Paris Club proposing a 10-year moratorium on Sri Lanka’s debt -Report

Paris Club creditor nations are reportedly proposing a 10-year moratorium on Sri Lankan debt.

A report published by India’s Hindustan Times said in addition to the debt moratorium, the Paris Club has proposed another 15 years of debt restructuring as a formula to resolve the current financial crisis in Sri Lanka.

According to the report, the Paris Club has hinted that global south should also take a hair cut similar to the global north notwithstanding the inequitable distribution of wealth.

The proposal will impact both India and China with Sri Lanka currently in the process of hold discussions to restructure its external debt.

Sri Lanka has already reached a staff-level agreement with the International Monetary Fund but will be required to obtain debt assurances from countries like China and India to secure the bailout package.

The Paris Club has already indicated that it is prepared to restructure Sri Lanka’s debt.

UNP gearing for an election

The General Secretary of the United National Party, Palitha Range Bandara says they are preparing the party to face the next election.

Speaking to media at the UNP headquarters Sirikotha, General Secretary Palitha Range Bandara said they are in the process of selecting party organizers.

He said several rounds of interviews will be held to select new organizers.

Former State Minister Palitha Range Bandara said they are hoping to introduce new faces at future elections.

He added several members of other parties are in discussion to join the UNP.

UNP General Secretary Palitha Range Bandara added that party leader President Ranil Wickremesinghe has taken up the challenge of rebuilding the country.

SL refugees in Vietnam: Govt. in discussions to repatriate remains

The Government has begun discussions with the International Organization for Migration (IOM) and the Vietnamese authorities regarding options for the repatriation of the remains of a 37-year-old Sri Lankan male refugee who had died last month.

According to the Sri Lankan Embassy in Hanoi, the refugee, one of the 303 who were rescued while adrift in the South China Sea and handed over to Vietnam, had died of organ failure while receiving treatment at a local hospital after he had consumed hand sanitiser with another refugee.

When contacted, Sri Lankan Ambassador to Vietnam Prasanna Gamage told The Sunday Morning that the wife of the deceased had requested that the remains be repatriated to Sri Lanka.

“We are in discussions with local authorities and the IOM regarding possible options to repatriate the remains of the deceased,” Gamage said.

However, Gamage disputed allegations that the deceased and another refugee had attempted to take their lives.

“The information we have received so far from the local authorities and the IOM does not support that view,” he said, adding that the second person who had also consumed hand sanitiser had done so after diluting it in water and as such, he had been released from hospital after treatment. Gamage pointed out that repatriation of human remains was an expensive matter.

According to Gamage, some of the refugees had expressed their desire to return to Sri Lanka, in a shift away from their previous stance of wanting to make their way to Canada.

“Some have expressed their desire to return to the IOM. We have to wait for the process to be completed to know how many are keen to return. Then the embassy can finalise matters and explore repatriation options. This is normal. Also, it takes time to talk to them and for trust to build for them to express their desire of returning home,” Gamage said.

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Blinken and Sabry discuss debt restructuring and IMF deal

US Secretary of State Antony J. Blinken and Sri Lankan Foreign Minister Ali Sabry had talks in Washington on debt restructuring and the International Monetary Fund (IMF) deal.

Speaking to reporters ahead of his meeting with Sabry, Blinken noted that Sri Lanka and the US had almost 75 years of partnership with Sri Lanka.

“We’ll celebrate that next year, and of course we are working very closely together on issues of global import, including the climate crisis, where Sri Lanka has been taking some important steps to help the world address it. And of course the United States has been working closely with Sri Lanka in the midst of the serious economic challenges that Sri Lanka is facing,” he said.

Blinken said the US has provided some $240 million in assistance and loans, and both countries are also working together both to support economic stability but also political stability and progress.

Foreign Minister Ali Sabry said the US was one of the first countries to recognize Sri Lanka.

He appreciated the support given by the US during a very testing time for Sri Lankans.

