repetition of the tumultuous times similar under Mao due to the concentration of the power of the party under a single absolute leadership. He introduced a mandatory two-term limit for China’s presidency, the provision was incorporated into China’s constitution in 1982.

Also under the new reforms, the Politburo Standing Committee, the innermost sanctum of the Communist Party, was entrusted with the collective leadership of governing China. The General Secretary of the CCP, who ex-officio becomes the head of the other two key positions, the President of China and the Chairman of the Central Military Commission, was considered one among equal among the 6 to 9 members of the Politburo Standing Committee.
Alongside, China’s economic opening ushered by Deng’s economic reforms made China the juggernaut it is now. Political reforms provided a veneer of accountability and democracy in China’s monopolistic political system.
Deng – with the exception when the party elders clawed back to take control from moderates during the Tiananmen riots- and his successors, Jing Zemin and Hu Jintao played by the rule. Over the next three decades, economic opening deepened while the party went through a three-generation of leaders at the helm until Xi Jinping was elected the General Secretary of the CCP in 2012 and the President of China, the following year.

Xi borrowed from Mao’s textbook. He purged the party and military through the much-vaunted anti-corruption drive – through no research explains whether it resulted in a decline in high-level corruption in China, rival factions of the CCP were effectively silenced, some of the former top leaders, such as former security chief Zhou Yongkang, were imprisoned for life.

As it appears now, if there are any factions now, that is only those allied to Mr. Xi.

Xi also elevated himself from being one among equals to becoming the ‘core’ of the CCP and encrusted China’s constitution with the Xi Jinping thought.

He instructed the rest of the CCP politburo members to write proposals and confessions and send them to him for review before publication. The standing committee receded to a second pillar, looking more like other rubber-stamped institutions of the Chinese Communist Party.

He set the ground for the third term when the 19th National People’s Congress in 2017 voted en masse to remove the term limits of the presidency.

Thus a third term for Mr. Xi is a fait-accomplie at this week’s congress. The greater worry would be whether this would be a precursor for a presidency for life. Effectively, the political reforms of the CCP have not only come to an end, the party had reverted to decades into the past.

China set an unofficial retirement age of 65 for high officials of the party. Mr. Xi, 69 is immune to the rule.
However, the possible retirement of the rest of the politburo, who are all over 65, would leave Xi with a younger generation of new leaders. That would effectively make Xi, not just the paramount leader, but the Supreme Leader similar to one in the Iranian theocracy. On the other hand, if Xi decides to stick with the current members of the politburo standing committee, then that would lead to decades of stagnation of the party promotions.
China’s economic miracle was driven by a combination of economic factors as well as the determined low-key foreign policy and less adversarial foreign policy posture as personalized by Deng’s famous dictum, ‘hide your strength, bide for your time.’

However favourable economic conditions are evaporating and under Mr. Xi, China has become increasingly adversarial to the West, leading to foreign investors to flee, fearing the consequences of potential geopolitical upheaval.

Domestic economic conditions are no longer conducive. CCP was known as competent taskmasters, but Mr. Xi’s botched handling of the Zero covid policy has left a hole in that assessment. Youth unemployment is rising and the property bubble is about to pop.

In the absence of electoral legitimacy, CCP has relied on two primary forces to justify its model of government: performance legitimacy through the efficient delivery of economic growth; and Chinese nationalism.With the first layer of legitimacy under attack, it is likely to rely more on Chinese nationalism.

This week, China marks an end to four decades of political reforms of the CCP and the country. From Stalin to Mao to Hitler, authoritarian political systems that are at the behest of a single man have historically produced monsters

This is a recipe for dangerous foreign policy misadventure- more so in the light of the concentration of power under a single leadership of Mr. Xi. Russia is an example. Xi is not the only leader of a great power that got rid of the mandatory term limits.

After using Dmitry Medvedev, his former prime minister, as a stopgap president for one term in 2008-12, Vladimir Putin threw away pretence and signed a law in 2021 that would allow him to rule for two more consecutive terms, ending in 2036. Under the absolute leadership of Putin, Duma, the Russian Parliament became a rubber stamp and decision-making was undertaken in an echo chamber of yes-men, leading to the Russian invasion of Ukraine.
Similarly, with China’s belt and road confronted by potential sovereign defaults and the domestic economy stagnating, Mr. Xi may find recourse in Chinese nationalism and resort to an escalation over Taiwan, even short of a direct military confrontation. Even a mild misadventure over Taiwan would send geopolitical ripple effects, bringing nascent balancing arrangements, alliances and alignments into full effect, leading to Russian-style isolation of China. That would feed into further volatility.

This week, China marks an end to four decades of political reforms of the CCP and the country. From Stalin to Mao to Hitler, authoritarian political systems that are at the behest of a single man have historically produced monsters. Would China under Mr. Xi, with a modern economy, but sliding back into the quasi- Mao -Stalinist model of cult worship avoid this fate is a question that would decide the future not just of China, but of the whole world.

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