Category: News

SJB says it will go ahead with EFF with amendments, JVP critical of ongoing programmes
The Janatha Vimukthi Peramuna (JVP)-led National People’s Power (NPP) has declared it has no issues dealing with the International Monetary Fund (IMF), but the global institution’s programmes should be in keeping with the national interest.

Former MP and JVP’s economic affairs spokesman Sunil Handunneththi, who took part in the discussions with the IMF delegation, told the Sunday Times that the party’s position was that it was not opposed to dealing with the IMF but would call for drastic changes in keeping with national responsibility.

“We told the IMF delegation to have talks with us even if there are differences between us in the future,” Mr. Handunneththi said.

“We pointed out that despite implementing laws such as the anti-corruption act to achieve the targets of the IMF, corrupt

practices continue. Among them have been the sugar scam and the malpractices in the purchases of pharmaceuticals,” he said.

The former MP said they pointed out to the visiting delegation that only the burdens had been heaped on the people, but the objectives had not been achieved. “We also said that if the people are taxed heavily, they should be provided with other benefits as well.”

He said they did not go into discussions about future dealings with the IMF under an NPP-led government.

JVP Leader Anura Kumara Dissanayake was not present at the talks.

Meanwhile, the main opposition, Samagi Jana Balawegaya (SJB), told the IMF delegation that it would go ahead with the existing Extended Fund Facility (EFF) framework signed by the government with the international financier in the future, subject to certain changes if the party were to form a government following elections later this year.

On Thursday, an IMF delegation led by Senior Mission Chief for Sri Lanka, Peter Breuer, met the SJB delegation led by Opposition Leader Sajith Premadasa and representatives of the JVP-led NPP separately as part of their engagements with opposition parties.

During the discussion with the SJB, the IMF delegation directly posed the question of how the party was planning to restructure the current EFF agreement in the wake of Opposition Leader Premadasa declaring at a public meeting that a future SJB government would revisit the programme.

“We have told them, ‘Look, we will make changes based on our party’s proposals to reduce the tax burden on the people,’” SJB MP Dr. Harsha de Silva, who took part in the meeting, told the Sunday Times

He said there was a mutual understanding between the two parties to “continue the exiting programme without major disruptions” in a future SJB government while discussing the alternative proposals the party came up with to reduce the tax burden on the people.

“Both parties also acknowledged the need for and complexities involved in the debt restructuring process and how crucial they were,” Dr. de Silva said.

“We have explained to them in detail our party’s proposals and plans to reduce the tax burden on people by adjusting the tax collection to make it palpable to people while achieving revenue targets. Since we have recalculated the tax collections based on proposals in the economic blueprint of the party, we have already submitted them to Parliament,” the SJB MP said.

Among the key proposals that were discussed at the meeting included amending the current Pay As You Earn (PAYE) tax to 24 percent from the current rate of 36 percent and with regard to Value Added Tax (VAT) which saw an increase up to 18 percent from January 1, the party is sticking to former Finance Minister Mangala Samaraweera’s policy decision of keeping the rate at 15 percent.

The SJB also indicated that ad-hoc tax holidays given to various entities would have to be reconsidered as well.

Neither the NPP nor the SJB issued a formal statement on the talks.

Meanwhile, Mr. Breuer said on Friday that Sri Lanka’s staying in the economic reform process supported by the IMF was necessary for stabilisation to evolve into broad-based and steady growth that would ensure a full and lasting economic recovery benefiting the people.

In this context, sustaining the reform momentum and ensuring timely implementation of all programme commitments were critical to rebuilding confidence and putting the recovery on a firm footing that would benefit all people, he said.

The economic reform programme implemented by the Sri Lankan authorities was yielding the first signs of recovery, with positive real GDP growth in the third quarter of 2023, low inflation, increased revenue collection, and a build-up of external reserves, Mr. Breuer said.

“The authorities have made commendable progress in putting debt on a path towards sustainability. The execution of the domestic debt restructuring was an important milestone,” he told journalists.

“So our understanding is that negotiations are ongoing, proposals are being exchanged, and it is important that the process continue and be completed as quickly as possible. It’s our strong expectation that there would be an agreement in principle by the time of the second review,” he said.

A swift completion of final agreements with official creditors and reaching a resolution with external private creditors remains critical.

“Progress in meeting key commitments under the reform programme has been assessed in the context of the second review of the Extended Fund Facility (EFF) arrangement alongside the forthcoming 2024 Article IV consultation assessing Sri Lanka’s economic health during the IMF team’s eight-day visit in the island.

“However, challenges remain as these improvements need to translate into improved living conditions for Sri Lanka’s people.