“We were very happy. And then we have had a very good relationship. I must take this opportunity, Secretary, to pay my gratitude for American people and your administration, Biden administration, for a lot of support during a very testing time for Sri Lankans. So we are grateful particularly for your humanitarian support – loans, grants – and technical support. We are extremely grateful, and we are looking forward to work for even better relationship and particularly in the Indian Ocean and eastern Pacific,” he said.

The Sri Lankan Foreign Minister also thanked the US Treasury for playing a leading role in facilitating Sri Lanka to approach the IMF, restructure its debt, and to go to the board sooner than later in order to get the Extended Fund Facility (EFF) as soon as possible.

President’s call for talks on ethnic problem:No compromise, no solution -M.S.M. Ayub

During eighties Dr. Ananda Tissa de Alwis, the State Minister under the J.R. Jayewardene government was the Cabinet spokesman who conducted the weekly press briefings. State Minister was then a Cabinet portfolio that handled the media and related issues. Dr. Alwis then used to relate various interesting stories to the journalists apart from his briefings on Cabinet decisions and other related political matters.

Once he narrated a story off the record about a discussion in New Delhi between former Indian Prime Minister Jawaharlal Nehru and the then Sri Lankan Prime Minister Sir John Kotalawala. The discussion was centered around the issue pertaining to people of Indian origin in Sri Lanka who had become Stateless as a result of the Ceylon Citizenship Act of 1948.

Dr Alwis who was then the Private Secretary to the Sri Lankan Premier quoted the Indian Premier as saying “Mr. Prime Minister, despite your country being very small in size, it is not a huge problem for it to accommodate these people numbering little less than a million. But your Opposition would not allow you to do so. So do our Opposition in spite of our country being an extremely larger one compared to yours. Let’s hand over this problem to our officials who would hold talks on this matter until the end of time.”

We are reminded of Dr. Alwis’s story with the call by President Ranil Wickremesinghe to the political parties in Parliament to start negotiations in order to find a lasting solution to the ethnic problem. The history of the debate on the ethnic issue though involved mainly politicians harks back to 1920s when the ethnic representation was first introduced in the Legislative Council under the British Raj. However, it was a main subject of political discourse since late 1940s.

Since then historical agreements such as the aborted Banda-Chelva Pact, famous struggles like the Satyagraha campaign by the Federal Party leaders in 1962, a thirty-year long war, peace talks between armed groups and various governments, meddling by neighboring and powerful countries, inter-State agreements such as the Indo-Lanka Accord of 1987, so many rounds of negotiations between the minority groups such as the Tamils and Muslims and several Parliamentary Select Committees have marked milestones on the past trajectory of this debate.

After all these violent and peaceful efforts to resolve the ethnic conundrum since 1940s when the issue became a serious national problem, the debate still seems to have not moved from square one. Ironically, leaders of all ethnic groups still raise basic questions pertaining to the problem. Still many Sinhalese people and their leaders question if there is any problem that affects the Tamils just because they are Tamils. It was against this backdrop that President Wickremesinghe invited the political leaders to conduct another round of talks.

This pessimistic view towards the recent history might stand in the way to a negotiated settlement of the problem. Yet, negotiations are the only civilized means to resolve the problem. The pessimism is not due to the lack of trust in the President or any other individual, but the lack of trust in the sincerity of leaders of all communities that has been caused by the so-called efforts to resolve the problem, over a period of more than seven decades.
A mechanism of power devolution has been put in place for the past 34 years. Yet, Tamil leaders still insist on devolution of power as the only remedy for their problems without succeeding to convince the Sinhalese people. Similarly, Sinhalese leaders while representing provincial councils for the past 34 years argue that the concept of devolution would divide the country.

The political rivalry within leaders of same ethnic groups and lack of political will to take up challenges has superseded their genuine need to bring the problem to an end. The Tamil leaders who once rejected a federal solution to the ethnic problem now insist on federalism. If one group among Tamils now indicates at least a faint sign of compromising that stance, other Tamil groups will call them traitors. Similarly, Sinhalese leaders would have to accept the same title if they do the other way around.

Yet, there have been occasions where leaders of both communities have come closer to an agreement, but later they made them missed opportunities. For instance, President Chandrika Kumaratunga had presented a set of proposals in 1995 which was then famously called ‘the package.” Sri Lanka was described in it as a “Union of Regions” instead of a unitary State. Although Tamil leaders rejected it, the senior Advisor to the Liberation Tigers of Tamil Eelam (LTTE), Anton Balasingham during a ceremony to declare open the outfit’s courts complex in Kilinochchi in 2003 said that they could have accepted it. Ironically, it was the LTTE that had killed Neelan Thiruchelvam in 1999 for being one of the two architects of the “package.”

In December 2002 during the third round of the peace talks in Oslo between Prime Minister Ranil Wickremesinghe’s government and the LTTE, it was agreed to explore a solution under a federal framework. Not only Opposition parties refrained from agitating against the agreement, possibly due to war weariness, but also expressed concern when the LTTE announced that they would suspend talks with the government in April 2003. However, the LTTE themselves later rejected the agreement and resumed armed hostilities in late 2005.

Against this backdrop, Prime Minister Ranil Wickremesinghe’s government converted the parliament into a Constitutional Assembly (CA) in January 2016 in order to draft a new constitution with special focus on the ethnic issue. The Steering Committee appointed under the CA and chaired by the Prime Minister presented its interim report in Parliament in September 2017.

The report in its attempt to avert a clash over the concept of federalism described Sri Lanka as a “Ekiya Rajaya” in Sinhala and “Orumiththa Nadu” in Tamil which provoked both the Sinhalese and Tamil groups to reject the report. Although the Tamil National Alliance (TNA) and the ruling United National Party (UNP) had initially accepted the descriptions, the Constitutional reform process died a natural death following the UNP’s humiliating defeat at the 2018 local government elections and the subsequent turbulent political situation

Merger or demerger of Northern and Eastern Provinces is another tricky issue that has become a major stumbling block to the resolution of the ethnic problem. Unless the leaders of all three major communities in the country prepared to apply President Premadasa’s CCC formula (Consultation, Compromise and Consensus) in these issues, it would be difficult to prevent talks from dragging on until the end of time.

Besides, the President on Tuesday had made a statement which might have raised question about his sincerity in the minds of the Tamil leaders. Responding to a suggestion by former President Maithripala Sirisema that the District Development Councils (DDCs) with powers granted by the Constitution would be the ideal solution to the ethnic problem, President Wickremesinghe said he was prepared to implement it. Tamil leaders’ aversion to the concept of DDC came in a statement by TNA’s Batticaloa District MP Govindan Karunakaram who stated in Parliament that Tamils were disappointed by the statement made by the President who during the same debate in Parliament asked each party if they were prepared to accept “13 plus.”

DDCs had been instituted in 1981 and were replaced by the provincial councils and pradeshiya sabhas in 1987. However, the very party that introduced the system, the UNP did not like to allow the Tamils to experiment it. They sabotaged the first Jaffna DDC election in June 1981 by sending goons from Colombo during which the precious Jaffna Library was also torched. Tamil armed groups also wanted to scuttle the election.

Former President Ranasinghe Premadasa favoured the idea of devolving power to the districts instead of provinces until he started talks with the LTTE in 1989. It would be a gigantic task to convince the Tamil parties now to give up their federal demand for DDCs.

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IMF’s Georgieva to press for quicker action on debt relief with China

International Monetary Fund Managing Director Kristalina Georgieva said on Thursday that she will travel to Beijing next week with heads of other international institutions to press for quicker action on debt relief for poor and developing countries.

The meetings with the country’s leadership will focus on China’s economic, COVID-19 and debt relief policies and will include officials from China Development Bank and the Export-Import Bank of China, the IMF said.

“This is the first time, hopefully, we will be able to sit together and discuss the very pressing issues that China, and the world are faced with,” Georgieva told the Reuters NEXT conference.

Georgieva said that during the Beijing meetings she intends to discuss ways to accelerate China’s participation in debt relief for poor and developing countries as the world’s largest official bilateral creditor.