“Swift progress towards the introduction of a progressive property tax is key to ensuring fair burden sharing while sustaining revenue-based consolidation,” the senior IMF mission Chief said.

“Tax policy measures need to be accompanied by strengthening tax administration, removing tax exemptions, and actively eliminating tax evasion to make reforms more sustainable and to further build confidence among Sri Lanka’s creditors to regain debt sustainability to gain their support,” he added.

“Swift progress towards the introduction of a progressive property tax next year is key to ensuring fair burden sharing while sustaining the revenue-based consolidation.

“The property tax is to be enforced in 2025 as a progressive way of taxation. Meaning that those who can afford it more, those who have more expensive houses or property, will have to pay a higher tax,” he explained.

It was nearly two centuries ago that a British statesman uttered these words about politics. It has since reverberated in the dovecotes of political power although its complete relevance now stands to question.

Henry John Temple, the Third Viscount Palmerston, in the 19th century, declared that in politics, “there are no permanent enemies, and no permanent friends, only permanent interests.”

The axiom seems to have outlived itself. Reflecting a contemporary political scenario that goes beyond applies to the ruling Sri Lanka Podujana Peramuna (SLPP). Their onetime political enemies have become its nowadays friends. Those who became friends by contesting the August 5, 2020, parliamentary elections under the SLPP label are now splintered and become enemies. These have changed what seemed once their permanent interests.

For the ruling coalition, the metamorphosis came in July 2022. Violent protests, mostly in the streets of Colombo, prompted President Gotabaya Rajapaksa to flee Sri Lanka and later resign. His resignation letter, which ended his controversial and authoritarian governance, came from Singapore. Another sample of how that was carried out came in a judgment from the Supreme Court, last Wednesday. It was over the pardon he gave to one of his then confidants, Duminda Silva, and later ensconced him in a government job. The country’s highest judicial institution ruled that Gotabaya Rajapaksa’s “decision is arbitrary, irrational and has been made for the reasons best known to the former President who appears to have not even made any written decision and has not given any reason thereto. Further, no reason can be discerned from any document submitted by Hon. Attorney General as forming part of the record pertaining to the impugned grant of pardon.”

That Parliament voted Ranil Wickremesinghe as President to complete the remaining term of Gotabaya Rajapaksa in July 2022 is now history. Wickremesinghe’s priority was to pull the country out of the bankruptcy his predecessor had plunged. To any discerning observer, it became abundantly clear, he had to veer away from the economic policies of the SLPP government. A string of unpopular decisions came pitting President Wickremesinghe against the public. Electricity rates went up and over half a million consumers have so far asked for disconnection of their power supply. The reason—they just cannot pay the higher tariffs. Amidst other price increases came a spiral in Value Added Tax (VAT) which encompassed a broad range of items. The latest is the proposed introduction of a property tax anytime now. This is on the advice of the International Monetary Fund (IMF).

It was in November last year that Mahinda Rajapaksa, former President, and leader of the SLPP, first struck a discordant note. He blamed the previous United National Party (UNP) government for opting for a “high tax regime” after 2015 thus forcing the decline precipitously ending up at 0.2 below zero by 2019. He pointed out that “due to bad economic management, the period from 2015 to 2019 saw an increase in taxes while at the same time experiencing a precipitous increase in foreign debt. When I was voted out in January 2015, the outstanding International Sovereign Bond debt was only US$ 5,000 million, he pointed out. So, he made out that the cause of the economic crisis lay in the hands of a UNP regime.

A significant paragraph in that statement, which perhaps did not draw much attention then, said: “The SLPP which I lead is part of the government. However, the present Head of the Government and Head of State is the leader of a different political party with different policies. In a situation where this country was faced with complete anarchy, Parliament elected a President to serve the remainder of President Gotabaya Rajapaksa’s term. The new President successfully restored law and order in the country. He is now directing government policy as the Executive President. At this moment, the primary duty of the SLPP is to ensure a stable government until the next national elections.”

Rajapaksa has acknowledged that President Wickremesinghe is the leader of a different political party “with different policies.” Even more importantly, his SLPP parliamentarians have endorsed and helped enforce such policies. Those remarks highlight that the SLPP policies were quite different from those pursued by the President. Those assertions set the mood in the party. It is against this backdrop that the SLPP held its special convention on December 15, last year, at the Sugathadasa Indoor Stadium in what was viewed as the soft launch of its presidential campaign. More so when it had already held its fifth annual convention in November 2021.

This event saw the emergence of millionaire businessman and casino owner Dhammika Perera. Interestingly, at a news conference, SLPP General Secretary Sagara Kariyawasam told reporters that his party had agreed on Dhammika Perera and four others as presidential candidates. One of them would be finally selected, he declared. He, however, did not name the other three. Amidst this, Perera also figured in a media campaign promoting his role as a key player in developing computer technology. The idea was to find more jobs for the youth. He had also initiated a dialogue with politicians of the ruling party to secure its support and to launch a countrywide campaign. This week, he flew to London interrupting all this.