“I am very hopeful that when we have a chance next week to discuss these issues, we will continue on a path of finding better solutions and strengthening the capacity of the common framework to deliver,” she said, referring to G20 countries’ slow-to-launch common debt restructuring framework.

World Bank President David Malpass told the conference that he would join the discussions in Beijing, along with officials from the World Trade Organization, Organization for Economic Cooperation and Development and others.

Georgieva and Malpass have both called for reforms of the common framework to offer heavily indebted countries a freeze in debt service payments when they apply for debt relief and clearer timelines for reaching agreement on debt treatments.

Asked if China’s slowing growth would limit its appetite for agreeing to debt reductions, Georgieva said she hoped that China would act out of “enlightened self-interest” and strive to prevent debt issues in developing countries from deepening and spilling over to a global debt crisis. Such a crisis would inflict pain on borrowing countries, but would also negatively affect creditor countries, especially China, she said.

China’s COVID-19 restrictions and turmoil in its vast property sector have brought China’s projected growth rate back to 3.2% for next year — barely above global averages and a phenomenon not seen during the past 40 years, she said.

“We have relied on China for a significant increase in global growth,” Georgieva said. “Some 35% to 40% of global growth used to come from China’s growth and this is not the case now, and it’s not going to be the case next year.”

Source: News 1st

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Sri Lanka opposition MP suggests election commission behind local govt polls delay

Sri Lanka opposition legislator Anura Kumara Dissanayake suggested in parliament that the Election Commission, an independent body, and its chairman are conspiring with the government to delay the local government elections.

Speaking in parliament on Friday December 02, Dissanayake said that, as local government bodies should begin their sessions before March 20 next year, the Election Commission (EC) must publish a gazette calling nominations by late December or early January.

“The EC already has the authority to do this. I noticed that they had sought the advice of the Attorney General about some matters. They already have the authority. There is no need at all to seek the AG’s advice,” he said.

The National People’s Power (NPP) leader claimed that a conspiracy is afoot, with the possible participation of the commission.

“The EC can publish the gazette even tomorrow. It is clear that the EC is involved in some underhand conspiracy,” he said.

“The President must announce that the government will not be taking any decision that will violate the EC’s powers to hold the local government elections. The commission is looking at the government for a signal. It is looking at the government’s pulse,” he said.

The MP also suggested Election Commissioner Nimal Punchihewa’s impartiality is not guaranteed.

“We know where Mr Punchihewa worked before and at what party office. We know what chairmanship he held and what government and persons he worked with closely. He’s not an independent person,” claimed Dissanayake.

“So we have a reasonable suspicion that the EC and Punchihewa in particular are behind a conspiracy to delay the election,” he said.

Sri Lanka’s opposition parties and some civil society groups have been demanding an election — any election — banking on the eroded popularity of the once unbeatable Sri Lanka Podujana Peramuna, which critics say is now clinging to power and hiding behind President Ranil Wickremesinghe’s executive powers.

President Wickremesinghe recently told parliament that he has no plans to dissolve parliament anytime soon, which means a general election is unlikely for at least two more years.

Source: Economy Next

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U.S. Ambassador Chung meets TNA

U.S. Ambassador to Sri Lanka Julie Chung met with representatives of the Tami National Alliance (TNA) today (02 Dec).

Chung met with TNA MPs Govindan Karunaharan (Telo secretary general), Shanakiyan Rasamanickam, Charles Nirmalanathan and Shritharan Sivagnanam to hear the concerns of both the Tamil community and other minorities.

Taking to Twitter, the American Ambassador reiterated that advancements in human rights, rule of law and reconciliation amongst all communities within the country remain staples in the establishment of a stable and democratic Sri Lanka.

Source: Adaderana

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Reforms or a revolution?

The political situation of the country is in a state of extreme confusion. It can be said that the nature of the political power struggle in Sri Lanka has assumed a new and awfully complex form since the recent public uprising that caused the two Rajapaksa brothers to lose their positions. The series of events related to the Aragalaya that caused Mahinda to lose the post of Prime Minister and Gotabaya to lose the Presidency has led the people to believe that even a public uprising outside a parliamentary election could bring about a change in the government.