Social media sites backing him reported yesterday that he was taking a “respite” from the Presidential election campaign.

Significant enough, there appears to be a change of position in the SLPP. Notwithstanding what General Secretary Kariyawasam said at a news conference, a new party line was spelled out by Mahinda Rajapaksa, the leader of the SLPP. He declared this week that they had not decided on a candidate. It was made at a ceremony at the Grand Monarch Hotel on January 14. A more important assertion he made was that the SLPP had also not decided whether it would field a candidate. The sting is in this remark. Firstly, in making these remarks, Rajapaksa has made clear party secretary Kariyawasam’s assertions which included the consideration of Dhammika Perera, and three others are no longer valid. In other words, a formal decision, officially spelt out as the party position at a news conference, has been changed. One is not wrong in saying that Rajapaksa has contradicted the claim by his own party’s General Secretary in spelling out a new SLPP position. It goes without saying that SLPP policies will not stand in the way.

How did this shift come about, significantly ahead of the upcoming presidential polls? At least two different sources familiar with the developments confirm that there has been a policy shift on the part of the SLPP. “As things stand now,” one source said, “the party is inclined not to field a presidential candidate.” The idea is to help enhance Wickremesinghe’s vote bank. An unexpected benefit to the SLPP because of the move is keeping the remaining parliamentarians, after some broke away, within the party’s fold. In addition, this will also preclude them from joining the New Alliance that has been formed by Gampaha district parliamentarian Nimal Lanza. Earlier, they were known to have 29 parliamentarians mostly from the SLPP.

The test of strength will come when they hold their first rally in Gampaha on January 27. Former minister Anura Priyadarshana Yapa is the leader of the New Alliance. As previously reported, Lanza has been working from the Presidential Secretariat to garner support for his alliance and has been engaged in wooing those from the SLPP, their trade unions and other bodies.

In such circumstances, why can’t the SLPP support Ranil Wickremesinghe’s candidature openly? The answer came from another source. “Here again, the fear is the prospects of the party being divided in the middle. There are members and followers who do not favour the party supporting the candidature of a leader of another political party who had remained opposed to the SLPP,” said this source. “This way,” the source added, “the likelihood of a greater majority of the SLPPers supporting Wickremesinghe is high.” Nevertheless, a bigger question on whether any of the SLPP leaders will join Wickremesinghe’s campaign, even during the final stages, remains unanswered. He has already won some leverage by not contesting on the UNP ticket and coming forward as the candidate of a “grand alliance.” A name, however, must be found. Another reason for remaining “neutral,” at least officially, is to obviate opposition criticism that Wickremesinghe has been protecting the interests of the Rajapaksas since he became President. Open support to his election campaign, it is argued, will give the opposition parties a handle to claim that the accusations have now been proved.

It is too early for one to discern the final line up of candidates or the different alliances that are being formed. It is known that the main opposition Samagi Jana Balavegaya (SJB) candidate will be Sajith Premadasa, the Leader of the Opposition. He told a series of meetings in the North Central Province that his grouping is ready to face any election. “The President is going around saying he is preparing for the presidential election and is trying to get the views of the public. The UNP and the SLPP are already confused about an independent candidate,” he claimed. Premadasa’s supporters in Parliament have increased with a foursome – G.L. Peiris, Dilan Perera, Nalaka Godahewa and Wasantha Yapa joining the SJB.

There were moments of embarrassment for those in the Freedom People’s Congress (FPC) led by Dullas Allahappereuma. Peiris had sent his car to the Third Lane, Nawala office of the FPC asking for the return of all his belongings. A thoughtful member of the administrative staff formulated a list and ensured that the driver acknowledged the receipt of all items. Among them was a smart TV, a toolset, cables, a TV monitor, a sound system with a sub-woofer, a microphone with a stand and a variety of cables.

With more than seven months to go for the scheduled presidential elections, social media is full of surveys from different organisations, some lesser known. Most of these have been placing the Janatha Vimukthi Peramuna (JVP)-led National People’s Power in the lead followed by the Samagi Jana Balavegaya (SJB). The veracity of some of these surveys remains in doubt and in the case of some others the statistics are not backed up. However, the surveys have influenced the propaganda lines of President Wickremesinghe’s campaign. The soft election campaign by those who are setting up a grand alliance is being directed at the NPP.