This situation has resulted not only in giving a new recognition to the Peratugami Party (The Frontline Socialist Party – FLSP) which stands for an arbitrary revolution outside the established constitutional framework but also to change the traditional dimensions of the political power struggle. The Aragalaya can be considered as a powerful public protest movement that initially arose from the people themselves without having the influence of political parties, against manifold and unbearable hardships that they had to suffer in the face of the country plunging into a state of bankruptcy.

Certain characteristics of the Aragalaya

But the Aragalaya, the mass protest movement soon fell into the grip of various political parties, power groups and even various foreign forces, directly and indirectly. This situation increased the strength, appearance and the public base of the Aragalaya enhancing its ability to hold onto it persistently. The social oppression based on the issues of caste, ethnicity, religion and gender worked as an important factor that strengthened the Aragalaya. There was a close interrelationship developed between the activists of the Aragalaya and the YouTubers.

The YouTubers functioned both as guides to the Aragalaya and the conveyors of its message to the masses through the Internet, simultaneously. At the same time, the YouTube reporting also served as an important means of generating a considerable income for them. In order to maximise their income, most of the YouTubers ran their reporting, resorting to the ways that aroused the sentiments of the viewers and exaggerated the incidents in violation of the accepted principles and ethics of reporting. Many of them painted an emotional picture often with profane and subliminal effects of the incident instead of offering the public a realistic picture of the Aragalaya.

The slang language used by many of them in reporting, which was intentionally meant to hurt, insult, slur and offend, could be considered as a derogatory and lumpen-style language. This derogatory language has already become the popular language style used in public debates; it appears to have pervaded across the debates of the Parliament also, to some extent.

The military arm of the struggle

It is said that there was a military hand also behind the incidents that influenced the removal of Mahinda first, and Gotabaya subsequently from the positions they held. It was not something heard at the time, but a story that came up later. If it is true, it can be said that the political power struggle in Sri Lanka has assumed a more complicated and destructive face than what has been analysed at the beginning of this article.

Ranil Wickremesinghe, who had only one seat in the Parliament was first elected as Prime Minister and then elected the President by the Parliament, can be considered as a wonderful event that happened during this crisis. It seems that Ranil believed that he would be able to make the main opposition also a part of the government to overcome the crisis. A large number of people left the Aragalaya after he was elected the President. Consequently the scale of the struggle diminished to a large extent, but there was a group that stayed with it to continue the struggle.

Since then the Peratugami Party became the main Party that led the struggle while the Inter University Students Federation (IUSF), the largest student led organisation in Sri Lanka became the main organisation that mobilised the manpower needed for the struggle. The new president soon became a political figure that came under strong protest of the Aragalaya activists as he followed a strict policy to suppress the protest movement continued by them.

With the arrest and detention of Wasantha Mudalige, the convener of the Inter University Students Federation (IUSF), under the Anti-Terrorism Act, he has become the most distinguished leader of the Aragalaya now. It seems that the President has thought that the Aragalaya could be ended by adopting a policy of isolating and attacking the activists of the Peratugami party. But it was not possible to do so as the leader of the SJB stood for the protection of the Peratugami party.

Real nature of the power struggle

The government of the Podujana Peramuna, despite having the majority in the parliament, is in a dilapidated state where it has lost the public acceptance to a large extent, following Mahinda and Gotabaya being deprived of the premiership and the presidency respectively. It seems that a large group of members of the ruling party have rallied round President Ranil Wickremesinghe. In terms of public acceptance, Samagi Jana Balawegaya (SJB) can be considered as the most powerful party in the opposition at the moment. The JVP can be considered the next most powerful party in the Sinhala areas.

The Peratugami party can be considered as a party that has recently entered the political power groups through the Aragalaya. The followers of the Peratugami party stand for a socialist state. They strongly expect to secure power through a people’s revolution without depending on a constitutional framework. Compared to the previous JVP, it can be considered as a small political movement, but due to the Aragalaya, it can be said to have been able to change that situation to some extent and grow its strength to a certain level, although not as big as the JVP.

The SJB, with the view to overcoming the pressure it has had from the JVP, opted to cooperate with the Peratugami party which the JVP considered to be an opponent of them. This situation strengthened the power base of the Peratugami party and created a situation where it was not easy to suppress them. That is why the President’s policy of isolating the Peratugami party and attacking them proved to be ineffective. Due to the alliance built between the Peratugami party and the SJB, the supporters of the SJB are also actively involved in the protest movements launched by the Peratugami party. It has led to giving a prominent look to the Peratugami party.

It seems that the Peratugami party has a closer relationship with Field Marshal Sarath Fonseka than it has with the SJB. Sarath Fonseka is a person who has supported the Aragalaya and continues to do so, and thinks that there is nothing wrong in seizing power outside the constitutional framework, if it is possible, and for the sake of the common good. Accordingly, it seems that there have been major changes in the political thinking of the main opposition party in the country. When all these trends are taken together, it appears that the political power struggle in Sri Lanka is pushing itself beyond the traditional democratic path. Under the circumstances, there is a possibility that the political power struggle will be pushed into a situation that will cause big conflicts and chaos in the struggle for power.

The path to be chosen

The Samagi Jana Balawegaya (SJB) expects an early parliamentary election, but it is unlikely that the President will allow it. The President can dissolve the Parliament after two and a half years if he wants to; but if the president does not do so, then the parliament can be dissolved by a resolution passed by a two-thirds majority of the members of the parliament. Needless to say, that would be impossible. Although the president was elected by the parliament, he has all the powers of a president. He could be removed from office only by an impeachment passed by a two-thirds majority. Needless to say, that too, is not possible.

It seems that the president, while rescuing the country from the balance of payments crisis, and effecting important reforms that will have a positive impact on the public, is looking forward to building a large public base and holding the next presidential election before the parliamentary elections and winning it. Does the opposition possess the ability or patience to remain out of power until the elections are held as stipulated in the constitution? Otherwise, if the opposition attempts to seize power through a public uprising, it could certainly lead to a great devastation.

After the country fell into bankruptcy, what the government, the main opposition and all political parties should have done was to join hands and direct the country towards adopting a reform program that would lead to a profound and positive change in the system to overcome the failure, bankruptcy and collapse facing the country. There was a possibility of holding an election as a part of the proposed reform program. But, due to narrow attitudes and greed for power that reign in the political arena, the country is now moving on a path of chaos, instead of moving onto the path of reforms which the country needs badly at the moment.

If an attempt to seize power outside the constitutional framework succeeds, it will invariably cause a great destruction to the country. Even if a powerful attempt to seize power outside the constitutional framework is defeated, that too, will cause great destruction to the country. The country can be prevented from plunging into such an unfortunate and extremist position, only by choosing the path of reforms instead of the path of revolution.

Source: Daily FT

Political reforms need to accompany economic reforms in SL: Samantha Power

United States Agency for International Development (USAID) administrator Samantha Power yesterday emphasised that political reforms need to accompany economic reforms in Sri Lanka.

USAID Spokesperson Jessica Jennings said Samantha Power met with Sri Lanka’s Foreign Minister Ali Sabry yesterday to further USAID’s understanding of the Government of Sri Lanka’s priorities and reforms to address the country’s economic crisis.

The two discussed how USAID can support a viable path forward for Sri Lanka’s recovery and growth.

Administrator Power, who visited Sri Lanka in September, reiterated the U.S. commitment to supporting Sri Lanka to help resolve its complex crisis, including addressing the urgent needs of Sri Lanka’s most vulnerable and marginalized communities.

She underscored that political reforms need to accompany economic reforms in Sri Lanka. USAID remains committed to further cultivating its longstanding partnership with Sri Lanka to help secure peace and prosperity, Jennings said.

Source: Daily Mirror