With the presidential election in mind, President Wickremesinghe is expected to spell out the measures he adopted to resuscitate a bankrupt economy when he ceremonially opens Parliament on February 7. There was an error in last week’s report in these columns that the prorogation will take place on January 26. It will take place on January 24. The last date for the sitting of Parliament in January has been determined by the Parliamentary Business Committee chaired by Speaker Mahinda Yapa Abeywardena. The Committee met on January 12 and decided that since January 25 is a Poya Day and public holiday, there would be no sittings of Parliament on January 26 or the next day as expected. Thus, the last day of sitting for January was determined as January 24.

In a surprising declaration, the Chief Incumbent of the Mihintale Rajamaha Vihara temple, the Venerable Walawahengunawewe Dhammarathana Thero, has asserted that a new presidential candidate will be unveiled for the upcoming elections. The announcement was made during a gathering at the historic temple, a revered site with deep historical and cultural significance.

According to the venerable monk, all 225 Members of Parliament have been rejected by the people, and in light of this, plans are underway to introduce a fresh candidate once elections are officially declared.

“People of this country have been deceived for 75 years. We will create a new candidate. None of the existing candidates will provide solutions. Ask the President to call for an election. We will bring the candidate,” stated the Thero

Tamil Nadu Chief Minister M.K. Stalin urged Union External Affairs Minister S. Jaishankar to ‘strongly take up the matter with the Sri Lankan Government’ for the immediate release of all the Indian fishermen and their fishing boat apprehended in two back-to-back incidents during the Pongal season.

‘With a sense of deep anguish, I would like to draw your attention to the repeated apprehensions of fishermen and their fishing boats by the Sri Lankan Navy,’ Stalin said in his letter to Jaishankar on Wednesday.

Ten fishermen who ventured into the sea on January 13 from Nagapattinam Fishing Harbour were apprehended on January 15 along with their mechanized fishing boat bearing Registration No.IND-TN-06-MM-870 and 18 fishermen from Pamban, Ramanathapuram, along with their two mechanized boats bearing Registration Numbers IND-TN-10-MM-2673 and IND-TN-10-MM-2677 were apprehended on January 16, he said.

‘These apprehensions have created an insecure atmosphere among the fishing community who are solely dependent on fishing for their livelihoods. As there appears to be no respite in the arrests it is important to impress upon Sri Lanka to refrain from these arbitrary arrests and detentions of boats and to set a clear timeline to release all the boats under their custody, Stalin said.

Source: News Today

In anticipation of the upcoming Presidential Elections scheduled towards the end of the year, the political arena is witnessing a flurry of activities as various parties and groups strategically position themselves for the impending electoral contest.

The National People’s Power (NPP), led by the Janatha Vimukthi Peramuna (JVP), has taken an early plunge into the electoral fray by announcing Anura Kumara Dissanayake as its presidential candidate and conducting countrywide rallies. Sajith Premadasa, the Opposition Leader, is widely expected to lead the charge for his Samagi Jana Balawegaya (SJB).

The United National Party (UNP) has thrown its hat into the ring by nominating its leader, President Ranil Wickremesinghe, as the presidential candidate. With this development, the political landscape is shaping up for a three-pronged contest.

It is not yet clear whether the Sri Lanka Podujana Peramuna (SLPP) led by former President Mahinda Rajapaksa will field its own candidate or back President Wickremesinghe who is in alliance with the party in the government.

The NPP is going around the country with major election rallies. They have started the campaign earlier than others and even created a kind of a momentum triggering doubts whether they will be able to sustain it in the long run. The proclamation announcing the presidential election has to be issued only in the middle of September 2024 in accordance with the constitutional provisions.

It means there are eight more months for the election. As such, the political parties have swiftly launched into action. The SLPP, as a party, slipped out of the public eye in politics in the face of severe economic woos that even led to the untimely of resignation Mr. Gotabaya Rajapaksa from office. Recently, the party conducted a workshop for its activists primarily to educate them on how to counter allegations against it over the present economic predicament of the country. The workshop was organized with the involvement of MP Namal Rajapaksa. It is a strategy to position the party well ahead of the elections and strengthen the rank and file ideologically – albeit challenging it be.

Next, the party is planning to educate its leaders at the local level. The party is not prepared to initiate a fully-fledged election campaign at the moment, since it is impractical to sustain such a movement for eight months. It has not yet declared its presidential candidate, though. However, political indications lead to the conclusion that it will back President Wickremesinghe.

Besides, the political group led by MP Anura Priyadharshana Yapa will launch its electoral addresses on January 27 in Ja-Ela, Gampaha. That is to galvanize the electoral support of people for the possible candidacy of President Wickremesinghe. The group is also planning to form an alliance ahead of the elections. As the political chessboard continues to evolve, these early moves and strategic alignments set the stage for a gripping presidential contest in the months to come.